Most business owners look at their numbers when they have to: at tax time, when the accountant asks, or when the bank balance is unexpectedly low.
The middle of the year is a good time to check when it's still voluntary. When there's still time to do something about what you find.
Here are six questions worth going through now.
1. Is your cash flow positive?
A business can show a profit on paper and still run into payment problems if money isn't in the account when bills fall due.
Look at how your bank balance has moved over the last three months. Has it grown, stayed flat, or declined? If it's fallen despite growing sales, find out why. The most common reasons are long payment terms for customers, advance payments to suppliers, or growing stock.
2. Is revenue tracking to plan?
Compare this year's sales to the same point last year and against your targets for the year. If sales are behind, it's better to know now than in December.
If sales are ahead, that's worth knowing too. It may mean it's time to grow capacity or revisit pricing.
3. Which costs have grown?
Your profit and loss statement shows what you've earned. It also shows what you've spent. Go through the expense categories and look for anything that's grown more than expected.
Common surprises: software subscriptions that have accumulated over time, subcontractor costs that have risen or shifted, marketing spend where the return has stayed unclear.
4. How much is sitting in unpaid invoices?
Accounts receivable is money you've already earned but haven't been paid yet. A large or ageing receivables balance weakens cash flow and increases credit risk.
Check how many invoices are more than 30 days overdue. If there are several, it's time to send reminders.
5. Are your VAT figures up to date?
VAT is money you've collected from customers on behalf of the tax authority. It's not your income — even though it sits in your account until the filing deadline.
Check how much VAT has accumulated so far this year. If you can't recall the figure, your accounting software should show it in real time.
6. Is profitability strong enough for the rest of the year?
Margin tells you how much of your revenue remains after costs. If margin has weakened, the cause is usually either declining revenue, rising costs, or both.
Project forward on the current trend. If the trajectory isn't where you want it, now is a better time to change course than in Q4.
What to do with what you find
The point of this check isn't to find problems — it's to get a clear picture. Most of the time, the situation is better than vague anxiety suggests. Or if it isn't, you know now and can act.
The most useful actions by finding:
Cash flow weak: Shorten payment terms, chase overdue invoices, consider delaying large purchases.
Sales behind: Identify whether it's volume or unit price that's down. These need different responses.
Costs up: Go through subscriptions and contracts. Cancel what you no longer use.
VAT liability larger than expected: Set aside a fixed percentage of revenue each month for VAT. No surprises at filing time.
NoCFO keeps the numbers current
These six questions are easy to answer when your bookkeeping is up to date. When transactions are categorised automatically and reports are ready to view, this check takes minutes rather than hours.
NoCFO's Luca monitors cash flow, open invoices, and VAT in real time. You can ask it directly how your business is doing and get a clear answer based on your actual data.
Try it free at nocfo.io.
Frequently asked questions
When is the best time to do a mid-year check?The end of June or early July is a natural point. Half the year has passed and there's still time to make changes before year-end.
What reports do I need?Profit and loss statement, cash flow report, and an aged accounts receivable list cover everything relevant. These are available directly from your accounting software.
Do I need to involve an accountant?Not necessarily. This check is designed for business owners to do themselves. If you find something concerning or unclear, that's a good moment to bring in an expert.