Measuring the success of your pharmacy requires more than just knowing how many sales you’re making. Just because your sales are high, everything might not be running as smoothly as you expect on the profitability front.
A report from America’s Pharmacist (AP) in November 2013 entitled The Unaccountable Pharmacy suggests that using cloud-based accounting services is good for both the health of the pharmacy and your customers.
What does cloud-based accounting offer a local pharmacy?
Many pharmacies require regular reporting to their lenders, and while this costs extra, it doesn’t have to take a whole lot more time.
You don’t have to watch the days tick by getting ready for regular reporting in your pharmacy.If cloud-based accounting software or other collaboration tools aren’t in operation from the inception of your business, then it can take a little longer to sort out your documents and prepare your reports. If you’re struggling with in-time reporting, then having DBS Accountants make sure you’re ready for regular reporting can save you a lot of money, and time, in the long term. Once a lender knows you’re doing well business-wise, they’re likely to request reports on a less frequent basis.
Scott Sykes, the author of the AP study, suggests that accounting tends to take a back seat in modern pharmacy businesses, even though it is the cornerstone on which many other industries operate. It’s vital to have your finances in order, so that you can be proactive in making business decisions, and not reactive when it may be too late.
Cloud-based accounting looks at much more than how many sales you make.
Cloud-based accounting looks at much more than how many sales you make – it can also help to determine your gross profit margin rate and net worth ratio. It can be used for cash flow planning by looking at upcoming bills to be paid, or setting aside money for employee entitlements such as superannuation.
Combine this with payroll processing functions, and you have a very powerful tool for managing and reporting on your business operations.
If you need help understanding what cloud-based accounting software can do for your business, which one of a myriad of software will suit you best, or are seeking business advice, contact DBS Accountants today.