Rx Advisors

10/04/2026

The Good, the Bad & the Ugly of S Corporations

S corporations can be one of the most effective tax structures for a profitable small business—but they’re also widely misunderstood.

🟢 THE GOOD

Self-employment tax savings. Owners who work in the business generally receive reasonable compensation subject to payroll taxes, while additional profits may be distributed without self-employment tax.

Pass-through taxation. Income generally passes through to shareholders rather than being subject to federal corporate income tax.

Potential QBI deduction. Qualifying shareholders may also benefit from the §199A deduction.

🟡 THE BAD

More compliance. Payroll, bookkeeping, a separate tax return, basis tracking, and additional rules mean more administrative cost.

Reasonable compensation matters. You generally can’t avoid payroll taxes by taking everything as distributions.

Losses aren’t automatically deductible. Basis, at-risk, and passive activity limitations may apply.

🔴 THE UGLY

Ignoring shareholder basis until it becomes a problem.

Taking large distributions with little or no salary.

Using the business account like a personal checking account.

Electing S status simply because someone said, “It will save you taxes.”

The bottom line: An S corporation isn’t a tax strategy—it’s a tax structure. When it fits the business and is managed correctly, it can be extremely effective. When it doesn’t, it can create unnecessary cost, complexity, and tax problems.

The real question: Does an S corporation make sense for YOUR pharmacy?

Visit www.rx-advisors.com to schedule a complimentary income tax review for your pharmacy.

09/12/2026

08/23/2026

When Should You Elect S Corporation Status? Probably Later Than You Think.

One of the most common pieces of tax advice given to new business owners is:

“You need to elect to be taxed as an S corporation.”

Sometimes that’s great advice.

Sometimes it’s way too early.

An S corporation can create meaningful tax savings because, once the business is generating enough profit, the owner may be able to take a portion of that profit as distributions rather than wages subject to payroll taxes.

But there’s an important catch:

If you work in your S corporation, you generally need to pay yourself reasonable compensation before taking non-wage distributions.

So, consider a business generating $50,000 of profit where reasonable compensation for the owner’s work is also around $50,000.

What exactly did the S election accomplish?

Potentially very little.

You may have simply traded a relatively simple tax return for:

• Payroll and payroll tax filings
• A separate S corporation tax return
• Additional bookkeeping requirements
• W-2 reporting
• Reasonable-compensation documentation
• Higher accounting and compliance costs

Now consider that same business generating $150,000 of profit, with reasonable owner compensation of $75,000.

That’s a very different conversation.

There may now be a meaningful amount of profit available for distributions that aren't subject to Social Security and Medicare taxes.

That’s where an S corporation can start becoming a valuable tax-planning tool.

The mistake is assuming there’s a magic revenue number where everyone should make the election.

There isn’t.

The decision should be based on profit, not revenue—and should consider reasonable compensation, payroll costs, additional tax-preparation fees, state taxes, retirement-plan goals, and the owner’s overall tax situation.

Elect too early, and the compliance costs can eat up much of the tax savings you were trying to create.

Elect at the right time, and an S corporation can be an excellent tax strategy.

The goal isn’t to become an S corporation as quickly as possible.

The goal is to become an S corporation when it provides value.

08/21/2026

For nearly 20 years, Rx Advisors has helped independent pharmacy owners gain financial clarity, reduce their tax burden, and make better business decisions.

We specialize in accounting for independently owned pharmacies, delivering accurate, timely, easy-to-understand financial reporting designed specifically for the pharmacy industry.

But great accounting is only part of what we do.

Tax strategy is where we really shine. We look beyond tax preparation and compliance to proactively identify opportunities to reduce taxes, improve cash flow, and help pharmacy owners keep more of what they’ve worked so hard to earn.

If you’re considering a new tax and accounting firm, we’d love the opportunity to visit with you and show you what specialized pharmacy expertise can do for your business.

But regardless of who you choose, do your due diligence.

Your accountant should be more than someone who prepares your tax return once a year. They should understand the unique financial, operational, and tax challenges of independent pharmacy—and be able to turn your numbers into information you can actually use.

So, how do you know if an accountant truly understands pharmacy?

Start by asking the six questions in the graphic below. 👇

The answers should tell you a lot about their experience, industry knowledge, approach to financial reporting, tax strategy, professional credentials, and ability to advise your pharmacy beyond basic compliance.

At Rx Advisors, pharmacy accounting isn’t one of the industries we serve—it’s our specialty.

Rx Advisors | Prescribing Success

Let’s talk.

07/28/2026

**⚠️ Be Careful Who You Trust for Tax Advice**

Everyone wants to save money on taxes. That's exactly what we help clients do every day.

Unfortunately, I recently met with a new client who learned an expensive lesson.

A friend referred him to a family office that was promoting tax credits as a way to dramatically reduce his federal income taxes. Before any meaningful work was even performed, he was required to pay **$15,000 just to get started.**

After paying the fee, it was discovered that the IRS publicly stated that the particular "tribal tax credits" being marketed in that program do not exist, and taxpayers who claimed them could face additional taxes, penalties, interest, and potentially lengthy disputes with the IRS.

The takeaway isn't that tax planning is risky. Quite the opposite.

There are many legitimate tax strategies that can produce substantial savings when they're properly designed and supported by tax law.

The real lesson is this:

✔️ Make sure you're working with a licensed tax professional.
✔️ Ask what authority supports the strategy (Internal Revenue Code, Treasury Regulations, IRS guidance, or court decisions).
✔️ Be skeptical of anyone promising extraordinary tax savings without clearly explaining the legal basis.
✔️ Before paying large upfront fees or implementing a complex strategy, get a second opinion.

I've seen too many taxpayers spend thousands of dollars chasing "too good to be true" tax strategies—only to face even greater costs later when the IRS comes calling.

A qualified tax professional doesn't just help you save taxes—they help you sleep at night knowing your strategy is built on solid legal footing.

07/12/2026

💵 With everything independent pharmacies are facing today... who couldn't use a nice tax refund?

Cash flow has never been more important.

For nearly 20 years, Rx Advisors has focused on one thing—helping independent pharmacies improve their financial performance through specialized tax planning, accounting, and advisory services.

Because we work exclusively within the pharmacy industry, we understand opportunities that many general accounting firms simply don't see.

We offer a FREE income tax & financial review, and the results speak for themselves. Here are just a handfull of success stories:

💰 Stonegate Pharmacy (TX)
$155,000+ in tax refunds
💰 Elon Drug (MO)
$79,000+ in tax refunds
💰 Rx3 Compounding Pharmacy (VA)
$77,000+ in tax refunds
💰 Custom Meds (FL)
$71,000+ in tax refunds
💰 Austin Compounding Pharmacy (TX)
$49,000+ in tax refunds
💰 Sooner Pharmacy (OK)
$45,000+ in tax refunds
💰 The Art of Medicine (PA)
$33,000+ in tax refunds
💰 Clarksville Family Pharmacy (AR)
$33,000+ in tax refunds
💰 Chelsea Family Pharmacy (OK)
$30,000+ in tax refunds
💰 Granbury Drug & Compounding (TX)
$11,000+ in tax refunds

That's more than $1.4 million in tax refunds returned to independent pharmacy owners.

After working alongside independent pharmacies for nearly two decades, we've learned that the right accounting partner doesn't just prepare tax returns—they understand reimbursement models, inventory, third-party receivables, compounding, 340B, workflow, cash flow, and the tax strategies unique to pharmacy ownership.

If it's been years since someone with pharmacy-specific expertise reviewed your tax returns...

It may be worth a second look.

📞 Visit www.rx-advisors.com to learn more, and schedule a complimentary review.

Past results do not guarantee future outcomes. Refund amounts and tax savings vary based on each pharmacy's unique facts, prior filings, eligibility, and applicable tax law.

07/06/2026

📢 Currently Accepting New Clients for October Onboarding

We are incredibly grateful for the continued trust pharmacy owners place in Rx Advisors.

Due to the number of new pharmacies joining our firm, our current onboarding schedule is now booking into October. If you’ve been considering making a change, now is the time to reach out so we can reserve your spot.

That said, choosing a new accountant shouldn’t be an impulse decision. The same due diligence you perform when selecting a wholesaler, PSAO, software provider, or other key vendor should also be applied to the accounting firm responsible for your financial statements, tax strategy, and business advice.

The right accounting partner can have a significant impact on:
✅ The accuracy of your financial statements
✅ Tax savings and proactive planning
✅ Cash flow management
✅ Financing and banking relationships
✅ Business valuations and succession planning
✅ IRS audit readiness

To help pharmacy owners make an informed decision, we’ve created a free Pharmacy Accountant Evaluation Questionnaire that highlights important questions every pharmacy owner should ask before making a change.

Simply DM me and I'll send you the questionnaire.

If, after completing your research, you believe Rx Advisors is the right fit for your pharmacy, we’d love to visit with you. Contact us today to reserve an October onboarding appointment before our remaining openings are filled.

06/28/2026

💰 Here Are 10 Ways Independent Pharmacies Can Take Back Control of their Cash.

If there's one thing that keeps independent pharmacy owners awake at night, it's cash flow.
Many pharmacies are profitable on paper but still struggle to make payroll, purchase inventory, or cover taxes because cash is tight.

The good news? Cash flow can be managed.

At Rx Advisors, we believe your monthly financial reporting should be a management tool—not just paperwork for tax season. That's why our clients receive pharmacy-specific financial statements, KPI dashboards, trend analysis, cash flow insights, and proactive tax planning designed to help them make better decisions every month.

Here are 10 practical ways to strengthen your pharmacy's cash flow:

1️⃣ Understand the difference between profit and cash flow. A profitable pharmacy can still run out of cash. Review both your financial statements (profit & loss, cash flow, and balance sheet) every month.
2️⃣ Stay on top of accounts receivable.
Monitor unpaid claims, understand your state's prompt-payment laws, and evaluate how your PSAO impacts reimbursement timing. Every delayed dollar affects your cash flow.
3️⃣ Optimize inventory.
Inventory is usually the largest use of cash in an independent pharmacy. Use technology to manage purchasing, eliminate dead inventory, and improve inventory turns. For slow-moving items, consider RPh-to-RPh marketplaces like PrimeRx Market or EzriRx.

To view the entire article, visit www.rx-advisors.com and create a free account with us.

06/20/2026

What pharmacy specific reports are being requested by your accountant each month?

If the answer is "I'm not sure," you may have a bigger problem than you realize.

One of the most alarming trends we've seen this year is the number of pharmacy owners who discovered their financial statements were inaccurate—often after years of relying on them to make business decisions.

Many of these pharmacies came to Rx Advisors because something didn't seem right. The unfortunate reality is that correcting years of accounting errors is far more expensive than preventing them in the first place.

How much does inaccurate accounting cost when you're trying to sell your pharmacy, obtain financing, survive an IRS audit, or make critical business decisions?

Consider what's at stake:

➡️ Selling Your Pharmacy – Buyers don't purchase tax returns. They buy based on financial performance. If your financial statements aren't accurate, your valuation may suffer, due diligence may drag on, and deals can fall apart.

➡️ Obtaining a Loan – Lenders want reliable financial information. Inaccurate statements can delay approvals, reduce borrowing capacity, or raise concerns about the health of your business.

➡️ IRS Audit Risk – Financial statements drive tax returns. If the accounting is wrong, the tax return may be wrong too, potentially resulting in additional tax, interest, penalties, and countless hours spent defending your position.

➡️ Running the Business – Every major decision you make depends on the numbers. Staffing. Inventory. Expansion. Acquisitions. Owner distributions. If the numbers are wrong, the decisions may be wrong too.

If your accountant is not routinely reviewing third-party reconciliation reports and tying them back to your financial statements, there is a real possibility that your numbers are incomplete or inaccurate.

Rx Advisors has been serving independent pharmacies for nearly twenty years and we can help ensure your numbers are accurate, identify pharmacy-specific tax strategies, improve decision-making, and protect the value of what is often your largest asset—your pharmacy.

For more infomation, visit www.rx-advisors.com or contact us at [email protected].

06/10/2026

💊 Meet the Rx Advisors Pharmacy Tax & Accounting Dream Team! 💊

Behind every successful pharmacy is a team of trusted advisors dedicated to helping owners navigate tax, accounting, and operational challenges with confidence.

Meet a few of our all-stars:

⭐ Steve – Director of Pharmacy Accounting (25+ years’ exp.)
⭐ Jenifer – Tax Manager (25+ years’ exp.)
⭐ Chris – CEO | Founder (25+ years’ exp.)

Click here to meet the entire team: https://www.rx-advisors.com/

Together, we bring expertise, precision, and a commitment to helping independent pharmacy owners achieve their financial goals. Whether it’s tax planning, accounting support, bookkeeping, or client service, this team is here to help pharmacies thrive.

Click here to create a free account with us and receive a quote: https://portal.fleming-advisors.com/login?step=signUp