Tax Accountant for Pharmacy
Simple Financial Advice for Independent and Multiple-Location Pharmacies
- Tax Knowledge of the Pharmacy Industry
- Correct Financial Statements
- CRA Compliance and Audit Assistance
- Trusted Professional CPAs
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AFFORDABLE Accounting for Pharmacy Companies
Fluctuating wholesaler prices, an inventory that consumes considerable working capital and insurance payouts that may not necessarily reflect what was dispensed – these are all complexities of pharmacy accounting that a general accountant may seldom experience firsthand. Being a Pharmacy Accountant, our approach involves treating inventory and cash flow management as the key aspects of the job rather than complicating the usual tasks performed by a small business accountant.
We offer our services to independent pharmacy owners, their designated managers, as well as those who own multiple locations in the Greater Toronto Area.
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Financial Reporting System Designed Based on Real-World Pharmacy Operations
Pharmacy has a large amount of working capital locked into inventory compared to other small businesses and the inventory is always turning around with prices that vary depending on agreements with wholesalers and market conditions. In addition, the bulk of income comes in the form of insurance reimbursement which must be matched against what was dispensed and not merely as a one-off deposit.
That is why we set up your financial reporting system based on real-world operations of a pharmacy: proper tracking of inventory based on the number of items sold, reconciliation of insurance reimbursement and careful tracking of cash flow.
Why Beta taxes for Pharmacy
Services?
Value in Analytics:
Transform your inventory and reimbursement data into insights to make informed decisions on purchases and pricing with confidence.
Expert Guidance:
Benefit from our financial advice and guidance, which focuses on the particular needs of your business in pharmacy finance and compliance.
Customized Support:
Enjoy custom financial solutions for your pharmacy business, no matter its size, from single locations to multi-location pharmacies.
Control and Oversight:
Gain more financial control through proper inventory and cash flow tracking, monitoring, and sound decision-making advice.
Full-Service Accounting for Pharmacies Businesses
CPA expertise tailored specifically to independent pharmacies, designated managers, and multi-site owners in Ontario – no off-the-shelf small business accounting here.
1. Personal Tax Returns for Pharmacy Owner
- We do your personal tax returns, taking into account any corporate structure used by the pharmacy
- We report all your investments, other income, and the income earned from pharmacy ownership
- We prepare instalment payments to avoid having a large tax bill at year-end
- We tie in your personal income tax returns to any earnings made from the pharmacy
2. Bookkeeping Services for Pharmacies
- We keep your inventory accurate based on what is truly sold
- We reconcile your insurance and third party payments based on what you have dispensed
- We categorize the payments to wholesalers and expenses for your pharmacy properly
- We reconcile all accounts each month to ensure accuracy in your bookkeeping
3. Business Tax and Accounting for Pharmacies
- Your T2 filing is completed within six months after the end of the fiscal period, and no late penalties will be incurred, including the 5% surcharge plus 1% monthly after that
- We ensure proper allocation of the GST/HST taxes considering the combination of exempt and taxable goods and services of your pharmacy
- We keep up with leasehold improvements and pharmacy equipment and allocate them properly for CCA purposes
- We use the last year’s income approach to calculate your corporate tax installments and save you from the interest charges from the CRA
4. Advising Services for Pharmacies
- We assist in cash flow management during the inventory procurement process
- We offer financing solutions for situations when working capital becomes limited due to the inventory requirements
- We control the margins by product groups to see which of them bring the most or least profit
- We assist in modelling the financial impact of the new store opening and services expansion
5. Payroll Services for Pharmacies
- Accurate calculation of CPP, EI, and income tax deductions for pharmacy employees, including the newly introduced CPP2 tier
- Payroll management for pharmacists, pharmacy technicians, and other support staff either for a single location or several
- T4 preparation and reconciliation with amounts actually paid during the year
- ROE preparation when there are any changes in staffing
Case Studies
Capital Gain Reporting for an Investor Selling Stock Positions
Problem: The individual investor, who had sold some of his stock positions during the year, was uncertain as to how he should calculate his adjusted cost base and report the capital gain.
Solution: We compared his T5008 forms with his brokerage account statement, calculated his correct adjusted cost base for previous investments, and properly reported the gain using Schedule 3.
- Capital gain recorded correctly by Schedule 3
- Cost basis determined correctly and validated
- Paperwork strong enough to pass any CRA inquiry
Tax Joint Filing for a Newly Married Couple in Toronto
Problem: The couple was married during the middle of the year and did not realise that the way in which they filed taxes was different – from eligible credits transfer to what one of the spouses' tuition amounts could help the other.
Solution: The two returns were looked at simultaneously, and we figured out which credits should be transferred between the two and how the two should file in conjunction with one another.
- Both returns filed successfully as a paired couple
- Credits allocated to the more worthy spouse
- The couple is now aware about joint filing after marriage
Claiming Tuition and Relocation Expenses for a Graduate Student in Waterloo
Problem: The student moved for his work experience but was unsure whether his relocation expenses could be claimed as a deduction or how he should claim the unused tuition amount.
Solution: It involved evaluating the circumstances surrounding his relocation based on the eligibility requirements of the CRA and computing his deductible amount, as well as organising his years of unused tuition credits.
- Return prepared correctly with relocation expense deduction
- Tuition credits unused properly documented and categorized
- Student ready for using credits carried forward in the future
First-Time Home Buyers Credit for a Couple Buying a House in Milton
Problem: A couple that had just bought their first house did not know which credits and withdrawals they qualified for, one being the withdrawal from their RRSPs under the Home Buyers' Plan (HBP).
Solution: We verified whether they could apply for the first-time home buyers credit and reported their HBP withdrawal.
- Claimed first time home buyers credit in full
- HBP repayment amount accurately indicated
- Payment plan clearly established for future filings
testimonials
Our Clients' Results Speak for Themselves
Real success stories from businesses we’ve helped grow.
Expert Tax Advice for Truckers & Small Businesses
I had a great experience with at Beta Taxes CPA. He explained a complex CRA trucking issue in very simple terms and helped me understand the risks and the right way to move forward. Very knowledgeable, patient, and practical. If you are a trucker or small business owner looking for clear tax advice, I highly recommend Beta Taxes.
Sarang Vaid
Stress-Free Business Tax & CRA Compliance
Beta Taxes CPA provided excellent support for our business tax and CRA compliance needs. Their team is knowledgeable, proactive, and very responsive. They explained CRA requirements clearly, identified tax-saving opportunities, and handled filings accurately and on time. The entire process was smooth and stress-free. We highly recommend Beta Taxes CPA for reliable business tax and CRA support.
Pargat Sandhu
Expert Guidance for Canadian Home Sale Tax Matters
Alex has been so amazing! I sold my home shortly after moving to the UK on a temporary visa and it was so stressful navigating the Canadian tax system. Even from afar – across the world, Alex took his time walking me through what I need to do, advised me on next steps, and how he can help me through calls on Whatsapp and email. I received the letter I needed from him to proceed with the closing of my Canadian home sale. Thank you so much to Alex and the team for your guidance and help! I appreciate it so very much 😊.
Carmen Mach
FAQ’s
Frequently Asked Questions
In what ways does pharmacy accounting differ from normal small business accounting?
Pharmacies have a large investment in inventory, must reconcile insurance reimbursements and often deal with GST/HST on both exempt and taxable items – complications which most small businesses don’t encounter.
Can you assist in the management of cash flow related to inventory purchases?
Yes – we will assist in monitoring your cash flow in relation to your inventory purchases and wholesalers’ terms of payment, to alert you to any tightening situation.
Have you worked with owners of multiple pharmacies?
Yes – we work with single-location independent pharmacies as well as owners who own multiple locations.
How do you handle GST/HST issues related to pharmacies?
Pharmacies tend to sell GST/HST-exempt products (prescription medication), as well as taxable products.
Can the insurance reimbursement amounts be reconciled against the dispensed amounts?
Yes — we reconcile third-party and insurance reimbursements against the dispensing amounts, identifying any discrepancies before they add up.
Would you assist with funding if working capital is lacking?
Yes — we will assist with your financing options and help you provide proper financials to apply for financing when inventory requirements affect cash flow.
How much does it cost to handle the accounting of a pharmacy?
It depends on whether you operate an independent pharmacy or multiple pharmacies, and how complicated your inventory and reimbursement amounts are. Once we assess your situation, we provide a fixed price for your needs.
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Each business has its own unique financial goals and the best accounting strategy is based on understanding the goals. If you’re in need of continuous support in accounting including bookkeeping, tax planning and payroll management, or business consulting services Our team is ready to assist.
In your initial call we’ll use the opportunity to understand your business as well as discuss the current challenges you face in accounting and suggest solutions that are tailored to your specific needs. You’ll get a better picture of how we will assist you in achieving financial success by providing clear communication, practical guidance and consistent, year-round service.
- Talk about your accounting and tax requirements
- Receive personalised recommendations based on your company's goals
- Find out more about our accounting process and service options
- What’s your budget?