A Strong Start to 2026: Planning Your Business Before the Year Gets Away From You

The start of a new year brings clarity that’s often missing later on. The books are closed, the rush of December has passed, and business owners finally have space to think.

This is also the best time to ask a simple question:
What do I want my business to look like by the end of 2026 and what needs to happen early to support that?

Tax planning is often associated with deadlines and December decisions. In reality, the most effective planning happens at the beginning of the year, when there is time, flexibility, and fewer constraints.

Start With a Clear Picture of Where You Are

Before setting goals for 2026, it’s important to understand where the business is starting from.

Early in the year is an ideal time to:

• Review prior-year results once the dust has settled

• Understand true profitability and cash flow

• Identify what worked well and what created stress

• Separate one-time events from ongoing performance

This review sets a realistic foundation for decisions throughout the year, rather than reacting as issues arise.

Set an Intentional Owner Compensation Strategy

Many business owners fall into a pattern of paying themselves based on habit or short-term needs. A new year is the right time to step back and set an intentional plan.

Early-year planning allows you to:

• Decide on salary, dividends, or a combination

• Smooth personal cash flow throughout the year

• Avoid large year-end adjustments

• Plan CPP, RRSP, and personal tax exposure in advance

A clear compensation strategy supports both lifestyle stability and long-term planning.

Plan for Cash Flow, Not Just Profit

Profitability does not always mean liquidity. One of the most common challenges business owners face is managing cash flow during slower periods or high-expense months.

At the start of 2026, consider:

• Seasonal cash flow patterns

• Planned capital purchases or investments

• Tax instalments and remittances

• Owner withdrawals throughout the year

Planning early reduces surprises and allows adjustments before cash becomes tight.

Align Spending and Growth Decisions With Purpose

Rather than making reactive purchases later in the year, early planning allows business owners to align spending with business priorities.

This may include:

• Mapping out expected equipment or technology needs

• Planning growth-related expenses

• Deciding what can wait and what cannot

• Evaluating financing options ahead of time

Purposeful spending decisions tend to be more effective and less stressful than last-minute choices.

Think Beyond This Year

The beginning of the year is the right time to lift your focus beyond the next twelve months.

For many owners, 2026 planning may involve:

• Building retained earnings

• Preparing for growth or transition

• Creating more consistent income

• Reducing dependency on year-end planning decisions

• Aligning the business with personal and family goals

Tax planning works best when it supports long-term outcomes, not just short-term savings.

Starting 2026 With Intention

A strong start to the year creates momentum that lasts far beyond tax season. When planning happens early, decisions tend to be calmer, clearer, and more aligned with what the business owner actually wants.

At ANR, we believe the beginning of the year is the most valuable time to plan—not because of deadlines, but because it offers opportunity.

If you’d like to start 2026 with clarity and confidence, early conversations make all the difference.