Pharmacies provide an essential service to their local communities and, especially in the winter, they are often found to be in high demand.
However, January doesn’t just bring cold and flu season – it also brings the latest tax and VAT deadlines to the fold. This can hardly be considered good timing, given that this time of year is likely to be your busiest and therefore you need all the capital that you can muster to keep medicinal stocks replenished so that people in that community are not left wanting.
With that in mind, managing your outgoings can be particularly challenging with the demands of both your clientele and the taxman all knocking on your door.
Keeping control of your outgoings
As this is going to be pretty much the same scenario every year, there is plenty you can be doing to make sure that you are prepared.
For a start, ensure that you begin to build up your stocks early. This seems like pretty obvious advice – and it is. By spreading the cost of your goods across a number of months, you are softening the blow and experience should tell you what medicines are likely to be in demand over the colder months.
There are, of course, other regular outgoings to be mindful of as well. Staff wages and mortgage or rental payments are all bills that need to be paid on a monthly basis, adding to the burden of your finances.
All of these factors are certainly not helped by the quarterly VAT bill heading your way. This lump sum that you are liable for every three months is guaranteed to take a chunk out of your available cash and, if you have been busy investing in the replenishment of your stock for example, it is the last thing you need.
A solution to this problem is to break your VAT liability down into manageable chunks. VAT funding can provide the answer here – allowing you to borrow the amount needed before repaying it back over several months instead of all at once.
The finance agreement can last for as little or as long as you want – rolling over every quarter, if that’s what you require. Once a credit check has been carried out on yourself and any partners or directors, then the cash can be with you in just 48 hours – meaning that if you realise at the last minute that paying your VAT bill will severely affect your cashflow for the month then you will not be left high and dry.
This can make a huge difference when it comes to running your pharmacy – especially if there is suddenly a surge in demand for a particular type of medicine and your stock is depleted quicker than you anticipated. Without having to worry about whether or not you will be able to afford to replenish your storeroom and pay your tax, you can focus your efforts on increasing the level of service you offer to your community and ensure that your customers have access to everything they need.