The Last Quarter of 2026: Financial Matters You Should Review Now
October 2026 - The last quarter of 2026 is just around the corner. For business owners whose fiscal year aligns with the calendar year, this is a good time to start looking ahead to December 31. What do your projected results look like? Are your prepayments sufficient? Are there any investments still planned? And which invoices remain unpaid? If you prepare an interim financial statement now, you’ll have three months left to make adjustments.
Review Your Preliminary Results
Start with an interim assessment. How much profit do you expect to make this year? What revenue is still expected to come in, and what expenses are still pending?
A preliminary income statement not only gives you insight into your company’s performance but also allows you to make timely adjustments. If you expect a significantly higher profit than last year, you can, for example, consult with your accountant to see if your advance payments are sufficient. This way, you may avoid a tax increase.
Don’t just put off necessary investments
Were you already planning to purchase new equipment, a computer, or other business assets? If so, it might be worth considering whether to make that investment before the end of this year.
Don’t let tax considerations be your only guiding factor. Spending money to save on taxes is rarely a good investment. First and foremost, the purchase must make economic sense for your business. Furthermore, an investment is typically depreciated over several years, which means the full purchase price isn’t necessarily recorded as an expense right away.
Check outstanding invoices
The end of the year is also a good time to thoroughly review your accounts receivable. Which invoices are still outstanding? Are there customers who haven’t paid in quite some time? And have certain receivables perhaps become doubtful?
Under certain conditions, you can record a write-down on a doubtful receivable. If it is definitively clear that an invoice can no longer be collected, different accounting and tax rules apply. Discuss such cases with your accountant in a timely manner.
Review Your Compensation and Benefits
Do you own a company? If so, it’s a good idea to evaluate your own compensation as well. Consider not only your salary, but also benefits of all kinds, expense reimbursements, pension contributions, and any dividends.
Paying yourself a higher salary right before the end of the year isn’t automatically the best solution. Your accountant can calculate which combination best suits your company’s results and your personal situation.
Plan for the Coming Year, Too
After all, a year-end review isn’t just about taxes. Create a budget for the new year right away. What major expenses do you anticipate? How much cash will you need? Are there any planned investments? And how much of a financial buffer do you want to maintain?
So don’t wait until your accountant presents the financial statements months later. A meeting before the end of the fiscal year still gives you the chance to take action. After December 31, you’ll mainly just be able to assess what happened over the past year.
