Make time to focus on your own personal financial situation even if your business is consuming a majority of your time.
For Your Midyear Business Review Don't Forget a Personal Financial Checkup
The midpoint of the year is the last, best opportunity for business owners to take a step back, review their goals and strategies and make any necessary adjustments to ensure they can get on or stay on track to achieving their business goals. The problem is, most business owners are so consumed with working on their business, they don’t pay attention to their own personal financial situation. Many ignore the fact that the clock also is ticking on their own, personal ambitions, which could be getting further out of reach. Taking a day at midyear to conduct a personal financial checkup, can take some of the stress out of trying to grow a business.
Here are three simple steps business owners can take to ensure they are on track financially.
Review your goals
It’s not unusual for business owners to go years without reviewing their personal financial goals. They may be long term, so it’s easy to let them recede into the background. Now is the time to bring them to the forefront to see if you are on track to achieving them.
Review your financials
Just as you should review the financials for your business at midyear, so should you review your personal financials, including your own financial statement and budget.
In your financial statement, look to see where you are with your assets and liabilities.
These are questions you should bring up with your financial advisor at your next meeting.
For your budget:
Review your tax situation
After just having filed your taxes, you may not be anxious to spend any more time with them. However, it is the ideal opportunity to make sure you’re taking full advantage of the opportunities available to you and to ensure you’re on target with your estimated tax payments.
Now would be a good time to meet with your accountant to identify opportunities to reduce taxes between now and the end of the year, while avoiding possible underpayment penalties.
The advantage of checking in with your personal finances at the midyear point is it can keep any necessary adjustments to a minimum. At the very least, it should allow you to clear your mind of any personal stress as you refocus your efforts on growing your business.
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