Quick Answer: What should business owners review in the second half of the year?

Business owners should review:

1. Cash flow
2. Tax projections
3. Profit margins
4. Retirement plan contributions
5. Employee benefits
6. Debt and financing
7. Insurance and risk management
8. Succession planning
9. Personal financial goals
10. Year-end planning opportunities

The goal is not to overhaul everything. It is to catch issues early enough to make thoughtful adjustments.

1. Review cash flow first

Cash flow is one of the clearest indicators of business health.

A business can show revenue growth and still feel financially tight if expenses, receivables, payroll, inventory, or debt payments are putting pressure on available cash.

Start with a few practical questions:

• Is revenue tracking ahead or behind expectations?
• Are expenses increasing faster than sales?
• Are receivables taking longer to collect?
• Do you have enough cash reserves for the next 3–6 months?
• Are seasonal slowdowns or large expenses coming?

This matters because many small businesses continue to face cost pressure from labor, fuel, utilities, rent, insurance, and supplies. A 2026 U.S. Chamber of Commerce business update noted that affordability, rising costs, and interest rates remain major concerns for small businesses. [uschamber.com]

A mid-year cash flow review helps you see whether your business has flexibility — or whether small issues are quietly building.

2. Update your tax projections

Waiting until December to think about taxes can limit your options.

By mid-year, most business owners have enough information to estimate:

• taxable income
• payroll changes
• major purchases
• retirement plan contributions
• charitable giving
• owner distributions
• and possible year-end deductions

This is also a good time to coordinate with your CPA or tax professional. If revenue is higher than expected, you may need to adjust estimated tax payments. If revenue is lower, your planning may need to shift.

For Arizona business owners, this may be especially relevant because Arizona’s 2026 economy is expected to rebound modestly, but elevated costs, tariffs, slower job growth, and housing cost burdens continue to affect business and household planning.

The earlier you understand your tax picture, the more time you have to respond.

3. Check your profit margins

Revenue does not tell the whole story.

A business can be busier than ever and still become less profitable if margins are shrinking.

Look closely at:

• cost of goods sold
• payroll and benefits
• vendor contracts
• insurance premiums
• shipping or fuel costs
• debt payments
• rent or property costs
• software and subscription expenses

Inflation has cooled from earlier highs, but many businesses are still operating from a higher cost baseline. NFIB reported that fuel price increases and labor costs are significant issues for small businesses in 2026. [nfib.com]

If margins are narrowing, the second half of the year is a good time to decide whether you need to adjust pricing, renegotiate contracts, reduce unnecessary expenses, or improve operational efficiency.

4. Revisit your retirement plan strategy

For business owners, retirement planning is often more complex than simply contributing to an IRA.

Depending on the size and structure of the business, you may need to review:

• 401(k) contributions
• SIMPLE IRA or SEP IRA strategy
• employer match levels
• profit-sharing opportunities
• plan participation
• employee education
• plan costs and investment options
• fiduciary responsibilities

If your business offers a retirement plan, the second half of the year is also a good time to ask whether the plan is still serving the business and the employees well.

A retirement plan can be more than a benefit. It can support recruiting, retention, tax planning, and long-term owner wealth-building.

5. Review employee benefits and compensation

Hiring and retaining employees remains a challenge for many businesses.

NFIB’s May 2026 report showed that 29% of small business owners reported job openings they could not fill, even though that was the lowest level since May 2020. Labor costs were also cited as the single most important problem by 14% of owners, the highest reading in the survey’s history. [nfib.com]

That makes employee benefits worth reviewing mid-year.

Consider:

• Are benefits competitive?
• Are employees using the retirement plan?
• Do employees understand the benefits available to them?
• Are compensation costs sustainable?
• Are key employees protected or incentivized appropriately?

Sometimes, improving communication around existing benefits can be just as valuable as adding something new.

6. Evaluate debt and financing needs

The second half of the year is also a good time to review your debt structure.

Ask:

• Are interest payments affecting cash flow?
• Do you have variable-rate debt?
• Are there upcoming balloon payments?
• Will you need capital for equipment, hiring, expansion, or inventory?
• Are credit lines still appropriate for the business?

The U.S. Chamber has noted that interest rates remain an important issue for small businesses looking to borrow in 2026, even as expectations around future rate cuts remain cautious. [uschamber.com]

If financing may be needed later this year, it is usually better to plan early than to wait until cash is tight.

7. Identify hidden business risks

Not all risks are obvious.

Some build quietly throughout the year.

Examples include:

• overdependence on one client or vendor
• outdated insurance coverage
• lack of key-person planning
• weak cybersecurity practices
• old buy-sell agreements
• no updated succession plan
• insufficient cash reserve
• unclear estate or ownership transition planning

Risk planning is not about expecting the worst. It is about making sure one unexpected event does not create unnecessary stress for the business, the owner, or the family.

8. Connect your business plan to your personal financial plan

For many business owners, the business is the largest asset they own.

That means business decisions and personal financial decisions are deeply connected.

A second-half review should include questions like:

• Is the business supporting my personal wealth goals?
• Am I too dependent on the business for retirement?
• Do I have enough personal liquidity outside the business?
• Are my estate plan and business ownership documents aligned?
• If I stepped away unexpectedly, what would happen?

This is especially important for family-owned businesses, professional practices, agricultural businesses, and closely held companies where business continuity and family financial security are intertwined.

9. Review your personal goals

The business may have changed this year.

But so may your life.

Maybe your income changed. Maybe your family needs changed. Maybe retirement feels closer. Maybe growth is no longer the only priority. Maybe you want more flexibility, less stress, or a clearer exit path.

A good financial plan should reflect what you actually want — not just what the business demands.

At mid-year, ask:

• What do I want the business to do for my life?
• Am I building toward a clear long-term outcome?
• Do I have a plan for both growth and protection?
• What would make the second half of the year successful?

That conversation matters.

10. Create a second-half action list

Once you review the major areas, narrow your list.

Do not try to fix everything at once.

Choose a few priorities, such as:

• update tax projections
• review retirement plan contributions
• rebuild cash reserves
• reduce high-interest debt
• review insurance coverage
• schedule a valuation discussion
• revisit succession planning
• meet with your financial advisor and CPA

The value of a checklist is not the checklist itself.

The value is the action it creates.

A local planning note for Arkansas and Arizona business owners

Business owners in Arkansas and Arizona are facing different but related planning environments.

Arkansas labor markets have remained resilient, but payroll growth has slowed in 2026. Arizona is expected to improve modestly after a softer period, but housing cost burdens, slower job growth, and policy uncertainty remain relevant for business planning.

That means business owners in Fort Smith, Rogers, Jonesboro, Little Rock, Conway, Russellville, Scottsdale, and Surprise may benefit from reviewing both the business balance sheet and the personal financial plan before year-end. Landmark Financial serves clients from offices across Arkansas and Arizona and nationwide.

Where This All Leads

The second half of the year moves quickly.

For business owners, that can mean missed opportunities if planning gets pushed too far down the list.

A second-half financial planning checklist helps you pause, review, and make adjustments while there is still time. It can also help connect the business you are building with the personal financial future you want.

You do not need every answer today.

But you do need a clear next step.

Let us help you create clarity. Work with one of our Advisors and take control.