Your Q4 Budgeting Checklist for Canadian Health Professionals: Set Yourself Up for 2026 Success
As the year winds down, most Canadian health professionals we work with are busy juggling patients, paperwork, and the push to wrap up 2025 strong. But we’re going to hold your hand when we tell you this…December isn’t the finish line, it’s your launchpad for 2026.
Taking a few hours now to tighten up your finances can save you from scrambling during tax season and give you the confidence that your practice is financially on track. Think of this as your Q4 budgeting checklist—the essentials you want to tick off before the year ends.
1. Review Your 2025 Income and Expenses
Start by taking stock of your year-to-date numbers and ask yourself:
Where did the money come in?
Where did it flow out?
Did you hit your income goals?
Are there expenses you forgot to track (like CE credits, licensing fees, or software subscriptions)?
Have you set aside enough for taxes?
A tip from us to you: Our FREE Budgeting Checklist makes this step simple. It’s a plug-and-play tool designed with Canadian health professionals in mind (thank us later).
2. Maximize Year-End Deductions
Many health professionals miss opportunities to reduce their taxable income simply because they don’t act before year-end. Consider:
Equipment & Supplies – If you know you’ll need a new laptop, treatment chair, or diagnostic tools in early 2026, buying them now could give you a deduction this year.
Professional Development – CE courses or memberships paid before December 31 can count toward your 2025 return.
Home Office Expenses – If you have a dedicated office space, make sure utilities, internet, maintenance, rent and/or mortgage interest are logged accurately.
These deductions add up and can soften the blow of higher tax contributions next year!
3. Plan Your Compensation Strategy
If you’re incorporated, how you pay yourself matters. Salary vs. dividends impacts not just your tax bill but also RRSP contribution room and long-term planning.
Review your cash flow.
Decide if topping up your salary or dividend before December 31 makes sense.
Check if your compensation aligns with your personal financial goals.
Consistency and reasonableness are key, CRA takes note if things look out of sync.
4. Double-Check GST/HST
Not all health services are exempt from GST/HST. If you’ve added new services this year—say, wellness coaching or specialized treatments—make sure you’re charging and remitting correctly.
Mistakes here can snowball into costly reviews. A quick check now saves a big headache later.
5. Prepare for a CRA Review (Just in Case)
Health professionals are more likely than most to get flagged for a CRA review because they often have multiple income streams—clinic revenue, locum work, dividends, and beyond.
Make sure you’re ready with:
Organized receipts for licensing, insurance, and continuing education.
Clear separation of business vs. personal spending (ideally with a dedicated business account and credit card).
Up-to-date bookkeeping records you could hand over tomorrow without breaking a sweat.
👉 Want to feel completely audit-ready? Join our Budgeting Webinar. We’ll walk you through the systems that keep you compliant and stress-free.
6. Set Your 2026 Game Plan
Finally, as you close your books for 2025, set your sights on 2026.
Draft a preliminary budget for the year ahead.
Build in savings for taxes, professional development, and equipment upgrades.
Identify income opportunities you want to pursue (like expanding services or hiring additional staff).
Think of this as moving from reactive to proactive. Instead of asking, “What happened this year?” you’ll be asking, “What do I want to build next year?”
Wrapping Up
Your Q4 checklist doesn’t have to feel overwhelming. By focusing on these key areas—income and expenses, deductions, compensation, GST/HST, CRA readiness, and forward planning—you’ll head into 2026 with clarity and confidence.
And remember, you don’t have to do it alone. Tools like our FREE Budgeting Checklist and Budgeting Webinar are designed to take the guesswork out of managing your practice’s finances.
So pour yourself a coffee, block an hour on your calendar, and work through this checklist. Your future, self and your practice, will thank you.
