When I review a client’s books in December, I’m not trying to confirm whether the year was “good” or “bad.” I’m looking for moments of friction. Did cash tighten unexpectedly? Are margins where we’d targeted them to be? Did investments in spend create the return we’d hoped for?
When your financials are prepared strategically, the numbers can point us to the times where we need to dig in more deeply. The issue is that most business owners don’t have the data they need in a timely enough manner to act on them, and when they do, it’s not formatted in a manner that allows for an analytical review.
That’s where strong accounting support comes in. Our year-end Client Accounting & Advisory Services work focuses on surfacing what needs to change before the same issues carry into another year.
Here’s what I focus on before a client makes 2026 plans.
Cash Flow: Where Timing Broke Down
The first place I look is cash movement over the year. Not the ending balance, but the pattern. I want to see when cash dipped, how long it stayed there, and what caused the pressure. After all, Cash is King!
In many cases, the issue isn’t profitability. It’s timing. Revenue hits later than expected. Expenses cluster earlier in the month. Clients pay slower than assumed. These gaps create stress that don’t necessarily show up on a P&L.
At year-end, we map cash flow against operational events. Hiring, marketing pushes, inventory purchases, large projects. This tells us whether the business model supports growth without constant cash management or whether changes are needed before scaling further.
Profitability: What Held Up and What Didn’t
Annual profit numbers don’t tell me much when only shown in total for the year. I care about profit trends throughout the year and broken down across service or product lines. Did margins compress as revenue grew? Did certain revenue types require more support than anticipated? Did changes in revenue impact costs in ways we did not anticipate?
This review always offers new insights. Sometimes growth looks good on paper, but then when isolated against both the real and the opportunity costs associated with it, you may choose a different approach moving forward. Same with expenses. Sometimes they feel necessary for growth, but unless you can correlate the cost investment you make with return, you’ll never be sure.
Spending Behavior: Where the Business Drifted
By December, spending patterns are well established. This is the point where I can see whether costs reflect intentional decisions or accumulated habits.
I pay attention to categories that creep. Common situations I see often are software subscriptions that should have been cancelled (or aren’t centralized for group pricing discounts), professional services that need to be re-scoped, marketing spend on auto-pilot that hasn’t produced valuable outcomes. These expenses build quietly as time goes on, making it hard to catch their accumulating impact.
We also review spending as a tool for growth. If the business made an investment with intention that it would lead to growth – the question becomes whether or not the growth has followed. If it did, great! What have we learned from that? If it didn’t, do we still expect it to be successful, and when? Who is on point to monitor and adjust as necessary? Those thoughtful evaluations need a systematic approach to ensure they are not forgotten about, and at year-end, it’s a great time to recap and reset for the coming year.
Revenue Quality: Which Dollars Create Stability
Not all revenue supports the business equally. When we review and set goals for the year ahead, we use a multi-dimensional approach that highlights quality, reliable revenue.
While numbers are always important to me as a CPA, my approach goes beyond that. I consider metrics such as customer concentration, payment behavior, contract structure, and churn. A business can post strong revenue while carrying significant risk if too much depends on a small group of clients, low margin services/products, or inconsistent payers.
For 2026 planning, this review shapes decisions around pricing, client mix, and even marketing strategy.
Operational Signals Hidden in the Numbers
Some of the most valuable insights don’t sit in a single report. They show up in the work and processes we do day to day as we run our businesses.
Unexpected, past-due bills that pop up and create a fire-drill are a result of an inconsistent AP process and put a significant strain on cash flow.
Customers paying more slowly could be a result of insufficient staff support and/or processes that haven’t been scaled with the business (or been automated).
Consistent overruns in certain expense categories point to planning gaps.
These symptoms are present year-round, but only if you look for them. Making the time to review your business holistically at Year-end allows for issues to be brought to light now, instead of carrying them forward to next year.
Turning the Review Into Action for 2026
My goal with year-end reviews is to reinforce what went well, but also to surface any problems early enough to correct them. Adjustments often include:
- Cash flow forecast tweaks – renewing and expanding relevant assumptions
- Spending corrections if necessary – identifying unnecessary costs, maximizing savings where possible, and creating structure around evaluating investments for growth
- Revenue reviews that support strategies grounded in quality and reliability
- KPI refinement so ongoing decisions are supported by data, not just gut feel
This is what allows clients to enter 2026 with direction and strategy.
Why Year-End Review Timing Impacts 2026 Decisions
A new year always feels like a fresh start, but without intention, your business will carry forward with the same habits and results as the year before (good or bad!). Foundational issues become harder to resolve the longer the business builds and adds layers of decisions on top of it. A thoughtful year-end review creates space to correct, simplify, and prioritize changes before the next cycle begins.
If you’ve never been strategic about the review of your business from year to year, it’s never too late to start. The renewed focus and clarity are well worth the time investment. Schedule a meeting with me to walk through what a year-end Accounting & Advisory Services review would look like for you, and let’s get you moving forward confidently in the year ahead.
About Dark Horse CPAs
Dark Horse CPAs provides an integrated suite of services including tax, accounting, fractional CFO, and wealth management to small businesses and individuals across the U.S. The firm was established to transform the client experience by offering personalized, high-quality services that small businesses and individuals deserve. As Dark Horses in their industries, these businesses benefit from advanced tax strategies and accounting insights typically reserved for larger companies. With a nationwide presence and a team of dedicated professionals, Dark Horse CPAs is committed to your success. Get a quote today.
share
Get an expert Tax & Accounting CPA who will partner with you to achieve unparalleled results.
