Page 28 - P4304.1-V90_PS-Magazine-October 2023 - PRINT

Dispensary accounting –

understanding the basics

By Caroline Pond.

I am not an accountant, and as I books straight and be honest with yourself.
have declared before my knowledge Just what do I mean here? Well, if at the
regarding VAT could be written on end of each month you are piling spending
onto your credit card or borrowing from your
the back of a beer mat, however I savings or the bank to make ends meet, then
do know how to run a successful your ‘household business’ is at risk of slowly
business and, as we know, the going under.
dispensary is a business not a Ok so let’s get on with understanding what
charity! I think we should ALL we need in place to keep a true check on the
understand the basics if we are to dispensary’s financial position. The answer,
in my opinion, is monthly double entry book
maximise on our profitability; it is keeping. How very old fashioned!
not rocket science so read on if you I know you all have proficient accountants
are interested. Don’t be frightened! working for the practice, but I really don’t

It goes without saying that running a thriving think that an annual report on your business’s
General Practice is a complex craft, as those financial position is adequate with regard to
of you who are part of the management YOU keeping a true handle on where you are,
team know, and a successful practice and I fear that your annual accounts often
requires a knowledgeable practice manager mislead as they have been ‘blended’ before
to steer the boat through the choppy they are presented. What they become is
waters that are todays NHS. Managing the something the accountant understands but
GMS contract and QoF is no mean feat not necessarily you as the practice team, and
and at its core lies the delicate balance of all too often the dispensary appears to be
financial management. Effective financial losing money.
management shapes a business’s growth I have two suggestions which I think will help
and success, but I think it requires whole you to have a better financial illustration
team involvement if your business is to really of your dispensary business on the basis of
triumph. which you can make sound management
I like to keep things simple; at the end of the decisions.
day, I know if my household is thriving if we • YOU need to understand your annual
spend less each month than we earn. Simple. accounts.
The dispensary is no different to any other
business and the formula to success is simple • YOU need to carry out monthly
too. You need to have more money coming in reconciliations.
than going out. You also need to keep the

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2 8 PS Magazine | Wakefield Updatehe basics B u y d i r e c t o n l i n e a t P S U K . co . u k
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