It's usually not the favorite part of owning a business but performing a financial review during the summertime can provide cost-savings next tax season. While businesses spend a good amount of time prepping and reviewing finances and tax information from January to April, it often goes untouched until late December that same year. The sunny days of summer pose a perfect opportunity to check in with the business' financial advisors (accountant and bookkeeper) and see how the business' numbers are shaping up.

Are profits down from the same point last year? Has the business assumed more overhead? Implemented new processes? There are a litany of changes and small nuances that happen every day in a small business that can drastically shift the bottom line and what Uncle Sam expects to see in his April payments. Taking an hour or two in August to review the books can save the company thousands later. Here are the key areas to review:

Taxes. Did the business receive a sizable return or make a substantial payment to the IRS for 2004? If the answer is yes to either scenario, now is a good time to make a few modifications in the projected tax payments for 2005. A substantial refund suggests that the business is overpaying and could be better utilizing those dollars to reinvest in equipment or capital improvements or in an employee savings program. If the company wrote a check in April, consider increasing the estimated quarterly tax payment in September and/or January.

Budgets. Review the projected budgets against actual costs and see if estimates are on target. Has the business experienced a substantial loss in first or second quarter of 2005? Are sales exceeding any previous quarters or years? Either way, a substantial shift in profit or loss will affect the tax payments as well as any employer-matched contributions or bonuses already in place. Be prepared and start making plans for increased or decreased payments.

Fringe benefits. Most employer groups renew in September, January or June, so summer is a great time to start thinking about the next year's offerings. If the company is employing more than 50 people, send out a brief survey asking what features they utilize the most and which they would like to see in future offerings. Contact the company's insurance broker and set a time to discuss options and review new plan packages before the busy season hits.

Retirement accounts. Review current retirement saving offerings and see how they're matching up to their competition. It may be wise to send a little reminder email out to employees to do the same ('Have you checked your IRA's performance lately?'). If possible, shift investments or seek advice from a reputable financial advisor on the best investment options for the business' situation.

Charitable contributions. While the holidays are another four months away, it is never too early to start thinking about what types of corporate contributions the business will be making this year. Consider implementing a corporate-sponsored charity such as the United Way (www.unitedway.org) that offers in-house employee education sessions, volunteer opportunities and payroll deduction directly to the charity of choice. Summer is also a great time to meet with local charities and discuss ways to create a long-term relationship that will be most beneficial for the business and the community at large.

Business plans. Does the company have a 3-, 5-, or 10-year business plan? Was a plan developed and never implemented? August is the perfect time to review the plan and perhaps make the decision to bring in an outside consultant or advisor to help create a strategic plan that can be launched in the New Year.

Outsourcing. Take a look at what business tasks a pushed to the bottom of the to-do list and consider outsourcing them. Could management's time be better spent focusing on the core business? If marketing and public relations is always the last item on the daily planner, consider the time that would be spent trying to bring a campaign to market and use a consultant. The same is true for payroll, compliance issues or any other 'dreaded' task in the business routine. Freeing leadership of those most hated jobs can allow for creative thinking and new market growth ideas that would otherwise be squashed by mundane duties.

Before grabbing a beach tote and heading for the shores, take a little time to review where the business stands and the future direction. The time spent now will save hours of worry and costly tax payments next winter. For more ways to evaluate business finances talk with a Fiducial representative or visit the web site at www.fiducial.com.