With 2019 halfway over, it's a great time to take stock of how your business has done for the first half of the year and make any necessary adjustments to meet your financial goals for the entire year.
How are your tracking with your competition? Is your gross profit margin within industry ranges or below? What about your net profit? What about your overhead per employee?
Are you on track to make your 2019 revenue number? The first step is to check your 2019 budget numbers for total revenue. (Don't have a budget? - Check with us; we'd be delighted to discuss that service with you.)
Next, get your Income Statement for June 2019 Year-to-Date and check the revenue figure. Are you on track with your budget? If not, what strategies can you put in place to boost your growth for the rest of 2019?
Looking at the same Income Statement, check your net income figure. Are you on track with what you planned? If so, great! If not, the reason is simple: it will be either lower sales than expected or higher expenses than expected.
If your expenses are too high, you'll need to drill down into each of your expense accounts, including cost of goods sold, to see which ones are higher than expected. Were there some unanticipated costs? Does your pricing need to be adjusted? Do you need more volume to cover your costs? This is where we can help you with an analysis of where your opportunities are to increase profit.
One more place to look is your cash balance. If your balance is lower than you'd like it to be, it could be because of some of the factors mentioned above. It could also be because of unexpected purchases. If you need help with improving your cash flow, we can help with strategies to do that.
This mid-year review can help you head off any
small problems before they grow into big ones throughout the rest of the year.
And it can keep you on track so you can meet your 2019 business goals.