A question we hear often is, "What is the best financial management software packages on the market today to help a healthcare organization"?
This, of course, is a very complex question to answer and most advisers would correctly state you need to understand your specific business goals, requirements and of course budget. However, The Resource Group has worked with many industries over the years and had exposure to most accounting/financial packages on the market used by healthcare organizations. We find that Sage Intacct is one of the top accounting software solutions out there, if not truly THE best when it comes to the needs of the typical healthcare organization.
Below are the "top 5 reasons" we suggest Sage Intacct for your healthcare organization's financial management software.
1. True Cloud Reduces IT Expenses and Resources
Healthcare organizations using a financial management solution that is true multi-tenant cloud software will have no hardware to purchase or maintain and will benefit from automatic and seamless upgrades, easily administered, user access, and lower costs than older, on-premise software when you factor in the original purchase price and annual maintenance. As a note, it is important to understand what "true cloud" means and even more, what it means for your organization.
2. Dimensional Chart of Accounts vs. Linear Chart of Account
A dimensional chart of accounts allows for crazy good reporting (think of 2D to 3D), and lets you keep your chart of accounts and general ledger codes simple—you only need to set up primary account codes and then apply them to each location, department, physician, and patient via drop-down menus. As your organization navigates additions and changes, there's no need to add hard-coded segment combinations.
Dimensions also allow you to track revenues, expenses and other performance metrics for location, department, physician, patient, project, and fund through real-time reporting. This is especially useful for adhering to Financial Accounting Standards (FAS) 116 and 117 if you're a healthcare organization that is also a nonprofit.
With this flexible financial foundation, you gain insights that measure progress toward your goals that may not be possible with a linear chart of accounts.
Many outdated accounting software packages will use what is called a linear chart of accounts that is somewhat antiquated in structure. This requires users to create a separate general ledger classification for each location, department, physician, patient, project, and fund – even when those general ledger codes are the same.
3. Deeper Reporting That is Easy to Use
Using Sage Intacct's dimensions fundamentally improves your reporting making it easier for you to get fast answers to questions about your healthcare organization. You can quickly view performance from any perspective you need. As you create reports, simply use drop-down lists to filter, group and organize your data by dimensions. For example, you can go from a standard income statement to profitability by location or physician with a few clicks of the mouse.
Without dimensions, customized reporting typically requires a programmer specially trained by your financial management software vendor, often costing over $300 per hour. Based on 30 years of working with healthcare organizations, we've seen this level of reporting save at least 12 hours per month spent preparing financials and trustee reports, and allow our clients to slice and dice financial data coming from their electronic medical record (EMR), payroll and practice management software – to their heart's content.
4. Automated Multi-Entity Management Capability
Financial consolidations remain one of the key hurdles for most businesses today, and healthcare organizations are no exception. The process of manual consolidation is often time-intensive assembling information, validating, and reporting for many accounting groups. This manual process can sometimes be measured in weeks.
Whether you are a multi-practice clinic, a group of long-term-care providers, a network of hospitals, or a chain of imaging centers, you want to know and understand various lines and businesses to allocate capital and fund the organization. Consolidation in Sage Intacct eliminates all inter-group activities and balances to report transactions with external third parties as if the entire group of companies were operating as a single entity. With Sage Intacct accounting software for multiple entities, you can eliminate the manual effort, close the books faster, and bring on the growth.
5. Automated Workflows Saves You Money and Time
With Sage Intacct, you can automate key finance and accounting processes, including procure-to-pay and the month-end closing. Organizations with multiple locations can centralize payables and eliminate manual processes for payments and inter-company accounting. Sage Intacct helps you save time, improve accuracy, and accommodate further growth without adding staff.
Automation also helps capture and centralize financial data for insight into what's happening at each location as well as in the overall organization. Additionally, automation within a cloud-based solution reduces the needs for IT support so the organization can grow without having to grow the IT department. All of the above can lead to increased productivity, which can save the cost of having to hire an additional 1.5-2 full-time employees – equating to $80,000 to $100,000 per year.
Bonus Reason: Sage Intacct is HIPAA Compliant
If your healthcare organization is subject to HIPAA regulations, you can confidently use Sage Intacct, knowing that proper tools, security, and agreements are in place to support your HIPAA compliance. Sage Intacct's advanced audit trail enables you to monitor and audit PHI access in support of HIPAA requirements. They have been certified as HIPAA and HITECH compliant by Sword and Shield, so you can trust that your data has the appropriate security safeguards in place.
To demonstrate our commitment to comply with HIPAA, Sage Intacct will sign a Business Associate Agreement with eligible healthcare clients.