Many pharmacy businesses are started up with the help of a bank loan. As these are specialised business loans, with a large part of security being the goodwill of the pharmacy, banks need to ensure that the value of this goodwill is maintained.
This is why the bank needs to keep a close eye on the pharmacy business’ performance, at least for some time after the loan is granted. To this end, reporting and performance covenants are added to the loan conditions.
In the beginning, the bank would require regular financial reporting on a monthly or quarterly basis, and within a very tight timeframe. Failure to submit the financial report in time or to meet the performance covenants can breach the terms of the loan.
Hence, it is important that the pharmacy’s accountants are geared for such regular and prompt reporting, which is in addition to usual BAS preparation. Of course, other than just to give to the bank, such regular reporting is handy in goal-setting and budgeting too.
That’s why accountants for pharmacists in Bankstown are so valuable – at DBS Accountants, the required tools for regular reporting in your business are at the ready from the word go, so you won’t be facing the wrath of a lender if you don’t keep up with the reporting schedule they need.
Are pharmacies at risk of falling through?
Pharmacies provide a valuable service to the local area, with sound medicinal advice. Customers turn to them as the first port of call when something goes wrong, and doctors tend to point people in their direction as well. However, just like any other business, they also are facing new challenges in terms of falling margins and rising costs.
Cloud computing will allow you to have instantaneous business reports ready to go.By utilising cloud-based management accounting and reporting software, and a proactive accountant like DBS Accountants, a pharmacy owner can keep their finger on the financial pulse of the business.
With the right financial advice from the start, you will be setting yourself apart from the rest and gaining the competitive advantage.
With the help of cloud computing and semi-automated payroll solutions, instantaneous reporting is accessible.
How can regular reporting help?
Regular reporting of accounts does come at an additional cost, and some accountants are unable to offer this service. With the help of cloud computing and semi-automated payroll solutions, instantaneous reporting is accessible. After a few years of proving that your pharmacy business is on solid footing, the lender is likely to drop down to annual reporting and give you more time to submit the reports as well.
Get it right from the time you are laying the foundations of your pharmacy business, and have DBS Accountants on hand to make sure you are ready for regular reporting.