Pharmacy How much stock should pharmacy have?You should aim for your stock turnover ratio to be 10 times or more. A healthy pharmacy will turn over its stock in 35 days or less.Stock Turnover Ratio = Annualised Cost of Goods ÷ Total Stock. Stock Turn Days = 365 ÷ Stock Turnover. Why is accounting important in pharmacy?Effective pharmacy accounting entails keeping your records up to date, ensuring their integrity, and ensuring that financial processes run smoothly. In today’s complex pharmacy environment this enables you to focus on tax planning options, the effective management of your business, reducing unnecessary everyday processes, improving controls and proactively seeking expansion opportunities. What are pharmacy assets?All Pharmacy Records, Prescription Lists, Pharmacy Scripts, Pharmacy Inventory, and other pharmacy assets, supplies, and equipment situated at or associated to any Store Property are considered Pharmacy Assets. How does stock management affect a pharmacy’s profit margins and cash flow?From a financial standpoint, effective stock management boosts gross and net profits by lowering the cost of pharmaceutical products purchased and associated operational costs. Reducing stock holdings will help to improve cash flow. How often do pharmacies count stock?Pharmacies count stock at least once a year at their financial year end. This should occur more regularly if a pharmacy is preparing interim management accounts. Stock takes are generally carried out by a 3rd party pharmacy sector stock counting specialist. What is considered stock in pharmacy?Pharmacy stock consists of prescription medicinal products, over-the-counter medicines, vitamins & minerals, healthcare and beauty products. Individual pharmacies may carry additional inventory lines. How much does it cost to open a pharmacy?It costs between €250,000 and €600,000 to open a new pharmacy. Capital will be required for unit fit-out, initial stock, working capital and professional fees pertaining to the lease etc. How do I start my own pharmacy business?Either by purchasing an existing business or by establishing a new pharmacy in a vacant retail unit. Strong adjacencies (particularly GP surgeries and parking) are important.Food & Beverage What do accountants do in a restaurant?A restaurant accountant is a specialist accountant who works in the restaurant industry. They keep track of the restaurant’s inventory, cash flow, and income statements by documenting all of the restaurant’s financial activities. Do restaurants use cash or accrual accounting?The two accounting methods utilised in restaurant accounting are cash and accrual. Weekly stock takes and profit and loss accounts are beneficial to restaurants. For restaurant accounting, two ratios are useful: food/beverage to expenditure and income per cover. Is food inventory an asset?In accounting terms, purchasing food does not instantly count as an expense. Until you sell it, it is included in stock, which is an asset. When you sell the food, it becomes a cost of sales rather than an asset. How do you categorise restaurant expenses?There are two types of costs associated with running a restaurant: fixed and variable. Rent, rates, fixed salaries, loan payments, and insurance premiums are all fixed costs. Food, hourly wages and utilities are examples of variable costs. What does the cash accounting method mean?Cash accounting is a method of accounting in which transactions are captured as they occur. Cash accounting is a method of accounting in which revenues and expenses are recognised as they are received in the case of revenues, or paid out in the case of expenses. What is COGS F&B?The word “COGS” refers to the cost of goods sold in a food and beverage business. The word refers to the amount of money a restaurant spends on supplies and food materials used to make menu items for sale, such as beverages, seasonings, meats, fruits, and vegetables. How do restaurants reduce COGS?Restaurants who buy in bulk can get preferential rates from some suppliers. When buying non-perishables (food with a long shelf life) or food that your restaurant sells fast (food with a high turnover), buying in bulk can help you save money and minimise your COGS. Achieving revenue scale and reducing waste and gap will help to improve COGS. Is COGS the same as food cost?The raw material costs of your menu items — the actual amount of food and beverage utilised to make your food and beverage sales – are referred to as “Cost of Goods Sold.” How do you calculate P&L of a restaurant?To calculate Gross Profit, subtract Total COGS from Total Sales for the period. To calculate Net Profit/Loss, add Labour Cost, Occupancy Costs and Total Operating Expenditure for the period. Subtract these total costs from the Gross Profit for that period. How is profit and loss calculated in hotels?To grasp your P&L as completely as possible, the formula is quick and easy: total sales minus total costs equals hotel profits. How do restaurants manage balance sheets?A restaurant balance sheet shows the assets, liabilities, and equity of a business at a certain point in time. This statement can be used to forecast short- and long-term cash flow as well as measure the restaurant’s overall financial health. What makes a good franchise opportunity?Finding a sector / category that you enjoy is a great place to start. If you’re passionate about coffee make a list of possible coffee shop franchisors. Take a look at the brochures that each company provides to potential franchisees. Examine the business from the inside out. Do they have a track record of franchising success? Do they know who their competitors are and do they have a solid business plan? What is their financial standing, and do they offer assistance to their franchisees? How does franchise revenue work?Making money through a franchise system differs drastically from making money via other types of businesses. Franchise fees and royalties from the franchises they sell to franchisees supplement the money earned by the franchisor from goods and services provided by company-owned enterprises. Do franchises have special accounting needs?Franchises have unique accounting challenges. The majority of these issues are with revenue recognition. The franchisee is the person who owns a portion of the franchise. Do franchises do their own accounting?Like any other business owners franchisees take on a variety of day-to-day obligations, including some fundamental accounting duties. It is recommended to partner with a great accountant who understands franchised business.Retail What makes a supermarket successful?Set reasonable prices for products, which will encourage customers to buy more. This has a direct impact on your convenience store’s footfall, revenue and profit. Markup ranges in convenience stores are typically 30% to 75% depending on the category. How do I promote my supermarket business?Make use of social media to publicise special offers and maintain contact with customers. Consider eco-friendly solutions and offer branded shopping bags. Organize in-store events to increase foot traffic. Make local delivery available and keep your website up to date. To encourage weekly buying, create a loyalty card system. Keep your email lists up to date and send voucher promotions. How do supermarkets attract customers?When it comes to supermarket marketing, one of the most effective strategies is to give promotional discounts. You can use special pricing to develop loyalty coupons and loyalty cards to entice customers back to your store. People shop for groceries based on where they can get good quality at the best price. How do you keep track of sales in a convenience store?Implement a sophisticated business intelligence tool such as Ezora that integrates with your EPOS and provides actionable insights into your revenue performance. How do convenience stores keep track of inventory?Items are scanned into the point of sale system which should include a live stock function. This system allows you to keep track of both sales and the number of products left in stock. Why is accounting important in retail?Accounting is crucial in any retail operation. It enables operators to understand where the most money is spent, where expenditure can be minimised, and how to best allocate money as a resource across various departments such as marketing, order fulfilment, and stock management.SME What are the 3 major inventory management techniques?The push technique, the pull technique, and the just-in-time approach are the three most prominent inventory management approaches. These tactics provide firms with a variety of options for addressing client demand. Is there BIK on electric cars in Ireland?For 2020 no taxable benefit arises where an employee is provided with an electric in either of the following circumstances: (1) where the original market value of the car does not exceed €50,000 or (2) where the car was first provided to the employee in the period 10 October 2017 to 9 October 2018.Where the car was first provided to the employee after 9 October 2018 and the original market value of the car exceeds €50,000, the original market value of the car is reduced by €50,000 in calculating the taxable benefit.In addition, no taxable benefit arises where an employer provides facilities for the charging of vehicles in its business premises provided all employees can avail of the facilities. The reliefs are due to expire on 31st December 2022. What is my EORI number?It’s necessary to apply for an EORI number through the EORI online registration service. If you have previously been registered for Customs and Excise (C&E), you may already have been allocated an EORI number and you should check the following weblink to ascertain if you already have an EORI number. Your EORI number will generally be “IE” followed by your VAT Registration number. How long does it take to register a company for taxes?Once incorporated, it will typically take a couple of days to register a company for PAYE and CT. Registration for VAT will often take longer and depending on complexity of the situation registration can take one to three weeks and in some cases longer. How many officers does a company require?A company in Ireland requires a minimum of one director and one company secretary, so each company requires a minimum of two officers. Does a company require Irish resident officers?Where all a company’s officers are outside the EEA, it will have to establish with Revenue and the CRO that the company has a real and continuous link with the State. This can be established by displaying that either the company has a person working from a location in Ireland managing the business or that it carries on trade in the State. How do I switch over to FP for bookkeeping, payroll and year end accounts?The on-boarding process is very straightforward. The first step is for you to inform your current accountant of the change. We will then write to your current accountant requesting professional clearance and the financial information we require to commence the engagement. Finally we register as your filing agent with Revenue and the CRO. Should shop refits be financed?This depends on the availability of cash within the business and any competing investment opportunities you may be considering. If you can earn a return that is greater than the cost of finance by allocating the available free cash to another project then you should consider financing the fit out. If not you should consider funding the fitout from existing cash reserves. If you do not have free cash available in the business, but your cashflow can comfortably cover the finance repayments it might make sense to finance the fit out, assuming you are confident that the investment will lead to an increase in revenue. How long do you hold financial records for?In general you must retain all books, records and documents relevant to your business for a period of six years.