Managing Your Personal Finances in the Upcoming Holiday Season: A Challenge You Can Overcome

“The economic situation is difficult for many families and consumers. Continuing high interest rates and inflation are putting pressure on many Quebeckers’ wallets. With Black Friday and Cyber Monday sales and the upcoming Holiday season, many can fall into the debt trap. Here are some tips for staying the course.”

– Virginie Comtois, Partner and Licensed Insolvency Trustee
Raymond Chabot

Montréal, November 22, 2023 – Financial problems are hitting an increasing number of consumers and, unfortunately, the Holiday season could aggravate many individuals’ financial situation, to the point of rendering some insolvent. This is why Raymond Chabot, a subsidiary of Raymond Chabot Grant Thornton, specialized in insolvency and financial recovery, would like to reiterate the importance of drafting a budget and sticking to it in order to maintain your financial health.

Staying the financial course during the Holidays

Consumer insolvency is on the rise. According to the latest data, the average increase in Quebec since the start of 2023 is 18.6% compared to the same period in 2022. Even if consumers have not yet reached the insolvency levels of 2019, the growing trend is crystallizing. But is there any way of curbing this upward trend? “Yes, there is, and we can’t stress it enough: the key to our finances is to prepare a budget and to try to stick to it. But when you can’t make any more cuts, and your expenses exceed your income and you’re being hounded by your creditors, it’s often too late to get out on your own,” says Sophie Desautels, Lead Senior Manager and Licensed Insolvency Trustee.

In order to help Quebeckers draw up their budget, Raymond Chabot offers a budget calculator, an easy-to-use tool available on its website. In addition to creating a budget, the calculator can be used in conjunction with the financial health checkup tool, which is also available to consumers.

Reducing your financial stress is key to a smoother holiday season

Once you’ve set up your budget, it’s easier to spend the holidays with peace of mind, knowing that you won’t let your emotions get the better of your reason.

In addition to essential budget planning, Raymond Chabot would like to share a few tips to help consumers enjoy the festive season within their means and avoid over-spending. Among other things, they can consider different gift strategies, reduce food waste and plan their trips. For more information, consult this article. Furthermore, if you’re planning on buying gifts with your credit card, it’s a good idea to put some money aside now so that you can pay off the balance as quickly as possible.

“In this time of rest and celebration, emotions are running high and impulse buying can quickly plunge our finances into the red. In some cases unfortunately, it could be very damaging to finances that are already in a bad way. Budgetary discipline is the way to go, but if a return to sound finances is not on the horizon, you should consult a trustee as soon as possible in order to restore your peace of mind,” says Sophie Desautels.

About Raymond Chabot

For more than 40 years, Raymond Chabot, a subsidiary of Raymond Chabot Grant Thornton, has specialized in insolvency and the financial recovery of individuals and businesses. With a team of more than 200 professionals working in some 100 offices in Québec, New Brunswick and Ontario, it is a leading Québec network of counsellors in financial recovery and licensed insolvency trustees. Raymond Chabot stands out through its expertise and human approach.

About Raymond Chabot Grant Thornton

Raymond Chabot Grant Thornton is a professional services firm dedicated to the success of organizations and their leaders since 1948. The Firm’s advisors are committed to helping clients thrive by obtaining a deep understanding of what is important to them, their business and their industry. This knowledge, combined with a team of motivated and talented professionals help accelerate growth. A Québec and Canadian leader in the areas of assurance, tax, advisory services and business recovery and reorganization, Raymond Chabot Grant Thornton boasts more than 2.800 professionals, including approximately 200 partners, working in over 100 offices across the province of Québec and in the Ottawa and Edmundston regions.

Together with Grant Thornton LLP, another Canadian firm, and the Grant Thornton world organization, our global footprint spans across more than 145 markets with over 68.000 people who provide real insight, a fresh perspective and agility to keep clients moving ahead.

Information:

Gaëlle Fontaine
Advisor, Communications and Public Affairs
Raymond Chabot Grant Thornton
438-349-0842
[email protected]

Montréal, November 6, 2023 – With the new year approaching, Raymond Chabot Grant Thornton would like to remind you that there is still time to benefit from a reduced tax bill.

Whether for businesses and their leaders, high-income individuals, employees or investors, the 2023 Year-End Tax Planning Guide aims to inform taxpayers of certain measures or strategies that can be put in place to pay less tax, i.e., by taking advantage of accelerated depreciation and the enhanced rates of the Investment and Innovation Tax Credit (C3i), which will end on December 31, 2023.

A tax guide that pays off!

“As far as corporate officers are concerned, our Guide reiterates, among other things, the importance of making the most of the capital gains deduction for business succession, the new loan repayment flexibility of the Canadian Emergency Business Account (CEBA) and the refundable credit if you hire experienced workers aged 60 and over,” said Tax Partner and Regional Vice-President Sylvain Gilbert.

Among other tax measures to consider, as the Guide reminds us, there are those aimed at employees, such as the reduced taxable benefit related to an automobile made available to an employee and the right to a tax deduction for the cost of new tools purchased by tradespeople hired as employees.

For high-income individuals and trusts, the alternative minimum tax (AMT) rate, which will be increased in 2024 from 15% to 20.5%, and the basic exemption, which will rise from $40,000 to around $173,000, will affect many. In this respect, certain transactions scheduled for the beginning of 2024 may have to be brought forward or spread over 2023 and 2024 in order to limit the impact of these changes.

“One thing is certain, even at this time of year, there’s still plenty of room for maneuver to maximize the tax benefits. If you had to make a resolution right now, we’d advise you to do some year-end homework so that you can reap the tax rewards. It’s definitely a worthwhile investment!” said Sylvain Gilbert.

About Raymond Chabot Grant Thornton

Raymond Chabot Grant Thornton is a professional services firm dedicated to the success of organizations and their leaders since 1948. The Firm’s advisors are committed to helping clients thrive by obtaining a deep understanding of what is important to them, their business and their industry. This knowledge, combined with a team of motivated and talented professionals help accelerate growth. A Quebec and Canadian leader in the areas of assurance, tax, advisory services and business recovery and reorganization, Raymond Chabot Grant Thornton boasts more than 2.800 professionals, including approximately 200 partners, working in over 100 offices across the province of Quebec and in the Ottawa and Edmundston regions.

Together with Grant Thornton LLP, another Canadian firm, and the Grant Thornton world organization, our global footprint spans across more than 145 markets with over 68.000 people who provide real insight, a fresh perspective and agility to keep clients moving ahead.

Source:

Francis Letendre
Head – Communications and Public Relations
Raymond Chabot Grant Thornton
Telephone: 514-390-4201
Email: [email protected]

From its inception to today, Raymond Chabot Grant Thornton has remained a witness of and an active player in Quebec’s economic evolution.

The Firm was founded in 1948, in the post-war period, when the province was undergoing a wave of industrialization and urbanization. Family businesses and commercial enterprises were booming, profiting from the economic growth that was affecting all of North America. Demand for accounting services was growing rapidly, providing fertile ground for the Firm’s rapid expansion.

The 1960s and ‘70s marked another major turning point for the Québec economy. The government assumed an active role in fostering the creation and development of businesses by Francophones, notably by founding the Caisse de dépôt et placement du Québec and setting up the stock savings plan. This period saw the emergence of Québec inc., with the birth of major companies in sectors as varied as energy, transport and communications.

In this fast-paced environment, Raymond Chabot Grant Thornton is well-positioned across the territory. “The Firm flourished thanks to the vision of its leaders, who have helped it grow through a series of acquisitions throughout Quebec, as well as in Ontario and New Brunswick,” says Marc Bergeron, Partner and Vice-President of the Recovery and Reorganization Group from 2009 to 2021.

Opening up to the world

From the 1980s onwards, the globalization of markets became unavoidable. As in the rest of the world, Quebec businesses had to adapt to an increasingly open and competitive environment. This created new business opportunities, but also presented significant challenges. The Firm responded by diversifying its range of services and adding specialties such as recovery and reorganization, human resources management, financing and management consulting services. This diversification strategy has become “a key element in its resilience”, says Gérald Daly, Advisory Partner and expert in information technology and internal audit.

It was also at this time, in 1981, that the Firm joined forces with Grant Thornton International, a major network of consultants established in over a hundred countries. “Several clients were fulfilling their ambition to build global businesses from Quebec. The Firm needed to increase its presence outside our borders. This alliance has enabled us to extend our reach,” explains Gérald Daly.

As the economic environment becomes more complex, the Firm continues to evolve, adding to its portfolio areas such as ESG (environmental, social and governance) management, sustainable finance, emerging technologies and cybersecurity.” In an increasingly complex business environment, entrepreneurs need a multidisciplinary team that includes accountants, tax specialists, strategic advisers and analysts. This is what allows us to serve our clients well,” concludes Marc Bergeron.