Dedicated Accounting Services for Pharmacies

Canadian pharmacies face financial challenges that require specialized accounting solutions. At Virtuous Accounting & Bookkeeping, we understand the intricacies of pharmacy operations and are dedicated to providing tailored accounting services that meet your specific needs.

Our team of experts is committed to ensuring your pharmacy’s financial health by offering comprehensive services that enhance its efficiency, maintain regulatory compliance, and improve your profitability. Trust us to handle your accounting needs so you can focus on what you do best—caring for your customers.

Accounting Challenges Faced by Canadian Pharmacies

Inaccurate Inventory Valuation: Pharmacies often record inventory at invoice cost instead of net cost, resulting in inflated inventory values. This misrepresentation makes it difficult for potential buyers to trust the cost of goods sold (COG) account, affecting profitability calculations. Accurate inventory valuation is essential for reliable financial reporting and maintaining trust in your financial statements.

Mismanagement of Commercial Terms: Pharmacies sometimes fail to record pending commercial terms payments as accounts receivable, which leads to unreliable working capital calculations. Instead, these payments are often recorded as cash. This oversight can create significant discrepancies in your balance sheet, impacting your pharmacy’s financial health and complicating financial planning and tax preparation.

Improper Expense Recording: Recording expenses for relief pharmacists under incorrect categories, such as accounting and professional expenses, artificially lowers staffing costs. This misclassification disrupts margin calculations and provides an inaccurate picture of your pharmacy’s financial status. Proper categorization of expenses is crucial for accurate financial analysis and effective financial management.

Negative Margins in Dispensary Records: Negative margins in dispensary records occur when insurers record multiple doses of a medication as a single dose. This discrepancy creates confusion and inaccuracies in profit calculations, making it challenging for potential buyers to trust your financial records. Regularly clearing these false negative margins is essential for maintaining accurate financial records.

Outdated Accounting Methods: Relying on paper ledgers instead of modern accounting software significantly hampers the precision and efficiency of your pharmacy’s financial management. Paper ledgers are prone to human error, time-consuming to update, and cumbersome to analyze, making it hard for stakeholders to evaluate your pharmacy’s financial health. Upgrading to accounting software enhances the accuracy of financial records and allows for more effective financial analysis and decision-making.