Introduction: Why July is the Perfect Time to Reset
Now is the ideal time for a mid-year business finance check. While January and April often steal the spotlight, July gives you space to pause, reflect, and get your finances back on track before the year speeds ahead. You don’t need a full-blown audit—just five smart checkpoints to help you stay in control.
Whether you’re a Kent-based sole trader, side hustler, or small limited company, this friendly mid-year check-in can make a real difference to your confidence and cash flow.
1. Are You Making a Profit—or Just Turning Over Cash?
It’s easy to confuse revenue with profit. You might be making sales, but are you keeping any of that money?
How to check:
- Log into your accounting software (FreeAgent, Xero, or QuickBooks Online).
- Look at your profit and loss report.
- Check gross profit (income minus direct costs) and net profit (what’s left after all expenses).
If your net profit is slim or negative, now is the time to ask why. Are costs creeping up? Are you undercharging? A profit check helps you refocus on what matters: keeping more of what you earn.
2. Check Your VAT and Tax Position Now (Not in January!)
Don’t wait until January to think about tax—by then, it’s too late to make changes. Use July to check where you stand:
- Are you approaching the £90,000 VAT threshold? If so, start preparing for registration.
- Are you setting enough aside for your self-assessment tax return?
Bonus Tip: If you’re a sole trader, remember that Making Tax Digital for Income Tax Self Assessment (MTD ITSA) comes into effect in January 2026. It’s not urgent yet, but it’s smart to start getting organised now.
3. Forecast Your Next 6 Months of Income and Expenses
Forecasting doesn’t have to be complicated. Think of it as a roadmap: where is your money likely to come from, and where will it go?
- Open a spreadsheet or use your accounting software.
- List expected income from clients or products.
- Estimate regular expenses like rent, subscriptions, and payroll.
This mini forecast helps you spot shortfalls early and plan smarter. If you need help building a budget or cash flow forecast, CWABC offers friendly, tailored support.
4. Chase Up Unpaid Invoices and Tidy Your Books
Unpaid invoices can pile up quietly, causing major cash flow issues down the line. July is the perfect time to:
- Review your aged receivables report.
- Send friendly reminders to clients.
- Reconcile your bank transactions.
This mini “bookkeeping blitz” can save you hours (and stress) in January. If you’re behind or overwhelmed, we can help you catch up quickly.
5. Bonus Tip: Reassess Your Pricing and Overheads
If you haven’t raised your prices in the last year or two, now’s the time to review. Costs have likely gone up—have your rates kept pace?
Also, review your subscriptions and overheads. Are you still using everything you’re paying for?
CWABC offers pricing reviews as part of our support—we’ll help you stay competitive while covering your costs.
✅ Final Thought
A mid-year business finance check doesn’t need to be complicated—but it can give you real peace of mind. Whether you’re a sole trader, a small limited company, or still finding your feet, taking a moment now to review your finances puts you in a stronger position for the rest of the year.
Final CTA
Need help getting your business finances back on track?
CWABC offers friendly, no-pressure support for Kent-based sole traders and small businesses.
👉 Book a free 20-minute call or contact us below:
📧 info@cwabc.co.uk | 📞 07306 812321