As we approach the midpoint of 2025, finance teams have an important opportunity—and responsibility—to take stock of the first half of the year and reset for the second. With increasing pressure to hit year-end targets, now is the time to review actuals, course-correct forecasts, and realign teams around what’s possible in H2.

This isn’t just a finance hygiene exercise. A thoughtful mid-year check-in is one of the most strategic moves an FP&A leader can make to ensure organizational goals remain achievable.

Why a Mid-Year Review Matters

Even the most carefully crafted budgets from Q4 last year may no longer reflect current realities. Market dynamics have shifted. Spend patterns may have deviated. Strategic priorities may have evolved. A mid-year review allows finance leaders to:

• Assess year-to-date performance against plan
• Identify material variances across key areas (headcount, vendor spend, program costs)
• Re-forecast the remainder of the year with the benefit of updated inputs
• Reallocate budgets toward the most impactful initiatives
• Re-engage business leaders with a grounded view of what’s achievable in H2

In short, it creates space for data-driven decisions that minimize year-end surprises.

Your Mid-Year Review Checklist

Here are some of the key components that should be part of your mid-year financial health check:

1. Variance Analysis
   Start with a clear comparison of actuals vs. plan for the first six months. Where are the biggest gaps? Are you over- or under-spending in areas that need attention? Break it down by:
   
   • Department-level spend
   • Headcount vs. hiring plan
   • Program budgets vs. run-rate
2. Updated Forecasts
   Based on current trends, refresh your forecasts for Q3 and Q4. This means factoring in:
   
   • Updated revenue or funding assumptions
   • Known or expected changes in operating expenses
   • Shifts in hiring or attrition
3. KPI and Run-Rate Trends
   Go beyond dollars. Are you trending toward the right operational outcomes? Monitor:
   
   • Spend per head
   • Burn multiples
   • Forecast accuracy vs. actuals
4. Reprioritization Opportunities
   If certain investments haven’t yielded expected outcomes, now’s the time to pivot. Look for areas to:
   
   • Pull back or pause spending
   • Double down on high-performing bets
   • Fund net-new strategic initiatives for H2
5. Departmental Budget Alignment
   Mid-year is a great opportunity to re-align with department heads. Ensure:
   
   • Budget owners understand current trajectory
   • There’s clarity on spending limits and targets
   • Forecast updates are informed by on-the-ground realities
6. Scenario Planning Readiness
   Finally, make sure you have what-if models ready to evaluate different paths forward. Whether it’s conservative, aggressive, or status quo—being able to pivot quickly can make or break the year.

Practical Tips for an Effective Review

• Don’t wait until Q3: Mid-year reviews lose impact if done too late. Use June and early July to lock in H2 assumptions.
• Involve stakeholders: Loop in business leaders early so they’re part of the process and bought into any adjustments.
• Use real-time data: Relying on stale spreadsheets leads to misaligned decisions. The more current your data, the sharper your insights.
• Automate what you can: Free up time from manual reconciliations so your team can focus on analysis and recommendations.

A solid mid-year review is your chance to steer the ship with confidence. Don’t just close the books on H1—open up the possibilities for H2.

If you're looking to accelerate this process and build a smarter forecast for the rest of the year, Precanto can help. Our AI-powered financial intelligence platform enables real-time forecasting, variance insights, and scenario modeling—without the spreadsheet slog.

Reach out to see how we can support your mid-year reset.

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