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Not All Bookkeeping Choices Are Created Equal.

November 6, 2022

Bookkeeping
In our analysis of hundreds of pharmacies across Canada, we have seen many different ways owners have chosen to manage their ledgers. Many are well-organized and accurate, while others need, well, a little help. It can be tempting to save money by doing everything yourself – or delegating it to a family member, but this is often a mistake. As your business grows, you'll need someone with solid bookkeeping expertise. This is where a company experienced in transaction advisory services can come in handy.
Time is a precious commodity for pharmacy owners. Even if you're diligent about staying organized, bookkeeping can be time-consuming, and it's easy to let it fall by the wayside when you're busy with other aspects of running your business. With accurate financial records, it becomes easier to understand your cash flow and gauge the health of your store.
When it comes to something as important as managing your finances, it's best to leave it to the professionals and think about outsourcing. That's where a dedicated bookkeeper and pharmacy sale valuator comes in.
  • First, there's the opportunity cost. What could you do with your time if you weren't spending it on bookkeeping? Is this the most productive and economical way to spend your time?
  • Second, there's the effort and expertise required. Bookkeeping can be stressful and frustrating, particularly if it's not your strong suit.
  • Finally, there's the issue of timeliness. When tax season comes around, will you be able to get everything done on time?
A bookkeeper's job is to maintain records, and ensure financial statements are accurate and completed on a monthly basis. They also create systems for storing and organizing financial data. They are vital because they help prevent errors and make it easier to find information when needed. You will clearly see your pharmacy's financial health, allowing you to determine your annual tax obligation in advance
Good record-keeping is valuable for several reasons. It can help you stay compliant with the regulations set by the CRA, and accurate records can protect you in the event of an audit. Well-maintained records can help you forecast seasonal ups and downs, ensuring you have access to capital during slow months, avoid overspending during good months and know when to make significant purchases.
If you are looking to secure capital from a bank or other lender, it is crucial that you can show your business's past performance. Good financial records will show lenders that you are responsible with your finances and have a solid history.
Moreover, if you are ever looking to valuate or sell your pharmacy, well-kept financial records will be essential in demonstrating the value of your business to prospective buyers. Accurate records can help them understand your business and make an informed decision about whether to purchase it.
Bookkeeping is one of those necessary but often-overlooked tasks that can make or break a small business. They can give you real-time financial information and actionable advice to help make your pharmacy more profitable. The money they can help you save and the extra profits they can help you bring in far outweigh the additional cost of hiring an expert.
So, if you're buried in receipts and bank statements, consider hiring a professional bookkeeper. After all, accurate books are the foundation of any healthy business.
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