The Benefits of a Spring Financial Review for Your Business

Home - Resources - The Benefits of a Spring Financial Review for Your Business

As the snow melts and the days grow longer, spring offers more than just a change in weather—it’s the perfect time for Canadian business owners to refresh their financial outlook. A spring financial review allows businesses to assess performance, realign goals, and set a clear path forward for the rest of the fiscal year.

At JMH&Co, we recommend making this an annual habit to ensure your business remains financially healthy and adaptable in a changing economic environment. Here's a closer look at the key benefits of a spring financial review and the steps involved.

 

Why Conduct a Spring Financial Review?

  1. Catch Issues Early:  Reviewing your financials now can help detect cash flow issues, missed deductions, or overspending before they become major problems.
  2. Align with Tax Deadlines:  For corporations with calendar year ends, spring follows tax season—a natural time to reassess strategy. Even if your fiscal year-end differs, the post-tax period is still ideal for planning.
  3. Plan for Growth:  With half the year ahead, a spring review gives you the chance to adjust your business plan, forecast revenues, or revisit hiring goals while there’s still time to act.
  4. Adapt to Changing Circumstances:  Inflation, interest rates, or regulatory changes can all impact your finances. A review ensures you’re not making decisions based on outdated assumptions.

 

Key Steps in a Spring Financial Review

  1. Analyze Year-to-Date Financial Statements
  • What to Review: Balance sheet, income statement (profit and loss), and cash flow statement.
  • Action: Compare actuals to your budget or previous year results. Look for variances and identify the causes.
  1. Evaluate Cash Flow and Liquidity
  • What to Review: Cash flow from operations, current ratio, and accounts receivable turnover.
  • Action: Ensure you have adequate liquidity to cover expenses. If cash is tight, consider revising credit terms or applying for a line of credit before summer slowdowns.
  1. Update Tax Planning Strategies
  • What to Review: Salary vs. dividends, capital asset purchases, and eligible tax credits.
  • Action: Review your compensation strategy and plan ahead for RRSP contributions, capital expenditures, and any available SR&ED or digital adoption credits.
  1. Assess Debt and Financing
  • What to Review: Current loan terms, interest rates, and repayment schedules.
  • Action: Consider refinancing if rates are favourable or if you need working capital. Review your DSCR (debt service coverage ratio) to ensure you can meet obligations.
  1. Review Payroll and Staffing Costs
  • What to Review: Payroll expenses, benefits, and upcoming hiring needs.
  • Action: Verify payroll compliance and consider whether roles or workloads need adjusting ahead of summer.
  1. Revisit Budget and Forecasts
  • What to Review: Original 2025 budget and any rolling forecasts.
  • Action: Update your forecast based on current trends. If revenues are up or down, revise spending or investment plans accordingly.
  1. Examine Compliance and Reporting Obligations
  • What to Review: GST filings, T4/T5 remittances, corporate registry updates.
  • Action: Make sure all filings are current. Spring is a good time to calendar future deadlines to avoid last-minute surprises.

 

Bonus Tip: Meet with Your CPA

A spring financial review is most valuable when done with a trusted advisor. A CPA can:

  • Help interpret key financial indicators
  • Recommend tax-efficient strategies
  • Ensure you’re aligned with both compliance and growth goals

This is especially important if your business experienced changes such as expansion, new partnerships, or government funding.

Final Thoughts

A spring financial review is like a financial health check-up. It offers the clarity needed to make informed decisions, avoid costly mistakes, and seize opportunities in the second half of the year.

Whether you're a sole proprietor, incorporated business, or growing startup, now is the time to review, refocus, and move forward with confidence.

If you’d like assistance with your spring review or have questions about your financial strategy, our team is here to help. Contact us today to book your consultation.

 

This blog was written using the assistance of ChatGPT.

 

Want to make sure it all adds up? Connect with us!
At JMH & Co., we are your partner for financial success. 

Book an appointment with us or give us a call today. 

Medicine Hat (403) 527-4451
Brooks (403) 362-4004 
Calgary (403) 261-0835

Trusted for over 100 years...

"They have yet to disappoint. Fees are fair. Explanations are clear. Service is exceptional."

"They are very prompt with their work and responses, easy to get ahold of, and always make us feel at ease."

"JMH has handled all of our accounting needs for the past 30 years and I have always found them to be thorough and accurate."

"What I can say, is that I'm so happy with their services/pricing ect...that I have no desire to try anywhere else!"

"Excellent service, friendly and passionate staff. Highly recommend JMH for any Accountant services."

"JMH & Co has been my personal, business & my family's accountant for over 26 years. I have seen many changes in tax laws with both personal and business, and with each change JMH & Co was there to assist. The knowledge and advice they have given me throughout the years have assisted in many ways."

"JMH & Co. have been our go-to choice for years now."

"Very professional and trustworthy. Great people. Would highly recommend."

"JMH & Co. have been our family and company accountants for the past 25 years. I have always appreciated the professional and excellent service I’ve received from them."

"Have used them over the years with many different companies. Highly recommend!"