The Bottom Line Pharmacy Podcast · 2026-07-31 · 4 min
Key moments - from our scoring
Substance score
18 / 100
Five dimensions, 20 points each
Todd from Sykes & Company P.A. shares critical accounting insights for independent pharmacy owners looking to expand or sell their operations. The core message centers on the necessity of accrual-based accounting rather than checkbook accounting - many pharmacy owners lack clarity on their actual financial position due to inadequate accounting systems. With modern pharmacy technology like perpetual inventory systems, Beacon systems, and script management software enabling real-time financial tracking, pharmacies can now implement monthly accrual accounting that captures changes in receivables, inventory, and payables. Todd emphasizes that pharmacy owners often make critical mistakes by commingling multiple pharmacy operations under a single balance sheet and P&L statement, making it impossible to understand individual location performance. This becomes especially problematic when considering file sales, store acquisitions, or leveraging growth opportunities in long-term care and pharmacy-at-home expansion. The episode addresses McKesson-based clients and independent pharmacy operators considering whether to engage specialized tax and accounting services for their expanding operations.
Accrual accounting with monthly adjustments to receivables, inventory, and payables shows your true financial position and is essential when expanding, acquiring files, or selling operations - checkbook accounting leaves you blind to profitability and creates serious problems during transitions.
Many pharmacy owners run multiple pharmacy operations through a single balance sheet and P&L statement, making it impossible to understand which locations are profitable or underperforming - each pharmacy should have separate financial statements.
Perpetual inventory systems, Beacon systems, and script management software now allow pharmacies to make real-time adjustments and track third-party receivables monthly, enabling the monthly accrual accounting necessary for accurate financial management.
Without accrual-based accounting and separate location-level financials, pharmacy owners cannot assess whether acquisitions or new opportunities are actually profitable, making it difficult to justify the expansion to themselves or potential lenders.
Our reviewer’s read on each dimension, with quotes from the episode.
The entire 4-minute episode yields only two substantive points - use accrual accounting and keep separate P&Ls per entity - neither of which is novel or developed beyond a single sentence. The majority of the runtime is trade-show pleasantries and conference scheduling.
it all boils down Todd, to having the fundamental accrual accounting in place for these pharmacies
having each pharmacy stand on its own with a separate balance sheet, separate P and L, is very critical
Every claim made is entry-level accounting advice that any CPA textbook covers; there is no contrarian framing, no first-principles reasoning, and no insight specific to the pharmacy sector beyond generic 'know your numbers' platitudes.
So many pharmacies are operating out of their checkbook, they don't have a clue where they are
you might want to be looking at cash basis accounting for tax purposes if you are allowed to do that if you fall within the realms of the IRS rules
Todd is a legitimate practitioner at a pharmacy-focused accounting firm with real client experience, but the interview format and brevity prevent any demonstration of depth, scale, or hard-won expertise beyond surface-level credentials.
we don't travel around visiting our pharmacies across the country. We see them mostly the trade shows
we try to attend 15 to 20 shows a year
A handful of system names (Beacon, MFP, perpetual inventory systems) are dropped without explanation, and there are no numbers, dollar figures, client outcomes, or case studies to substantiate any claim made.
with the mfp, as it is with the Beacon system, the perpetual inventory systems
They may have multiple operations inside of one entity, and there's no separation of accounting between the multiple entities
The host's questions are vague and meandering (multiple false starts, no follow-up on any point), and the entire exchange functions as mutual promotion rather than genuine inquiry; no claim is challenged or probed.
What are the basic factors for our pharmacy owners in the realm of taxes? Um, especially with growth
Is there anything that.
Computed from the transcript - who did the talking, and the words that came up most.
Send us Fan Mail Schedule an Rx Assessment Live at McKesson Ideashare 2026, this episode features Ollin Sykes in conversation with Todd Eury on the Pharmacy Podcast Network. Ollin covers: The importance of monthly adjustments for receivables, inventory, and payablesThe risks of commingling multiple pharmacy entities on one balance sheet or P&LWhat pharmacy owners considering expansion, file purchases, or long-term care/home expansion need to have in place firstStay connected with u...
Transcribed and scored by The B2B Podcast Index.
Speaker A: Allan sykes here at McKesson idea share 2026 all and thank you for stopping by Todd.
Speaker B: Appreciate the opportunity to be with you.
Speaker A: Very important account to the membership and the, the usage of intelligence on your team for pharmacy podcast network. We really appreciate the Bottom line podcast and the information that comes out there. Talk to us about this show. How has this show been for, for you guys?
Speaker B: This show has been really good from perspective of seeing so many of our existing uh, McKesson based clients. We don't travel around visiting our pharmacies across the country. We see them mostly the trade shows. So these major trade shows are always important to see existing clients. In addition, we have obviously had some pretty good success the last couple of days in talking to new opportunities. So it's a combination of both as far as we're concerned. And uh, we had uh, another show this weekend to attend. We had another group at the Georgia show but we uh, try to attend 15 to 20 shows a year all.
Speaker A: And what is the basic factors for our pharmacy owners in the realm of taxes? Um, especially with growth, I think of long term care, pharmacy at home expansion. If, if they're, if you don't. If they're not using um, all. If they're not using Sykes and Company as, as their um, as their accountant. What are some of the, the heads up in expanding your business going from one pharmacy, multiple pharmacies. Is there anything that.
Speaker B: Oh my goodness, it all boils down Todd, to having the fundamental accrual accounting in place for these pharmacies. So many pharmacies are operating out of their checkbook, they don't have a clue where they are. And obviously with third party receivables as it is today with the mfp, as it is with the Beacon system, the perpetual inventory systems and with all the major uh, script management systems now pretty much allowing for perpetual inventory, allowing those adjustments to occur each month from receivables, inventory payables, all that is key to knowing exactly where you are. And if you're looking at expanding by buying files or going to further opportunities with new stores that are being offered to you and with the transitions that are taking place in this industry right now, it's more important than ever before to know exactly where you are on an accrual basis for tax purposes is nothing about it. You, you might want to be looking at cash basis accounting for tax purposes if you are allowed to do that if you fall within the realms of the IRS rules. But accrual uh, based accounting monthly with the adjustments not a year in with the adjustments, but monthly is crippled.
Speaker A: What are you seeing as some of the, uh, pitfalls of a lot of the pharmacy owners out there who might not be clients? And what stories have you heard about tripping, um, in. In your business and. And not doing what's right and that causing additional harm to the business even above and beyond PBMs?
Speaker B: Well, it's sometimes when they go to want to sell files or sell, uh, multiple. They may have multiple operations inside of one entity, and there's no separation of accounting between the multiple entities. Sometimes that's an issue with one balance sheet and maybe one P and L. They've got two or three different enterprises that are running through their P and L. That's a potential problem. But, uh, again, having each pharmacy stand on its own with a separate balance sheet, separate P and L, is very critical to understanding what's taking place within this industry. Ah. And there's just so many pharmacies out there today. Just. It's beyond me why this isn't more recognized than it is within the industry. But it's not, unfortunately.
Speaker A: Yeah. Yep. All right, what's the next show that the team's going to?
Speaker B: We've got, uh, we got the NCP ownership workshop. I, uh, think around the 10th of July, that Bonnie and I will be there. Bonnie Bond. Then we'll be at Corson Core in Cardinal, latter part of, uh, July, I believe. Both of which in Orlando. So we'll be there.
Speaker A: We can't wait to see you. We'll be at, I think, the thought spot with Sincora as well. And we'll make sure, uh, to get you guys on the schedule.
Speaker B: Absolutely. Glad to help you.
Speaker A: Thank you so much. Thanks, Todd.
Speaker B: Appreciate it.
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