The potential for further financial hardship awaits physicians who are unprepared for the double punch of both a continuing pandemic and an economic downturn in 2021.
Office visits are cut by fear and by social distancing, folks are finding they prefer telemedicine, and surgeries are on hold, meaning revenue streams are trickling in or running dry. In addition, your investment portfolio is on the corona-coaster. It will take a lot for doctors, dentists and other healthcare providers to weather the continuing financial storm. Look to improve liquidity first.
Here is a list of things to start working on today for you and your practice that will have an immediate impact:
1. Revisit your budget and expenses;
2. Examine your debt-to-income ratio;
3. Conserve cash;
4. Put major purchases on hold;
5. Make sure if you received any financial assistance from the SBA or HHS you are documenting and reporting as required;
6. Look into refinancing your mortgage while rates are at historic lows;
7. Look into refinancing your student loans while you’re at it too, if you don’t qualify for PSLF;
8. Check up on your investments, asset allocation and diversification – ask for a portfolio audit;
9. Don’t forget your emergency fund;
10. Schedule a meeting for proactive tax planning for both 2020 and 2021. Make sure you are taking advantage of every opportunity to minimize your tax liability!
Reach out to us: Don’t underestimate the importance of tax planning in times like these and taking advantage of available tax credits. Although physician practices, clinics, surgery centers, dental offices, and other health care businesses were among the most common recipients of loans under the Paycheck Protection Program, that alone is not enough to help you weather the financial storm still ahead. Talk to us about your viable options. A new financial action plan or restructuring may help you and your practice weather the economic pressures on the medical field right now. Prepare to position yourself for the recovery after the pandemic with:
• Budget analysis
• Cash flow analysis
• Expense analysis
• New financial projections
Call us toll free at 855-542-7537 or email CPA@Fuoco.com.