Know the Red Flags, or Sink.
Pearson’s Law: Everything measured improves, and everything measured and reported on improves exponentially.
When is the last time you measured your pharmacy’s financial progress? We’re willing to bet that most reading this don’t take a deep dive into what makes their pharmacy thrive — and what is bogging the business down.
Understanding your financial statements is a necessary game business owners must play if they intend to win. Far from a boring topic, speaking your pharmacy’s financial language will become fun once you can interpret what your statements are trying to say to you. Once you tap in, it will start telling you if you are on the right track, what initiatives or tactics are viable, and what ventures you should drop immediately.
Waiting until symptoms manifest shouldn’t be the time to look into your data. You must be able to identify what’s happening in your business long before things go south. Below are some red flags you should look out for that signal a vital need to look into your statements immediately.
Red Flags to Look Out For:
- Your pharmacy cash balance is low.
- Your payables are growing, but your cash is not.
- You have little or no understanding of what your true accounts receivable balance is.
- Your payroll is not the ideal of 11-13% of revenue.
Learn to Speak Your Business’ Financial Language
Cashflow and understanding financial records are your keys to discovering what your business is saying to you. Pharmacy Development Services offers two ways to take control of your financial data.
- Cash Flow 101 Workshop: This training course teaches you to understand the language of your statements and how to check the pulse of your financials so you can determine the next course of action you need to take as a business to keep that arrow moving up. In this workshop, pharmacy owners step into the lion’s den to learn how to read, understand and interpret financial statements along with other pharmacy data to help you make better management decisions and seize opportunities. Get an insider’s look at what the Cash Flow 101 course is all about by watching this video of one of the workshops below. Find more details and catch the next session here.
- PDSfinancials: Level up your pharmacy by taking control of your finances. We take your messy pharmacy financial records, clean them up, make them easy to read and enable data-driven decisions. We’ll also standardize your chart of accounts, convert your old QuickBooks and fully reconcile all of your bank and credit card accounts — plus more! Find out more about our comprehensive pharmacy package and inquire about the service here.
Get an insider’s look at Cash Flow 101 from an attendee’s eyes below:
Don’t wait until those red flags sink your ship. Understanding your financials can mean the difference between thriving and closing your doors for good.
For more information on Pharmacy Development Services Pharmacy Training Courses, click here.