Accrual vs. the Cash Method of Accounting: Inventory Reporting Risks
After the Tax Cuts and Jobs Act (TCJA), pharmacies have the option to use the cash or accrual methods of accounting. However, the IRS has not clarified the rules for properly reporting inventory under these methods. There are tax advantages under the …
Brands vs. Generics: Manage Your Pharmacy Product Mix
Generic drug sales should make up roughly 85% to 90% of pharmacy scripts, but we find that too many expensive brands and specialty drugs are prescribed. High dollar volume brand sales can seriously impact margins in the long run. Scotty Sykes, CPA, …
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 …
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 …
Four Pharmacy Accounting & Tax Tips
Proactive accounting throughout the year is one of the best tax planning strategies for your independent pharmacy and will save you money and stress. Scotty Sykes, CPA at Sykes & Company, P.A. shared with Pharmacy Times a few key areas that can help …
Build an Accounting Foundation for Pharmacy Success
When something in viewed as not important or a burden, it can quickly fall to the bottom of the priority list. Scotty Sykes, CPA explains how the accounting for your pharmacy business is the foundation that allows you to serve your patients …
The Three Most Important Accounting Inventory Issues
Does your pharmacy have — and use — a perpetual inventory system? Ollin Sykes provides an overview of what pharmacies should do weekly to properly manage inventory, including downloading your primary acquisition cost information and how to monitor acquisition costs in the …
Trends In Perpetual Inventory Practices
In this video blog, Ollin Sykes of Sykes & Company, P.A., talks about why it’s important for independent pharmacy owners to have a perpetual inventory system that’s kept up to date. What are other trends in pharmacy accounting? Learn about the rise …
