Mid-Year Review Ideas for Your Business May 2025

Tax & Business – May 2025

May 26th – Memorial Day

As we hit the midpoint of 2025, it’s the perfect time to pause and assess. A mid-year review isn’t just a routine check – it’s a strategic opportunity to measure progress, adjust course where needed, and sharpen your focus for the months ahead.

Whether you’re on target or navigating challenges, now is when thoughtful reflection can turn into real momentum. In this newsletter edition, you’ll find several ideas to help conduct your own mid-year review.

Also learn how to assess whether your payroll process is working properly and if you should outsource this part of your business.

As always, please reach out with any questions and forward this information to anyone who may find it of value.

Mid-Year Review Ideas for Your Business

A mid-year review is a chance to assess your business’s progress, course correct if necessary, and plan for the remainder of 2025. Here are several ideas of what to include in your mid-year review.

• Create a full-year forecast. If you haven’t already created a full-year financial forecast, now’s the time. Better yet, shift to a rolling 12-month forecast. Unlike a static annual plan that ends in December, a rolling forecast always looks 12 months ahead, updating each month to reflect what’s actually occurring in your business.
• Review your actual financial data. Compare your actual year-to-date financial statements to 1) your forecast, and 2) last year’s financial statements for the same time frame. For example, create a financial report showing you actual results from January 1, 2025 through April 30, 2025. Then take this report and compare it to 1) your most recent forecast for January 1, 2025 through April 30, 2025, and 2) your actual results from January 1, 2024 through April 30, 2024. Look for what’s going well, and what areas need improvement.
• Forecast large purchases. Significant investments like new equipment, software upgrades, or a company vehicle, can put a strain on cash flow if not planned for in advance. Consider whether any of these purchases should be postponed, or should any be accelerated to take advantage of certain tax benefits or pricing discounts.
• Forecast other large expenditures. One of the largest expenses for a business is salaries & wages. If you’re planning to hire additional employees, be sure to include the full cost of each hire. Extra costs could include training, software licenses, equipment, and company benefits.
• Review debt payment schedule. Review how much interest you’re paying annually on loans and credit cards, and whether paying down some or all of your debts makes sense if you have extra cash available. Don’t assume that cash is best left sitting idle in a low-interest savings account. Putting it toward strategic debt reduction can improve your business’s long-term financial health.
• Review strategy and execution. Ask yourself questions related to the marketing and operating of your business: Are you hitting business goals? Do you even have defined business goals? Is your product or service mix still working? Has anything changed in your market or among competitors?

Mid-year reviews aren’t just about finding problems – they’re about creating clarity about what to focus during the remainder of 2025. Taking the time now to conduct a thorough review will help you finish the year stronger!

Choosing a Payroll Provider

One of the cornerstone activities of every business is the timely and accurate payment of payroll and its related tax and regulatory filings. Whether you do this in-house or use an outside service, it is a good idea to periodically assess how it’s going and whether a change makes sense. Here are some thoughts.

• Take a snapshot of the current situation. Assess how well your current pay cycle is working. Create a list of the pain points. Also determine the level of knowledge the current person(s) have in the process. Payroll can be complicated, especially when adding in all the required deductions and various tax an d payment deadlines. Try to be as objective as possible in your review.
• Determine the time required. Review how much time is spent in managing your payroll. Then convert it into cost. If you currently use an outside resource, you will already know the cost, but you should assess how much lead-time they require to get your payroll records and how much of a hassle their requirements are to your internal coordinator.
• Integration assessment. Determine how important it is to have payroll integrated into your accounting and benefits system. This will make reconciliation easier and will aid in the tracking of other key employee benefits like retirement plans and tracking paid time off. And don’t forget the employee integration. Decide if you wish employees to self-monitor their pay with online access or if you wish to stay on top of the requests being asked for by employees.
• Service is important. Most of the time, payroll runs like a clock, but when it doesn’t it can be a real pain with possible penalties to boot! So knowing how problems are solved, and having a responsive person to handle those problems is key. If commissions are forgotten, or you are going to be a bit late in submitting payroll for the period, you do not want to be waiting hours or days to get an answer.
• Compliance. Assess the payroll provider’s understanding of taxes and other compliance measures. This is important, as not sending in withholdings timely can create real problems. If a large payroll service has a generic call center, the person on the line will not usually be able to knowingly answer your questions. Having a sound accounting understanding and how it works is key.
• Review alternatives. Once you know your pain points and the cost of running your payroll, you are ready to assess potential alternatives. Create a matrix of measures before you discuss your payroll with alternative suppliers. Then stick to your matrix, and ensure you include a reputation review and transitional process timing in your assessment. It is often hard to get suppliers to provide costing in a comparable fashion with other suppliers, so stick to your guns.

Good luck, payroll is one of the top functions of every business and, ideally, one that works well. But that usually doesn’t happen by accident, it is because you are working with a trusted, well reviewed, competent provider.

Picking the Right Location for Your Business

As World War II was coming to a conclusion, a real estate developer named Harold Samuel started buying houses in the United Kingdom that had been damaged or demolished during the war. Samuel is often credited withcoining the phrase that describes the 3 most important secrets to business success: Location, Location, Location.

By focusing his attention on the location of the properties he was purchasing, Samuel’s company, Land Securities Group, grew into one of the largest real estate companies in the U.K., a position the company still holds today.

Fast forwarding to today’s global and digital economy, location still plays a vital role in the success of a business. Here are some things to consider when thinking about the importance of location for your business:

• Regulations and taxes. Sales taxes,property taxes,andregulatoryrequirementsoften vary from place to place. Some jurisdictions are known for being business-friendly, while others are not. Even a home-based business may be prohibited or restricted by zoning laws or legal activity limitations. Evaluate the local regulatory and tax environment before putting down roots.
• Business growth. The relative costs of rent, upkeep and utilities must be weighed for each location you’re considering. You’ll need to determine if the layout suits your needs and if the landlord will make the changes when required.
• Customer expectations. Unless customer traffic isn’t part of your business model, your location must fit the expectations and requirements of your customers. It should be accessible, consistent with your business type, and close to one or more areas your customers are likely to frequent. This assessment should also include access to a suitable parking area.
• Discoverability. Visibility will increase customer traffic for many retail and service-based businesses. Having certain types of neighbors can also have a positive effect, like setting up shop where your fellow retailers sell products or services that complement your business.
• Work environment. Finally, your location must help attract and retain good employees. Many characteristics important to you and your customers will also matter to your staff, such as ease of commute, type of neighborhood, and overall building layout and amenities.

After working through your available locations, incorporate the cost into financial projections to ensure your choice of location will be financially viable.

As always, should you have any questions or concerns regarding your tax situation, please feel free to call.

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