Here at PDS, we take pride in highlighting some of our incredible solutions partners. We know these companies have the potential to revolutionize pharmacies just like yours through their products and services. We’re excited to introduce Sykes & Company P.A.; read on for their sponsored blog post about why your business needs a pharmacy-specific CPA.
Running your pharmacy is tough, especially in today’s environment. It is important you have a pharmacy-specific CPA in place to help make sure every aspect of your pharmacy’s accounting is taken care of.
When you are looking for a pharmacy-specific CPA, you’ll need someone who:
- Will help improve your daily processes
- Assist with tax reduction
- Provide advisory services critical to your success
The top 6 reasons you need a pharmacy-specific CPA
- A pharmacy CPA knows your industry.
Pharmacy is much too complicated to not have a CPA with experience and contacts in this industry. You should always ask how many pharmacy clients they have as well as basic questions about inventory, third party accounts receivable and gross margins. A CPA with specialized pharmacy knowledge should be relentlessly analyzing these three metrics daily, monthly and yearly, asking the questions that matter and comparing your information to your peers.
Actual inventory counts, perpetual inventory, and monthly dispensing audit logs play an urgent role in analyzing the performance of your pharmacy. Your CPA should be staying on top of your inventory every month and providing valuable feedback.
- Third Party Accounts Receivable
Third party accounts receivable make up a huge portion of your gross revenues with daily EFT deposits and paper check payments. With such a large amount in play, your CPA should understand what your AR third party is, what a reasonable AR third party balance should be for your size pharmacy, and how AR third party impacts your margins.
Did you know that most taxpayers are required to report AR third party on their tax return? Believe it or not, many pharmacy clients we bring on board do not comply with this basic IRS rule, mainly due to lack of CPA experience with pharmacies.
- Gross Margins
Anyone with pharmacy knowledge understands the importance of maximizing gross margins. Each percent increase or decrease in margins can have a huge impact on your bottom net income amount. With such a large amount at stake, your CPA must understand what impacts your margins and what a reasonable and accurate depiction of your gross margin should be for your pharmacy based upon your “blend” of revenue (ie: compounding, specialty, DME, OTC etc.). And, they must have experience about how to help boost margins. Your CPA should also know where you stand vis-a-vis your peers in the industry of similar size revenues.
- A pharmacy CPA is responsive.
When you have a question or a need, you shouldn’t have to wait a few days for a response. In today’s environment, people want instant feedback, so find a CPA who provides an instant response. This keeps you informed every step of the way.
- A pharmacy CPA is proactive.
In addition to being responsive, you want a CPA that is proactive. Many CPA and accounting firms are reactive – it is the nature of the industry. However, times are changing and being proactive is what the best firms are doing for their clients. The best firms are constantly being proactive and thinking several steps ahead for their clients.
Finding these attributes are crucial to you and your business. If you desire to be steps ahead like some of your most successful peers, you need to surround yourself with the right team.
About the Author:
Sykes and Company P.A. is a qualified, responsive and proactive CPA that can help pay huge dividends for you and your business. If costs are an issue, remember the saying: if you think it’s expensive to hire a professional, wait until you hire an amateur.