The Core Directives in Accounting Information Systems
Be Inquisitive, Be Knowledgeable; Be Receptive to Change.
Have you reviewed your accounting system?
Have you evaluated other accounting systems in the marketplace?
Do you know how much you are paying for your accounting system?
Do you view your accounting system as an asset or as a cost of doing business?
Do you know what information you can get from your accounting system?
The Trouble with “Binny”
Let me introduce you to Binny. Binny is your accounting system and, in a typical average pharmacy, Binny has been the accounting system for 10, 20 or possibly 30 years. Binny has accounted for all the transactions; Our accountants are happy with what Binny has provided them; CRA doesn’t have any issues with Binny. Truth be told, Binny has been a good accounting system for all these years. So, what’s the trouble with Binny?
Maybe nothing; Maybe something.
The inquisitive pharmacy owner asks… has Binny changed with the changing needs in the pharmacy? Does Binny scale with the number of transactions in the pharmacy? Does Binny give me the financial information I need to make the decisions that grow my pharmacy in challenging times?
Identifying What is Important
Last month Binny sent us our regularly scheduled reports and our accountant scheduled a time where we could review how the pharmacy was doing. To which the inquisitive pharmacy owner asked “Do we have to review this crap again?“
As we started talking about the financial health of the pharmacy, the pharmacy owner asked,
“Why is the gross profit so low this month?”
“why are the labour costs so high?“
“G&A costs are through the roof!!”
As we talked, I asked … What is essential to the pharmacy owner’s life? Taking care of patients; more quality time with family; more profitability in the pharmacy were all priorities to pharmacy owners. As we continued our discussion, the pharmacy owner identified the 1, 2, or 3 changes in pharmacy operations that would increase patient care AND increase profitability. This peace of mind increased the quality of family time.
There are many systems like “Binny.”
There are so many systems like Binny. I knew after the last conversation with the pharmacy owner about Binny that we’d probably do it again. And that’s OK. Adherence to great financial information is a collaboration between the pharmacy owner; the bookkeeper and Binny. When this collaboration is consistent and open, sound decisions in pharmacy operations increase the financial health of the pharmacy. Continue to have trust in Binny. But, stay inquisitive; stay relevant and be willing to change to ensure your financial questions are answered.
What do you think about this story from the back office of the pharmacy? Can you see the power of being inquisitive about your financial results? For more financial management stories and strategies, please connect with us to learn more about how you can create increased profitability in your pharmacy and provide better patient care.
