Smart planning now can set your business up for success
As the year winds down, small business owners juggle holiday demands with the critical task of closing out their books. While it's tempting to push financial planning to January, taking time now can make a big difference, saving on taxes, improving cash flow and giving you a clear roadmap for 2026.
Here are five practical steps to help your business finish strong:
1. Review your financials
Start with a thorough check-up. Pull your profit-and-loss statements, balance sheets and cash flow reports. Look for trends: Where did revenue peak? Which expenses crept up unexpectedly? Tools like QuickBooks can make this easier. This isn't just about looking back, it's about spotting opportunities for smarter decisions ahead.
2. Plan for taxes
Year-end tax planning can unlock real savings. Consider contributing to retirement plans, deferring income if cash flow allows or accelerating expenses to take advantage of deductions. Energy-efficient upgrades may also qualify for tax credits. A quick conversation with a CPA before December ends can help you avoid surprises in April.
3. Build your 2026 budget
Use what you've learned this year to forecast next year. Be conservative, plan for modest growth and factor in inflation. Allocate funds for operations, marketing, reserves and growth initiatives. Budgeting isn't a one-and-done task; revisit it quarterly to stay on track.
4. Manage debt wisely
If you're carrying high-interest loans, explore refinancing options while rates remain favorable. Paying down revolving credit can improve your score and open doors to better terms. For expansion plans, look into SBA grants or low-cost funding alternatives.
5. Optimize cash flow
Clear out slow-moving inventory with year-end promotions, negotiate better payment terms and build an emergency fund ideally three to six months of operating expenses. These steps can help you weather seasonal fluctuations and unexpected challenges.
Year-end planning isn't just paperwork, it's an investment in your business's future. Start now, and you'll enter 2026 with confidence and momentum.
Questions? Stop by your local Alpine Bank branch today to learn more about how we can support your financial journey.
