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Having both operational and accounting experience in community pharmacies, these kinds of firms can be a valuable resource to you. Prior to WebbRx Accounting, Robin served as CFO for GRX Holdings, LLC, a privately held company in West Des Moines, Iowa, which owns thirty independent retail pharmacies throughout Iowa. The good news is that we are here to help you stay ahead of the competition.
What is cost accounting in pharmacy?
In community pharmacy, knowledge of cost accounting enables the owner/manager to determine their cost of dispensing for each prescription on average, or even particular types of prescriptions (eg, compounded ones, those conducted at certain times of the day with different staffing levels, etc).
Having a CPA and a current accounting system as your solid foundation is paramount to enhancing controls and management, staying proactive and getting ahead. With previously being a part of a pharmacy group, we understand the daily challenges and industry shifts in pharmacies. In addition to financial guidance, we can provide you operational insights based on those previous experiences. For many professionals, time is money–and pharmacists are no exception. Whether you are an incorporated pharmacist or run your own pharmacy, chances are good that you simply don’t have time to handle the tax and accounting aspects of your business and keep your business running smoothly.
Transforming Pharmacies into Nonprofit Entities: A Conversation with Ed Ullman
IRx Accounting promises monthly delivery so you can make timely decisions. Our experience which has been gained from working with pharmacies for over twenty five years, allows us to provide business advice to individual pharmacists in order to assist future development and growth. Here is a financial checklist for pharmacists to use when running their pharmacy business.
In October 2022, Robin purchased GRX Accounting and rebranded it as WebbRx Accounting, continuing to serve independent retail pharmacies and a variety of small to mid-sized businesses. It seemed like every month that I was having meetings at work I was hearing terms and concepts I had just read about. While I would highly recommend any pharmacy manager to take at least 1 course in accounting if they have not done so, I wanted to share some particularly useful tools that I gained this past semester. Cloud accounting is now a highly efficient and cost-effective way of maintaining your books and records and giving you full access to your accounts on the go. We have prepared find a collection of pharmacy accounting and financial documents that we hope you find insightful.
Tax Services
We are fully dedicated to serving our clients in the best possible way. If you are running a business, you will need to ensure you are fully tax compliant in all areas of tax from VAT. This can be both time consuming pharmacy accounting and daunting, but we offer packages to ensure all these compliance areas are dealt with in a prompt manner. We can also go further by advising on tax efficient solutions and reliefs you may not be aware of.
Having accurate, timely and well-formatted data is important, but to make it useful you need to understand how to put the information to work. Our team has decades of experience in owning and operating pharmacies. Using the quality financials and the pharmacy data dashboard to understand your store and to come alongside you as you make critical decisions is our focus. We want to see strong, healthy independent pharmacies that are continuing to make a great impact in our communities, and we would like to partner with you to give you the resources you need.
Online Accounting
The inventory turnover ratio tells you how many times per year you turned over your entire inventory. If you get 12, for example, that means you turned over your inventory 12 times in a year. If your inventory turnover ratio is 12, then your days on hand is roughly 30. This is a powerful number for determining how good of a job you and your team are doing in managing inventory.
Cash basis accounting is where revenue and expenses are recorded during the period where the cash was actually received or spent. There may be times when a pharmacy needs to make large expenditures for products that will not be sold until a future date. Using the cash basis accounting method would give the erroneous impression that the company was performing poorly. Monthly Financials delivered timely and importantly, in a pharmacy specific format. Revenue is broken down on the P&L by PSAO, Caremark, Humana, DIR Fees, Cash etc. Cost of Goods Sold shows you primary purchases, secondary purchases, returns and rebates.
Do you report your cost at $6/pound, $7/pound, or even in the middle at $6.50/pound? This is a very real problem in pharmacy, especially as prices fluctuate drastically, we have open bottles, and it is impractical to record the price for each individual bottle at inventory. That helped them understand better why our cost of goods sold has been consistently high compared to budget. It is important to have a CPA who is experienced in pharmacy accounting. The value their experience in dealing with the special business needs of a pharmacy will pay dividends to you and your pharmacy.
- We are committed to providing you with the tools you need to make sound decisions every day.
- Payroll is the largest expense after drug costs, but what is the proper payroll level for my type of store and my volumes?
- Jimmy owns three successful pharmacy companies, two in Shandon Street, Cork and one in Bandon, Co.
- In order to address the many complex areas of pharmacy accounting, it is vital to have a solid foundation to work with.
Staying in compliance with tax laws while making smart choices to minimize your tax burden is essential to keeping your business healthy. Owning, managing and optimizing a pharmacy is a whole new ball game. Get in touch to find out how we can help you with your accounting, tax and financial needs. You can also read the documentation to learn about Wordfence’s blocking tools, or visit wordfence.com to learn more about Wordfence.
