Cashflow and balance sheet
“Selling as much as I can and doing as many scripts as possible is all I need to worry about, right?”
Wrong. Did you know businesses can go under by growing too fast? The key is to have a sustainable pharmacy business or group of pharmacies. That means having a cashflow that will enable you to pay your bills when they need to be paid.
“You’re telling me I made $300,000 profit? Where did all the money go?”
If Guild Accountants had a dollar for each time that question was asked, we’d have a great Christmas party this year. Most pharmacy owners understand sales and scripts but don’t really understand cash flow and the impact of having too much debt on the balance sheet.
At Guild Accountants, we take our pharmacy clients on a journey to ensure that:
- You understand the cash that flows from your business each year·
- You understand the impact of your debt load and the need to repay capital·
- You know what your income tax obligations are and when they are due·
- You are aware of how much you should take out of the business for yourself and how much you need to leave in·
- You understand the drivers that improve or detract from cash flow
We call this process “balance sheet management” which we are sure you will agree is just as important as knowing how many scripts you did yesterday and what your sales are. Having a sustainable business means you can continue to grow your pharmacy assets with confidence.
To get the best outcome Guild Accountants can provide you with advice that matters and guide you through understanding cashflow and managing your balance sheet.
For further information please contact the Guild Accountants Pharmacy team on 1800 101 296 or email us at pharmacy@guildaccountants.com.au.
