For many companies, the past 12 months were less about chasing growth and more about protecting stability. In reviewing the year, a few clear patterns emerged — ones that offer valuable guidance for the year ahead. By understanding where businesses stumbled and where they showed resilience, leaders can enter 2026 with sharper foresight and fewer avoidable risks.
Lesson 1: Cash flow is king — Plan for liquidity
If 2025 reinforced one fundamental truth, it’s that access to cash matters more than ever. Higher interest rates and tighter lending standards made borrowing more expensive and, in some cases, harder to secure altogether. Businesses that relied heavily on credit found themselves under pressure, while those with strong liquidity had greater flexibility.
Maintaining robust cash reserves and closely monitoring working capital became essential. Businesses that regularly reviewed receivables, payables and inventory cycles were better positioned to respond to unexpected disruptions.
Tax planning also played a role in liquidity management. Strategic decisions — such as accelerating deductions, deferring income where appropriate or carefully timing capital expenditures — helped some companies improve cash flow without changing operations. Others benefited from evaluating the timing of estimated tax payments and leveraging safe-harbor rules to avoid penalties without unnecessarily overpaying.
The takeaway for 2026 is clear: Liquidity planning should be proactive, not reactive. Cash-flow forecasting and tax strategy need to work hand in hand.
Lesson 2: Tax credits and incentives are strategic tools
Despite the challenges of 2025, opportunities existed — and many went unused. A surprising number of businesses missed tax credits and incentives tied to clean energy investments, workforce initiatives and lingering pandemic-related programs.
In some cases, businesses assumed they were no longer eligible. In others, the credits were simply overlooked amid day-to-day pressures. Energy credits, Employee Retention Credit reviews and audits, and state-level incentives all remained relevant but required active planning and documentation.
Looking ahead to 2026, planning becomes even more important. The One Big Beautiful Bill Act which was made law in 2025 has provided expiration dates for many clean energy credits. Credits such as the Section 45W commercial clean vehicle credit and incentives for EV charging stations require foresight, not last-minute decisions. Businesses that build proactive tax calendars — rather than reacting at filing time — are far more likely to capture these benefits.
The lesson from 2025 is that tax credits are not windfalls. They are strategic tools that reward preparation.
Lesson 3: Labor costs demand smarter compensation planning
Labor continued to be one of the most significant pressures on margins in 2025. Wage inflation and talent shortages forced employers to rethink how they attract and retain employees, especially in competitive markets.
Many businesses learned that raising wages alone is not always the most effective or sustainable solution. Instead, tax-advantaged benefits such as retirement plans, health savings accounts and certain fringe benefits proved to be powerful tools. These options allow employers to enhance total compensation while managing payroll taxes and overall costs.
Others explored profit-sharing or deferred compensation arrangements that better align employee incentives with business performance. These strategies not only help manage cash flow but also foster a stronger connection between employees and long-term company success.
As companies head into 2026, compensation planning should be viewed through both a talent and tax lens. The most effective strategies balance employee needs with financial sustainability.
Lesson 4: Technology and AI are no longer optional
Technology continued to reshape financial operations in 2025, particularly with the growing use of AI-driven tools. From accounting automation to predictive analytics, businesses that invested thoughtfully in technology gained efficiencies and improved visibility into their financial data.
AI proved especially useful for tax data analytics, scenario planning and risk management. However, the year also highlighted an important caution: Technology must be paired with human judgment. Automated systems can process information quickly, but they cannot replace professional oversight — particularly in compliance-heavy areas like tax reporting.
Businesses also had to stay alert to evolving IRS digital initiatives, including expanded e-filing mandates and data-driven enforcement efforts. Those who stayed informed were better prepared to adapt without disruption.
The lesson moving into 2026 is simple: Technology is no longer a competitive advantage — it’s a baseline expectation. The focus should be on investing in tools that enhance accuracy, efficiency and compliance, while maintaining strong controls and review processes.
Lesson 5: Structure and succession planning are critical
Private equity activity and business consolidation accelerated throughout 2025, prompting many owners to revisit long-term plans they had previously put on hold. For some, this meant evaluating whether their current entity structure still supported tax efficiency and operational flexibility.
Others began to consider ownership transition strategies — not necessarily to sell, but to preserve independence, prepare for leadership changes and minimize future tax exposure. Buy-sell agreements, estate plans and succession frameworks gained renewed urgency, particularly in light of potential tax law changes on the horizon.
The businesses best positioned for 2026 are those treating structure and succession as strategic planning exercises, not last-minute decisions driven by external pressure.
Looking ahead to 2026
If 2025 taught us anything, it’s that resilience comes from foresight. Businesses that actively managed cash flow, leveraged tax incentives, invested in technology and planned for structural change were better equipped to navigate uncertainty.
As companies look toward 2026, the goal isn’t to predict every challenge — it’s to build financial strategies flexible enough to respond when change inevitably arrives. With thoughtful planning and the right advisory support, businesses can enter the new year stronger, more agile and better prepared for what lies ahead.
Anthony Scinto, CPA, is a partner at MMB+CO and chair of the firm’s Tax Department. MMB+CO is a full-service accounting and advisory firm offering audit, tax, consulting and business advisory services to clients across New York State and beyond. Ranked on Inside Public Accounting’s Top 200 Firms nationwide and with a deep-rooted culture of innovation and inclusion, the firm has earned a reputation for excellence in both client outcomes and workplace experience. Learn more at mmbaccounting.com.
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