Categories: Uncategorized

Business Ignorance a Bitter Pill to Swallow – Pharmacy Accountants Brisbane

by Shirin Haklar – BPharm, GradDip Accounting

I heard last week through the grapevine that a well known Brisbane pharmacy operator was placed in receivership. Being part of a firm of Pharmacy Accountants Brisbane, my first reaction beyond sympathy for all those directly affected was: “wow – I didn’t see that coming”. This fellow was an industry doyen – a high profile operator with tremendous experience and a very good long-term track record.

If it could happen to him… just exactly how tough is that retail pharmacy market?

We can obviously speculate as to the root cause of the challenges he was facing. The more pertinent question for me: “how aware was he, that his business was in serious trouble?”

It’s one thing being aware and not acting with sufficient haste, it’s another altogether not knowing. Experience tells me it is more likely to be the latter – the high profile pharmacist probably didn’t have in place the appropriate systems and processes to provide clarity around his day to day, week to week, month to month financial position.

As any successful small business operator would tell you, cash flow is king. Turnover/ sales revenue? profit, growth etc…. can all be trending in the right direction but if there’s insufficient cash pumping through the business, you can be left at the mercy of…..payment terms of suppliers… etc etc

That’s why clarity around cash flow/budgeting is so well focused on by Pharmacy Accountants Brisbane.

Given the obvious toughness of the current marketplace, it is disturbing that so many small business operators overlook these fundamentals.

Drawing some parallels with a long car journey, you would hardly set off without have some idea of the direction of your destination, nor the knowledge of costs you were likely to incur along the way.

With a little more clarity on how he was traveling, the poor unfortunate pharmacist may well have been able to alter his course and avoid veering down that road to nowhere.

Call our Pharmacy Accountants Brisbane Today

Tom Wilson

Share
Published by
Tom Wilson

Recent Posts

The Best Business Accounting Apps to Download

Painstakingly writing down records in heavy ledger books is supposed to be a thing of the past, and yet some…

3 days ago

How AI Can Benefit Accounting

I found this compelling article from the Artificial Intelligence B2B. It's called AI in Robotic Accounting and Auditing.  It makes some really…

1 week ago

The Benefits of Having an Integrated Accounting System

Discovered this interesting piece by Jayne Thompson and it really piqued our interest. It’s called What is an Integrated Accounting…

2 weeks ago

Taking Advantage of Small Business Tax Deductions Can Result in Huge Savings

Thought we'd share this fascinating article from Sarah Sugar. It’s titled The Ultimate List of Small Business Tax Deductions. It…

2 weeks ago

How to properly set an exit strategy for your business

It goes without saying that it doesn't hurt to be prepared with an exit strategy Research demonstrates that if a…

2 months ago

Changes to Property in Australia

With the introduction of the new financial year, there was also an introduction of some new rules when it comes…

3 months ago