What’s Important About the End of 2nd Quarter?
What’s important about the end of the 2nd Quarter? Well, for one, tax season has come and gone. Hopefully, your bookkeeper is always preparing well before the tax filing deadline. Now you can turn to other priorities, like what to expect in the 2nd Quarter when you are working on your bookkeeping and accounting.
Now that you have the latest numbers available, it’s important to use this time to make adjustments that will support you and your business for the rest of the year. It’s a good time to evaluate what areas in your business need to be analyzed and possibly adjusted.
Start at the beginning
If you are wondering where to begin and what to expect for 2nd Quarter accounting, start with a detailed review of your 1st Quarter activity. This is done in two ways:
- Compare Q1 this year to Q1 last year
- Compare this year to last year month by month
When comparing those numbers, look for patterns, growth, and opportunities for improvement. Do the numbers show any patterns related to income or expenses? If your expenses consistently exceed your income in a certain month, what’s causing that? Is there an opportunity to spread those expenses out to other months? Are all of your business needs being met? Assess your savings and assets, as well. Are they growing and working for you, or are they stagnant?
Compare and analyze budget versus actual
As anyone who has owned a business will understand, things do not and will not always go as planned, so it is essential to regularly assess and ask questions about overages. Do you need to (and can you) cut back in some areas? Are there expenses we can eliminate? What areas are way under budget and may be inhibiting your business growth?
Successful businesses should regularly analyze and adjust their budget and operations to meet changing needs. Do you have a process in place for that? With recent substantial increases in inflation, it’s important to reassess all expenses and reduce when and where possible.
Review your goals for the 2nd quarter
Every new Quarter is a great opportunity to review your business goals and assess where you are. If you don’t have written business goals, now is a great time to do that.
If you do have goals in place, where are you on the journey to putting them in play? Is this the time to bring on new personnel? Or perhaps contract with a consultant to help your business in a specific area? How can you position your company for success for the rest of this year?
Sometimes business owners are simply too close to the situation to see it clearly. Trusted staff, new hires, or qualified consultants can be an invaluable asset to help you reach your business goals.
It’s vital to be proactive with your business. Reviewing your numbers and goals can help you know what to expect for 2nd Quarter. Once you review the numbers, adjust where necessary to strengthen your business for the rest of the year.
If you need help, I’d be happy to chat and/or provide an audit of your bookkeeping so you know what to do next.