I believe reading OFTEN will definitely help. She needs the exposure to well written sentences/paragraphs. Choose stories that will catch her attention.

Just hearing and seeing the words will help fine-tune her reading.
However, I would probably still use a phonics program. My daughter had some reading issues, due to an undiagnosed vision problem, and was having trouble sounding out words and recognizing her sight words, and some of the basic letter sounds. Even though she had been through a year of Pre-k and a year of K at that point, we still chose to use Reading Made Easy her first grade year, which was our first full year of homeschooling. Since she had learned all of her letters, and most of their sounds, we decided to start with lesson 9. You could always start with a later lesson, or an earlier one, depending on her ability. My daughter started the year with no confidence in her ability to read; by the end of that school year we had finished the program, and she was reading some of the books on the emerging reader's list in the Beyond...manual. She likes reading now, and is doing very well. Next year, she will begin DITHOR with Bigger...and I know she will do fine.
My recommendation would be to do the Phonics again. You could try using the one you already have, or try Reading Made Easy; it worked very well for us. It's one of the Phonics choices on the HOD website with the Beyond...packages. I'm sure others will be along to offer their suggestions, too.

Also, the copy work in Beyond...did a great job in helping her learn to write well (letter formation) and become familiar with the spelling of some words. And of course, the way Carrie has the Spelling lists set up, and the various Spelling activities, really works. My daughter is able to spell many words and is not afraid to try and possibly fail. We just practice more in that case. I hope this helps some. Good luck in your decision.