January is when resolutions get made. But for pharmacy owners, January should be less about promises and more about preparation. The decisions you make—and the reviews you complete—in the first few weeks of the year set the tone for everything that follows.

The problem? Most pharmacy owners are so busy filling prescriptions and managing staff that January slips by without any strategic financial review. Then they spend the rest of the year playing catch-up.

Here's your checklist to start 2026 right.

1. Close Your 2025 Books

Before you can plan for 2026, you need to know exactly where 2025 ended. Reconcile all accounts, verify that every transaction is categorized correctly, and ensure your year-end financials are accurate. This sounds basic, but you'd be surprised how many pharmacies start the new year with incomplete records from the previous one.

2. Review Your PBM Contracts

PBM contract terms change annually—and not usually in your favor. January is the time to pull out every contract and verify your current reimbursement rates, fee schedules, and network requirements. Compare what you're actually receiving against what the contracts promise. If there are discrepancies, document them now.

3. Calculate Your True DIR Fee Impact

DIR fees hit months after dispensing, making their true impact hard to track in real-time. Use January to calculate your total 2025 DIR fee burden and compare it to your projections. This number should inform your 2026 cash flow planning and help you set aside appropriate reserves going forward.

4. Update Your Inventory Valuation

Inventory is one of your largest assets and one of your biggest cash drains. Conduct a thorough inventory count and valuation. Identify slow-moving stock, expired products, and items where your cost basis has shifted significantly. Your inventory management directly impacts cash flow—getting this right matters.

5. Set Financial Benchmarks for 2026

What does success look like this year? Set specific, measurable targets for gross margin, net profit, inventory turnover, and days sales outstanding. Without benchmarks, you're just hoping for good results instead of managing toward them.

6. Prepare Your Tax Document Timeline

Tax deadlines sneak up fast. Create a timeline now for when you'll gather W-2s, 1099s, and all supporting documentation. Identify what you're still waiting on and follow up proactively. Rushed tax preparation leads to missed deductions and costly errors.

7. Review Insurance and Liability Policies

When did you last review your business insurance? Policies should reflect your current operations, inventory levels, and liability exposure. January renewals are common—don't auto-renew without comparing options and ensuring adequate coverage.

8. Build Q1 Cash Flow Projections

The first quarter often brings unique cash flow challenges: holiday slowdowns, tax payments, and wholesaler terms that may have shifted. Build a 90-day cash flow projection that accounts for seasonal patterns and known major expenses. Better to see a cash crunch coming than to discover it when payroll is due.

9. Evaluate Your Accounting Systems

Is your current accounting setup giving you the visibility you need? Many pharmacies outgrow their systems without realizing it. January is a natural time to assess whether your software, processes, and reporting capabilities are adequate—or whether it's time to upgrade.

10. Schedule Quarterly Financial Reviews

Put four dates on your calendar right now: one for each quarter's financial review. These aren't optional meetings to reschedule when things get busy. They're essential checkpoints that keep small problems from becoming big ones.

Why This Matters

The pharmacies that thrive aren't necessarily the ones with the best locations or highest prescription volumes. They're the ones with owners who understand their numbers, plan proactively, and make decisions based on data rather than gut instinct.

January is your annual reset. Use it.

At Titan, we help independent pharmacies build the financial foundation they need to succeed. From closing your books to building forward-looking projections, we bring the pharmacy-specific expertise that generic accountants simply can't match.

Ready to start 2026 with clarity? Contact Titan today for a financial assessment that gives you the visibility and confidence you need to make this your best year yet.