Boosting Efficiency by Approx. 40%: End-to-End Accounting for a HealthCare Management Company

About the Client

Our client is one of Brooklyn's largest independent practice associations (IPAs). The organization empowers healthcare providers and payors to improve healthcare quality while reducing costs. Their services include:

• Contract and claims management
• Information management support
• Healthcare provider empowerment through technology and purchasing power

Challenges

Prior to partnering with us, the client:

• Lacked a streamlined bookkeeping process.
• Had an unstructured system for the month-end closing.
• Was inconsistent and inaccurate with financial records.
• Was engaging with third-party vendors but faced issues, particularly non-adherence to instructions, leading to wrongly posted transactions.
• Encountered inefficiencies in financial processes and documentation, such as inadequate uploading of document proofs, etc., affecting audit readiness.
• Faced difficulty expanding its business operations and acquiring new entities.
• Was inefficiently utilizing resources and overburdening the in-house team.

Our Solution

Upon onboarding, we learnt about their business, performed a walkthrough of the complete accounting system and workflow, performed Gap analysis, and identified improvement areas:

• Lack of standardized accounting processes for daily and month-end close activities.
• Delay in month-end reporting due to lack of a month-end close (MEC) tracking system.
• Inefficient preparation of consolidated financial statements.
• Inefficient preparation of consolidated financial statements.
• Weak internal controls due to a lack of segregation of duties and an approval matrix to support compliance.
• The Third-party outsourcing partner frequently posted inaccurate transactions, ignored management instructions, and lacked attention to detail, which impacted financial accuracy.
• Accounting activities lacked standardized operating procedures (SOP).
• The CFO spent excessive time resolving accounting issues, limiting focus on strategic initiatives such as due diligence for acquisitions and strategic business growth.
• Inability to automate repeated/recurring tasks and processes.

We explained the above gaps to the client, proposed necessary changes, and ensured the adoption of industry best practices.

Implementation Strategy:

Process Standardization:

• Implemented structured bookkeeping workflows.
• Prepared and maintained a month-end close tracker that clearly defines the timeline to complete daily, weekly, and monthly activities.
• Prepared SOP for all month-end close activities that streamlined our workflow and audit readiness and helped the external auditor find the audit trail for different accounting processes.
• Automated recurring transactions within the entity’s software to reduce manual errors and gain efficiency by approximately 40%.
• Introduced GL reconciliation protocols for better controls and accuracy.
• Introduced a Monthly sign-off sheet/Approval Sheet for appropriate delegation of tasks to each resource for internal control compliance.

2. Customized Solutions:

• Created a customized Macro File for efficient preparation of consolidated financial statements. This Macro file saved about 50 hours of controller’s time.
• Standardized workflows for uploading files to the Shared Drive.
• Prepared an insightful Treasury Report based on client’s needs for standardizing treasury accounting.
• Updated internal files in real-time as per proposed changes to ensure management gets the updated report for business decision-making.
• Migration of accounting data into a new accounting software (Sage Intacct) and building a chart of accounts for newly acquired businesses.
• Ensured all instructions are documented and acted upon while carrying out different accounting tasks to ensure negligible error or misappropriation.
• Improved documentation of financial processes, prompting audit readiness.
• As a result of improved accounting processes and practices the client’s review time has been reduced by 40%.

Collaboration:

• Proposed daily and monthly calls to ensure better communication and alignment.
• Encouraged communication via platforms such as MS Teams to reduce response time significantly.
• Created a structured reporting system for seamless client communication.

Results

With the newly implemented processes and systems, the client experienced significant improvements:

• Enhanced Bookkeeping Efficiency: Properly maintained and reconciled financial records.
• Accurate & Timely Month-End Close: Ensured financial statements were up to date and completed before the agreed MEC timelines, saving approximately 4 business days.
• Reduced CFO Involvement: The CFO's involvement in reviewing the books was reduced by approximately 40 hours monthly.
• Business Growth: The client expanded its business and recently acquired 14 additional entities (it previously had six entities).
• Increased Client Satisfaction: Improved financial transparency, service delivery, and proactive communication. They can rely on us for end-to-end bookkeeping tasks.

Way Forward

BackOffice Pro continues to support the client by providing ongoing process optimization and financial reporting enhancements. Our partnership ensures they stay ahead with the best industry practices, allowing them to focus on business expansion. At the same time, the existing finance & accounting needs are fulfilled, and we remain fully compliant. If you are looking to streamline accounting services, outsource to Backoffice Pro now.