Your guide to financial forecasting as a pharmacist

Running a successful pharmacy or working as a locum means more than just providing great service. It also means making informed financial decisions. Financial forecasting is a valuable tool that helps you plan for the future, manage risks, and keep your finances healthy.

Here’s what pharmacists need to know about financial forecasting and how to use it effectively.

What is financial forecasting?

Financial forecasting involves predicting your income and expenses over a set period, usually 12 months. It gives you a clearer picture of what your cashflow might look like, helping you plan with confidence.

Whether you're running your own pharmacy or working independently, forecasting can:

• Highlight seasonal highs and lows
• Help you plan tax payments and other liabilities
• Support loan or mortgage applications
• Inform investment or staffing decisions

Why it matters

Many pharmacies and locums experience fluctuating income. Without forecasting, it can be hard to spot upcoming cashflow gaps, leading to financial stress or missed opportunities.

Having a forecast in place means you're less likely to be caught out by slow months, tax bills, or rising costs. You can plan how much to save, when to invest, and whether to adjust your pricing or workload.

What to include in your forecast

A good forecast should be realistic and based on accurate, up-to-date figures. Include:

• Expected income: Break this down by service or source. For pharmacies, this could be NHS income, private prescriptions, or retail sales. For locums, look at expected shifts and pay rates.
• Fixed costs: Rent, salaries, utilities, subscriptions, insurance.
• Variable costs: Stock, travel, temporary staffing, professional development.
• One-off expenses: Equipment upgrades, software, training.

Use the right tools

Many pharmacy owners and locums use spreadsheets, but cloud-based accounting software can simplify the process and reduce errors. Some systems allow you to build forecasts from real-time data and compare your performance against them.

A professional accountant can also help you set up a forecast tailored to your business, including tax estimates, business planning, and savings targets.

Review and adjust regularly

Forecasting isn’t a one-off task. Set time aside to review it regularly – monthly or quarterly works well. If your income or expenses change, update your forecast to keep it relevant. This will give you more confidence in your financial decisions.

Need help?

Whether you run a pharmacy or work independently as a locum, our specialist medical accountants can support you with financial forecasting and business planning. We’ll help you build a forecast that works in practice, not just on paper.

Get in touch with your usual Larking Gowen contact or email enquiry@larking-gowen.co.uk if you're yet to become a client.

Jo Benton