The pharmaceutical industry is focused on the manufacturing of medicines and medical devices which are used by healthcare providers and patients all over the world. They invest capital heavily into the research and development (R&D) of medicines and products. It can take a significant amount of time for these to be approved for the market, by the FDA in the US, to be used by patients. The industry is typically made up of manufacturers, biotechnology companies, and wholesale and distribution companies that oversee the delivery of produced items. Pharma controls how people all over the world are able to acquire their necessary medicines and determine what they have to pay for them.
Pharma is a highly-regulated industry, if mistakes are made there can be astronomical fines. The risk to the supply chain is significant, as we have seen many companies struggle during the pandemic. As mentioned previously, large portions of revenue are invested into R&D to stay ahead of the competition. There’s huge pressure to develop medicines and treatments, and as we’ve seen recently with the race to be first to develop vaccines. With all of these huge pressures and risks, it’s important for pharma companies to automate as much of their processes as possible. That’s especially true in the finance department, where there is a huge reliance on manual processes and paper-based records.
In pharma, there are Accounts Payables that need to be made to multiple suppliers for items such as raw materials, investments in R&D, and the distribution of products. Payment files can be created in Cashbook. There is also the Accounts Receivable side where monies are both received and Collected from customers, usually large wholesalers and healthcare providers. These can be in multiple formats, such as CSV files, checks, credit card files, email remittances, lockbox files, and customer portal retrievals. If you are selling to wholesalers and supermarkets there will be multiple Deductions that need to be managed correctly. There will also be large rebates to be organized and split across multiple customers and divisions. Finally, you have the Bank Reconciliation portion to check if all monies in company bank accounts match with the general ledger data. It can be a very complex and chaotic financial process if done manually. Cash automation software helps pharmaceutical companies take back control of their financial processes. Cashbook has the necessary experience to help pharmaceutical companies achieve significant levels of automation.
As it’s highly regulated there is a significant amount of paperwork involved in the pharmaceutical industry. Payments to multiple suppliers and companies related to R&D activity filter back to the finance department. Records of all activity are required to be stored for financial auditing and reporting purposes. It is critical that all of this financial data, records, and invoices are stored safely and securely. They need to be easily accessed when the time comes for external audits and inspections.
Cashbook stores all financial data safely and securely. For example, on the AP side, you can view a full history of payments that have been made, when they were made, and who they were made to. Whatever Cashbook module you are using, there are reports and graphs to analyze the current cash situation along with the previous history. Along with the benefits of accessing data instantly, digitizing your financial records leads to huge savings on paper storage and eliminates the worry of ever losing valuable data for audits. It is critical for pharmaceutical companies to be compliant with the intense regulation.
Many pharma companies are using manual processes and legacy systems to complete their financial processes. Digitizing these processes leads to huge savings of time, resources, and overall costs. While realizing huge annual savings for organizations. Cashbook has multiple software solutions that are used by our many pharmaceutical clients all over the world. We have the necessary experience in implementing our software with pharma companies that provide a varied range of products. We have automated many pharma-specific challenges and financial processes, and have tailored our products to solve business needs. If you would like to get in touch with us to discover how we can transform your finance department, request a demo today.