Every day we hear that I picked and have not moved away from my accountant/bookkeeper because they are local or I went to school with them, etc. Yet in the very next breath we hear that they cannot deliver financials on time, they caused them to pay extra taxes, do not know pharmacy.
This made us think about what are the true costs of poor pharmacy accounting. Below are our thoughts but please add to this list.
- Over Paying Taxes – not understanding the pharmacy business could cost you in taxes. For example did your accountant include DIR fees. If no, you paid taxes on that revenue. Not having regular calls with your accountant can also cost you in taxes. Lastly not having financials on time will not allow you to plan for taxes. Is your accountant delivering on this?
- Under Paying Taxes – if your accountant does not understand pharmacy you may end up under paying taxes which could get you in trouble.
- Proper Chart of Accounts – does your accountant show who paid you – Caremark, cash, Humana, PSAO.
- Do you know on average how much you receive from these payers every month?
- Were you short, did reimbursement change?
- Do they show you tech payroll, RPH payroll, delivery payroll.
- How do you know if you have to much or too little of these key employees? This could cost you 10’s of thousands.
- Lower Sale Price – if you decide to sell, having incomplete, delayed, or inaccurate financials will cost you money. If you do not know how much money you truly make how is a buyer going to know?
At IRx Consulting we are Accounting experts and offer a comprehensive Pharmacy Accounting and Management service with a suite of complimentary services including Data Dashboards, Payroll & Human Resources and Pharmacy Management consulting.