Mid-Year Financial Check-In — Are You on Track for 2025 Goals?

The midpoint of the year is the perfect time to ask: Are your 2025 financial goals still within reach? 

For small and closely held businesses in Minnesota, a mid-year financial planning session can provide clarity and confidence to help finish strong.

Here’s how to make the most of your mid-year financial review:

Pull out your annual goals. Are you on pace to hit revenue, profitability, and growth benchmarks? If not, now is a great time to sit down with your advisor and dig into the “why.”

Perhaps your organization is experiencing slower project cycles due to client budget delays or grappling with cost overruns from supply chain volatility. Every business deserves a customized mid-year review, with adjustments to annual goals and benchmarks made as necessary. Your financial advisor is there to assist you in reviewing your trajectory and making any required pivots.

Don’t be lulled by a healthy profit and loss statement. A business can show paper profits while struggling to pay bills. Review:

• AR aging reports — Are clients paying on time?
• Inventory turns — Are you tying up too much cash?
• Operating expenses — Have any expenses crept upward unexpectedly?
• Tariffs and import costs — Recent tariff shifts may quietly eat into margins and cash reserves if you’re sourcing materials or products internationally. Now’s the time to review landed costs and consider whether price adjustments or sourcing changes are needed.
  

Even for growing companies, poor cash flow can be a silent killer. Establishing strong mid-year habits, such as tightening receivables, reviewing supplier agreements, and identifying cost creep, can be the difference between finishing the year ahead or feeling constrained by limited flexibility. This is particularly crucial for small businesses in Minnesota, especially those with seasonal revenue cycles. A proactive review now can help maintain not just solvency, but also strategic agility for the remainder of 2025.

Now that tax season is over, it’s time to:

• Assess your current tax liability trajectory
• Evaluate whether your estimated payments need recalculation
• Consider accelerating deductions or deferring income, depending on your 2025 outlook

With months left in the year, there’s time to:

• Increase retirement plan contributions (401(k), SIMPLE IRA, etc.)
• Explore profit-sharing or bonus structures to retain talent and reduce taxable income

For owner-operated firms, business income and personal finances are closely connected. Strategic retirement contributions can reduce the owner’s taxable income while building long-term wealth. Similarly, implementing or adjusting profit-sharing plans can be a powerful way to reward employees, improve retention, and align compensation with performance—all while potentially lowering your year-end tax bill.

Even if you already have retirement plans or bonus structures, it’s worth reviewing them mid-year. Are contribution levels optimized for your projected income? Minor changes now can yield significant results by the end of the year, for both the business and the people behind it.

A mid-year review shouldn’t just be about corrections. It’s an opportunity to double down on what’s working. If a particular service line is outperforming others, consider investing more resources or marketing toward it. If customer churn improves, explore ways to lock in that retention advantage.

If you’re not entirely sure what’s working — or what’s holding you back — you’re not alone. Many small business owners are so focused on day-to-day operations that strategic clarity gets lost in the shuffle. That’s where a second set of eyes can help. 

Whether you’re running a lean manufacturing firm in the Twin Cities, managing multiple client accounts at a St. Cloud marketing agency, or leading a professional service business anywhere in Minnesota, a mid-year financial check-in gives you the space to step back, refocus, and finish 2025 with intention.