Mid Year Review for Startups

Hey there, fellow entrepreneurs! We've reached the year's midpoint, and it's time to kick back, relax, and dive into a refreshing mid-year review from an accounting perspective. Grab a cool beverage, find a comfy spot, and explore the essential areas to review, how it can help your business, and tips for planning a successful second half of the year. So, let's chill out and get down to business!

• IRS Compliance: First, let's ensure your startup is on the right side of the law. Review your books to verify compliance with current IRS regulations. Is your payroll a mess? Confirm that you've filed your quarterlies correctly, including those newfangled Paid Family and Medical Leave remittances. Staying compliant avoids potential headaches and keeps your business in good standing.
  
  
• Saving Time: By decluttering your books regularly, you can save yourself from drowning in a sea of later transactions. Think of it like decluttering your house. Tackle your books throughout the year, and you'll breeze through the process. Remember, sorting a year's worth of transactions in one go can lead to confusion, errors, and a desire to hide under a blanket. Stay calm, and declutter often!
  
  
• The Health of Business: Your business's health is directly tied to the health of your books. Uncategorized expenses looming over your Profit & Loss? It's time to take a closer look. Review your readers to identify areas where you can reduce costs and optimize your financial well-being. Ensure your banks are reconciled for accurate cash flow management. You'll be better equipped to make informed decisions by understanding your financial landscape.

Areas to Review:

Revenue: Review your revenue streams and identify third-party apps or integrations impacting your income.

Expenses: Take a close look at your expenses, organizing receipts for purchases over $2500 and identifying any areas for cost reduction.

Assets: Take stock of your business's support, both tangible and intangible. Evaluate their value and determine any necessary adjustments.

Banking: Review your bank statements, reconcile accounts, and record all transactions accurately.

Fixed Assets: Check the condition and depreciation of your fixed assets. Are there any updates or maintenance requirements?

Liabilities: Assess your outstanding debts and obligations. Stay on top of loan payments and credit card balances.

Payroll: Review your payroll records, ensuring proper employee compensation, deductions, and tax withholdings.

Sales Tax: Verify your sales tax records, ensuring compliance with local tax regulations. Also, refer to our blog on taxation for startups!

Fundraising: Evaluate your fundraising efforts, including the status of your CAP table and any pending SAFE notes.

Equity: Confirm that your equity accounts are correctly maintained and reflect the latest transactions like SAFE notes, Retained Earnings, etc.

Planning for Success

Stay Cool, Stay Focused Now that you've reviewed the essential areas, it's time to plan for a successful second half of the year. Identify areas for improvement, set realistic goals, and make any necessary adjustments to your financial strategies. Monitor your budget, key metrics, and stay agile in response to market changes. By remaining relaxed and focused, you'll easily navigate the challenges ahead.

Congratulations on reaching the midpoint of the year, fellow entrepreneurs! By conducting a mid-year review from an accounting perspective, you can gain valuable insights into your business's financial health. Remember to stay compliant, declutter regularly, and closely monitor your business's well-being. With a solid understanding of your books and a plan for success, you're well on your way to achieving your goals. Set up a demo with us to make sure you are up to date like all our users using Arbo!