Picture this: it’s the first week of January. Your 6 a.m. class has a waitlist. New faces are filling out intake forms at the front desk. Your phone is buzzing with trial sign-ups, and the energy in the room is electric! This is the moment you’ve been building toward all year.
Now picture walking into that moment already knowing your numbers, with cash set aside, your paperwork handled, and a clear plan for the year. No scrambling. Fewer tax surprises. Just you, focused on your members and growing your business.
That version of January doesn’t happen by accident. The owners who enjoy it start preparing in the prior year, and that window is open right now. You have about 12 weeks left to close out 2026 the right way and set yourself up for your strongest Q1 yet. Here are five things to do before the ball drops. Pick one and let’s get to work.
Plan your cash for the January rush
January brings in more members, and that means more money. But you usually have to spend before that money arrives. Think extra coaches on the schedule, ads for your New Year deal, and new equipment or supplies.
On top of that, November and December are often slow. Members travel, get busy with the holidays, or pause their memberships. So you may head into your busiest month with less cash than usual.
Know what’s really income (and what isn’t yet)
Gift cards, class packs, and prepaid annual memberships put cash in the bank, but cash received isn’t always revenue earned. For an accrual-based view of your business, revenue is generally recognized as you provide the promised services or membership access.
A $1,200 annual membership sold in January, for example, might mean about $100 in revenue each month over a 12-month membership. The rest represents access you still need to provide. Gift cards and class packs may follow different rules, so review the details with your bookkeeper.
Count all that cash as profit, and your Q4 and Q1 can look better than they really are.
Your tax treatment may differ from this financial reporting approach, depending on your accounting method and the applicable rules.
Get your 1099s and W-9s in order
Do you pay instructors or coaches who aren’t on your payroll? If they’re properly classified as independent contractors, you may need to send them Form 1099-NEC and file a copy with the IRS.
Here’s some good news for this year: the federal reporting threshold for eligible nonemployee service payments is generally $2,000 per recipient for 2026, up from $600 for payments made before 2026. You may have fewer forms to send. See the IRS instructions.
The usual January 31 deadline falls on a Sunday, so the deadline for 2026 Forms 1099-NEC is February 1, 2027. Payment method, recipient type, and backup withholding can affect whether you need to file; have your CPA review the exceptions.
Make your year-end tax moves
Some ways to lower your 2026 tax bill require action by December 31. Start the conversation now so you know which deadlines apply to your business.
Certain retirement plan setup and contribution deadlines may extend beyond year-end, depending on the plan and your business. Your CPA can help you sort out the timing.
Build a simple 2027 budget
You don’t need a giant spreadsheet. A one-page plan that answers a few questions will guide better decisions all year:
- How many members do you have today, and how many do you want by June?
- What’s your average monthly revenue per member?
- What are your fixed costs, like rent, software, and insurance?
- What share of your revenue goes to payroll?
- How many members do you need just to break even?
Then check your actual results against it every month. That’s how you catch a problem in March instead of at tax time next year.
Don’t wait for January
You don’t need to do all five today. Pick the one that feels most urgent and start this week. Block off an hour, grab a coffee, and pull up your numbers. That’s it.
Every small step you take now is one less thing on your plate when January hits!
Dane Consulting LLC helps health and wellness business owners understand their numbers and use them to grow. This post is for general information and isn’t tax or legal advice for your specific situation.