Closing the Year Like a CFO: A December Playbook for Canadian Business Owners
There’s a big difference between filing year-end and leading year-end and understanding that difference is what separates reactive bookkeeping from true CFO-level Closing.
Filing year-end is reactive: you send whatever you have to your accountant and hope the tax bill isn’t too painful.
Leading year-end is intentional: you use the last few weeks of the year to shape your financial outcome and set next year up to win. It’s the mindset we include in every December Playbook we prepare for our Canadian clients.
Here’s how we think about December at Solstice Partners when we act as a “fractional CFO” for owners and companies.
Step Back:
What Story Did This Year Tell?
Before dashboards and spreadsheets, ask three simple questions:
- Did we grow? (Revenue, margin, profit, cash.)
- Did we control risk? (Debt, legal, compliance, customer concentration.)
- Did we build capability? (Systems, people, processes, tech.)
You don’t need perfect numbers yet — just a candid narrative. If your story doesn’t feel good, that’s a signal: year-end is an opportunity to course-correct.
Create a “Pre-Close” Financial Snapshot
Don’t wait until your year is completely over to understand where you stand.
A pre-close snapshot includes:
- Revenue year-to-date
- Major expense categories
- Estimated profit before tax
- Cash on hand
- Receivables and payables
- Debt balances
Even if the last month isn’t final, this gives you enough clarity to decide:
- Do we need to reduce taxable income?
- Do we need to preserve cash instead?
- Do we have room to invest in growth?
This is the starting point for smart decisions.
Clean Up Receivables: Cash Beats “Revenue”
On paper, you might have had a great year. In the bank, things may feel tighter.
In December:
- Run an aged receivables report.
- Actively chase overdue customers with a firm but polite sequence.
- Decide which old invoices are realistically collectible — and which need to be written off.
This impacts:
- Your actual cash position.
- Your tax position (bad debts can often be written off).
- Your internal culture — you teach your team that getting paid matters.
Review Payables and Vendor Relationships
Flip the coin.
- Are there vendors you’re consistently paying late?
- Any early-payment discounts you’re missing?
- Any subscriptions, tools, or services you’re not really using?
- Any contracts that should be renegotiated or cancelled before renewal dates?
The goal is not to squeeze everybody, it’s to align your payments with value.
Decide How to Compensate Yourself (Salary, Dividend, Bonus Mix)
For incorporated owners, December/early year-end is when we answer:
- How much do you actually need personally?
- How much should stay in the corporation for growth and safety?
- What salary/dividend/bonus mix gives the best balance between personal tax, corporate tax, CPP, RRSP room, and mortgage-friendliness?
The answer is never “one size fits all”.
At Solstice Partners, we build scenarios:
- Scenario A: More salary, lower corporate retained earnings
- Scenario B: Lower salary, more dividends, more corporate cash
- Scenario C: Balanced mix with RRSP room and long-term planning
Then we pick based on your real life, not theory.
Capital Spending vs. Cash Preservation
December is decision time for:
- Equipment purchases
- Vehicles
- Technology upgrades
- Leasehold improvements
The old reflex was: “Buy something before year-end to save on tax.”
Today’s smarter approach:
- Will this asset genuinely help the business grow or operate better?
- Do we have the cash buffer to handle a slow quarter?
- What’s the after-tax cost vs. the benefit?
- Are there better, less expensive options (lease, subscription, outsourcing)?
We model both sides: tax savings vs. cash impact. Only then do we recommend action.
Audit Your Subscriptions, Tools, and “Invisible Spend”
Most companies leak hundreds or thousands a month in:
- Old SaaS subscriptions nobody uses
- Over-specced plans
- Tools bought for one project and then forgotten
- Underused memberships and services
December is a perfect time to:
- Export a list of recurring charges
- Categorize each: Essential / Useful / Dead Weight
- Cancel or downgrade the dead weight
You don’t need a forecast for that — just discipline.
Make Next Year’s Budget… Small and Usable
The word “budget” scares people because they imagine a 40-tab spreadsheet.
A useful budget can be much simpler:
- Revenue: conservative, realistic, stretch scenarios
- Cost of goods / direct costs
- Overheads and operating expenses
- Owner compensation
- Cash buffer targets
- Debt repayment plan
The point isn’t to predict perfectly. It’s to give yourself a financial map and a way to track whether you’re drifting off course.
Build a Monthly Finance Rhythm (So Next December Isn’t Chaos)
If this December feels like a mess, it’s usually because no monthly process existed.
For next year, define a simple rhythm:
- By the 10th of every month:
- Prior month’s books are updated
- Bank accounts are reconciled
- Major metrics are reviewed (revenue, gross margin, net profit, cash, receivables, payables)
- Once a quarter:
- Tax instalments and liabilities reviewed
- Short strategy review: what’s working, what’s not, what needs to change
Solstice Partners often runs this rhythm as an outsourced finance function, so owners can see where they stand without having to become accountants.
Identify the 3 Biggest Financial Risks Going Into Next Year
Examples:
- One client accounts for 40% of revenue
- A single key employee holds all financial knowledge
- No cash reserve or line of credit
- High-interest debt
- Weak contracts or sloppy invoicing practices
December is not just about “numbers now” it’s about risk in the future.
Choose three risks to target in the first half of next year. That alone can materially improve your business’s survival odds.
Don’t Treat Your Accountant as a Form-Filler
If your current finance relationship is just:
“Send me your numbers, I’ll file your tax return.”
…you’re missing out.
The right finance partner should:
- Interpret your numbers in plain language
- Help you make decisions, not just report history
- Flag risks before they explode
- Help with structure, workflow, and strategy
That’s how we operate at Solstice Partners. December is when these conversations are the most powerful.
Decide: “What Does a ‘Good’ 2026 Look Like Financially?”
Close the loop with a vision:
- How much profit would feel meaningful?
- How much cash buffer would help you sleep at night?
- Which debts do you want gone?
- What investments in team or systems would transform your capacity?
Write it down. Then we can work backward into quarterly and monthly targets, and design your finance systems to support that reality.
If you want to stop “hoping” year-end goes well and start actually leading it, Solstice Partners can step in as your financial strategy and CFO partner so your books, your taxes, and your decisions all support the same direction. Contact us now.
