Now is the time to review your numbers, refine your strategy, and strengthen your financial footing.
The holidays should be about family, not financial surprises. Yet for many business owners, the end of the year brings last-minute stress: closing books, checking cash flow, and managing taxes. The smartest leaders use this time to set themselves up for a strong start to the new year.
By the fourth quarter, most companies already know how their year will close. That makes it the right time to assess what worked, what didn’t, and what needs to change. At First American Bank, we view Q4 as the best moment to sit with clients, review financial statements, and discuss next year’s plans. The businesses that take a proactive approach now are the ones that begin 2026 with clarity and momentum.
Plan ahead and stay disciplined
The difference between businesses that start strong in January and those that stumble often comes down to planning. Companies that set measurable goals, monitor performance, and make adjustments early are more resilient.
This can be harder for smaller firms, where owners wear many hats. But even a simple annual budget and quarterly review can make a major difference.
This year, many companies learned that optimism without planning can create problems. Some built up inventory expecting tariff changes and stronger sales, only to find that those goods tied up working capital when demand slowed. Strategic planning means modeling both best- and worst-case outcomes and managing cash accordingly.
Protect liquidity before you need it
Recently, more businesses have asked to increase their credit lines. Often, the reason isn’t expansion but tight liquidity caused by heavy investments in inventory or equipment.
If you’re planning a large purchase or expansion, involve your banker early. It is always easier to secure financing before a cash crunch than during one.
Sometimes financing a purchase, even when cash is available, makes sense. As Jose Esquerdo, CPA and Partner at CRI Advisors, explains, “Interest on a business loan may be tax-deductible, and keeping cash on hand allows you to reinvest in other income-generating opportunities.”
Review covenants before year-end
Q4 is also the right time to review loan covenants and compliance. By now, you should have a clear idea whether you’ll meet them. If an issue looks likely, raise it early.
When banks understand what’s happening, they can help you find solutions. These conversations are far more productive before the year closes than after a covenant has already been breached.
Strengthen your tax position
Tax planning is one of the most effective ways to finish the year strong. Esquerdo suggests several steps that can still make an impact before December 31:
- Buy new assets to take advantage of 100% bonus depreciation.
- For new construction or renovations, consider a cost segregation study to accelerate write-offs.
- Review your accounting methods to see if a change could create long-term benefits.
- If you use the cash method, accelerate deductible expenses or defer income to reduce this year’s taxes.
- Write off any bad debts that are unlikely to be collected.
Several new provisions under the OBBBA law also take effect in 2025. These include the permanent return of 100% bonus depreciation, immediate deductions for domestic R&D costs, and a full deduction for building or improving qualified U.S. manufacturing facilities through 2030.
If your company operates in more than one state, now is the time to review where you may have created a tax “nexus.” Activities such as having employees or selling products in another state can trigger new filing obligations.
Close coordination between your CPA and your banker can help uncover opportunities and avoid surprises.
End well, start stronger
Now is the time to review your financial performance, revisit your loan structure, and confirm that your capital and tax strategies support your 2026 goals. With focus and preparation, you can turn these last few weeks into a launchpad for a more confident 2026.
Looking for a Q4 roadmap to start 2026 on the right foot? Get in touch with one of our relationship managers today.
