Client Background:
Executive team at a multi-location healthcare company was looking for a more efficient way to manage the finance function. The existing small finance team, led by the COO, lacked the tools to get a consolidated P&L and clinic-level P&L at the click of a button. Management reporting needed significant improvement. The COO had a dual CFO role, and his goal was to reduce costs and get a more professional set of finance & accounting skills with better management reporting deliverables to prepare for roll-up acquisitions and their potential exit in 2 to 3 years
Challenges They Faced:
- Working in QuickBooks and Excel led to clunky manual processes with 20+ tab worksheets linked together to get consolidated P&L and clinic P&L
- Operational reporting came out of multiple transactional systems, which required manual reconciliation to ensure revenue reporting rolled up correctly
- COO/CFO faced the complexity of being bogged down with how to re-engineer the finance & accounting function
- The back-office finance & accounting function was not operating efficiently
- Did not have a plan to efficiently roll up acquisitions
- Had a business continuity risk with a shortage of skilled finance and accounting staff and an ineffective in-house finance and accounting approach
The Consero Solutions
Consero’s Finance as a Service:
- 30-day implementation of a pre-integrated and cloud-based finance & accounting technology stack with workflows and automation to deliver real-time visibility into key financial data
- Delivered reliable back-office services: efficient transaction processing, 10-day month-end close with accurate, timely and audit-ready reporting
- Accounting systems expertise to automate and professionalize reporting: consolidated financials and cliniclevel P&Ls
- A cost-effective and long-term finance & accounting solution that will scale as the business opens new locations
Challenges They Faced:
- Working in QuickBooks and Excel led to clunky manual processes with 20+ tab worksheets linked together to get consolidated P&L and clinic P&L
- Operational reporting came out of multiple transactional systems, which required manual reconciliation to ensure revenue reporting rolled up correctly
- COO/CFO faced the complexity of being bogged down with how to re-engineer the finance & accounting function
- The back-office finance & accounting function was not operating efficiently
- Did not have a plan to efficiently roll up acquisitions
- Had a business continuity risk with a shortage of skilled finance and accounting staff and an ineffective in-house finance and accounting approach
Results
Optimized Systems & Processes:
Optimized finance function in 30 days with best of breed financial, accounting, invoicing and expense software.
Increased Capacity: Consero took over all the responsibility under the CFO and Controller roles which gave the COO more time to focus on strategically impactful projects such as roll-ups vs. tactical implementation of technology & processes.
Improved Reporting and Data: Timely, audit-ready financials with automated reporting to reflect consolidated P&L and cliniclevel P&Ls enabled leadership to execute on a fast diligence and a smooth exit.
Roll-Up Ready: Consero’s reliable team of finance & accounting professionals provide expertise in supporting multilocation services-based businesses and roll-up acquisitions.
Automated Reconciliation: Established is a three-way reconciliation process between ops system, merchant processor and bank account which resulted in Consero discovering & addressing a $25,000 revenue leakage each month.
34% Cost Savings: Virtual & skilled finance team along with a sophisticated software stack and efficient processes drove a 26% cost savings in year 1 and 34% savings in year 2 (and going forward) compared to building and maintaining an in-house finance & accounting function
