For those of you in healthcare, ensuring the health and well-being of your clients is always at the forefront. A lot of you run programs and services as a means of fulfilling your main goal and, of course, generating revenue. Providing these services is at the core of your mission, after all! However, it can seem like you’re spending more time juggling administrative accounting tasks than providing a high level of care. How can you possibly keep up?
The best way to manage your revenue – and keep up with regulatory and financial tracking laws – is to make sure your accounting is accurate to the smallest detail, while not causing delays in cash flow. For fee-for-service billing, you need a segmented account structure that can:
- Track by program and recipient to ensure timely and accurate billing
- Report on exactly which services have been provided to each client
- Have the ability to respond quickly to billing inquiries
- Integrate with third-party billing services to prevent time-consuming duplicate data entry
You also need to properly allocate, track, and report on grant and government funding of your programs and services, which means you need to:
- Create segments to allocate grant money across multiple programs and fiscal years, reflecting the way money is actually being spent
- Track eligibility for services and dollars at the client and program levels
- Use budget-to-actual reporting to ensure you’re optimizing the funds allocated to each program and participant
- Keep cash flow on track by ensuring that invoicing to programs is accurate
And, if your organization is growing, you’ll start adding more programs and services, which compounds the complexity of your accounting. If you’re thinking about expanding your mission, keep in mind the new programs, billing sources, and even locations, trigger new reporting requirements. You’ll want to have a solid financial system in place before you start expanding, or you’ll drown in spreadsheets.
We’ve put together a short paper that can help you determine if your financial software is up to the task. “Managing the Challenges of Nonprofit Programs and Services,” covers the issues many nonprofits face and how your fund accounting software should be able to help you. If you’d like to learn more, register for our live webinar, “Healthcare Programs and Services: Managing the Challenges,” on Tuesday, July 31 at 1 p.m. CT.