As the year winds down, many business owners are focused on wrapping up projects, closing the books, and getting through tax season. But if you want 2026 to be your strongest financial year yet, preparation starts now, not in January.
The final quarter of the year is your window to reflect, recalibrate, and make decisions that set your firm or service business up for long-term profitability. Here’s how to use the coming months to get ahead of the curve and enter 2026 with confidence, clarity, and control over your numbers.
1. Review Your Financials with Intention
Before you can plan ahead, you need to understand where you stand today.
Take time to review your year-to-date financials — not just your bank balance, but your full Profit & Loss statement and Balance Sheet. Ask questions like:
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Are my revenues meeting expectations?
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What expenses consistently eat into profits?
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Is cash flow consistent, or am I frequently transferring money to cover shortfalls?
If you work with a bookkeeper or CFO, this is the perfect time to schedule a year-end review meeting. Don’t just glance at the reports — analyze trends, compare this year to last year, and identify areas for improvement.
2. Get Ahead of 2025 Tax Season
Many firms wait until tax time to organize their financials — which leads to unnecessary stress, missed deductions, and reactive decisions. Getting ahead now means:
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Reconciling all accounts (operating, trust, credit cards, loans) before December.
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Reviewing expense categories to ensure accurate coding for tax purposes.
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Confirming that owner draws, payroll, and contractor payments are correctly recorded.
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Gathering documentation for potential deductions, such as business travel, software, or continuing education.
Tax season is easier — and far less costly — when your books are clean, accurate, and complete before year-end. A proactive approach ensures your CPA can focus on strategy and savings, not cleanup and corrections.
3. Forecast Cash Flow for the First Quarter of 2026
Cash flow planning is the lifeline of your business. Even profitable firms can feel pressure when cash isn’t managed intentionally.
Now is the time to forecast your Q1 cash flow — estimate expected income, upcoming expenses, and any seasonal slowdowns. This helps you avoid surprise shortfalls, plan for large expenses (like annual software renewals or bonuses), and ensure you have enough reserves for the new year.
If you find yourself guessing, that’s a sign to implement a simple cash flow forecasting tool or work with a professional who can build one tailored to your firm.
4. Revisit Your Pricing and Profit Margins
Before you set your 2026 goals, take a hard look at your pricing model. Are your rates aligned with the value you deliver and the true cost of running your business?
Service professionals often underprice themselves or fail to adjust rates in line with inflation, expenses, or increased expertise. Review your cost of services, labor, and overhead to identify where margins can be improved.
Even a small pricing adjustment — when done strategically — can make a significant impact on profitability in the coming year.
5. Streamline Your Systems and Workflows
Efficiency is profitability. Disorganized systems can create financial blind spots and slow decision-making. As you prepare for 2026:
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Audit your accounting systems and tools — are they still serving your needs?
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Consider integrating automation for invoicing, payments, and reporting.
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Ensure roles and responsibilities for bookkeeping, billing, and reconciliation are clearly defined.
The goal is to build a financial foundation that supports growth without adding complexity. Clean systems create space for strategy — not just survival.
6. Set Strategic Financial Goals
Don’t wait until January to think about goals. Use the next few weeks to define what success looks like in 2026.
Ask yourself:
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What’s my ideal monthly revenue?
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How much profit do I want to retain?
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What investments will I make — in people, systems, or marketing — to get there?
From there, set measurable, quarterly goals that align with your financial vision. Remember: strategy without structure is just wishful thinking. A well-defined financial roadmap will guide your decisions throughout the year.
7. Partner with a Financial Professional Who Helps You See the Big Picture
As a business grows, so does financial complexity. What worked in the early stages — spreadsheets, guesswork, and reactive planning — can’t sustain a firm that’s ready to scale.
Partnering with a bookkeeper or Fractional CFO who understands your industry allows you to shift from reactive to proactive financial management. Instead of only asking, “What happened this year?” you’ll start asking, “How can we do better next year?”
Final Thoughts
2026 success starts with the steps you take today. Use this time to clean up your books, review your numbers, and plan intentionally. The more prepared you are before the new year begins, the more strategic and confident your decisions will be.
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