We’re halfway through the year, and that makes May the perfect time to pause, reflect, and reset your business finances. A mid-year financial health check helps you assess what’s working, what needs adjusting, and how to refocus your goals to finish the year strong.

Here’s a practical guide to reviewing your business’s financial performance and making smarter money moves for the months ahead:

1. Revisit Your Business Budget

Start by comparing your actual numbers to your original budget. Are you spending more than expected? Are your earnings on track?

✔️ Check for:

• Unexpected or rising costs

• Over/underperformance in revenue

• Whether your current budget still aligns with your goals

If the numbers don’t add up, it’s time to revise your budget to better reflect your reality and upcoming plans.

2. Assess Your Cash Flow Position

Cash flow is the heartbeat of your business. Even profitable businesses can run into trouble if they don’t manage their inflows and outflows wisely.

✔️ Ask:

• Are you regularly covering your operating expenses?

• Do you have enough cash reserves for emergencies or opportunities?

• Are your customers paying on time?

If cash is tight, consider negotiating better supplier terms, reviewing your pricing model, or exploring flexible funding options to bridge the gap.

3. Review Financial Statements

Now’s the time to dig into your:

• Income Statement: Are you generating enough revenue? What are your major costs?

• Balance Sheet: How are your assets and liabilities looking?

• Cash Flow Statement: Are you managing your money efficiently month-to-month?

These documents can help you spot red flags and highlight trends, like rising costs or falling margins, before they become problems.

4. Check Your Profit Margins

Margins are a strong indicator of overall financial health. A shrinking margin could mean you’re spending more to make the same amount, or not charging enough.

✔️ Evaluate:

• Are you pricing your products or services correctly?

• Have supplier costs increased without you adjusting your pricing?

• Is it time to cut underperforming products or streamline operations?

5. Reevaluate Your Goals

Are your financial goals still realistic and aligned with your business vision for the rest of the year?

✔️ Revisit:

• Revenue targets

• Savings or reinvestment goals

• Plans for expansion, hiring, or capital investments

This is also a good time to set new KPIs or refine your targets based on what you’ve learned so far.

6. Forecast the Next 6 Months

Once you’ve reviewed the past, it’s time to look forward.

✔️ Build a simple forecast using:

• Projected income based on pipeline and trends

• Expected costs (fixed and variable)

• Seasonal changes in sales or customer behaviour

A solid forecast helps you anticipate challenges, plan for growth, and stay on top of your cash flow.

7. Consider Funding Needs

Planning a stock-up before peak season? Want to invest in marketing or new tech? May is a great time to plan ahead and secure business funding before you need it urgently.

Retail Capital, a division of TymeBank, offers flexible funding designed around your business needs, so you can keep momentum without straining your cash flow.

Check In Now, Win Later

Taking the time to do a financial health check in May puts you in control. It allows you to spot risks, plan with confidence, and seize opportunities while others are scrambling to catch up.

✔️ Review.
✔️ Adjust.
✔️ Refocus.

And set yourself up to finish the year stronger than you started.