The start of a new year gives every business owner something powerful: the chance to pause, reflect, and make intentional decisions about the year ahead. Whether 2025 brought rapid growth, unexpected challenges, or a mix of both, stepping back to review your performance and set clear goals is essential.

At Modus Accountants, we see first-hand that the most successful businesses don’t simply “see what happens” each year they prepare for it. If you need support creating a structured plan, our Business Coaching & Mentoring services can guide you through every step.

1. Review the Last 12 Months With Honesty and Data

A strong plan begins with understanding how your business actually performed.

Key questions to ask:

• What were your biggest wins this year?
• Where did you fall short of your goals?
• Which products/services performed best or worst?
• Did your cash flow support your growth plans?
• Were there operational bottlenecks that slowed progress?

Use financial data to uncover patterns

Your management accounts offer crucial insights into revenue trends, profit margins, and cash flow. Numbers don’t lie they show what’s working and what needs fixing.

If you don’t yet analyse your accounting numbers every month, our Year-End and Management Accounts Support helps you track performance and make more confident decisions.

2. Understand Your Current Financial Position

Before setting goals for 2026, make sure you know exactly where your business stands. Review:

• Cash reserves and bank balances
• Outstanding liabilities
• Customer payments owed
• Break-even figures
• Upcoming tax commitments

Knowing your true position provides clarity when planning resources and goals.

3. Set Clear, Measurable Goals for the New Year

Many business owners set vague resolutions like “grow revenue”, but these rarely lead to action. Use SMART goals specific, measurable, achievable, relevant, and time-bound to track progress.

Example goals for 2026:

• Grow recurring revenue by 20%
• Reduce debtor days to 20
• Hire extra support staff by mid-year
• Launch one new service by autumn

Breaking annual objectives into quarterly targets helps you manage momentum and measure success.

4. Build a Practical Financial Plan for 2026

Your goals need a financial plan to make them achievable. A good plan should include:

• Revenue forecasts
• Budgeted operational costs
• Cash flow projections
• Contingency funds
• Funding or investment plans
• Tax planning

Creating a 12-month cash flow forecast and budget is particularly valuable for avoiding surprise cash shortages. If you’d like help with planning or scenario modelling, consider our Business Coaching & Mentoring or talk to us about including forecasting in your year-end review.

5. Review Your Operational Tools and Processes

The new year is also a good time to evaluate your tools and workflows:

• CRM and project management tools
• Accounting software such as Xero, QuickBooks or FreeAgent
• Document organisation and record-keeping
• Customer onboarding and billing processes

If you need support integrating or optimising your software workflows, we can assist as part of our Business Advice services.

6. Strengthen Your Cash Flow Strategy

Healthy cash flow is essential for growth. Revisit:

• Payment terms you offer clients
• Automated invoice reminders
• Expense tracking
• Debtor control policies

Small changes can significantly improve liquidity, especially in slow months.

7. Revisit Your Long-Term Vision

Before getting lost in daily tasks again, consider where you want your business in 3–5 years. Clarify:

• Your ideal work/life balance
• The type of clients you want more of
• Expansion plans or exit strategy

Setting future-focused KPIs helps shape your yearly goals.

8. Get Support from Modus to Stay on Track

You don’t need to build and manage your financial strategy alone. Our team offers ongoing guidance through coaching, regular planning check-ins, and performance reviews.

Final Thought

The new year is more than a calendar date — it’s a chance to reset, refocus, and grow with intention. Reviewing the past year with honest analysis, setting clear goals, and structuring your finances properly will empower you to make smarter decisions and enter 2026 with confidence.

If you’d like help evaluating your financial performance or building a plan, Modus Accountants is just one call away. To find out more about more click here to book a free 30 minute discovery call.

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