Tips for Q2 Financial Review

June 12, 2024

It’s almost the end of Q2 and here at MOD this means that we are preparing to meet with many of our clients to chat all things financial review!

Quarterly financial reviews are a great way for business owners and organization leaders to take a good look at their numbers and help them understand:

  • where they have been
  • where they are at
  • where they are going 

Conducting quarterly financial reviews is crucial for business owners to ensure they are aligned with their strategy and are on track to meeting their annual goals.

Here are some of our top Q2 financial review tips to consider:

1. Review Financial Statements

  • Profit and Loss Statement: Analyze revenue, expenses, and profit margins. Identify trends and areas for improvement.
  • Balance Sheet: Check assets, liabilities, and equity. Ensure your business is financially stable.
  • Cash Flow Statement: Assess the inflows and outflows of cash. Ensure you have enough liquidity to cover expenses and planned purchases.

2. Compare Budget vs. Actuals

  • Variance Analysis: Identify discrepancies between your budgeted figures and actual performance. Investigate the reasons behind significant variances.
  • Adjust Forecasts: Update your financial forecasts and budgets based on the latest data to get a more accurate picture of year-end performance.

3. Tax Planning

  • Tax Deductions: Identify and maximize tax-deductible expenses. Consider making necessary purchases before year-end to take advantage of deductions.
  • Estimated Taxes: Ensure estimated tax payments are up to date to avoid penalties.
  • Tax Credits: Explore available tax credits that could benefit your business.

4. Review Accounts Receivable and Payable

  • Aging Reports: Review aging reports for accounts receivable and follow up on overdue invoices.
  • Payment Terms: Ensure accounts payable are managed efficiently. Negotiate better terms if necessary to improve cash flow.

5. Inventory Management

  • Stock Levels: Review current inventory levels. Identify slow-moving or obsolete stock and consider discounting or liquidating it.
  • Reorder Plans: Plan for any inventory needs to avoid shortages, especially if you expect a surge in demand.

6. Evaluate Operational Efficiency

  • Cost Control: Analyze operational costs and identify areas where you can cut unnecessary expenses.
  • Process Improvement: Look for inefficiencies in business processes and implement improvements to enhance productivity.

7. Strategic Planning

  • Reset goals: Establish clear, achievable goals for the remaining year.
  • Review budgets: Review your annual budget, considering any changes in market conditions or business strategy.

8. Review Loans and Financing

  • Interest Rates: Evaluate current loans and consider refinancing options if lower interest rates are available.
  • Debt Repayment: Plan for any upcoming debt repayments to ensure you have sufficient funds available.
  • Prepare for cash needs: Connect with your banking advisor to review plans and forecasts to ensure you are well-positioned to support your business’ cash needs for the remaining calendar year.

9. Employee and Payroll Review

  • Payroll Management: Ensure payroll is accurate and up to date. Plan for any year-end bonuses or salary adjustments.
  • Employee Benefits: Review employee benefits and consider enhancements or adjustments based on financial performance.

10. Evaluate Technology and Tools

  • Financial Software: Assess whether your current financial software meets your needs. Consider upgrades or new tools that could improve financial management.
  • Cybersecurity: Ensure that your financial data is protected with adequate cybersecurity measures.

11. Consult with Professionals

  • Chat with your accountant: Engage with your CPA for a comprehensive review and to ensure compliance with tax laws.
  • Financial Advisor: Consult with a financial advisor to align your financial strategy with your long-term business goals.

By following these tips, business owners can ensure they have a clear understanding of their financial standing, make informed decisions for the remaining quarter, and set the stage for a successful remainder of the year!


Alicia Fowler