The dreaded DIR Fee.
Every pharmacy owner dislikes them but every pharmacy owner also knows they drastically impact their cash and profitability.
Since DIR fees are so important to every independent pharmacy shouldn’t they be one of the key pieces of data you as an owner tracks? Typically these are recorded on your financials. But how is your accountant determining how much these fees are? Do they estimate based on averages, do they just record when you give them an amount? Your accountant should recommend a reconciliation service like www.net-rx.com or pioneerrx.com that tracks these fees and tells them how much they are monthly. Once the accountant has the dollars associated with DIR Fees where does he or she record them on your financials? We see them everywhere, as a deduction of sales, as an increase to cost of goods, as an expense. We record them as a reduction of sales.
Lastly how often does your accountant or bookkeeper record these on your financials. We often see them added at the end of the year but they should be recorded monthly so you know what your true profitability is in a timely manner.
If your accountant is not recording DIR fees reach out to us – we are happy to help.