Financial success in the home care industry was challenging in 2020. Many home care organizations were hit with an increase in expenses and a drop in revenue, with necessary operational expenses brought on by COVID-19 and many clients choosing to decline home care due to social distancing.
While unusual, the experience taught many organizations the importance of financial emergency preparedness. A firm grasp on the intricacies of a business’s money flow can help organizations prepare for any future emergencies and easily identify areas for improvement to ensure financial success.
Why Take the Time to Analyze Data?
Yes, this procedure can be time-consuming. But once a process has been developed, the payoff will be well worth the time spent studying numbers.
Based on a study that evaluated companies using customer behavioral trends to plan business objectives, organizations that are strategic with their data analytic insights perform 85% better in sales growth over other businesses and by more than 25% in gross margins
While home care organizations are not trending client behavior, they can identify underperforming operational patterns that can tip the organizational growth scale in their favor when addressed.
Complete Control Starts with a General Ledger Report
An advanced, intuitive home care software should include a robust reporting center, offering a general ledger report.
A general ledger report shows all financial activity for a business. All payroll, expenses, money earned and money spent are listed on this report. With the ability to filter by time frame and even sort by account type, the general ledger provides complete transparency into the health of a business.
Put the Data to Good Use
The general ledger acts as the groundwork of financial statements, but only by analyzing these results can a business mitigate risk, become more efficient and improve profits.
Because the ledger can contain a complete financial history, it enables year-to-year expense tracking to create a realistic budget for the upcoming fiscal year. If a business has more than one location, it can easily identify which branch is the most profitable. Using the general ledger report, organizations can locate unnecessary expenditures, narrow down which month the business spends more money annually, and even anticipate future taxes based on annual income trends.
Staying vigilant with analytics can also help with scheduling caregivers and staff and determining whether hiring is a worthwhile option. Perhaps the business does not have the client capacity to warrant a new employee or the staff size is too small for unnecessary home care visits. These answers are provided by using revenue cycle management tools available in a home care software.
A Complete Grasp on Finances
It is helpful to use a home care software that safely stores and analyzes this financial information. Be sure only to use a platform that takes extra security measures to protect valuable and confidential information, like a multi-layered security process protocol.
Axxess Home Care also offers other permission-based financial reports to assist organizations in analyzing data:
- Payment Adjustment Report: This report enables organizations to follow up on payment collection and assess financial health and direction for growth.
- Claim and Invoice Activity Report: Organizations can generate detailed or summarized reporting for all claim activity during a given transaction activity date range.
- Month-End AR Report: This report generates month-end close accounts receivable for claims and invoices according to the length of time that a claim’s or invoice’s net receivable balance has been outstanding and unpaid.
- Earned Revenue Report: This report enables organizations to calculate earned revenue after each billable task. Users can select a date range to view scheduled billable tasks with the corresponding fee for each task.
Axxess Home Care software supports home care organizations by providing a cloud-based, HIPAA-compliant home care software for medical, non-medical and pediatric visits. Stay in control with built-in reports and metrics that support every aspect of your business.
