Mid-Year Company Checkup
07/11/17 | 9:00AM | Posted by TEAM Software
A Closer Look at Your Business Halfway Through the Year.
Six months down and six months to go. A lot can happen over the course of a year — let’s be honest, a lot can happen over the course of a month. While it’s important to have a good understanding of your business on a regular basis, taking a little extra time halfway through the year to get a closer look is a pretty good use of your time. Now, it’s safe to assume you don’t have time to look at every aspect of your business so here are two key areas to review: your financials and your employees.
Dig deeper into your financials.
During the month-end process, most companies review their financial information and statements to evaluate how successful that month was compared to budget, the previous year and year to date. But, you may need to reevaluate those budgets depending on how your year is shaping up.
“Reforecasting mid-year is important because your business changes every day. A budget is essentially only good for one day. Things change so you need to adjust and adapt to where your business currently stands to have a good base of where you need to go next,” said Heidi Carlson, TEAM’s Vice President of Finance. “And, with budget season just around the corner, having that good base makes the process of creating next year’s budget that much easier.”
Use this time of year to evaluate the following:
- Are you meeting the forecasted revenue and expense numbers? Do you need to adjust based on customer growth and retention?
- How is your AR Aging? Do you have any problem accounts? Six months provides plenty of time to make progress on getting those accounts up to date.
- Have you had any fixed assets or equipment that have been disposed of or retired? These items can have an impact on your profit and loss report.
- Do you have any bad debt that you need to write off? This has an impact on your forecast, so it’s important to evaluate.
As a TEAM client, maintaining the current year’s budget in WinTeam — TEAM’s core financial, operations and workforce management solution — can make your reports more progressive and effective. Since the budget component can go down to the job level, your job cost report can give you a better understanding of profitable (or not profitable) jobs.
In addition to taking a deep dive into your financials, it’s a good idea to start thinking about taxes. Use this time before the end of the year to research minimum thresholds or state incentives that might be available.
Check in with your employees.
You can probably count on one hand the number of employees and supervisors who enjoy performance reviews. Despite that, performance reviews are a business staple and a great opportunity for a regular one-on-one conversation between employees and supervisors. But, once per year isn’t always enough. Conducting mid-year performance reviews — or even quarterly touch points — are a great opportunity to just meet with your employees and get ahead of potential pain points and issues.
Not only can this help supervisors and business leaders have a pulse on employee morale and engagement, it gives employees a chance to receive positive or constructive feedback with plenty of time to improve before an annual review if necessary. This is a shared responsibility of both the employee and manager to ensure everyone is moving forward and in the same direction.
“At TEAM Software, we follow the SMART-based goal methodology (Specific, Measurable, Attainable, Relevant and Time-Bound) to formulate goals collaboratively with each employee. This helps drive action, as well as provide direction and clarity to achieving our vision. We strive to keep the goals as clear and simple as possible to produce results,” said Judi Szatko, TEAM’s Vice President of Human Resources.
Mid-year reviews are a great time to adjust employee performance and development goals, engage in quality face-to-face conversations and help build stronger relationships. By connecting the individual effort with the company’s strategy and vision you can easily create a win-win environment.
You went in to 2017 with excitement and momentum for a good year, and it’s important to keep going so you can finish the year strong. By completing a mid-year checkup, you have a better understanding of what you have left to do. You have 173 days — let’s see what you can do!