Practices must be up to date on all reporting measures to ensure compliant and efficient business management
Financial reporting is one of the biggest business management challenges for independent GI physician practices and ambulatory surgery centers (ASCs). This confusing and time consuming, yet essential, task can leave those unfamiliar with proper reporting processes at risk of reduced insight into practice or ASC financial trends, along with potential fines.
“Financial reporting is one way to really tell how the business is performing,” says PE GI Solutions Executive Vice President of Finance Tara Hamburger. “It’s the best way to gauge profitability and performance.”
Why Worry About Proper Reporting?
Along with the legal obligation, financial reporting can be a valuable tool to better understand aspects of your practice or ASC, especially when considering creditworthiness and day-to-day decision making. Failing to meet set guidelines can lead to potential litigation from outside sources, such as the IRS, and lead to further complications for your business.
Netsuite.com lays out several ways poor financial reporting can open up your location to potential trouble, including fraud, inadequately trained staff, and poorly integrated financial systems, among others. Each of these aspects, whether intentional or otherwise, brings unnecessary risks upon yourself, your staff and your practice or ASC.
How to Improve
One of the best ways to improve financial reporting is to have safeguards, such as a corporate partner like PE GI Solutions to assist in the process. Our PE Practice Solutions and PE Center Solutions platforms can assist in helping you better understand the financial health of your practice or center.
“One of the big ways we help our partners is through the financial reporting,” Hamburger says. “I’ve often seen practices and centers using cash statements prior to partnering with us, which is good. However, the thing about cash statements is that it’s hard to understand productivity through these reports.
“When we assist partners, we will use an accrual basis. By gauging things this way, we can really see how a location performed versus when the cash hits the bank later that month. When providing statements, we will share a cash statement and an accrual statement. This way, practice or center leadership can really understand where they were performing best or what changes can be made to improve.”
Financial reporting is a key aspect of any successful business. Understanding the numbers and creating plans for improvement can be difficult to comprehend but taking the time to learn can be a valuable tool for understanding the intricacies of running your practice or ASC.
To learn more about how PE GI Solutions can help your practice or ASC with financial reporting, visit pegisolutions.com.