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Flash Returns Newsletter September 2018

Receive half off fees on your first return before November 1st!

www.flashreturns.com

Your Pharmacy’s Financial Position

“Inventory is literally cash on your shelf.”

Guest Article by Athena Accounting Solutions, LLC

Management is often scared by a pharmacy’s financial position. Why? The usual suspects include: they don’t understand the impact of business decisions on financials, they are too busy bringing in business to have time to worry about the financials, or “financial statements” and “financial position” might as well be Greek to them.

 

Think about your inventory. What is inventory? Many compounding and retail pharmacies have been led to believe that when they purchase pharmaceuticals or chemicals they should expense it on the books and be done with it. This is a bad strategy. Not only is this not a generally accepted accounting principle (a phrase I live by in my accounting life), but it is costing you money and other opportunities! That drug or chemical is an asset to your pharmacy. Your inventory is literally cash on your shelf until the point you turn that chemical into a script and send it out the door. If you think of chemicals as an expense, you understate the value of your pharmacy, because the moment you pay for them they are no longer on your financial statement as an asset. If the chemical isn’t an asset, you tend to forget about it. But assets have value. Your chemical is a perishable asset with value. The key is to make sure we tend to that asset while it still has value.

 

Now that you are thinking of your inventory as an asset, you are probably paying closer attention to it because you see that it has value. But brand and generic pharmaceuticals as well as chemicals are perishable. What are you doing with your chemical as it approaches the end of its shelf life? Are you just waiting until it’s expired and then throwing it out? You might as well take a wad of cash, crumble it up and throw it out. But what if you could turn that inventory back into cash that you can reinvest in your business? Companies like Flash Returns are doing just that for retail and compounding pharmacies all over the country. They are taking the burden from your pharmacy to make the returns happen and you still win because you are converting that inventory back into cash. Taking the time to get these returns to happen is definitely working smarter – not harder.

 

Want to find other ways to get your financial position in order? Athena Accounting Solutions, LLC is an accounting services business specializing in compounding pharmacies. We can be your full-service accounting department offering accounts payable, accounts receivable, cash management, financial statement preparation and analysis and management support or fill the gap in any of these areas.  Our goal is to offer not just services but solutions.

 

Linda M Ragsdale, Controller

Athena Accounting Solutions, LLC

314.504.0388

11469 Olive Blvd, #240

Creve Coeur, MO 63141

linda@athena-as.com

Receive half off fees on your first return before November 1st!

www.flashreturns.com

 
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