What Business Owners Should Be Doing Now to Finish 2025 Strong and Profitable

We’re nearly halfway through 2025—can you believe it? For business owners, now is a critical turning point. It’s not just about spring cleaning your office or launching mid-year campaigns—it’s about getting your financial house in order.

Strong year-end results don’t happen by accident. They’re built from smart, proactive decisions made now, especially when it comes to bookkeeping and financial management.

Whether you’re on track or feeling behind, here’s what you should be doing today to make sure 2025 ends with profitability and clarity.

Review Year-to-Date Financials

Before you make changes, know where you stand. Run the following reports:

1. Profit & Loss Statement (YTD) – How does your income compare to expenses? Are you hitting your profit goals?

2. Balance Sheet – Are liabilities growing faster than assets? Is your debt manageable?

3. Cash Flow Statement – Are you consistently cash-positive or facing shortfalls?

Look for:

• High-spending categories

• Underperforming revenue streams

• Seasonal trends

• Profit margins by product/service

Action:

Schedule a mid-year meeting with your bookkeeper or accountant to analyze these reports together.

Clean Up and Reconcile Accounts

If your books are even a month behind, now is the time to catch up:

1. Reconcile all accounts (bank, credit cards, loans, merchant processors)

2. Categorize uncategorized transactions

3. Update accounts payable and receivable

4. Review your chart of accounts for accuracy and consolidation

Clean books = clearer insights and fewer headaches later in the year.

Audit Your Expense Habits

Now is the perfect time to review your spending behavior before Q3 and Q4 ramp up.

Questions to ask:

• Are there recurring expenses you no longer need?

• Have any vendors increased prices without delivering more value?

• Are you overspending on subscriptions or tools?

Tip: Compare 2025 YTD expenses to the same period in 2024. Look for categories that have ballooned unexpectedly.

Tighten Your Invoicing and Collections Process

Uncollected revenue = working for free. Take time to:

• Review all outstanding invoices

• Create or improve automated invoice reminders

• Offer a small discount for early payment and/or set clear late fee terms

• Make it easier to pay (e.g., ACH, cards, digital wallets)

This is one of the easiest ways to boost cash flow quickly without making more sales.

Forecast Cash Flow Through December

Cash flow issues often creep up during Q4 due to taxes, year-end bonuses, or big inventory orders. Now is the time to build a cash flow forecast for the rest of the year.

Include:

• Expected revenue (based on trends and projections)

• Fixed and variable expenses

• Seasonal dips or spikes (e.g., holiday sales, slow summer months)

• Tax payments and payroll obligations

As a result, you'll gain the clarity needed to make informed decisions about hiring, spending, or scaling back.

Review Pricing and Profitability

Your costs have likely changed since the beginning of the year. Labor, materials, and software subscriptions may all be more expensive. If your prices haven’t kept up, your margins are shrinking.

Use your bookkeeping data to:

• Analyze your gross and net profit per product or service

• Identify low-margin offers to adjust or retire

• Explore bundling or pricing strategies to increase average order value

Don’t let outdated pricing eat into your hard-earned revenue.

Prepare for Mid-Year Tax Planning

Now is a great time to start tax planning—not scramble in Q4. Here’s how:

• Review your estimated tax payments – are they aligned with your current profits?

• Identify possible deductions or credits you can prepare for now (R&D, home office, energy-efficient improvements, etc.)

• Consider retirement contributions or investing in business assets before Q4

Working with a tax pro mid-year allows for smarter decisions—not just last-minute moves in December.

Plan for Growth or Adjust Your Goals

Your financials tell a story. Are you on track to meet your 2025 revenue and profit goals? Or is it time to pivot?

Use your data to:

• Update your sales goals for the remainder of the year

• Decide if you need to hire, outsource, or scale back

• Reinvest profits into growth areas (marketing, systems, talent)

Bonus Tip: Create or update your KPI dashboard to track key metrics weekly or monthly.

Ensure You’re Tracking 1099-Eligible Contractors Now

Waiting until January is a mistake. Make sure that:

• Every contractor has a W-9 on file

• Payments to each contractor are being correctly categorized

• You’re prepared to generate 1099s quickly in early 2026

This simple step can save you hours of chaos next year.

Leverage Your Bookkeeper as a Strategic Partner

A great bookkeeper does more than enter data—they help you interpret the story behind your numbers. Schedule a strategy session to:

• Review your current financial position

• Identify tax opportunities

• Prepare for upcoming large expenses

• Build a profit-focused plan for the rest of 2025

Don’t wait until December to try and "fix" things—start adjusting now while you still have time.

Right now is the pivot point. What you do now determines how strong you finish 2025.

Instead of reacting to your numbers at year-end, use your bookkeeping to lead with intention. Get proactive about profitability, tax savings, and cash flow planning.

If your books are behind, inaccurate, or you’re not sure how to interpret your numbers—now is the time to get help. The longer you wait, the fewer levers you have to pull.

Need help with mid-year cleanup, financial reporting, or cash flow forecasting? Let’s work together to turn your numbers into a roadmap for success.

Let’s finish strong—starting today!