eBooks
Issue link: https://read.uberflip.com/i/1020911
Financial Consolidations for Multi-Entity Healthcare Organizations 6 Consolidation: The Next Generation The new way to consolidate comes from leveraging leading cloud financial management systems. The characteristics of this type of configuration include four critical differences from other traditional, on- premise solutions. 1. A Scalable Accounting Foundation for Smarter Automation Healthcare firms are o en adding virtual and physical entities to their corporate structures. However, traditional accounting and finance systems struggle to add these entities. On-premise solutions cannot replicate the systems and processes for new entities and across geographic jurisdictions. Cloud-based financials alleviate this shortcoming, enabling you to add new business units seamlessly and without any additional investments in hardware, so ware, or configuration. When one integrated system gets leveraged, training and user resources are readily available to support the implementation. When all business units–regardless of location, old and new–use the same system, you achieve significant productivity gains. Automation means you can redeploy corporate accounting staff to more strategic activities. Finance's role changes from a mere preparer to the analyzer and reviewer. It creates a shi in mindset and positions finance to add value to information and move beyond simply reporting it. 2. Supporting Faster Growth Many healthcare firms are moving quickly to capitalize on growth and M&A opportunities. Finance must be agile enough to support rapid changes by establishing books and records that align with the rest of the company. A turnkey solution can get systems and processes up and running to generate valuable information to support all of the decisions that happen when a new entity is created or acquired. At the same time, the corporate accounting group wants and needs to roll-up a new entity without missing a beat. Cloud financial management systems are ideal for ramping up new entities. Existing practices, perhaps with similar business models, can be used to quickly configure the accounts of new entities. Report writers can adjust to the reporting needs and meet different GAAP and healthcare-industry requirements. You can adapt the chart of accounts to meet the needs of the new business unit. At the same time, because one system forms the backbone of the organization's systems and processes, you have the luxury of centralizing core finance functions, such as accounts receivable or accounts payable. That translates into a significant opportunity to leverage one database of customers and vendors across the consolidated organization�