It’s Time for a Mid-Year Company Checkup
06/12/18 | 9:00AM | Posted by TEAM Software
Take a Closer Look at Your Business’ Financials and Employee Engagement
You take the time to set new goals for your business each year, but how often do you take the time to monitor your progress throughout the year? As a best practice, we suggest taking a closer look at how your business is performing as we approach the halfway point of the year. If you need to maximize your time or you don’t know where to start, focus on a couple of key areas in your business. As we’ve done in years past, we recommend homing in on your financials and your employees. These are two areas that can propel your business forward during the second half of the year if you take some time to evaluate them now.
Dive 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 do the following:
- Review your forecasted revenue and expense numbers. Adjust as needed based on customer growth and retention.
- Evaluate your Accounts Receivable (AR) Aging for any problem accounts. Six months provides plenty of time to make progress on getting those accounts up to date.
- Assess your fixed assets or equipment to determine if any have been disposed of or retired. These items can have an impact on your profit and loss report.
- Write off any bad debt that you have because this can impact on your forecast.
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 you can evaluate profitability to the job level in WinTeam, you can get a better understanding of which jobs are profitable. Now is a great time to make adjustments in scheduling, bidding and expectations to ensure you’re staying on track for the rest of the year.
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. You can also look into potential tax credits such as WOTC as a way to deduct taxable income.
Check in with your employees.
You can probably count on one hand the number of employees and supervisors who enjoy performance reviews. If you’re looking for a new way to handle performance reviews in your business, you might consider taking a real-time feedback approach as we discussed in a previous blog post. 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. Engaged employees will help ensure that quality work is being performed and your customers are satisfied. Conducting mid-year performance reviews — or even quarterly touch points — are a great opportunity to meet with your employees and get ahead of potential pain points and issues.
“Implementing a real-time model helps increase communication that can improve your team engagement and change behaviors more closely tied to higher performance,” said Pasha Ostby, TEAM’s Human Resource Services Advisor.
Not only can this help managers, site 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 or supervisor to ensure everyone is moving forward and in the same direction.
“Combine what’s important to you as an organization with what your individual employees need to be successful. The goal with a real-time feedback model is to gauge if you’re leveraging your employees’ skills and natural talents or if they’re ready to do more,” said Ostby.
Mid-year on-site visits with field-based employees go a long way in terms of boosting employee engagement and, when combined with the right technology, can also help prevent issues such as time fraud by ensuring that the number of employees scheduled for a job is the actual number of employees working at the site. To learn more about how one TEAM customer discovered ghost employees and implemented TeamTime to prevent that problem going forward, download this time and attendance case study. Making sure the site is staffed and equipped correctly through these touch points has an added financial benefit, too, because you can make adjustments to your budget based on employee feedback and your observations.
You went into 2018 with enthusiasm and momentum for a good year, and it’s important to keep that 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 202 days left — let’s see what you can do!