Bookkeeping and Accounting for Pharmacys

Yes, it is often beneficial for pharmacy businesses to utilize specific accounting services. Pharmacy businesses face unique financial challenges, including managing inventory, tracking sales, and dealing with insurance reimbursements. Professional bookkeepers familiar with the industry can provide specialized guidance to help improve profits and reduce financial stress. They can also ensure compliance with specific industry regulations and help navigate the complexities of tax preparation specific to pharmacies. Bench Accounting offers customized bookkeeping services for pharmacies to meet these specific needs.

Pharmacy business owners, like those in any other industry, must adhere to a series of tax regulations. However, there are some specific aspects to the pharmacy sector that require particular attention:

• Inventory Costs: Pharmacies have significant inventory costs. Understanding how your inventory is accounted for can heavily influence your taxable income.
• DRP Fees: Direct and Indirect Remuneration (DIR) fees are a part of pharmacy-owner taxation. These fees can often be significant and can be calculated differently each year.
• 3rd Party Insurance Reimbursements: Accounting for insurance reimbursements can be complex, making it essential to accurately track transactions for taxation.
• Business Structure: The taxation method varies substantially depending on whether your pharmacy is structured as a partnership, C corporation, S corporation, or sole proprietorship.

These considerations, along with many others, underline the importance of pharmacy-focused, dedicated bookkeeping. You might want to consider hiring an experienced bookkeeper or accounting firm familiar with the industry's intricacies to ensure you meet all your taxation obligations and claim all available deductions.

A bookkeeper can be extremely beneficial in tracking and managing inventory for your pharmacy. Bookkeepers can keep an accurate and up-to-date record of all inventory, ensuring you are aware of which items are in stock, which ones need re-ordering, and which ones are not selling as expected. They can also help manage the costs associated with inventory such as purchase costs, shipping fees, and storage costs. This data can be pivotal in making informed decisions on ordering and stocking practices. Moreover, they can assist with the auditing process, making it smoother and more efficient.

Nope! All bookkeeping is completed in-house.

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.