2025 is nearly halfway through, making now the perfect time to assess your business’s financial health. With the second half of the year still ahead, it’s critical to understand where your business stands so you can make strategic decisions to finish strong, especially if your business hasn’t performed as expected thus far. There is still time to course-correct if needed. In this blog, we’re sharing three steps to check in with your business’s finances to ensure you’re on the right track for a successful year.
Before diving into metrics, it’s important to ensure your financial records are complete and up-to-date. Accurate books are the foundation of any meaningful financial analysis. If your bookkeeping is behind, your accounts aren’t reconciled, or you have unrecorded transactions, you won’t have a clear view of your financial position. That means decisions could be based on outdated or inaccurate data.
Start by reconciling your bank and credit card accounts. Review transactions for accuracy, categorize expenses correctly, and ensure all income is recorded. If you manage inventory, confirm your records match what’s physically on hand. Once your books are clean, you’re ready to move on to evaluating performance.
For product-based businesses, tracking the right financial metrics is essential. Unlike service businesses, inventory-heavy operations must manage goods, costs, and logistics. At mid-year, we recommend that you focus on these five KPIs:
Tracking these KPIs now allows time to make smart, data-driven adjustments before year-end.
If your KPIs aren’t where you want them to be, don’t panic. The mid-year point is a great opportunity to pivot. First, identify what’s driving the numbers. Are specific product lines underperforming? Are inventory levels too high? Is your COGS rising faster than expected?
Based on your findings, consider targeted adjustments, such as:
If cash is tight, delay non-essential purchases or adjust payment timelines. You don’t need a complete overhaul—just intentional, strategic shifts to stay on track.
If you’re not tracking these KPIs, now’s the time to start. Even a simple spreadsheet or dashboard can bring clarity. If you are interested in tracking your business’s KPI’s, you can download our KPI tracker here. However, if reporting and analysis feel overwhelming, we’re here to support you.
At Cultivate Consulting, our Fractional CFO services give small and mid-sized businesses access to experienced financial leadership without the full-time costs. We help you build meaningful reports, interpret key metrics, and make smart, confident decisions based on your numbers.
We help you think like a big business without having to be one. Let our team help you take control of your financial strategy today. Contact us at grow@cultivateconsulting.co to learn more. We are here to assist you and your business.
Christine Gervais
Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.
