As we head into year-end, most small and mid-size businesses focus on closing deals and tying up loose ends. But this is also one of the best times to create real financial strategy going into Q1.
Over the years, I’ve seen that the companies who use these few weeks intentionally get a jump-start on the ones who simply “wrap up the year.”
Here are a few CFO-level moves, that can strengthen your cash position and improve margins heading into next year:
1. Don’t just cut expenses, shift your cost structure.
An effective methodology I’ve used before is to look at the businesses expense structure between fixed costs and variable costs. Then create a strategy to shift fixed costs to variable costs.This is a great way to lower overall expenses by aligning more variable expenses to the variable revenue cycles.
Example: A company I worked at had a flat-rate monthly contract for third-party data, but usage of that data fluctuated wildly across the year. I led the process of restructuring the data contract to a threshold billing, which is where we paid a small base fee plus implemented tiers that activated additional charges above certain usage levels. This shifted 70% of the fixed cost to variable costing, which aligned more precisely with the variable revenue cycles across the year.
2. Use tax planning to improve cash flow, not just tax savings.
Too many businesses don’t maximize their tax planning and focus more on compliance. In reality, good tax planning is a cash-flow strategy. A few moves that can work across industries:
- Section 179 & bonus depreciation: If you already planned to invest in equipment, technology, or machinery early next year, bringing those purchases into December can accelerate deductions and reduce taxable income now.
- Prepaying certain expenses:Some businesses can prepay rent, utilities, insurance, or vendor retainers to shift deductions into the current year (if cash flow allows).
- Owner compensation planning: optimizing the balance between salary, distributions, and retirement contributions can improve both tax outcomes and cash flow.
- R&D tax credits: Most small-to-midsize businesses think this is “just for tech or research companies,” but industries like construction, manufacturing, and professional services often qualify.
The strategy here is to have the discussion with your CFO and CPA to ensure a good 360-degree tax plan.
3. Strengthen working capital (this is where the real cash is).
Collecting on as much receivables at year-end is a given, but CFO-level leaders go deeper:
Renegotiate terms heading into renewal season. Design your AR and AP terms strategically. Your customers should never be paying you slower than you’re paying vendors. That creates a cash gap.
Identify slow-moving inventory to convert to cash Remember, small adjustments here can create meaningful liquidity.
4. Renegotiate key contracts using data (since hope is NOT a strategy).
Walking into a renewal conversation with all of your usage data, cost history, and benchmarks can change the tone of that conversation. I’ve seen companies secure 10–20% reductions simply because they came prepared to show the vendors all of the data that the vendor probably didn’t have themselves. Numbers can be compelling in a negotiation.
5. Be thoughtful when building your 2026 plan.
A forecast is helpful, but scenario planning is better.
Examples of questions to ask…
“What if revenue slows…” “What if we add 3 incremental hires in Q2…” “What if prices increase 5%…10%, etc.”
“What if we lose a key customer…”
Have your plans and be proactive, not reactive.
Year-end isn’t about surviving the last few weeks of the calendar. It’s about entering the new year with cleaner data, more cash, more flexibility, and strategic breathing room. A few actions now can put your business in a stronger position than competitors who are simply trying to finish the year.
I’m always available to answer any of your year-end questions so reach out at any time.
Contact Robert and learn more about his expertise here.
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About the Author
Robert Maslanski, CPA specializes in guiding small- and midsized businesses to scale with confidence by aligning their business strategy with a strong, future-ready financial foundation. He focuses on growth strategy, cash management, core driver analysis, and performance-enhancing analytics, along with implementing the systems companies need to operate efficiently.
Businesses that work with Robert benefit from improved performance, greater financial clarity, and strategic positioning, whether they’re planning for long-term growth or preparing for a high-value exit.
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