Closing The Books: Why timely month-end financials can make or break your business

It is crucial that at the end of every month, direct care businesses have their financial statements in order. Some of the current issues that providers are facing include employee turnover and recruiting, opening new sites, and deciding whether to close or sell a site. These issues, along with changes in business models and service offerings, require organizations to be nimble and have live data available to make operational decisions. We at ProviderCFO understand the importance of timely financials and the impact they have on a company’s success. Our customers typically come from a slow closing process, so we have perfected the 10-day close with our clients to ensure they can make informed decisions. There are two main reasons that we help organizations push to a faster close; 1) They will have a clear and accurate picture of what is happening now. 2) The data will allow operations teams to make more effective decisions.

The way we get a clear and accurate picture of what is happening in our client’s organizations is with live data. Waiting until the end of the year, or even until the end of a quarter, to make changes does your organization no favors if there is a problem happening now. This real-time data is essential for direct care businesses to track their recent past performance and progress. Live data can tell us anything from changes in residents, food costs, payroll, etc. At ProviderCFO, we integrate top-tier software to keep our clients informed on what occurs each month with their facility(s).

Having this live data then allows operations teams to make more effective decisions. For example, while looking at the live data, you may realize that a resident recently moved out. This can affect everything from your food order to staffing until that room is filled. At its core, live data allows your operations team to make timely, informed decisions to save on costs and minimize risks. At ProviderCFO, our team of financial analysts assist our clients by looking for discrepancies and cost-saving measures, so that they can get the most out of their organization.

Every direct care company is different, so there is no perfect end-of-month checklist. With that said, we at ProviderCFO have perfected the 10-day close. Our team of accountants, bookkeepers and financial analysts use live data to help our clients understand how their finances are doing now, and make informed decisions on how to move forward.?