Mid-Year Bookkeeping Check-In: Smart Habits That Lead to Year-End Success

Start now, finish strong.

We’re halfway through the year—how’s your bookkeeping holding up?

For many business owners, the beginning of the year starts with good intentions: organized books, regular reconciliation, and clear financial goals. But by mid-year, those habits can slip as day-to-day operations take over. That’s why now is the perfect time for a bookkeeping check-in.

We believe smart bookkeeping isn’t just about tax season. It’s about running a stronger, more informed business year-round.

Download the Q2 Accounting & Bookkeeping Checklist today!

Key Bookkeeping Habits

Here are key habits to evaluate and reset mid-year to avoid last-minute stress—and position your business for success in Q4 and beyond.

1. Reconcile All Accounts (Yes, All of Them)

If it’s been a few months since your last reconciliation, now’s the time. Unreconciled transactions can create inaccurate reports and missed deductions. A mid-year review helps catch errors early and prevents issues from snowballing. Review your:

Bank accounts
Credit cards
Loans and lines of credit
Payment processors (e.g., Stripe, Square, PayPal, etc.)

2. Audit Your Expense Categories

Look at how expenses are being categorized. Are there any charges that seem out of place or lumped into “miscellaneous”? Clean categories now will make financial reporting, budgeting, and tax prep much easier later.

Quick tip: Create a “catch-all” report for uncategorized transactions—then sort and clean it monthly.

3. Revisit Accounts Receivable and Payable

A healthy cash flow starts with knowing who owes you—and who you owe. Use this check-in to:

Follow up on outstanding invoices,
Write off bad debts if appropriate, and
Review vendor contracts for upcoming renewals or pricing changes.

4. Check Payroll and Contractor Records

Don’t wait until December to clean up your payroll—it’s much easier to fix issues while the year is still in progress. If you work with employees or independent contractors, now is the time to:

Ensure W-2s and 1099s are being tracked correctly,
Review withholdings and benefits deductions, and
Verify contractor payment thresholds for 1099 filings.

5. Review Budget vs. Actuals

Are you on track with your financial goals? Pull a year-to-date Profit & Loss report [see sidebar copy below] and compare actual spending to your budget. This helps you:

Identify over- or under-spending,
Adjust forecasts for the rest of the year, and
Make strategic decisions before Q4.

6. Back Up Your Financial Data

Whether you’re using QuickBooks, Xero, or another platform, make sure your data is backed up. If your system crashed today, would you still have access to your records?

7. Schedule a Mid-Year Meeting with Your Advisor

A mid-year review with your advisor can uncover opportunities to:

Maximize deductions before the end of the year,
Evaluate entity structure changes, and
Plan for capital investments or funding.

Don’t Wait for December

Smart bookkeeping is proactive—not reactive. Use this mid-year check-in to get back on track, clean up loose ends, and prepare for a confident second half of the year. If you’re unsure where to start or feel overwhelmed, the team at Steel Ledger Advisors is here to help you make sense of the numbers and stay ahead of what’s next.

Ready for a mid-year review?

To pull a year-to-date Profit & Loss (P&L) report in QuickBooks, navigate to Reports, then select the Profit & Loss report. In the report period section, choose “This Year.” This will display your income and expenses for the current calendar year to date.

Here’s a more detailed breakdown:

Go to Reports: From the QuickBooks main menu, select “Reports”.
Choose Profit & Loss: Locate and select the “Profit & Loss” report (or Profit & Loss Standard).
Select Date Range: In the report period section, choose “This Year” from the available options. This will automatically set the date range to the start of the current calendar year up to the present date.
Run the Report: Click “Run Report” to generate the year-to-date P&L.
Customize (Optional): You can customize the report further by clicking the “Customize” button. Here, you can adjust the date range, column display (e.g., monthly, quarterly, yearly), and other settings to suit your specific needs.