Year-End Business Review: How to Analyse Your Performance Before 2026

Reflect, Review, and Reset Your Business for the Year Ahead

As 2025 draws to a close, now is the time for Perth business owners to pause and take stock of their financial performance. A structured year-end business review is not just about ticking boxes for tax or compliance, it is an opportunity to uncover insights that shape smarter decisions for the year ahead.

By analysing your profitability, liquidity, and cash flow, you can identify what is driving success, where inefficiencies lie, and how to strengthen your position before 2026 begins. Whether your focus is improving margins, tightening operations, or forecasting for growth, an evidence-based review provides the clarity you need to move forward with confidence.

At Origin Business Consultants, we help businesses turn financial data into strategic action. Our advisors guide you through assessing performance, realigning goals, and planning sustainably for the next financial cycle, so you can focus on running your business while we ensure your numbers tell the right story.

Get clarity, compliance, and confidence. Speak with our business advisory team today to prepare your business for a stronger 2026.

Quick Summary

• Assess key financial ratios to understand profitability, liquidity, and solvency.
• Review and forecast cash flow to maintain stability and plan ahead.
• Identify underperforming cost centres to improve efficiency and performance.
• Connect insights to strategy to set measurable, achievable goals for 2026.
• Seek expert guidance to ensure your financial data supports confident decisions.

Assessing Profitability, Liquidity, and Solvency Ratios

A year-end review begins with understanding your financial health. Ratios provide a clear picture of where your business stands and where it is heading. By comparing profitability, liquidity, and solvency, you can determine whether your operations are efficient, sustainable, and ready for growth.

Profitability ratios reveal how effectively your business generates profit from sales and assets. Reviewing metrics such as gross profit margin, net profit margin, and return on investment helps you measure the strength of your pricing and cost structures.

Liquidity ratios assess your short-term financial stability. Figures like the current ratio and quick ratio indicate whether your business can meet short-term obligations without straining operations.

Solvency ratios evaluate your long-term financial position. Reviewing the debt-to-equity and interest coverage ratios helps ensure you maintain a sustainable balance between borrowing and growth.

Our team translates these insights into actionable steps that support stronger profitability and smarter decision-making through business advisory tailored to your goals. For a deeper overview of the advisory approach, see what business advisory means.

Reviewing Cash Flow and Forecasting for the Next Quarter

Your cash flow statement reveals how money moves through your business. It shows where cash is generated, where it is spent, and whether you are maintaining enough liquidity to fund operations and growth.

Start by reviewing your operating cash flow, which shows the cash generated from core activities. A consistently positive figure indicates a stable foundation. Then review investing and financing cash flows to understand how capital expenditure, debt repayments, and dividends influenced your cash position over the year.

From there, turn to forecasting. Projecting cash flow for the next quarter and beyond helps you plan for seasonal changes, major expenses, and investment opportunities. Forecasts also provide early warnings of potential shortfalls so you can act before issues arise.

For practical steps, explore how to strengthen liquidity in our post on how a business can improve cash flow. When you are ready to build robust projections, our financial modelling support helps you create accurate, data-driven forecasts for 2026 and beyond.

Identifying Underperforming Cost Centres

A productive year-end review also involves identifying areas that are draining resources or falling short of expectations. Comparing budgeted versus actual results across departments can reveal overspending, inefficiencies, or underperforming units that reduce profitability.

Once these areas are identified, evaluate whether they still align with your strategic objectives. Some functions may need restructuring or automation. Others might be scaled back or retired if they no longer deliver value. This ensures every expense contributes meaningfully to outcomes.

Our advisors help clients pinpoint and improve these areas through ongoing financial oversight and performance monitoring. This will be further supported by our upcoming management and reporting service, designed to keep your business financially accountable year-round.

Linking Financial Insights to 2026 Strategy

The true value of reviewing performance comes from how you apply the findings. Insights from ratios, cash flow, and cost analysis should directly inform your strategy for 2026.

Financial data should guide budgets, staffing, pricing, marketing, and investment decisions. If liquidity is tightening, focus on preserving cash and improving receivables. If profitability is rising, consider reinvesting in high-performing areas or new technology. For a practical strategy lens, see our article on what business positioning means.

Our Perth-based CFO services provide the strategic oversight needed to align financial insights with long-term business goals, ensuring your 2026 plan is built on a clear understanding of performance.

Partner with Experts to Strengthen Next Year’s Strategy

A comprehensive year-end review gives you the clarity and confidence to plan with purpose. By reflecting on 2025, you can identify key lessons, refine priorities, and position your business for greater success in 2026.

Whether you need support interpreting financial data, building accurate forecasts, or setting strategy, Origin Business Consultants is ready to help. Our integrated business advisory, financial modelling, and CFO services give you the insight and structure to make informed, strategic decisions. You can also learn more about the value of working with a business advisor.

Take the weight off your shoulders. Contact us today to arrange your year-end business review and start planning with confidence.