As the year draws to a close, small businesses, nonprofits, and founders often find themselves caught in a year-end scramble—closing the books, finalizing payroll, sending 1099s, and preparing tax documents. But those who only focus on what’s behind them risk missing the bigger opportunity: getting ahead of the next quarter.
January is more than just a fresh calendar—it sets the financial tone for the entire year. At DWG CPA, we guide our clients beyond compliance into clarity. Through virtual CFO services and advisory support, we help growth-minded organizations align their operations, goals, and resources for a strong Q1 kickoff.
This guide will help you understand the key financial actions to take before January hits—so your team enters 2026 not just ready, but confident.
Before stepping into Q1, you need a clear map of expected income, expenses, and capital investments. An accurate, flexible budget doesn’t just help you track spend—it helps you plan strategically.
Your Q1 budget should answer:
Action tip: Conduct a budget vs. actual analysis from Q4 to identify any performance gaps or line items that need realignment.
Employee changes, bonuses, or benefit elections made in Q4 can carry implications into January. If you’re using a payroll provider or managing payroll in-house, you’ll want to double-check:
Starting Q1 with clean payroll settings avoids errors, rework, and costly corrections later.
January 15 is the due date for Q4 estimated tax payments for self-employed individuals, LLC members, and S-Corp shareholders. But your Q1 strategy hinges on reviewing what’s changed.
Evaluate:
An updated projection ensures you avoid penalties while also preserving cash flow.
🔗 Explore our blog on Outsourced CFO vs. In-House to learn how expert guidance streamlines financial planning like this.
Did you hire freelancers, consultants, or 1099 vendors this year? If so, you’re responsible for ensuring they’re properly classified and documented.
Misclassification risks include:
Q1 prep checklist:
Need help organizing your contractor records? DWG CPA assists clients with 1099 filing, W-9 tracking, and audit-proof classification reviews.
Start Q1 with metrics that matter. Whether it’s cash conversion cycles, gross margins, donor acquisition cost, or net profit percentage—deciding what to measure upfront keeps you accountable.
Some Q1 financial KPIs to consider:
At DWG CPA, our Virtual CFO Services help define and monitor KPIs that drive smarter decision-making.
Still juggling spreadsheets or using outdated accounting tools? Q1 is a natural moment to upgrade or refine your systems.
Evaluate:
Outdated tools slow you down. DWG CPA helps clients transition to efficient, insight-driven financial systems that grow with your business.
Q1 isn’t just about survival—it’s about setting strategic direction. Your financial plan should align with business goals like:
These aren’t just business priorities—they have financial implications. Let your CPA or virtual CFO help you model out costs, cash impact, and ROI.
Most business owners don’t fail because of poor ideas—they struggle due to lack of clarity, timing, and preparation. Q1 can be your momentum builder or your stress trigger.
At DWG CPA, we work with small businesses, founders, and nonprofit leaders who want to grow with strategy—not just survive with spreadsheets. Whether you need help forecasting, filing, or financial decision-making, our team brings decades of experience to the table.
If you’re building something important and need a trusted financial partner to grow with you – we’d love to hear from you.
DWG CPA PLLC is a Texas-based accounting firm serving businesses and nonprofits since 2005. We specialize in virtual accounting, tax strategies, and personalized financial guidance across industries like healthcare, construction, real estate, and nonprofits.
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