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How to Make More Profit in 2026 Than You Did Last Year

Many business owners start the year with the same goal: they want 2026 to be better than last year. More profit, fewer surprises, and a clearer sense of where the business is heading.

What often gets missed is that profit rarely improves on its own. It usually comes from a series of deliberate decisions made consistently throughout the year. Pricing, costs, cash flow, and taxes all play a role.

The good news is that you do not need a complete overhaul to make more profit in 2026. You need a clearer picture of what is actually happening in your business and a plan to act on it.  In this article, we share some tips on how small businesses and trades in Fort Worth can start thinking about improving profitability this year.

Start With A Clear Picture Of Your Current Profit

Before you can improve profit, you need to understand where it is coming from today.

Many business owners focus on revenue first, assuming that higher sales will naturally lead to higher profit. In reality, revenue can grow while profit stays flat or even declines if costs, pricing, or taxes are not managed carefully.

Reviewing your profit and loss statement regularly is one of the simplest and most effective habits you can build. A monthly review helps you spot trends early, such as rising labor costs, shrinking margins, or expenses that no longer make sense for how your business operates.

This is also a good time to look beyond totals and ask better questions. Which services or jobs are producing the strongest margins? Which clients take the most time for the least return? Which costs are fixed? And which ones move as the business grows?

When you understand where profit is actually being created or lost, decisions become easier to make.

Tighten Costs Without Cutting What Matters

Improving profit does not always mean cutting expenses aggressively. It means making sure every dollar spent supports how your business operates today.

Recurring expenses are often the best place to start. Software subscriptions, vehicle costs, tools, insurance, utilities, and outside services tend to accumulate over time. A cost that made sense two years ago may no longer fit the way your team works now.

This does not mean reducing quality or underinvesting in the business; it means being intentional. If an expense supports efficiency, safety, or growth, it may be worth keeping. If it does not, it may be time to renegotiate or eliminate it.

For trades and service businesses, labor efficiency also plays a major role in profitability. Small improvements in scheduling, job costing, or utilization can have a meaningful impact without increasing headcount.

Review Pricing With Fresh Eyes

Pricing is one of the most common profit leaks, especially for long-standing businesses.

Many owners set prices based on what competitors charge or what customers expect, then forget to revisit them as costs rise. Over time, materials, payroll, insurance, and overhead increase while pricing stays flat. This causes margins to quietly shrink.

This year, it is worth reviewing whether your pricing still reflects the true cost of delivering your services. This includes direct costs, overhead, and a reasonable profit for the risk you take as an owner.

Even small pricing adjustments, applied consistently, can improve profit more reliably than chasing new volume. A CPA can help you understand what your margins actually look like and where pricing changes may have the biggest impact.

Focus On Cash Flow, Not Just Profit

Profit on paper does not always translate to cash in the bank. Timing differences between billing, collections, payroll, and expenses can create stress even when the business appears profitable. This is especially common for contractors, real estate professionals, and commission-based businesses.

In 2026, improving cash flow should be part of any profit plan. This may involve reviewing billing practices, tightening collections, adjusting payment terms, or forecasting cash needs more regularly.

A basic cash flow forecast helps you anticipate slow periods, large expenses, or tax payments before they create pressure. It also supports better decision-making around hiring, equipment purchases, and growth.

Use Tax Planning To Keep More Of What You Earn

Taxes are one of the largest expenses most business owners face, yet they are often addressed only at filing time.

Year-round tax planning can make a meaningful difference in how much profit you keep. This includes understanding how income timing, deductions, depreciation, payroll decisions, and retirement contributions affect your tax liability.

For Texas businesses, federal tax changes still matter, and taxes like franchise tax, sales tax, and property tax can quietly influence cash flow. Planning ahead helps avoid surprises and allows you to make decisions with better information.

Working with a CPA throughout the year gives you the opportunity to adjust before the year closes, rather than reacting after the fact.

Use Better Information To Make Better Decisions

Accurate, timely financial information is one of the most underappreciated profit tools.

Clean bookkeeping, consistent reporting, and clear financial statements allow you to see what is working and what is not. They also make it easier to evaluate opportunities, manage risk, and plan for growth.

Technology can support this, but only if the underlying data is reliable. Automation works best when it is paired with good processes and regular review.

When your numbers are current and trustworthy, profit improvement becomes a management decision rather than a guessing game.

Turn Small Improvements Into Sustainable Growth

Making more profit in 2026 does not require a dramatic shift, but it requires attention. When you review your numbers regularly, price your services intentionally, manage cash flow proactively, and plan for taxes throughout the year, profit tends to follow. These habits compound over time and create stability, not just short-term gains.

At Adam Traywick, CPA, we work with Fort Worth business owners help them understand their numbers and use them to make better decisions. Whether you run a plumbing company, an HVAC business, a real estate practice, or an insurance agency, the goal is the same. You want to build profit that supports the life you want. 

If you want 2026 to be more profitable than last year, the best place to start is a clear conversation about where you are today and where you want to go next.

Book a call with us today, we’re here to help.

Until next time!

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