The fourth quarter can arrive quickly.

By the time October begins, many business owners are already focused on year-end sales, holiday schedules, staffing, customer demands, and preparing for the next year. That can make it easy to overlook the financial side of the business until December—or even later.

September is a good time to review where things stand while there is still time to make adjustments.

A simple financial checkup now can help you identify bookkeeping issues, cash-flow concerns, overdue receivables, rising expenses, and other areas that may need attention before year-end.

Here are seven items worth reviewing before October 1.

1. Review Your Revenue

Start with the big picture. How does your year-to-date revenue compare with:

• The same period last year?

• Your original 2026 goals?

• Your budget or forecast?

• The most recent few months?

Looking only at total annual revenue can hide important trends.

For example, your year-to-date sales may still look strong even though revenue has declined for the past two or three months. On the other hand, you may find that one particular product, service, or customer segment is performing much better than expected.

Take a closer look at where your revenue is coming from.

Ask yourself: Which parts of the business are growing? Which are slowing down?

Understanding those trends now can help you decide where to focus your time and resources during the final quarter.

2. Take a Closer Look at Expenses

Revenue is only one side of the equation. Review your expenses and look for categories that have increased significantly during the year. Some increases may be expected. Insurance, wages, materials, utilities, software, and other costs can change over time. Others may surprise you. 

Recurring subscriptions are a good example. Businesses often accumulate software, memberships, and online services that are charged automatically each month. Individually, the charges may seem small, but together they can become a meaningful expense.

Review recurring charges and ask:

• Are we still using this service?

• Are we paying for more users or features than we need?

• Has the monthly fee increased?

• Are we paying for multiple services that perform similar functions?

This is also a good time to compare current expenses with the same period last year. Large changes deserve a closer look, even when they turn out to have a perfectly reasonable explanation.

3. Review Accounts Receivable

Sales do not help your cash flow if customers do not pay. Run an Accounts Receivable Aging report and review outstanding customer balances. 

Pay particular attention to invoices that are:

• More than 30 days old,

• More than 60 days old,

• More than 90 days old, or

• Significantly past your normal payment terms.

Older receivables can become increasingly difficult to collect.

If customers owe you money, consider following up before the fourth quarter gets busy. In some cases, the issue may simply be that an invoice was overlooked. In others, you may discover a billing dispute, an incorrect email address, or a payment that was received but never properly applied in your accounting system. 

Reviewing receivables can also reveal whether your current billing process is working.

For example, you may want to evaluate whether invoices are being sent promptly, whether payment terms are clearly stated, and whether overdue accounts are being followed up consistently.

4. Evaluate Your Cash Position

A business can be profitable and still experience cash-flow problems. That is why it is important to look beyond the Profit & Loss statement. Review how much cash the business currently has available and compare that with upcoming obligations.

Consider expected payments for:

• Payroll,

• Rent,

• Loan payments,

• Credit cards,

• Taxes,

• Inventory,

• Insurance,

• Equipment,

• Vendor bills, and

• Other major expenses.

Then consider the cash you expect to receive.

Are customers paying quickly enough? Do you have seasonal fluctuations? Are there major purchases or annual expenses coming up before year-end?

A simple cash-flow review can help you identify potential shortfalls before they become urgent. If your business typically experiences slower sales during certain months, planning ahead can be especially important.

5. Review Business Debt

September is also a good time to take inventory of your business debt. Review loans, lines of credit, business credit cards, equipment financing, and other outstanding obligations.

For each debt, make sure you know:

• The current balance,

• The interest rate,

• The monthly payment,

• The maturity date, and

• Whether the rate is fixed or variable.

Business owners sometimes focus primarily on the monthly payment and lose sight of the total amount owed or the interest being charged.

Reviewing debt can also help you identify accounting issues.

For example, your QuickBooks loan balance should generally agree with your lender's records after accounting for timing and properly recorded transactions. If there is a significant difference, it may be worth investigating.

Credit cards deserve attention as well. Make sure all business credit card accounts are recorded in your accounting system and reconciled regularly.

6. Make Sure Your Bookkeeping Is Current

Year-end becomes much easier when your bookkeeping is already up to date. Before October begins, confirm that your bank and credit card accounts are reconciled through the most recent available statements.

Also review your books for:

• Uncategorized transactions,

• Duplicate transactions,

• Old outstanding checks,

• Unapplied customer payments,

• Negative balances that do not make sense,

• Old accounts payable balances,

• Suspense or Ask My Accountant accounts, and

• Unusual Balance Sheet balances.

Do not ignore something simply because the dollar amount is small.

Bookkeeping errors often build over time. A small recurring problem can turn into a much larger cleanup project if it continues for several months.

If your bookkeeping is already behind, September is a much better time to address it than late December.

7. Start Thinking About Year-End Now

Year-end planning should not begin on December 30. There may be business decisions you want to make before December 31, and some of those decisions take time to evaluate.

Think about whether your business expects to:

• Purchase equipment,

• Hire employees,

• Pay bonuses,

• Increase retirement contributions,

• Adjust owner compensation,

• Make significant charitable contributions,

• Write off uncollectible customer balances,

• Dispose of old equipment,

• Change benefits, or

• Make other major financial or operational decisions.

Not every option will apply to every business, and accounting and tax treatment can vary substantially depending on the facts. The important point is to identify potential decisions early enough to discuss them with the appropriate professional before year-end. Waiting until the final days of December can limit your options.

Use the Fourth Quarter as an Opportunity

The final quarter of the year is not just about closing out 2026. It is also an opportunity to prepare for 2027. As you review your financial information, make notes about what you want to improve next year.

Maybe you want to:

• Increase cash reserves,

• Improve customer collections,

• Reduce unnecessary expenses,

• Establish a formal budget,

• Review pricing,

• Improve job or project profitability,

• Clean up your chart of accounts, or

• Create a more consistent monthly financial-review process.

Small improvements made consistently can have a significant effect over time.

A Little Preparation Now Can Make Year-End Easier

September provides a valuable window between summer and the year-end rush. Taking time now to review revenue, expenses, receivables, cash, debt, bookkeeping, and year-end plans can help you enter the fourth quarter with a clearer understanding of your business. You do not need to solve every issue in one afternoon. The goal is to identify what needs attention while there is still time to address it.

If your books are behind, your accounts are not reconciled, or you are unsure what your financial reports are telling you, now is a good time to get caught up or contact our office for assistance.

A little preparation before October can make December—and the start of the new year—much easier.

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Under U.S. Treasury regulations, any tax advice in this communication is not intended or written to be used to avoid IRS penalties. Tzinberg & Associates provides this information for general guidance only. It does not constitute tax advice, accounting services, investment advice, or professional consulting. Consult a professional adviser before making decisions or taking action, as the information is provided "as is" without any warranties regarding its completeness, accuracy, or timeliness.