June 2025 is the perfect time for small business owners, freelancers, and entrepreneurs to pause and conduct a mid-year financial review. With tax season behind us and the second half of the year ahead, assessing your financial performance, adjusting budgets, and refining your business strategy are critical steps to ensure success through December.
Accounting software can transform this process, offering tools to analyze past performance, forecast future trends, and make data-driven decisions. In this article, we’ll explore how top accounting software—QuickBooks Online, Xero, Zoho Books, and Sage 50cloud Accounting—can boost your mid-year financial review, comparing their features, usability, and pricing. We’ll also provide expert tips to help you optimize your strategy and thrive in the remainder of 2025.
Why Conduct a Mid-Year Financial Review?
A mid-year financial review allows you to evaluate your business’s financial health halfway through the year, identifying strengths, weaknesses, and opportunities for improvement. In 2025, with economic fluctuations and evolving market demands, this review is more important than ever [Web ID: 14]. It helps you:
Assess revenue and expense trends to adjust budgets.
Identify cash flow issues or overspending before they escalate.
Forecast sales and expenses for the second half of the year.
Align financial goals with your overall business strategy.
Accounting software streamlines this process by automating data collection, generating reports, and providing real-time insights, saving you time and reducing errors. Whether you’re a freelancer tracking billable hours or a retailer managing inventory, the right tool can turn your mid-year review into a strategic advantage.
QuickBooks Online: Best for Detailed Financial Analysis
Overview: QuickBooks Online, developed by Intuit, is a cloud-based accounting solution serving over six million businesses as of 2025. It’s renowned for its comprehensive features, making it ideal for in-depth mid-year reviews.
Mid-Year Review Features:
Budget vs. Actuals Report: Available in Plus and Advanced plans, this report compares your budgeted amounts to actual income and expenses, highlighting variances for adjustment.
AI-Driven Forecasting: Intuit Assist in the Advanced plan predicts cash flow trends based on historical data, helping you forecast for the rest of 2025.
Expense Tracking: Automated bank imports and categorization ensure all mid-year expenses are accounted for, with receipt uploads for tax deductions.
Tax Reports: Generates profit-and-loss and expense summaries, exportable to tax professionals for mid-year tax planning.
Integration with Excel: Export reports for detailed analysis, a feature valued by businesses needing granular insights.
Pricing: Plans range from $35/month (Simple Start) to $235/month (Advanced), with a 30-day free trial or 50% off for the first three months.
Usability: QuickBooks’ dashboard shows key metrics like expenses and income, with a straightforward setup for generating mid-year reports. The mobile app supports expense tracking, though budgeting requires desktop access.
Best For: Businesses needing detailed financial analysis and forecasting, such as retailers or service providers with complex budgets.
Xero: Best for Collaborative Review and Forecasting
Overview: Xero, founded in 2006 in New Zealand, is a cloud-based accounting tool with over 3 million subscribers in 2025. It’s designed for SMBs, offering collaboration and scalability.
Mid-Year Review Features:
Budget Manager: In the Established plan, create budgets for 3, 6, or 12 months, comparing actuals to planned figures for a mid-year snapshot.
Analytics Plus Add-On: Provides cash flow forecasts for 30, 60, or 90 days, aiding mid-year planning with historical data analysis.
Bank Reconciliation: Automatic transaction matching ensures accurate data for review, with unlimited reconciliation in higher plans.
Project Tracking: Monitor project profitability (Established plan), helping service-based businesses assess mid-year performance.
Collaboration: Unlimited users allow teams to review finances together, with role-based access for security.
Pricing: Plans range from $15/month (Early) to $78/month (Established), with Analytics Plus at $10/month. A 30-day free trial and 75% discount for the first three months are available.
Usability: Xero’s clean dashboard and mobile app (updated 2025) make it easy to generate reports and collaborate, though budgeting setup requires the Established plan.
Best For: Collaborative teams or growing businesses needing scalable review and forecasting tools.
Zoho Books: Best for Affordable Mid-Year Insights
Overview: Zoho Books, launched by Zoho Corporation in 2011, offers a cloud-based solution with a free plan for businesses earning under $50,000 annually, ideal for budget-conscious reviews.
Mid-Year Review Features:
Budget Creation: In the Premium plan and above, set budgets for income and expenses, with monthly or quarterly comparisons to actuals.
Cash Flow Reports: Analyze historical data to assess mid-year cash flow, with custom reports in higher plans for deeper insights.
Expense Tracking: Automated imports and categorization ensure all mid-year expenses are tracked, with receipt uploads for accuracy.
Project Budgeting: Monitor project costs and profitability, helping service-based businesses evaluate mid-year projects.
Budget Overrun Alerts: Notify you when spending exceeds budget, a proactive feature for mid-year adjustments.
Pricing: A free plan is available, with paid plans from $15/month (Standard) to $240/month (Ultimate). A 14-day free trial of the Premium plan is offered.
Usability: Zoho Books’ dashboard shows budget performance, with a simple setup for tracking. The mobile app supports expense logging, enhancing mid-year review flexibility.
Best For: Budget-conscious small businesses needing affordable insights and automation for mid-year reviews.
Sage 50cloud Accounting: Best for Detailed Budget Adjustments
Overview: Sage 50cloud Accounting, from Sage Group PLC, is a hybrid solution with over 40 years of experience, catering to SMBs needing detailed financial planning.
Mid-Year Review Features:
Advanced Budgeting: In Premium and Quantum plans, create multiple budgets for different scenarios, comparing them to mid-year actuals.
Forecasting via Reports: Over 100 customizable reports, including budget vs. actuals and cash flow statements, provide detailed forecasting data.
Job Costing: Track costs and revenue for projects (Premium and Quantum plans), assessing mid-year profitability.
Inventory Review: Monitor stock levels and adjust budgets based on sales trends, ideal for product-based businesses.
Excel Integration: Export reports for advanced mid-year analysis, a feature for data-driven adjustments.
Pricing: Plans range from $62.50/month (Pro Accounting) to $149.08/month (Quantum Accounting) for one user, with a 30-day free trial or TestDrive.
Usability: Sage 50cloud’s setup is complex, requiring accounting knowledge, but its dashboard supports detailed budget tracking. The mobile app is basic, limiting on-the-go review capabilities.
Best For: Businesses needing detailed budgeting and inventory adjustments, such as retailers or contractors.
Step-by-Step Guide to a Mid-Year Financial Review with Accounting Software
Review Financial Statements: Use QuickBooks Online’s profit-and-loss report or Sage 50cloud’s 100+ reports to analyze income, expenses, and net profit from January to May 2025.
Compare Budgets: Check Xero’s Budget Manager or Zoho Books’ budget vs. actuals to see where you’ve overspent or underspent, adjusting goals for June–December.
Assess Cash Flow: Leverage Xero Analytics Plus or QuickBooks’ AI forecasting to identify cash flow gaps and plan for upcoming expenses.
Evaluate Projects: Use Xero’s project tracking or Zoho Books’ project budgeting to review mid-year project performance and profitability.
Adjust Strategies: Based on insights, tweak marketing budgets (e.g., reduce ad spend if revenue is down) or inventory orders (e.g., increase stock for peak seasons) using Sage 50cloud’s tools.
Plan for Growth: Forecast revenue with QuickBooks’ Intuit Assist or NetSuite’s advanced analytics, setting realistic growth targets for the second half.
Expert Tips to Boost Your Mid-Year Strategy
Set Realistic Goals: Use historical data from Zoho Books or Sage 50cloud to set achievable targets, avoiding over-optimistic forecasts.
Monitor Key Metrics: Track cash flow, profit margins, and customer acquisition costs weekly with Xero’s dashboards to stay proactive.
Involve Your Team: Leverage Xero’s unlimited users or QuickBooks’ accountant access to get input from staff or professionals.
Prepare for Seasonality: Adjust budgets for seasonal peaks (e.g., holiday sales) using Sage 50cloud’s multi-budget feature.
Review Vendor Contracts: Use Melio’s payment tracking to renegotiate terms with vendors if cash flow is tight, optimizing expenses.
Which Software Should You Choose for Your Mid-Year Review?
For Detailed Analysis: QuickBooks Online is ideal for its AI-driven forecasting and comprehensive reports, perfect for businesses needing deep insights.
For Collaboration: Xero suits teams with its unlimited users and collaborative budgeting tools, enhancing mid-year planning.
For Affordable Insights: Zoho Books offers budget-friendly options with automation, great for small businesses on a tight budget.
For Detailed Adjustments: Sage 50cloud excels for businesses needing advanced budgeting and inventory reviews, though it’s pricier.
Final Thoughts
A mid-year financial review in June 2025 is your chance to refine your business strategy and set the stage for a successful year-end. QuickBooks Online provides the most detailed analysis, Xero enhances collaboration, Zoho Books offers affordability, and Sage 50cloud delivers advanced planning tools. Take advantage of free trials—30 days for QuickBooks Online, Xero, and Sage 50cloud, 14 days for Zoho Books—to test these features. Follow our guide and tips to leverage your accounting software, ensuring your business thrives through the rest of 2025. Explore our reviews for more details and start your review today!