Your Year-End Review: 7 Questions to Ask Before 2026

Before you plan 2026, understand what actually created your 2025 results, whether good or bad.

You're about to start planning 2026. Revenue targets. Growth strategies. New hires. Marketing budgets.

But here's the question many founders skip: Have you actually reviewed what worked (and what didn't) in 2025?

Not at a surface level. I'm talking about a proper audit that reveals what drove profit, where money leaked, and why some months felt manageable while others didn't.

Here's what I've learned in 25 years as a CFO: Most founders repeat last year's patterns because they never audit what actually worked.

So before you build your 2026 plan, let's review 2025. Properly.

Why Founders Repeat Last Year's Patterns

December arrives. Someone asks about next year. You pull together targets based on "We did X this year, let's do X + 20% next year."

Same products. Same pricing. Same customers. Same team.

Then February arrives and it feels like you're running the same playbook.

Why? You never identified what drove profit and what drained it.

The 7 Questions CFOs Ask (That Founders Miss)

Every November, I run this audit with my clients. Same 7 questions. 30 minutes. But those 30 minutes shift everything.

1. Which products or services drove the most profit (not revenue)?

Look at: Gross profit margin by product or service. What percentage of revenue turns into profit after direct costs?

Action: List your top 3 offerings by revenue. Calculate the gross margin for each. Rank them by margin, not revenue.

Ask yourself: If you could only keep one offering in 2026, which would it be? That's your answer.

2. What was your average gross margin and did it improve or decline?

Look at: Year-on-year margin comparison. If it declined, costs increased faster than pricing.

Action: Compare your 2025 margin to 2024. If it dropped more than 2%, identify why: pricing, efficiency, or cost increases?

Ask yourself: What would need to change to protect (or improve) margin in 2026?

3. Which months had the strongest and weakest cash flow, and why?

Look at: Monthly cash flow patterns. December always tight? March always strong? There's a reason.

Action: Plot monthly cash in vs cash out for 2025. Circle the 3 weakest months. Write down what caused each one.

Ask yourself: How do you plan around this pattern in 2026?

4. Did you hit your revenue targets? If not, what prevented you?

Be specific: Not "The market was tough." What actually stopped you?

• Lost deals?
• Delayed projects?
• Capacity constraints?
• Pricing too low?
• Weak pipeline?

Action: Write down the top 3 reasons you missed (or hit) your target. For each one, note: controllable or external?

Ask yourself: What will you do differently in Q1 2026 to address the controllable factors?

5. What were your biggest unexpected costs?

Look at: Costs that weren't budgeted. Emergency hires. Tech failures. Bad debts. Supplier price increases.

Action: List your top 5 unexpected costs from 2025. For each one, ask: Was this truly unexpected, or did I ignore early warning signs?

Ask yourself: How do you prevent (or budget for) these in 2026?

6. Which clients or customers were most profitable?

Not who paid the most, who was most profitable.

Factor in:

• Time required
• Complexity
• Payment terms
• Opportunity cost

Action: List your top 10 clients by revenue. Score each one: High/Medium/Low profitability. Identify the pattern.

Ask yourself: What does your ideal client portfolio look like in 2026? How far is your current portfolio from that?

7. If you could revisit 2025, what would you change?

Be honest. No "should haves." Just honesty.

Would you:

• Price differently?
• Focus on different clients?
• Hire earlier (or not at all)?
• Decline that project?
• Invest in that system?
• Protect your capacity?

Action: Complete this sentence: "In 2026, I will not repeat…"

Write it down. That's your strategy.

What Your 2025 Numbers Are Revealing

Here's what I consistently observe when auditing founder financials:

The Busy But Broke Trap: High revenue, low profit. Accepting everything, keeping minimal margin.

The Cash Conversion Gap: Profitable on paper, broke in the bank. Cash tied up in debtors or inventory.

The Hidden Profit Drain: One product/client/channel quietly eroding profitability.

Overhead Creep: Costs grew faster than revenue. Team, software, fixed costs multiplied.

The Hope-Based Forecast: Hit January targets, extrapolated across the year. Q2-Q4 didn't align.

Recognise any? They're addressable—but only if you see them first.

Profit Drivers vs Profit Drains

Profit drivers: 

✅ Generate revenue with strong margins 

✅ Convert to cash quickly 

✅ Scale without proportional cost increases 

✅ Attract ideal clients 

✅ Energise your team

Profit drains: 

❌ Generate revenue with weak/negative margins 

❌ Tie up cash (long payment terms, high upfront costs) 

❌ Require constant firefighting 

❌ Attract challenging clients 

❌ Exhaust your team

In 2026, do more drivers. Eliminate (or minimise) drains.

Your November Audit Checklist

Do this week:

✅ Block 60 minutes in your calendar 

✅ Pull up your 2025 financials (P&L, cash flow, revenue breakdown) 

✅ Work through the 7 questions above 

✅ Write down your answers—don't just think them 

✅ Identify your top 3 profit drivers and top 3 profit drains 

✅ Complete: "In 2026, I will not repeat…"

Do this before you plan 2026.

Because a plan built on hope and last year's patterns won't deliver different results.

What's Next

Once you've completed the review, you'll have clarity.

You'll know what worked. What didn't. Where profit came from. Where it leaked.

That's when you can build a proper plan. Not aspirational targets. Not a replica of last year. A plan based on data, patterns, and what actually drives profit.

Next week: How to read the patterns your numbers are showing you.

But first, do the review.

Lianne Grove | Profit Strategist CFO

If you would like some help reviewing your 2025 or want to discuss planning your 2026, then book a PROFIT POWER HOUR. 

I have a limited number of appointments throughout NOVEMBER and a and a special offer - $97 (normally $997) BOOK NOW

Let's make 2026 even better!

Profit Strategist CFO