So often we hear that business owners just need an accountant to do taxes or to provide monthly financials. Yes this is a key aspect of what your accountant does but accountants should do much more. Your accountant is one of your key advisors both business and financial and you should work with them to be a better owner. One of the key ways your accountant can help you is by assisting you with an annual pharmacy budget/projection.
Our company typically starts this process for our pharmacies and consulting business in the fall with the goal of having it done prior to the beginning of the year. This budget includes revenue projections, cost projections and “what ifs” that outline how programs we plan to put in place will impact the businesses.
By having this type of pharmacy budget it will allow you to track your progress against it throughout the year (we compare quarterly) and make adjustments based on how you are performing. For example, let’s say you over perform, then maybe you will provide a bonus to employees or if you under perform maybe you have to adjust hours to accommodate for the decreased profitability.
We highly encourage a budget so give it a try. A budget will help you prioritize what needs done, plans, projects and make owning your business much easier.