7 Financial Strategies Doctors Must Do.

• Incorporate yourself (Dr. Inc.)
• Write off Medical Expenses
• Trim Your Tax Bill
• Risk Management
• Cash Flow & Debt Management
• Wealth Management
• Tax Planning

Cash Management

Budget Control
Faced with constraints and demands for improved services, modern
organizations at every level are discussing, experimenting with, and
implementing new ways of budgeting. The budget process is increasingly
being seen as a tool to promote corporate accountability and effectiveness,
rather than simply as a vehicle for allocating resources and controlling
expenditures. The traditional budgeting process was typically believed to
be a high effort and low value added process, with typical characteristics
like:

• A disconnection between strategy, budgeting and performance
management as no line ownership for budgets existed
• Budgeting cycle was too long as multi-levels of approval were required
• Budgets were too detailed, the focus being given to data collection rather
than synthesis, analysis and interpretation
• Straight lined budget - seasonality was ignored
• No budgeted balance sheet or cash flow statements were produced
• System support was inadequate contemporary budgeting however,
has been defined as a system wherein managers are provided with the
flexibility to utilize resources as required, in return for their commitment to
achieve certain performance results. In addition, proper budgeting enables
effective planning of the company’s operations and serves as a monitoring
tool, coordinating actions and initiatives between the various organisational
units. Generating a sound budget means looking beyond your own walls.
Our financial management practice will review general economic and
industrial trends along with factors unique to your business, in order to
provide hands-on support and accomplish effective process transformation,
insuring the development of realistic financial performance goals and
budgets. This will be ensured by the fact that our professionals have
specialised experience in all different types of budgeting (activity based
budgeting, zero based budgeting, strategic budgeting, budgeting on a
rolling basis) and are capable of providing specialised advice on budgeting
results interpretation / highlighting areas for Improvement. The latter
can be accomplished through variance (actual versus budget) reports
interpretation and analysis, design of standard budgeted vs. actual
reconciliation reports, behavioural issues resolution, on-going system etc.
It is important to mention that streamlining the budgeting process alone,
without “fine-tuning” the budgeting system and the budget control points
will render only a fraction of the expected benefits. That is why the
complementary skill set of our financial management professionals will
make the difference in creating the best budgeting framework fitting your
company needs and distinct characteristics.

Systematic Savings
Is putting money aside to realize your projects an impossible task? You
never manage to save enough money to contribute to your RRSP by the
end of the year? No matter the reason – whether lack of discipline or an
endless string of unexpected expenses –periodical investment may be just
the ticket for you!

WHAT IS THE SYSTEMATIC SAVING PLAN?
The Systematic Savings Plan helps you save progressively and make your
investment grow, without ever having to set foot in the bank. Foster good
saving habits for a specific project or your retirement, knowing that you can
always end or modify your periodical instalments.

ADVANTAGES
Flexibility: The Systematic Savings Plan offers you more flexibility. You
choose how much and how often you want to save. Modify the program or
cancel it altogether at any time.
Return: By investing periodically, you reduce the average
acquisition cost of your shares. In fact, you buy more shares when prices
decline and you buy less when prices are on the rise. On the long term, the
average cost of this strategy is lesser than that of a lumpsum
contribution. No need to wait for a favourable time to invest because you’re
investing all year long!
Discipline: Invest all year long and pile up substantial savings without
even noticing! Having a small amount withdrawn from your account, every
week or every month, is much easier than scrambling for the necessary
funds on cue.
When it comes to planning your retirement, systematic savings can help
your nest egg grow every month, tax-free. The graph below demonstrates
the advantages of monthly RR SP contributions over a single annual
lump-sum at the end of the year. For example, an investor who begins
contributing at 25 could pocket an extra $22,608 to retire at age 60.

Summary
This investment strategy is suited for you if:
· You find it difficult to keep you budget on track and wish to foster
good saving habits;
· You wish to save some money to realize a special project (vacation,
house, retirement, etc.);
· You are seeking simple and efficient solutions to save money;
· You wish to limit the impact of market fluctuations on your portfolio.
This investment strategy is not suited for you if:
· You do not have a stable income allowing you to make regular
payments.

Cost Control
DEFINITION of 'Cost Control'
The practice of managing and/or reducing business expenses. Cost
controls starts by the businesses identifying what their costs are and
evaluate whether those costs are reasonable and affordable. Then, if
necessary, they can look for ways to cut costs through methods such
as cutting back, moving to a less expensive plan or changing service
providers. The cost-control process seeks to manage expenses ranging
from phone, internet and utility bills to employee payroll and outside
professional services.

Cash Reserves
DEFINITION of 'Cash Reserves '
In finance, cash reserves primarily refers to two things. One is a type of
short-term, highly liquid investment that earns a low rate of return (perhaps
3\% annually) such as investment company Fidelity's fund called
Fidelity Cash Reserves. This is where some individuals keep money that
they want to have quick access to. The other type of cash reserves refers
to the money a company or individual keeps on hand to meet its short-term
and emergency funding needs.