Year-End CFO Playbook: How to Close 2025 Strong and Prepare for 2026

Introduction: The CFO’s Q4 Imperative

For CFOs, the final quarter of the year is more than just financial housekeeping — it is the moment of truth where strategy meets execution, and where preparation sets the tone for the year ahead. In the GCC, where economic diversification, ambitious national visions, and rapidly shifting regulatory landscapes shape business realities, year-end financial leadership carries even greater weight.

Closing 2025 strong requires CFOs to balance three imperatives: ensuring compliance and reporting accuracy, optimizing financial performance, and positioning the organization to capitalize on opportunities in 2026. This playbook lays out a structured framework for CFOs and CEOs to approach Q4 with rigor, clarity, and foresight.

1. Cash Flow and Liquidity Management in a Volatile Rate Environment

1.1 The higher-for-longer reality

Global capital markets in 2025 remain constrained by elevated interest rates. While inflation is stabilizing, the GCC’s funding environment reflects both global tightening and domestic liquidity surpluses from oil revenues. For CFOs, the key challenge is optimizing liquidity without locking into costly financing structures.

1.2 Year-end liquidity checklist

• Review working capital efficiency: Tighten receivables collection, negotiate payables, and reduce inventory holding costs.

• Stress-test liquidity: Run downside scenarios on revenue, receivables, and financing costs.

• Revisit treasury policies: Ensure FX and interest rate exposures are hedged.

• Optimize idle cash: Reallocate excess liquidity into short-term, Sharia-compliant or high-yield instruments.

1.3 GCC context

Many GCC CFOs face dual challenges: managing USD-pegged exposures while accessing local funding structures. Family businesses often maintain cash-heavy balance sheets, but institutional investors demand more disciplined liquidity frameworks.

 2.  Tax, Audit, and Compliance Readiness

2.1 Audit Preparation

• Reconcile intercompany balances: Especially critical for multi-jurisdictional GCC groups.

• Align with new IFRS updates: IFRS 18 (effective 2025) on presentation of financial statements will impact disclosures.

• Close out prior-year adjustments: Prevent audit surprises.

2.2 Taxation in the GCC

• Corporate tax in the UAE (effective June 2023) continues to expand in scope; CFOs must ensure group-wide compliance, including transfer pricing.

• Qatar VAT introduction (expected 2025–26): CFOs must prepare ERP systems and reporting processes.

• KSA tax audits are becoming increasingly rigorous; proper ZATCA compliance is a year-end priority.

2.3 Compliance checklist

• Update beneficial ownership and ESR filings.

• Ensure AML/KYC compliance in financial institutions.

• Prepare ESG-related disclosures as demanded by regional regulators and investors.

 3.  Budgeting and Forecasting for 2026

3.1 Beyond Incremental Budgeting

Traditional incremental budgets no longer suffice. CFOs must adopt driver-based planning tied to revenue streams, operating models, and capital deployment.

3.2 Scenario Planning

CFOs should prepare three scenarios:

• Base case: GDP growth aligned with IMF forecasts (≈3–4% for GCC in 2026).

• Upside: Accelerated infrastructure spending and foreign investment inflows.

• Downside: Oil price shocks or global slowdown.

3.3 GCC sector lens

• Energy transition: Anticipate capital allocations to renewables and hydrogen.

• Technology & smart cities: Budget for increased digital infrastructure spending.

• Healthcare & education: Growth sectors for diversified GCC portfolios.

3.4 Forecasting toolkit

• Rolling 12-month forecasts integrated into ERP.

• AI-enhanced predictive analytics (e.g., demand forecasting, FX movements).

• Dashboard-driven variance analysis for board visibility.

 4.  Talent, Governance, and Risk Reviews

4.1 Talent and succession

• Assess finance team bench strength — can your team handle transformation initiatives?

• Succession planning for key finance and business leaders.

• Incentivize performance via KPIs aligned with 2026 goals.

4.2 Governance upgrades

• Conduct year-end board evaluations and refresh charters.

• Enhance audit committee oversight on risk and compliance.

• Formalize ESG governance frameworks.

4.3 Risk and resilience review

• Cyber risk: As finance becomes more digitized, CFOs must partner with CIOs/CTOs to stress-test cyber resilience.

• Geopolitical risk: The GCC’s central role in global energy markets exposes businesses to volatility.

• Supply chain: Diversify vendors and assess logistics resilience ahead of 2026.

 5.  Building Strategic Optionality for 2026

5.1 Capital allocation priorities

• Balance dividends, reinvestment, and debt reduction.

• Establish capital allocation frameworks to evaluate competing projects.

5.2 Growth levers

• M&A opportunities: Many GCC family businesses remain fragmented and ripe for consolidation

• JV partnerships: Leverage local/global players for technology and market access.

• New business models: Explore “as-a-service” models and digital-first products.

5.3 CFO as strategist

The CFO must transition from financial controller to strategic architect — balancing numbers with vision. By shaping optionality today, CFOs ensure their organizations are not just compliant but competitive in 2026.

Conclusion: The CFO’s Q4 Action List

As 2025 winds down, CFOs must view year-end as an opportunity for renewal, not just closure. This playbook provides a roadmap to strengthen financial foundations and sharpen strategic readiness.

Year-End CFO Action List:

1. Tighten liquidity and stress-test cash flow.

2. Ensure tax, audit, and compliance readiness across all jurisdictions.

3. Build driver-based, scenario-driven budgets for 2026.

4. Review governance, succession, and risk management.

5. Position the business for strategic growth and capital allocation.

In the GCC’s fast-evolving business environment, CFOs who close 2025 strong will be best positioned to make 2026 a year of sustainable growth.

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Published by

Mohammad Kashif Javaid

✅ Strategic Finance Consultant ✅ ACS SYNERGY ✅ At ACS, we help growth seeking businesses with Finance Transformation, Accounting & Finance Operations, FP&A, Strategy, Valuation, & M&A 🌐 acssynergy.com

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