Mid-Year Financial Review: Why June is the Perfect Time to Assess Your Business Health

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As we reach the halfway point of 2025, June offers a critical opportunity for UK business owners to pause and conduct a thorough mid-year financial review. Taking stock of your business’s financial health now can help you identify strengths, address challenges early, and set a clear course for the remaining months of the year.

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Why Conduct a Mid-Year Review?

A financial review in June provides valuable insights beyond your annual accounts. It enables you to:

• Assess Cash Flow: Understand your inflows and outflows, ensuring your business has sufficient liquidity to meet upcoming expenses and investments.
• Evaluate Profitability: Identify which products, services, or departments are performing well and which may need adjustment.
• Review Budget vs Actuals: Compare your financial results against your original budget or forecast to spot variances and adjust your plans accordingly.
• Plan Tax and Compliance: Get ahead with tax planning, including estimating corporation tax liabilities and preparing for upcoming VAT and payroll deadlines.
• Inform Strategic Decisions: Use financial insights to guide decisions on hiring, capital expenditure, marketing, or expansion.

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Key Areas to Focus On

1. Financial Statements: Review your profit and loss statement, balance sheet, and cash flow statement to get a complete picture.
2. Receivables and Payables: Check outstanding invoices and supplier payments to maintain healthy working capital.
3. Budget Review: Update budgets to reflect actual performance and any changes in the business environment.
4. Tax Planning: Consider tax-efficient strategies, such as capital allowances or pension contributions, to optimise your tax position.
5. Forecasting: Develop revised forecasts for the second half of 2025, incorporating current trends and market conditions.

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How We Can Help

Mitchell Associates Chartered Accountants are here to support you with comprehensive mid-year reviews tailored to your business needs. Our expert team can help interpret your financial data, identify opportunities for improvement, and ensure you stay compliant with all regulatory requirements.