Managing Labor Costs in an Independent Pharmacy
Next to cost of goods, labor costs are usually the second largest expense for an independent pharmacy. Labor costs should be no more than 10.5% of a pharmacy’s revenue and can cut into margins quite significantly if not measured and controlled. In …
The Hidden Problem with Inventory Accounting
Many independent pharmacy owners do not keep a perpetual inventory and are just guessing at their inventory. In this video, Ollin Sykes of Sykes & Company, P.A. explains how to keep up with inventory. A good script management and inventory system helps …
How Can KPIs be a Predictor of Cash Flow?
Do you know which key performance indicators (KPI) are the best predictors of cash flows? In this video, Ollin Sykes of Sykes & Company, P.A. explains how a pharmacy’s biggest KPI is the current ratio which should be in 2.5 to 3.5 …
Trends in Pharmacy Services That Are Changing the Industry
Ollin Sykes, CPA of Sykes & Company, P.A. introduces how successful pharmacies are leveraging technology and expanding their service focus to go beyond just filling scripts to proactively supporting the wellbeing of customers. Learn about clinical services and data mining to anticipate …
Three Things Your Inventory is Telling You About Profits
Inventory issues in an independent retail pharmacy is crucial to what the income statement and profit and loss statement are going to show, as well as to cash flow. In this video, Ollin Sykes of Sykes & Company, P.A. explains why a …
The Impact of Pharmacy Inventory Management on Gross Margins | Sykes & Company, P.A.
Your pharmacy inventory is critical to your gross margins. Learn how to properly manage your inventory to achieve a good industry average gross margin of 22-23%. In this video, Ollin Sykes of Sykes & Company, P.A. discusses inventory management and its affect …
Bookkeeping vs. Accounting vs. Sykes Accounting
Often the terms bookkeeping and accounting get interchanged and confused with each other. In this video, Scotty Sykes of Sykes & Company, P.A. explains the difference between bookkeeping and accounting. He dives into how their firm approaches accounting for their pharmacy clients. …
How the Tax Cuts and Jobs Act of 2017 is Affecting Pharmacy Accounting
Under the Tax Cuts and Jobs Act of 2017 (TCJA), pharmacy owners are seeing many changes that are affecting how they do their accounting and tax planning. Scotty Sykes, CPA recently shared with Drug Topics how the TCJA is affecting pharmacy accounting. …
Standard Deduction vs. Itemized Deduction
Under the Tax and Cuts Jobs Act (TCJA), the changes to allowed itemized deductions may push many taxpayers below the new standard deduction amount that has been increased. The purpose of the tax reform was to simplify tax preparation and push more …