As pharmacy accountants and bank panel valuers we see a variety of businesses, all with different systems that make up their finance function. Furthermore, each finance function has varying degrees of complexity and competency. As we do a lot of valuations over the course of a year we see financial reports in a whole variety of states.
A trend that clearly stands out though are the top-level pharmacy owners respect and value the important of accurate financial data.
You would have heard us say repeatedly, good decisions come from good data. A great pharmacy owner understands the importance of good accurate data. They spend a considerable amount of effort in making sure the financial systems are structured correctly, and capture the important data in a way that helps them understand exactly how their business is performing. The result of this effort comes in the form of the quality of the decision they make. They know exactly what areas they should be concentrating on and understand their strengths and weaknesses. They also know what systems and processes need to be changed and adapted.
A good owner also understands where their time is best placed even though are very busy people. Owners must be sensible with what activities they personally take on. They must decide what areas truly require their time and attention. Furthermore, they must also decide what other components of their business can be handled by other team members (or trusted advisors).
Paying supplier invoices and reconciling bank accounts at night and on weekends is not an effective use of their time. Why? Well instead of valuable hours being spent on this area, it can be outsourced to experienced professionals. Furthermore, they can reallocate their time towards improving systems and procedures, working with the team members to implement a new service, training the team and introducing a new product line. Also dare I say it, there might be more time for relaxing, exercising and doing something for themselves.
More importantly it gives the owner a chance to have a break. The opportunity to unwind at the end of a day, on weekends and go on a holiday without having to pay bills or pay wages or stuff. We took on a new client recently who had a couple of pharmacies. Within the first year of us taking over their accounts they could go on a holiday for the first time without having to pay bills, pay wages etc. Their first proper holiday in quite some time. Comforted in the fact that we were handling all of this for them. Do not underestimate the importance of what relaxing and unwinding does to an owner, and how that impacts the team and the businesses performance.
We also find they spent more time discussing with us the businesses trading performance and how it can be improved. Quality conversations that leads to a focus of constant improvement. Conversations they couldn’t have before. The types of conversations that have positive impacts of the businesses performance.
Community Pharmacy is a tough business and as an owner it pays to be smart. Excel at what you do well and be smart about where your time is spent. Outsource your bookkeeping to Peak Strategies where you can be comforted in knowing your business is in the best place.
Our bookkeeping division prides itself on the word quality. Having quality conversations with our clients about quality data to then make quality decisions.
Owing a business has certainly taught me a lot of lessons, as I am sure it has with you too. One of the most important is knowing what you are good at and do it well. Delegate or outsource what you are not good at or can be done better. Then guess what!?!........You might just be able to take a proper holiday again. Greek Islands anyone?
Written by our Director John Thornett