Halfway through the year, you have six months of real numbers and six months left to act on them. A mid-year review checks profit, cash, your tax set-aside and your pricing against the plan. It takes an hour if your books are current.
Start with current books
A review is only as good as the numbers under it. Before you sit down, confirm every account is reconciled through May or June. Here's what reconciled means and why it matters.
What I'd check
- Revenue for the first six months against your goal for the year.
- Members at the start of the year, members today, and how many left.
- Expenses that grew faster than revenue.
- Your cash balance against your floor.
- Your tax set-aside against what your CPA expects you to owe.
- What you've taken out as owner pay so far.
Compare the halves
In a made-up example, your goal for the year is $360,000 in revenue. Through June you've brought in $162,000. That's $18,000 short of the $180,000 halfway mark. To hit the goal, the second half has to bring in $198,000, or $33,000 a month instead of $27,000. Now you know whether the goal needs more members, a price change or a new target.
Check the tax set-aside
If profit is running ahead of last year, your estimated payments may be too low. Send your CPA the six-month P&L and ask whether the September and January payments should change. This post covers estimated payments.
Look at pricing and costs
Mid-year is a good time to look at revenue per member and any cost that jumped. If a price change makes sense, you have time to announce it well ahead of January. Here's how to model one.
Write down three decisions
A review that ends without a decision is a report. I'd leave with three: one about revenue, one about costs, and one about cash or taxes. Put a date next to each.
Look at the members who left
Members who left in the first half tell you something. Look at when they left and, if you know, why. A cluster of cancellations after a price change, a staff change or a gap in availability is worth a closer look. A steady trickle is normal. If you don't track why members leave, start now with a single question when someone cancels. Six months from now you'll have a pattern instead of a guess.
What I'd do this week
- Ask your bookkeeper for a six-month P&L and Balance Sheet.
- Put this year's first half next to last year's first half.
- Send the P&L to your CPA with one question about your estimates.
- Write your three decisions and put them on your calendar.
Common questions
Is mid-year too late to change anything?
No. Six months is enough time to adjust pricing, costs and your tax payments. Waiting until December leaves you far fewer options.
What if my books aren't current?
Get them caught up first. A review built on unreconciled books can point you in the wrong direction.
Should my CPA be part of the review?
For the tax part, yes. Send them the six-month numbers and ask whether your estimated payments still fit.
Want your mid-year numbers ready when you are?
We reconcile every account every month and send your P&L and Balance Sheet by the 15th, so decisions like this start from real numbers. If that's what you need, apply to work with us.