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Your Mid-Year Financial Checklist

Your Mid-Year Financial Checklist

[Editor’s Note: As we near the end of the first half of the year, you should take stock of your business’s financial health. It’s a perfect time to revisit Judith Miller’s checklist for getting your numbers right — and set yourself up for success in the rest of the year.]

If you’re a baseball fan then you know that the all-star break is right around the corner. You also know that this game serves as a performance milestone, with most looking at a team’s season in terms of “before the break” and “after the break.”

Well, it’s your all-star break, too. How are you performing at the midway point of 2019?

For many remodelers, 2019 follows the trends we’ve seen over the past few years, filled with leads, jobs, and growth.

The two big questions to ask yourself now are “how happy are our clients?” followed by “are we making money?”

Now is the perfect time to take a step back, analyze your results from the first half of the year, and plan for better performance in the second half.

Your Financial Checklist

  1. First, make sure your balance sheet is right on June 30 – when the balance sheet numbers are correct, the profit/loss bottom line is correct to the penny, even if some income/expense has been mis-coded.
  2. Make your WIP (over/under billings) calculation correct for the end of June – if applicable.
  3. Review your profit/loss actual against your budget for the six months on a line item basis. Don’t only look at the bottom line, you have to know all the details.
  4. Recast your budget for the next six months, using what you’ve learned through the analysis in the second step. This is your opportunity to assure yourself of year-end profitability.
  5. Look at job costs reports — the estimate versus actuals detail — for a few standard, representational jobs you’ve completed during the first six months. Again, review line item details to make your estimating more accurate for the jobs in the bidding process now.
  6. Last, but certainly not least, measure customer satisfaction in detail to make sure that your rating is high and stable.

The mid-way point of the year is your opportunity to see where you stand; what is and isn’t working; and what changes need to be made to achieve the goals you set at the beginning of the year. This review is a key element to ensuring you have an all-star year.



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