Firstly, a quick disclaimer. I have been doing some valuations lately where the quality of financial reports presented to me has been on the poor side and contain several clear errors. So, to slay these dragons (yes, I am a GOT fan) I thought its best to write about it so hopefully you don’t make the same mistakes.
COMMON ERRORS IN PHARMACY BOOKKEEPING PART 2
Last week we talked about how a good chart of accounts sets a good foundation for pharmacy bookkeeping. This week we will discuss another pain point we often come across. Common Errors in Pharmacy Bookkeeping Part 2:
GST on revenue and expenses
Pharmacy accounts tend to be more prone to GST errors than other businesses. It comes across many GST exceptions through the products/services it offers, and/or by the way they conduct their business (e.g. exports).
Errors in Pharmacy Bookkeeping.
Everyday I deal with and review numerous sets of accounts. You’ll be surprised how big the range is for the difference in quality of data in the various accounts. Some of the accounts are just so glorious; they represent a true and fair picture of the business. Others requires a bit of an “accounting touch” to it and some will drive me directly to the café downstairs and get a mocha (yes, my fav) to calm myself and prevent me from pulling all my hairs out. Once in a blue moon, there are the ones where it’s beyond repair and you just better off scrunch it up, bin it and start from scratch again.
Dealing with numbers and figures are inevitable for every business in trade especially in pharmacy. At the end of the day, the bottom line figure is what that matters and determines the continuity/survival of a business. Everyone knows they need to improve their bottom line and see an increasing trend from year to year, but how do you do it?