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From Dispensing to Full Scope: What Pharmacy Connect 2026 Reinforced About Building a Better Pharmacy Business

From Dispensing to Full Scope: What Pharmacy Connect 2026 Reinforced About Building a Better Pharmacy Business

Pharmacist checking stock on a clipboard in a pharmacy

Pharmacy Connect 2026 | Sydney

At Pinn Deavin, we have developed a niche in servicing pharmacy clients, building specialist knowledge and experience in the financial, operational and commercial issues that are unique to pharmacy businesses. Pharmacy is not like every other business, and we believe pharmacy owners benefit from advisers who genuinely understand the industry, its economics and the environment in which they operate.

That is why attending Pharmacy Connect 2026 in Sydney was important to me. It was another opportunity to immerse ourselves in our clients’ world, to listen to the conversations happening within the industry and better understand the challenges, opportunities and changes pharmacy owners are navigating.

I attended wearing my accountant and business adviser hat, but I came away struck by just how many of the challenges facing community pharmacy mirror those facing the accounting profession.

Both are trusted professions. Both operate in increasingly regulated environments. Both are being reshaped by technology. Both are experiencing pressure on traditional revenue models and increasing expectations from clients or patients. And, importantly, both professions are being challenged to move beyond their traditional scope and demonstrate greater value.

“The opportunity is there. The challenge is creating the capacity to pursue it.”

The service is the service. The product is the product.

One of my notes from the conference simply reads: “Products drive transactions. Services build trust.”

That resonates strongly with me because the same principle applies to accounting.

Pharmacy has traditionally been heavily associated with the product being dispensed. Accounting has traditionally been associated with the tax return, financial statements or BAS being produced. But the product is only the mechanism through which part of the service is delivered.

The real value sits in the relationship, professional judgement, knowledge and trust.

For pharmacy, the expansion into full-scope practice makes that distinction increasingly important. Pharmacists are already providing established services such as vaccinations, medication reviews and other professional services, while expanded scope continues to create new opportunities for pharmacists to use their clinical expertise.

Accounting is travelling down a remarkably similar path. Technology can process transactions, reconcile bank accounts and automate parts of compliance. But technology does not replace the trusted adviser who understands the business owner, their objectives, their risks and what they are trying to achieve.

Full scope requires capacity

Perhaps the biggest question for pharmacy owners is not whether there are opportunities. It is whether they have the capacity to implement them.

A pharmacy owner might see the opportunity to introduce a new professional service, develop a consultation culture, undertake additional training or become a full-scope provider.

But implementation becomes difficult when that same owner is also responsible for rostering, payroll, creditors, bookkeeping, BAS, cash flow, dealing with the bank and answering questions about why last month’s numbers do not look right.

And when a key administration or finance employee goes on leave or moves on, suddenly the owner can find themselves back to processing wages for the fortnight. That is not the highest and best use of a pharmacist owner’s time.

One of the themes I took from Pharmacy Connect was the importance of backfilling roles and building systems around the owner. A sustainable pharmacy should not depend upon one person being available to perform every critical function.

This is equally true of the finance function. Strategic outsourcing can move bookkeeping, payroll, accounts payable, management reporting, budgeting and compliance away from the owner’s desk and into a structured finance function. The objective is not simply to outsource tasks. It is to reduce key-person dependency and give the owner back the capacity to focus on the pharmacy.

Know what is happening in your pharmacy

Creating capacity does not mean losing control. In fact, the right systems and reporting should give a pharmacy owner greater visibility and control, with less involvement in the day-to-day processing.

Pharmacy is particularly well placed in this regard. Compared with many other industries, pharmacy is almost the gold standard for transparent and readily available benchmarking information. There are well-established KPIs across sales, margins, wages, stock and financial performance, giving pharmacy owners a meaningful basis to understand how their business is performing and where attention may be required.

The real value, however, comes from turning that information into something useful and timely. As part of our monthly BAS preparation, we provide our pharmacy clients with monthly KPI reporting, helping them understand what is happening in their business while the information is still current — rather than waiting until year-end for their accountant to tell them what happened months ago.

Modern cloud accounting and reporting systems allow us to combine financial information with the operational drivers of the pharmacy. This helps identify trends, areas of opportunity and emerging pressure points, and creates a regular conversation around what the numbers are telling us and what action, if any, should follow.

Ultimately, good reporting should allow the pharmacy owner to spend less time producing and interpreting financial information, while having greater confidence that someone is keeping a close eye on the numbers.

About The Author

The Pinn Deavin & Co team at their Caringbah office

Sema Krcic

Managing Director
Selma works with pharmacy owners and businesses to improve performance, build value and achieve long-term success.

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A budget should be a management tool, not a spreadsheet in a drawer

A useful pharmacy budget connects the owner’s strategy to numbers.

If the plan is to train pharmacists in full-scope services, add consultation rooms, employ additional pharmacists, purchase another pharmacy, bring in a partner, reduce debt or increase distributions, those decisions should flow through a forecast. Then actual performance should be measured against it.

Useful pharmacy reporting can incorporate financial measures alongside operational indicators such as customer numbers, script volumes, professional-service income, wages, stock intensity, gross profit growth and other pharmacy-specific drivers.

Your accountant should be part of your implementation team

Another note I wrote at Pharmacy Connect was: “Saying you will do something and actually doing it are very different.” Ideas are not usually the problem. Execution is.

The best adviser relationships therefore create a feedback loop: strategy → implementation → measurement → discussion → adjustment.

Your accountant should understand what you are trying to achieve operationally and build the financial framework around it.

That might mean improving your accounting systems, taking responsibility for bookkeeping and payroll, establishing monthly management reporting, monitoring cash flow, comparing performance against budget, modelling a new professional service, reviewing funding, considering business structures or helping assess another pharmacy acquisition.

And the accountant should not necessarily operate alone. A pharmacy owner may need accounting, tax, finance, financial planning, legal, insurance and other specialist advice at different stages of the business and personal wealth journey. Having advisers who communicate with one another allows the owner to concentrate on running the pharmacy rather than acting as the messenger between five different professionals.

That becomes particularly important because the objectives of the business and those of the owner eventually intersect. Improving the first pharmacy, buying another pharmacy, acquiring property, bringing in a minority partner or releasing capital are business decisions. Paying down personal debt, building investments, contributing to superannuation and preparing for retirement are personal objectives. They should not be considered completely independently.

Pharmacy and accounting are changing together

One of my strongest observations from Pharmacy Connect was that community pharmacy has an enormous asset that should not be underestimated: trust.

Pharmacists are highly accessible healthcare professionals, embedded in their communities and accustomed to long-term patient relationships. Accountants occupy a similar position with business owners.

The opportunity for both professions is to build upon that trust rather than allow the profession to become defined by the transaction.

For pharmacists, that means continuing the transition towards broader clinical services and full-scope practice. For accountants, it means moving beyond simply reporting what happened last year and becoming more involved in what happens next.

Technology should help both professions make that transition. It should remove administration, improve information and create capacity for higher-value work, not simply make everyone busier.

Let us do our part so you can do yours

A pharmacy owner should not have to choose between developing their clinical capability and keeping the finance function running.

With the right systems and the right team around you, those functions can operate in the background while still giving you timely visibility over the performance of your business.

We can help manage the bookkeeping, payroll, reporting, tax, cash flow and financial administration. We can help establish the KPIs and reporting framework. And, together with a broader suite of advisers, we can help you work through the financial implications of the decisions you want to make.

That gives you more capacity to train your people, introduce new services, develop a consultation culture, pursue full-scope opportunities and spend more time with your patients.

The pharmacy environment will continue to change. The businesses most likely to thrive will not necessarily be those whose owners work the most hours. They will be the ones that build the right team, understand their numbers, create capacity and execute well.

Let us do our part to help your pharmacy move forward.

Is now the right time to sell your pharmacy?

Is now the right time to sell your pharmacy?

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Well-stocked shelves inside a community pharmacy

Is now the right time to sell your pharmacy?

A few pharmacists asked me this question at the recent APP conference. In particular, a couple of owners in the latter stages of their professional career, considering whether the value of their business has peaked and was likely to diminish significantly in the near future. Nobody likes to be trying to sell at the “bottom” of the market!

Their causes for concern are generally based upon external issues, including:

A strong financial plan covers more than budgeting. It should include:

None of these issues can be fully and accurately predicted at this time

Clearly proposed changes such as these can be stressful, however the impact upon business profitability, cashflow and future values of pharmacy businesses cannot be measured until after the event.Whether you’re a business owner, professional or investor, the right plan today can make a significant difference to your future.

Our team can help you create a tailored plan that gives you confidence and peace of mind.

If we only consider the “worst case” scenarios and use that perspective to make business decisions, would it result in an outcome we ultimately regret? Or alternately, is it wiser to monitor the impacts progressively as they unfold? Yes, it is imperative to have a gameplan. But the way we manage our pharmacies will evolve in future, as we identify ways to become more efficient and grow in other areas. Hopefully also the next CPA will deliver some positives to help compensate for the 60DD reduction in income.

In the last 6 months, we have had only one client sell their pharmacy (partly for personal and business reasons). Otherwise, most pharmacists have embraced change and are preparing for the next challenges. Correspondingly we are still seeing steady interest for potential purchases, both from existing owners as well as first time buyers.

The relative value of pharmacies in the marketplace may have softened a little in the last year or two, but from our observations certainly not to the extent for panic.

If you are considering selling your business, consult with your accountant and business broker first, before making any significant decisions. Everyone’s situation is different. And timing is everything!

About The Author

Neil Featherstone, Pharmacy Advisory Specialist at Pinn Deavin & Co

Neil Featherstone

Senior Consultant
Pharmacy Advisory
Specialist
Neil works with pharmacy owners and businesses to improve performance, build value and achieve long-term success.

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Our team is here to help you make confident financial decisions for your business.

WHY OWN A PHARMACY? AM I BETTER OFF BEING AN EMPLOYEE?

WHY OWN A PHARMACY? AM I BETTER OFF BEING AN EMPLOYEE?

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Pharmacist speaking with a customer at the pharmacy counter

Why own a pharmacy? Am I better-off being an employee?

The UTS Community Pharmacy Barometer is an annual report collating research tracking the confidence, perceptions and opinions of pharmacy owners and employees in relation to impact of perceived future changes. The report published late last year provided many interesting observations and interpretations, including:

Over the last couple of years there has been an increased demand for pharmacy services such as vaccinations and also a need for deliveries to customers, putting a greater load on staff’s time. Some team members have also reported being uncomfortable dealing with frustrated customers in situations where certain stock have been in short supply and customers were frequently disappointed.

On the back of the challenges to community pharmacy (and businesses generally) due to Covid, many pharmacies have experienced ongoing difficulty in attracting, recruiting and retaining staff. Especially those pharmacies located regionally. Pharmacy owners have needed to manage staff rosters carefully (eg splitting into teams in case staff became unavailable due to illness) requiring extra staff numbers to cover the need. But with access to additional experienced staff limited, then existing owners and staff have had to work longer and harder to meet customer needs.

It also appears anecdotally that an increasing proportion of pharmacy students are choosing to work in hospitals as their career pathway, rather than explore community pharmacy. The perception of many students is that community pharmacy may be a more difficult or less satisfying choice, compared to working in a clinical environment. So if fewer students join community pharmacy, then the shortage of professional staff will not be resolved in the immediate future.

For those students who are choosing to become community pharmacists, or those pharmacists currently employed in community pharmacies, they also should consider the option of ownership. If the remuneration prospects of remaining as an employee appear promising in future due to scarce supply, is there sufficient enough incentive to become an owner (or partner)? For those pharmacists who love the engagement of working closely with customers in their local community and being part of a small team, what could be compelling motivators to take the next step? There are numerous other motivators for becoming an owner, but some of the most common include:

Once a pharmacist has embraced community pharmacy ownership as their long-term career, I would also challenge them to also reflect carefully upon the business side. This should occur both before purchasing the business, and also as an ongoing exercise whilst being an owner. Every successful business requires astute planning to ensure confidence about the future. Thus, owners should regularly ask themselves these five questions:

  1. Methodology of business – Whilst you are working within ethical requirements of the profession, are you also deriving optimal profit?
  2. Perception of risk –How much financially is “on the line” in you personally supporting the business, and are you comfortable with this?
  3. Return for effort – Are you truly generating enough profit over and above a reasonable wage, to justify the risk? Or would you be better-off remaining as an employee?
  4. Opportunities – Could you take on a bit MORE risk, but generate rewards that could deliver attractive results? (eg borrowing to buy another pharmacy, purchase the premises)?
  5. How much is enough? – What is my target accumulated assets value by the time I retire, which should generate sufficient income for your lifestyle?

For the right person, community pharmacy can provide an extremely satisfying career. The combination of professional interactions, relationship building and remuneration can still be a compelling option. It also provides an additional entrepreneurial opportunities, should the pharmacist be attracted into ownership.

About The Author

Neil Featherstone, Pharmacy Advisory Specialist at Pinn Deavin & Co

Neil Featherstone

Senior Consultant
Pharmacy Advisory
Specialist
Neil works with pharmacy owners and businesses to improve performance, build value and achieve long-term success.

Related Article

Need expert advice?

Our team is here to help you make confident financial decisions for your business.

What can pharmacists learn from sport?

What can pharmacists learn from sport?

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Blurred shelves of health products in a pharmacy

What can pharmacists learn from sport?

We’ve seen a lot of sport on TV recently, from the Olympics to the various football finals. It reminded me that to be successful in any profession (including business and sport) requires commitment, dedication, hard work and hopefully some luck. There are no accidental success stories, and you need to put yourself in a position to take your opportunities along the way. YouTube the Australian ice skater Steven Bradbury back in 2002 Winter Olympics! A classic example!

A pharmacy owner’s needs change many times throughout their career. Initially the responsibilities of running a business can be overwhelming. As well as the clinical, patient care side of the profession, an owner needs to manage resources such as staff, stock, cashflow etc. In those early days, you might rely heavily on the advice of your accountant, your peers, close family and friends. But over time, your experience, systems and procedures help you navigate the usual demands of business.

However, avoid becoming complacent. Especially if you have owned your pharmacy for a decade or more. Sometimes a problem can develop gradually without you being aware (for example poor inventory management, product pricing, rostering etc). A mature business might not suffer much ill effect initially. However eventually (when the business needs to be valued by the bank, or when an owner decides to sell their business) the impact might be significant on long term viability or ultimately the sale price upon retirement. Accordingly I recommend that even the most experienced pharmacist regularly talks to their “coach” (often their specialist accountant) to review current performance, benchmark against competitors and identify areas for improvement. It doesn’t matter who you are or what you do, having someone you trust and respect in your corner can make a great difference. Whether it is in sport, business or your personal life, an experienced coach or mentor can be the missing ingredient that allows you to do the best you possibly can.

 

Sure, it is the individual that actually has to do the hard work along the way, but the coach helps devise a game plan at the outset, then work alongside you to keep things focussed and on track.

 

  Does Roger Federer still have a coach after all these years? Absolutely!

 

You might have the appropriate attitude, energy and resilience to be an excellent community pharmacist. But keep in mind that financial data is a major part of a pharmacy’s early warning system. Reliable, timely monthly financial statements can be a most an effective management tool.

 

Owners can sign up for cloud based accounting software to help them run their business. There are a number of inexpensive yet powerful applications which have the ability to produce management profit reports, BAS, organise accounts receivables and payables, and maintain payroll records. As the software appears simple and easy to use, it is understandable why they are so popular. 

 

However, just because you bought an aeroplane, it doesn’t make you a pilot.

 

Anyone can buy the software licence and start processing data. But to do so without some form of specialised training, and expecting accurate reporting is illogical. It takes three years full time at university to obtain an accounting degree, to learn the fundamentals as well as the deeper management and tax knowledge. Processing your own data without some professional direction can be dangerous, especially if you are relying upon inaccurate reports.

Consider who relies upon your reports:

A strong financial plan covers more than budgeting. It should include:

Relying upon inaccurate reports to make management decisions can be a significant problem.

This may result in paying too much income tax/GST, delays in processing of BAS refunds, underpaying staff wages or super, decline of finance applications, incurring penalty interest on a loan due to non-compliance with a lending covenant, overestimating the sale price approaching retirement etc. The consequences of these types of problems can be expensive and stressful!

So if you are a new pharmacy owner, invest some time and effort at the beginning in implementing a sound management reporting process. If you are an experienced owner, remember to touch base with your coach regularly.

Whether you’re a business owner, professional or investor, the right plan today can make a significant difference to your future.

Our team can help you create a tailored plan that gives you confidence and peace of mind.

About The Author

Neil Featherstone, Pharmacy Advisory Specialist at Pinn Deavin & Co

Neil Featherstone

Senior Consultant
Pharmacy Advisory
Specialist
Neil works with pharmacy owners and businesses to improve performance, build value and achieve long-term success.

Related Article

Need expert advice?

Our team is here to help you make confident financial decisions for your business.

Healthy, Simple Financial Advice

Healthy, Simple Financial Advice

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Health professionals require assistance from time to time.

The saying “play to your strengths” is applicable in your work, play or family life. Building a team of confidantes is a prerequisite to a balanced and “successful” life. Your team helps you avoid potential problems, plan for the future and simply be a sounding board. They allow you to focus on what you are best at, and what you love spending your time upon.

 

When I first went into my own practice, we developed a list of simple suggestions for our clients so we could fine tune their relationship with us! A brief summary:

 

Communicate your individual needs. 

 

Do you need monthly profit/cashflow reports or can you estimate your tax position from your own observations? Are you totally confident in your point-of-sale system, or do you need independent information to compare it with? Can you prepare your own BAS or would you prefer to focus upon on more profitable/enjoyable activities etc?

 

Discuss your short, medium and long term goals together. 

 

The more background your accountant has the, the better quality advice you will receive. Share your current activities, goals and future plans. As your plans change, recognise this may have a significant effect on the financial strategy employed (so keep sharing)!

 

The cost of accounting fees should not be the biggest issue. 

 

Some advice may be invaluable. You may save thousands of tax dollars when negotiating a business purchase or selecting the right business structure. Similarly, capital gains implications on selling a business, shares or investment property. Strategic use of CGT “roll-over” concessions or SMSF can be life changing.

 

Never say “I only want you to do my tax”. 

 

Compliance work is only one of your needs, but there are areas where your professional team can have greater impact (eg forecasts, feasibility studies, investment advice etc). You would never ask your doctor to treat only one of your ailments at the exclusion of all others. Your finances are no different!

 

Be organised and pay attention to detail. 

 

This reduces unnecessary time attending to routine tasks (such as reconstructing lost records) and allow accurate reporting on a timely basis. It should also help avoid unexpected tax issues.

 

If you are not satisfied, say so. 

 

You are allowed to be critical, but don’t expect someone to be able to read your mind. When a customer walks into your business, you need to rely upon their input to provide the correct solution.

So, tell your financial advisor:

What do you want from your professional & private life?

Your accountant must be intimate with your business and your specific needs. This helps generate new ideas and facilitate regular feedback.

You must be aware of what you really want from your professional and personal life. If you aren’t sure, confide in your team and develop an overall concept. Your accountant should be in the best position to advise you on all aspects of your financial strategy.

BAS, GST and STP require data to be processed and reported upon on a regular basis. Technology has empowered even the smallest business to have access to relatively inexpensive and reliable bookkeeping software, but this requires direction. Just because you bought an aeroplane, it doesn’t make you a pilot!

So, take some care in building your team and it should pay dividends for over your entire professional career.

Whether you’re a business owner, professional or investor, the right plan today can make a significant difference to your future.

Our team can help you create a tailored plan that gives you confidence and peace of mind.

About The Author

Neil Featherstone, Pharmacy Advisory Specialist at Pinn Deavin & Co

Michael Pinn

Senior Consultant
Pharmacy Advisory
Specialist
Neil works with pharmacy owners and businesses to improve performance, build value and achieve long-term success.

Related Article

Need expert advice?

Our team is here to help you make confident financial decisions for your business.