How to Know If Your CPA Is Performing Well for Your Pharmacy

Most pharmacy owners don’t switch accountants because something is clearly broken. They stay because nothing feels urgent.

Returns get filed. Numbers look fine. Taxes get paid.

But that doesn’t mean your CPA is performing well.

If you’re not sure what you should expect, here’s a simple checklist to help you evaluate where things stand.

1. You Have a Written Tax Plan

   
   

   A good CPA doesn’t wait until March or April to think about your taxes.

   
   

You should have a clear, written plan that outlines how your tax situation is being managed throughout the year. That includes entity structure, income timing, retirement strategies, and any credits or deductions available to you.

If your CPA only talks about taxes after the year is over, you don’t have a plan. You have a history lesson.

2. You Hear From Them Before Year-End

   
   

   Timing matters in a pharmacy.

   
   

Between reimbursement delays, DIR fees, and inventory swings, your income can change quickly. A strong CPA reaches out before year-end to review where things stand and adjust.

If the first real tax conversation happens when your return is already being prepared, most of your options are gone.

3. Your Financial Statements Are Timely and Used

   
   

   You should receive monthly financial statements that are accurate and easy to understand.

More importantly, those statements should be used to make decisions. That includes managing cash flow, adjusting expenses, and planning for tax exposure.

If your financials show up late or sit in a folder untouched, they’re not helping you run your pharmacy.

4. They Understand How Pharmacies Actually Operate

   
   

   Pharmacies are not typical small businesses.

A CPA working with pharmacies should understand third-party reimbursement timing, DIR fees, inventory tied to slow-moving drugs, and how PBMs affect cash flow.

If your accountant treats your pharmacy like a generic retail business, there’s a gap.

5. They Bring Ideas to You

   
   

   You shouldn’t have to ask every question.

A good CPA brings ideas to you throughout the year. That could include changes in tax law, adjustments to your structure, or ways to improve cash flow and reduce tax exposure.

If communication only happens when you reach out first, you’re doing more of the work than you should.

6. Your Tax Return Reflects Strategy, Not Just Compliance

   
   

   Take a look at your last tax return.

Does it show signs of planning? Are there credits being used? Is your compensation structured properly? Does it reflect decisions made during the year?

Or is it simply a clean, accurate filing with no strategy behind it?

We recently reviewed a pharmacy return where the credits section was completely empty. The return was technically correct, but it left clear opportunities on the table. It's actually very common.

7. You Know What You’re Paying and Why

   
   

   You should understand what you’re paying your CPA and what you’re getting in return.

That includes clear services, consistent communication, and a defined process for tax planning and financial review.

If you’re unsure what you’re getting beyond a tax return, it’s worth taking a closer look.

A Simple Way to Get a Clear Answer

If you’re reading through this and still unsure where you stand, you’re not alone.

One of the easiest ways to evaluate your current setup is to have your last few tax returns reviewed by a second set of eyes.

We offer a free, confidential income tax review for pharmacy owners. We look for missed credits, structural issues, and areas where tax exposure could have been reduced.

In some cases, the return is fine. In others, we find opportunities that were overlooked.

Either way, you’ll have a clear answer on how your current CPA is performing.

Check out our article: Key Pharmacy KPIs

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