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At McDevitt & McGlynn we believe that the weeks before year end are among the most valuable in the entire financial calendar. This is the moment when business owners still have time to act, rather than simply record what happened. Cash flow sits at the centre of that opportunity. A business can be profitable on paper and still find itself under pressure if cash is tied up in unpaid invoices, slow-moving stock or poorly timed commitments. Asking the right questions before the year closes allows owners to strengthen their position, avoid unwelcome surprises and enter the new year with clarity rather than crossed fingers. The five questions below are the ones we believe every Irish SME should be able to answer confidently before year end arrives.

Year end is not just a reporting deadline. It is a natural checkpoint, and the businesses that use it well consistently outperform those that let it pass unexamined.

1. How Much of Our Cash Is Sitting in Unpaid Invoices?

The first question concerns debtors. Every outstanding invoice represents work completed and money earned, but not yet available to the business. Before year end, owners should know their total debtor balance, their average debtor days and, most importantly, which customers are furthest beyond terms.

The run-up to year end is also one of the most effective times to collect. Many customers tidy their own ledgers before closing their books, and a polite, well-timed follow-up often succeeds in December where it might drift in February. Reducing debtor days by even a week releases cash permanently, not just once. If the same customers appear on the overdue list month after month, year end is the moment to reconsider their terms, or in some cases the relationship itself.

2. Do We Know Exactly What Payments Are Due in the First Quarter?

Cash flow problems in the new year are rarely caused by the new year itself. They are caused by commitments made earlier and forgotten. Before year end, every SME should map out the payments falling due in the first quarter: tax liabilities, insurance renewals, supplier commitments, loan repayments, payroll increases and any annual subscriptions that renew in January.

The first months of the year are notoriously demanding on cash for many businesses, particularly those with seasonal trade. Knowing precisely what is coming, and when, transforms January from a month of anxiety into a month of execution. If the mapped commitments exceed comfortable resources, identifying that gap in November or December leaves time to arrange facilities calmly rather than urgently.

3. Is Our Stock Working for Us or Against Us?

For product-based businesses, stock is cash wearing a different costume. Before year end, owners should examine what they are holding, how quickly it is turning over and how much of it has become slow moving or obsolete.

Excess stock quietly absorbs money that could be reducing an overdraft or funding growth. Year end is a sensible time to act: discounting slow lines to convert them back into cash, tightening reordering on items that consistently over-accumulate, and writing off stock that will genuinely never sell. Clearing the decks improves the cash position, tidies the balance sheet and ensures the new year begins with stock that reflects real demand rather than old assumptions.

4. What Did Our Cash Flow Actually Do This Year, and Why?

Many owners can describe their sales year in detail but struggle to explain their cash year. Before the accounts close, it is worth comparing the cash position at the start and end of the year and understanding what drove the change. Did growing debtors absorb the profits? Did capital purchases consume more than planned? Did a strong trading period disguise a weakening underlying position?

This is where profit and cash tell different stories. A business can grow profit while cash deteriorates, and the explanation always lies in working capital, investment or drawings. Understanding the true story of the year just ended is the foundation for a more deliberate year ahead, and it is a conversation well worth having with your accountant while the details are fresh.

5. Do We Have a Cash Flow Forecast for the Year Ahead?

The final question looks forward. A rolling cash flow forecast, even a simple one updated monthly, is the single most useful tool for avoiding cash surprises. It converts known commitments, expected sales and planned investments into a month-by-month picture of where the business is heading.

With a forecast in place, decisions about hiring, equipment, pricing and funding are made with evidence rather than instinct. Quiet periods are anticipated rather than endured. Facilities are arranged before they are needed, which is invariably when they are cheapest and easiest to secure. If a business enters the new year with only one new financial habit, this should be it.

Enter the New Year with Answers, Not Assumptions

For Irish SMEs facing rising costs and an unpredictable trading environment, cash flow discipline has become inseparable from business survival and growth alike. The five questions above do not require sophisticated systems, only honesty and a little time before the year closes. The businesses that ask them consistently are the ones that start each new year in control, with cash where it belongs: available, visible and working.

If you would like to discuss your business, contact us on info@mcdevittmcglynn.com or visit mcdevittmcglynn.com

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.