How to Run a Quick Year-End Review
How to Run a Quick Year-End Review
Most business owners overcomplicate year-end. They think they need a full audit, pages of reports, or a special spreadsheet they’ll never open again.
You don’t. A fast, focused year-end review—done the right way—gives you everything you need to walk into January confident and in control.
1. Pull Three Reports Only
You don’t need ten reports. You need three:
• Profit & Loss (January–November)
Shows what actually happened this year and where your money went.
• Balance Sheet (as of today)
Reveals your cash position, debt, assets, and how “clean” your books are.
• A/R & A/P Aging Summary
Unpaid invoices and unpaid bills—two of the biggest year-end blind spots.
If you pull nothing else, these three alone give you a clear snapshot of business health.
2. Identify the “Big 5” Numbers That Matter
Forget 40 metrics. Focus on these:
Total revenue (higher/lower than last year?)
Gross margin (are you underpricing or overspending on delivery?)
Total operating expenses (what ballooned this year?)
Net profit (is your business financially healthy?)
Cash on hand (do you have a runway going into Q1?)
These tell the real story—everything else is noise.
3. Compare This Year to Last Year
You want patterns, not perfection.
Look at:
Revenue ↑ or ↓
Expenses ↑ or ↓
Net profit ↑ or ↓
Any clear spikes, drops, or surprises
If something changed, ask why. Growth is good. Chaos isn’t. Know the difference.
4. Check for Missing Transactions or Duplicate Charges
This matters for three reasons:
Incorrect books = incorrect tax return
You may be overpaying expenses
You may be missing deductions
Look at:
uncategorized transactions
duplicate subscriptions
forgotten deposits
old open invoices
contractor payments missing W-9s
Cleaning this up now saves headaches next month.
5. Review Your Pricing and Profit Margin
Did you work more hours for the same money?
Did margins fall because delivery got more expensive?
Did you absorb client scope creep?
December is the time to get honest about:
raising prices
tightening packages
adjusting scope
improving delivery efficiency
Most owners underprice. Let the numbers guide you, not fear.
6. Review Your Cash Flow Patterns
Check your monthly revenue trend:
Any obvious slow months?
Any high-demand months?
Did you hit cash crunches?
Were tax payments a shock?
A quick glance at cash patterns helps you plan better for 2026 instead of repeating the same mistakes.
7. Decide What You’re Not Doing Next Year
A year-end review isn’t just “look back.”
It’s “trim the fat.”
Decide:
which offers aren’t working
which clients drain you
which expenses aren’t worth it
which tools you can cancel
which tasks you should outsource
Growth often comes from subtraction.
Final Thoughts
A year-end review shouldn’t take all day. When you focus on the numbers that actually matter, you get clarity, insights, and a clean starting point for January—without drowning in spreadsheets.
If you want help reviewing your year-end numbers—or you’d like a guided Year-End Review session where we walk through these steps together—let’s schedule a call.
The Money-Smart Business Blog provides educational content designed to help small business owners make informed decisions. This content is not tax, legal, or financial advice and should not be used as a substitute for personalized guidance. Always consult with a licensed professional before taking action based on this information.
