With the year quickly approaching its halfway point, the time has come to conduct a mid-year financial review. This invaluable process helps business owners and finance managers know where they stand in the year thus far, identify solutions for problems, and consider options for shaping the year ahead. Read on to uncover the importance of a mid-year financial review and how Docyt makes it as easy as a walk in the park.
Why Perform a Mid-Year Financial Review?
Measurement of performance
Assess the effectiveness of your strategies year-to-date by examining financial statements.
Realignment of the budget
Comparing actual performance to the budget will allow you to reevaluate and realign financial goals. To stay on course, necessary changes can be made at this time.
Tax Planning
Early tax planning averts nasty surprises at the year’s end and ensures full compliance with less stress at the end of the year.
How to Do a Mid-Year Financial Review
Review Your Financial Statements
Start by reviewing your profit and loss, balance sheet, cash flow statement, and other real time financial statements. Look out for trends and anomalies. With Docyt, real-time financial reporting makes it easier to access up-to-date and accurate financial data, making this step very efficient.
Reconcile Accounts
Ensure that all bank accounts and credit card statements are fully reconciled. Docyt’s automated reconciliation function will save time matching all your transactions against your bank feeds while simultaneously minimizing errors.
Review Open Receivables and Payables
Review open receivables to ensure that any outstanding balances are collected in a timely manner and follow up on any past-due invoices. Similarly, review your payables to ensure that all bills are paid on time. Docyt has automated invoicing and bill payment built-in to support these processes further, allowing you to manage your cash flow easily.
Compare Budget Performance
Compare actual vs. budget expenses and revenues. Look at the major variances and research what caused them. InsightFlow by Docyt gives you real-time financial insights, and you can even customize your own dashboard to adjust your financial plan accordingly.
Update Financial Forecasts
Update your financial forecasts for the remaining year. With accurate forecasting, you will be able to make realistic targets and resource allocations. Leverage advanced forecast tools from Docyt to create reliable projections.
Plan for Taxes
Review tax liabilities from the first half of the year and ensure that estimated tax payments are made. Docyt’s 360-degree automation helps prepare for tax time management and preparations. Tools like this will help you stay in compliance and not run around at the last minute during tax season.
Ensure Data Security
Any data you share in Docyt is fully secure and private due to the following data security methods: encrypted data storage, secured document management, and keeping your information confidential and out of reach of unauthorized people.
Use Docyt for Your Mid-Year Financial Review
The mid-year financial review process is super smooth and efficient with the AI accounting automation provided by Docyt. With real-time financial insights, automated reconciliation, and advanced forecasting tools, Docyt AI keeps you right on target to make well-informed decisions. It’s time to perform a mid-year financial review for your financial health and also to meet the business goals. Let Docyt facilitate the process with comprehensive accounting insights and solutions for great success in the second half of the year.
