The Reds are currently second in the league table with 16 points from seven matches,
"We're a year down the line," he told the club's official website. "Transition was a big word used last year and people were probably sick of hearing it, but I think we've proved at the start of this year that was the case.
"There were a lot of things getting bedded in last year and we're really reaping the rewards of all the hard work we did, even though there were disappointments at times.
"I'm sure as a manager [Brendan Rodgers] feels better for that and you can certainly see, as a team, we have benefited from it."
Liverpool finished seventh in the Premier League last season.