15 Dec Build Your 2026 Money Map: A Practical Guide to Using 2025 for Smarter Planning

As the end of 2025 approaches, most business owners are thinking about closing books, preparing tax documents, or tying up loose ends before the holidays. But there is a powerful opportunity that many business leaders overlook: using your 2025 financial data to plan strategically for 2026.

At Siegel Solutions, we call this process your Money Map. This comprehensive, step-by-step guide transforms your historical numbers into a forward-looking plan tailored to your goals, whether that means growth, stability, investment, or improved financial clarity.

Your financials do not just tell you what happened. They tell you why it happened, where you have been strongest, where risk has crept in, and what you are positioned to do next. A Money Map helps you translate those insights into action — giving you confidence and clarity as you enter a new year.

This newsletter article walks you through the full Money Map process, explains why each step matters, and shows how Siegel Solutions can support you along the way. Continue reading to learn more or reach out to our team for support!

Why a Money Map Matters More Than Ever

For many businesses, year-end financial statements are filed away once tax season is over. While compliance is essential, treating financials as merely a “tax deliverable” misses strategic insight.

Your Profit & Loss Statement, Balance Sheet, and Cash Flow Statement — along with supporting details like payroll and expense reports — are a rich source of intelligence. They can reveal patterns about profitability, expense pressures, seasonal trends, cash flow volatility, and operational strengths/weaknesses.

A Money Map helps you turn historical data into a living roadmap for the future. Instead of reacting to surprises or hoping things improve, you can proactively set goals, anticipate challenges, allocate resources intentionally, and monitor progress throughout the year.

A strong Money Map helps you:

• Set realistic growth targets based on what your business has actually achieved.
• Improve profit margins by identifying where costs are misaligned with revenue.
• Manage cash flow with foresight, avoiding last-minute liquidity pressures.
• Plan for hiring, capital purchases, or expansion with budget clarity.
• Reduce risk and financial stress through scenario planning.
• Make confident decisions rather than hope for the best.

In a business climate marked by uncertainty — rising labor costs, supply chain pressures, tax changes, and shifting customer behavior — this kind of intentional planning is not just helpful. It is essential.

The Step-by-Step Money Map Process

Below is the complete process we recommend for developing a Money Map that reflects your business reality, supports your objectives, and positions you for success in 2026.

Step 1 — Collect & Review Your 2025 Financials

Before you can plan for the future, you need a clear and accurate picture of the past year.

Start with the three core financial statements:

1. Profit & Loss (P&L) Statement
   This shows your revenue, cost of goods sold, operating expenses, and net income. It reveals how money flowed through your business, where you spent resources, and where revenue was strongest or weakest.
2. Balance Sheet
   This snapshot of assets, liabilities, and equity tells you what you own and what you owe. It highlights liquidity positions, outstanding debt, and reserves — all important for investment and risk planning.
3. Cash Flow Statement
   This report shows how cash actually moved in and out of your business during the year. It is a critical complement to the P&L because profitability doesn’t always equal healthy cash flow.

In addition to these, gather:

• Payroll reports
• Contractor and vendor payment data
• W-9 records (for 1099 reporting)
• Overhead expense details
• One-time costs (e.g., equipment, software, repairs)
• Seasonal fluctuations (e.g., high/low revenue months)
• Benefit deductions and retirement contributions.

Why this step matters:
Your financial statements are more than numbers. They tell a story about how your business runs. When you compile these reports before planning, you build your Money Map on real, defensible data — not guesses.

💡 Aimee’s Tip: We frequently see businesses overlook hidden expenses or miscategorized costs. A thorough review ensures your foundation is accurate, so your plan doesn’t rest on flawed assumptions.

Step 2 — Analyze Key Metrics & Ratios

Looking at totals only scratches the surface. To understand performance, you need to calculate and interpret key financial ratios:

• Gross Profit Margin
  Measures how much you retain after direct costs (materials, labor tied directly to revenue). Low margins can signal pricing issues or rising direct costs.
• Net Profit Margin
  Shows how much income remains after all operating expenses, taxes, and interest — a broad indicator of profitability.
• Current Ratio
  (Current Assets ÷ Current Liabilities)
  This liquidity ratio shows your ability to meet shortterm obligations — a key risk indicator.
• Quick Ratio
  ((Cash + Accounts Receivable) ÷ Current Liabilities)
  This stricter liquidity measure excludes inventory and provides a clear view of cash-ready assets.
• Cash Flow Trends
  Look at month-to-month or quarter-to-quarter cash movement. Did cash pile up at certain times? Did you run tight near payroll or bills?

Why this step matters:
Ratios turn raw numbers into insights. They help you compare performance year over year and against industry benchmarks. They also flag areas where strategy adjustments might be needed — like pricing, cost control, or working capital management.

💡 Aimee’s Tip: We help you interpret these ratios in context — not just calculate them. For example, a low current ratio might make sense if it coincides with a planned investment or seasonal inventory buildup.

Step 3 — Compare 2025 to Prior Years

One year of data is helpful, but trends emerge when you compare multiple years:

• Are expenses rising faster than revenue?
• Are profit margins improving or shrinking over time?
• Is cash flow more stable than last year or less?
• Are certain products, services, or customer segments becoming stronger or weaker?

This year over year comparison highlights patterns that indicate long-term shifts rather than one-off events.

Why this step matters:
Trends are predictive in nature. If a pattern repeats, you can plan with confidence for its continuation or adjust if desired. Without trend analysis, you risk mistaking random fluctuations for meaningful change.

💡 Aimee’s Tip: We support clients in building multi-year comparison reports that highlight trends visually and numerically, making strategy discussions easier and more data driven.

Step 4 — Set Realistic Goals & Targets for 2026

Once you understand the baseline, it’s time to set goals:

• Revenue Goals — grounded in historical performance, market conditions, and sales pipeline reality.
• Expense Budgets — allocate dollars to fixed and variable costs with justified targets.
• Cash Flow Targets — set minimum cash reserves and projected cash availability throughout the year.
• Investment Plans for hiring, equipment purchases, marketing initiatives, or software investments.
• Profitability Improvements — define specific goals for margin improvement, cost reduction, or efficiency gains.

The key is to balance ambition with realism. A high growth goal with no supporting investment plan can be demotivating; a conservative plan can leave growth on the table.

Why this step matters:
Goals give purpose to the quantitative plan. They align financial strategy with business vision — whether your priority is growth, stability, or transformation.

💡 Aimee’s Tip: We help clients structure goals, so they are measurable, time-bound, and tied to financial forecasts — preventing the “wish list” syndrome that often plagues business plans

Step 5 — Build Your 2026 Budget & Forecast

A budget translates goals into numbers you can act on. A forecast projects expected performance based on assumptions and scenarios.

In your budget and forecast:

• Assign revenue projections to months or quarters.
• Project expenses by category
• Estimate cash inflows and outflows.
• Set spending thresholds and reserves.
• Include assumptions for pricing changes, hiring timing, or new initiatives.

The forecast is not static. It should be reviewed and updated as actual results come in.

Why this step matters:
A budget gives you a financial framework for decision making. A forecast helps you see potential outcomes and adjust proactively.

💡 Aimee’s Tip: Our forecasts include multiple scenarios — optimistic, likely, and conservative — so you are equipped for whatever reality unfolds

Step 6 — Add Scenario & Contingency Planning

What happens if:

• You lose a major client?
• Economic conditions shift?
• Expenses rise faster than expected?
• A key employee leaves.
• You win a large new contract?

Scenario and contingency planning help you model “what if” situations so you’re prepared — not reactive.

Consider scenarios such as:

• Revenue down 10%.
• Expenses up 5%.
• Delayed customer payments.
• Onetime capital needs.

Build a contingency reserve — a planned cash buffer — to address unexpected events without derailing your plan.

Why this step matters:
Uncertainty is constant. A scenario lens helps you plan for possibilities — not just probabilities — and build resilience.

💡 Aimee’s Tip: We help you stress test your plan, so you understand the monetary impact of risks before they occur.

Step 7 — Set a Review Cadence: Monitor, Review & Adjust

Planning doesn’t end when the calendar flies to January. Your Money Map should be revisited regularly:

📅 Monthly or quarterly.
📌 Compare actual performance vs budget vs forecast.
📌 Identify variances (positive or negative).
📌 Adjust assumptions and plans accordingly.

A plan that sits on a shelf is not a plan — it is a relic. Regular review keeps your strategy alive and responsive.

Why this step matters:
Regular check-ins help you catch issues early, celebrate wins, and adapt to changes — whether internal or market driven.

💡 Aimee’s Tip: We partner with clients to run regular variance analyses and help interpret gaps between plan and reality.

Step 8 — Do Not Go It Alone: The Value of an Expert Partner

Many small and mid-size businesses do not have an internal CFO, FP&A team, or dedicated financial strategist. That is where a firm like Siegel Solutions adds real value.

When you collaborate with us:

✔ Your financials are accurate and timely — the foundation of any plan.
✔ We help you interpret trends, not just report numbers.
✔ We support forecasting, scenario modeling, and budgeting.
✔ We assist with ongoing plan reviews and adjustments.
✔ We bring context — industry, practical, and strategy oriented.

Why this step matters:
Even the best owners benefit from a second set of experienced eyes — especially when financial decisions affect cash flow, investment, and risk.

💡 Aimee’s Insight: Our role is not to make decisions for you, but to ensure you make informed decisions — backed by reliable data and thoughtful analysis.

How Siegel Solutions Can Help You Build Your Money Map

When you partner with us, you get more than a checklist — you get a financial partner who helps you:

1. Prepare Clean & Accurate Financials

We ensure your books are up to date, organized, and ready for planning.

2. Analyze Performance in Context

We identify trends and insights that matter for strategy.

3. Set Realistic Yet Ambitious Goals

We help you balance aspiration with financial reality.

4. Build Multi Scenario Forecasts

We model risks and opportunities, so you are prepared.

5. Review & Adjust Your Plan Quarterly

We help you revisit your plan based on actual results.

6. Provide Strategic Guidance Year -Round.

We stay aligned with your goals, priorities, and challenges.

Your success is our purpose — not just on paper, but in practical, real world outcomes.

The best business decisions are rooted in clarity — and clarity comes from understanding your numbers. By building a 2026 Money Map, you are not just planning — you are taking control of your growth, your cash flow, and your peace of mind.

Whether you are looking to stabilize, scale, or simply be more intentional with your resources, the time to start is now — while your 2025 data is fresh and actionable.

Let us talk about what is possible for your business.
We are here to guide you through every step of the Money Map process — from reviewing your 2025 financials to building a flexible, forward-focused plan for 2026.

You do not have to do it alone — and with Siegel Solutions, you will not!
Let us build a stronger financial future together – reach out anytime!