5 Smart Year-End Moves for Busy Clinics and Independent Pharmacies

As the year winds down, small healthcare businesses feel the crunch more than most. Patient volume spikes, staff schedules shift, and administrative work somehow multiplies overnight. Still, there are a few high-impact financial tasks that can set your clinic or pharmacy up for a stronger start in the new year.

Here are five practical items to tackle before December 31.

1. Review Fixed Assets and Consider Smart Year-End Purchases

Fixed assets are the long-term tools your business uses: equipment, technology, vehicles, and machinery. If you’ve been planning to upgrade anything, buying and placing it into service before December 31 may qualify for tax benefits such as Section 179 or bonus depreciation. These incentives can reduce your taxable income while improving your operations.

This isn’t about rushing out to buy something you don’t need. It’s simply making sure planned investments are timed strategically.

2. Clean Up Accounts Receivable and Payable

Year-end financials only work if they reflect reality. Take time to:

• Collect outstanding payments

• Review third-party reimbursements

• Confirm any unpaid vendor bills

For pharmacies in particular, tightening up AR/AP before year-end helps your cash flow and ensures your financial statements tell the truth instead of an optimistic story.

3. Count Inventory and Remove Expired or Unsellable Items

Every healthcare business relies on accurate inventory, but this step gets pushed aside when things get busy. A physical inventory count helps you correctly calculate cost of goods sold and identify shrink or loss.

Remove and write off:

• Expired medications

• Damaged goods

• Outdated OTC items

Cleaning this up now prevents inflated numbers and gives you a clearer picture of what’s moving and what isn’t.

4. Review Payroll and Owner Compensation

Make sure your payroll is accurate going into W-2 season. This is also the time to finalize bonuses and ensure owners have taken appropriate compensation for their entity type. Fixing payroll issues in January is far harder and often comes with unnecessary tax complications.

5. Wrap Up Your Tax Strategy Before Deadlines Hit

Several tax-saving opportunities expire at year-end. Consider whether you should:

• Contribute to a retirement plan

• Adjust estimated taxes

• Make charitable contributions

• Reevaluate business debt or loans

A little planning now can save a lot later.

Final Thoughts

A strong year-end process isn’t about doing more work; it’s about doing the right work. These steps help your clinic or pharmacy tighten operations, reduce surprises, and head into the new year with clarity.

If you have questions about any of these items, speak with your CPA or accountant. And if you need guidance or a second opinion, you’re always welcome to contact us.