Planning for a Profitable New Year: Budgeting, Cash Flow, and Goal Setting for 2026

The New Year is the perfect time to set your business up for success. A profitable year doesn’t happen by chance, it’s the result of smart planning, strong financial foundations, and actionable goals. The Sherpa team have put together some tips to help give you clarity and confidence as you prepare for 2026: 

1. Begin by creating a realistic budget. Your budget is your roadmap, so review last year’s performance to identify trends in income and expenses. Factor in seasonal fluctuations, especially if you operate in hospitality or retail, and allocate funds for marketing, staff training, technology upgrades and other growth initiatives.

   
   

2. Forecast your cash flow. Cash flow is the lifeblood of your business, so project income and expenses monthly to anticipate shortfalls. B

   

   uild a buffer by aiming for at least three months of operating expenses in reserve, and monitor your cash flow regularly using cloud accounting tools for real-time insights.

   
   

3. Set SMART goals: Specific, Measurable, Achievable, Relevant, and Time-bound. Define revenue targets, identify efficiency improvements such as automating repetitive tasks, and commit to personal development by learning new skills or adopting new technology.

   
   

4. Review your systems to ensure your bookkeeping processes support growth. Update software to tools that integrate seamlessly, streamline workflows to reduce manual entry and errors, and to stay compliant and efficient, seek expert advice from your bookkeeper and BAS agent.

   
   

5. Stay accountable. Schedule quarterly reviews, adjust goals as needed, and celebrate wins, big or small. Planning for a profitable new year isn’t just about numbers, it’s about creating a strategy that supports growth and resilience – and the Sherpa team are here to help you climb higher in 2026.