Independent pharmacies face mounting pressure from all sides. NHS reimbursements are slow to adjust, operating costs keep rising, and online retailers are changing how patients fill prescriptions. To stay profitable without cutting corners on care, your financial decisions need to be precise.
Our specialist pharmacy accountants help you take control of your numbers. Their deep understanding of pharmacy finances lets you strengthen profitability while staying compliant and competitive with big chain pharmacies.
Reducing your tax burden
Running an independent pharmacy means you’re managing several layers of tax, including VAT and corporation tax. Non-compliance could mean costly penalties from HMRC, as well as reputational damage. Having a pharmacy accountant can help you avoid all tax-related issues. They will help you find ways to reduce tax exposure while keeping your business aligned with regulations.
At Allenby Accountants, we review all available reliefs and allowances that may help reduce your taxable income. If your pharmacy carries out innovative work, such as improving dispensing processes or developing new formulations, you may also qualify for research and development tax credits. With these claims, you can reduce financial pressure and support reinvestment in your business.
Our pharmacy accountants also keep you up-to-date on regulatory changes, so you can adjust your approach and avoid compliance issues down the road.
Optimising NHS reimbursement
For most independent pharmacies, NHS funding makes up over two-thirds of total income. But the reimbursement system can be difficult to navigate, and small errors or missed claims can disrupt your cash flow.
That won’t be a problem when you have an experienced accountant by your side. They will carefully review your NHS claims to ensure accurate payments for dispensed medicines and contracted services. You can also have them check your submissions for errors and compliance with NHS requirements, so you don’t have to worry about delays caused by incomplete or inconsistent records.
Effective cashflow management
Strong cash flow is key to keeping your pharmacy competitive and financially stable. When there are delays in NHS reimbursements and private customer payments, your payroll and daily running costs will suffer.
Our pharmacy accountants can help manage your cash flow by forecasting seasonal demand for medicines and expected NHS payment timelines. This allows you to plan ahead for upcoming expenses and reduce the risk of shortfalls that interrupt operations.
The health of your cash flow also depends on how well you manage your inventory. Poor stock control often ties up your money in slow-moving or expired products. With guidance from a pharmacy accountant, you can align purchasing decisions with real-time demand data. This helps release cash locked in excess stock and creates room to invest in growth-focused areas of your business.
Staying competitive in a changing market
Being an independent pharmacy means facing increasing pressure from online chemists that offer lower prices. Working with a specialist pharmacy accountant gives you clear insight into where your business can improve efficiency while protecting your margins.
With a detailed cost variance analysis, pharmacy accountants can identify unnecessary spending and operational gaps in your business. By addressing these issues, you can streamline your processes while keeping costs under control. This will help you compete more effectively with low-cost online pharmacies.
Additionally, a pharmacy accountant can review your profit margins across different medicines and services. This level of detail lets you make confident decisions around pricing and stock selection, helping you achieve healthier profits.
Pharmacy accountants can also help your business stay relevant in a crowded market by giving you insights into competitor trends and industry benchmarks. With this information, you can adjust your pricing strategies and services to meet customer expectations and market demand.
Get support from specialist pharmacy accountants
At Allenby Accountants, we understand the financial pressures you face as an independent pharmacy. That’s why we tailor our accounting and bookkeeping services and offer practical guidance designed around your business, ensuring that you’re getting comprehensive support that goes beyond financial management.
To find out how our pharmacy accountants can support you, give us a call at 0208 914 8887 to arrange a free initial consultation.
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