Inventory and cost of goods sold
For a pharmacy, inventory is usually the largest asset on the balance sheet, and cost of goods sold drives gross profit. Cost of goods sold is only as accurate as the inventory behind it. We reconcile the inventory value in your pharmacy management system to your general ledger, record physical counts, and separate prescription inventory from front-store merchandise so each shows its own margin.
When the numbers drift, the usual causes are timing of wholesaler invoices, returns and credits that were never booked, and counts that were not adjusted. We find them monthly instead of at year end.
PBM reimbursement tracking
Most of your revenue is paid by pharmacy benefit managers and other third parties, not the patient at the counter. Revenue recorded when a claim is adjudicated and cash received weeks later rarely match. We reconcile deposits and remittance advices to claims by payer, so you can see what you are owed, what has been paid and what was paid less than expected.
- Receivables by PBM and payer
- Reimbursement shortfalls flagged for follow-up with the PBM or your pharmacy services administrative organization
- Reversals and chargebacks recorded in the period they happen
DIR fees and clawbacks
Direct and indirect remuneration fees and similar adjustments are often taken after the original fill, which means gross profit on the claim looked better than it ended up. How these fees are assessed has changed over time, so we confirm how each one appears on your remittances and record it consistently. That way margin reports reflect what you actually keep.
Cash flow
You pay the wholesaler on terms, and the PBM pays you on theirs. The gap between those two cycles is where pharmacies run short of cash even in a profitable month. We forecast cash against wholesaler payment dates, reimbursement cycles, payroll and owner draws, so you know when to expect a tight week before it arrives.
Entity structure and S corp pay
If you own the pharmacy and work in it, an S corp may reduce self-employment tax, but only if you are paid reasonable compensation through payroll for the work you do, and the owner pharmacist role is a real job. We review your entity, model the salary and distributions, and plan around equipment purchases and expansion. See S corp and LLC setup.
What clients say
“Sargis is great to work with. This was my first time hiring a CPA instead of doing it myself, and I'm glad I did, thanks Sargis.”
“Sargis is a tax strategist who has supported my business’ growth and helps me spend more of my own time running the other aspects of my business. His team is responsive, professional, and thorough.”
“Sargis and his team have been a lifesaver for our business. We are incredibly grateful not only for the quality of work they deliver, but the customer service that they offer.”
Questions we get asked
How do you handle pharmacy inventory in the books?
We reconcile the inventory value from your pharmacy management system to the general ledger each month, record count adjustments, and keep prescription and front-store inventory separate so cost of goods sold is accurate by category.
Can you track PBM payments against claims?
Yes. We reconcile deposits and remittance advices by payer, show receivables by PBM, and flag payments that came in lower than expected so you can follow up.
How are DIR fees recorded?
We confirm how each fee appears on your remittances and record it consistently, so your margin reports reflect net reimbursement rather than the original claim amount.
Should my pharmacy be an S corp?
It depends on profit and on what a reasonable salary is for your role. We model it before recommending a change, and handle the election and payroll setup if it makes sense.
Do you work with pharmacies outside North Carolina?
Yes. We work virtually with independent pharmacies in all 50 states, and we confirm what state rules apply to your filings.