The Challenge of Post-Holiday Financial Recovery

The holidays have a habit of coming to an end sooner than we hope. Before we know it, it’s time to pull down the decorations and face a steeply declining bank account.

For many health professionals in Canada, the holiday season is a slower period and people are away for vacation. You may have taken some time off and spent a lot during the holiday season,and now you are in dire need of post-holiday financial recovery tips for health businesses.

Tyagi Group has a recovery kit to help you bounce back stronger in the new year.

Here’s a glimpse at what we explore in this blog:

Understanding the Impact: High Spending Months and Low-Income Periods
Effective Strategies to Get Your Finances Back on Track
Tip 1: Comprehensive Financial Review
Tip 2: Strategic Budgeting and Expense Management
Tip 3: Cash Flow Planning
Tip 4: Leveraging Tax Deductions
The Importance of Financial Resilience in Health Businesses

To get you started, click below to get your FREE budgeting checklist so you have all your financial ducks in a row as we set off into 2024. Try out the Budgeting Online Course for Canadian Health Professionals to help you set a solid budget for the year ahead.

Understanding the Impact: High Spending Months and Low-Income Periods

To help you recover in the post-holiday season, here’s a quick breakdown of the impact of holiday spending.

Many health professionals take time off during the holidays which decrease revenue (financial impact #1). During December, you may also spend a little extra on staff gifts (financial impact #2) and attend or host social events such as gala dinners or awards evenings (financial impact #3).

This all contributes to a financial downturn in the low-income periods at the start of the new year. These low-income periods can last way into the first quarter unless you immediately put a strategy in place to overcome the setbacks of holiday spending.

Effective Strategies to Get Your Finances Back on Track

Post-holiday blues need not last forever! You can bounce back quickly from a low-income period and build your finances right up to where you want them to be in a few weeks.

Our team of experienced CPAs and financial advisors has compiled four essential insider tips to bulk up your bank balance before you know it. From financial review to budgeting, cash flow planning and smart ways to leverage tax deductions, we have it all. Let’s dive in!

Tip 1: Comprehensive Financial Review

A great way to start your path to recovery is a financial review. With the holidays behind you, it’s time to dig deep, analyze your financial performance over the holiday period.

You should also review your expenses over the holidays to give you a clear idea of where to cut back next year. Being honest and detailed in your financial review will help you see what worked and didn’t and create a solid roadmap for recovery. Now, you can budget and identify areas to improve for the next season.

Tip 2: Strategic Budgeting and Expense Management

Strategic budgeting combines budgeting with strategic planning and helps a business align the budget with the profit goals.

This kind of focused budgeting will assist you with expense management in the initial months when business opens after the holidays. Since strategic budgeting is often a long-term spending plan, use it for effective expense management from the start of the year until the next holiday period.

Tip 3: Cash Flow Planning

Cash flow planning is an incredibly savvy tool for helping health professionals like you track and analyze the money flowing in and out of your business. If you start early enough, you can mitigate risk and minimize loss in the post-holiday low-income slump.

However, you can also start cash flow planning right now to aid you in financial recovery if you need to make up for holiday spending. With a good cash flow plan, you can still pay suppliers on time, identify areas of overspending, and prepare for financial stability in the year ahead.

Cash flow planning actionables:

Focus on targeted marketing to bring in new patients
Timely and automated invoicing and payment processing
Review expenses to reduce or eliminate non-essential spending
Inventory management to avoid overstocking and cash tied up in inventory
Plan on building cash reserves for the year

Tip 4: Leveraging Tax Deductions

Avoid missing out on the financial benefits of tax deductions simply because you don’t understand them. Tyagi Group coaches health professionals in Canada towards a better understanding of how to leverage tax deductions. With this knowledge, you have the power to bounce back after the holidays with the financial benefits that come from your tax savings.

Read more in this blog or book a strategy call with us to learn how to save on taxes and gain more returns that can help your financial recovery after the financially draining holiday season.

The Importance of Financial Resilience in Health Businesses

No one said running a health business was going to be easy. While it is rewarding on several levels, it does take a certain amount of financial resilience to be able to bounce back from cash flow slumps that occur from time to time. Following this guide will help you bounce back and, most importantly, stay on the path of financial stability in months to come.

Key points to help you recover like a pro:

Understand the impact of holiday spending.
Review your finances after the holidays.
Start a strategic budget and cash flow plan.
A better understanding of taxes can help you bounce back.
Start budgeting early and managing expenses ahead of the next holiday!

A great way to stay on track with your finances in the new year is by joining our Business Foundations Budgeting Online Course for Canadian Health Professionals. Learn how to regain control and become financially resilient from our supportive team of financial experts.