Upgrading to a new ERP system to better track your financial operations may seem like a large investment. But it can pay off and create a tangible return on investment, as well as support growth initiatives.
University Clinical Health (UCH), an LBMC Technology Solutions client, is a nonprofit organization that provides primary and specialty care from more than 100 physicians who also serve on the faculty at the University of Tennessee College of Medicine.
Over the past few years, UCH significantly transformed its operations, shifting its focus towards multi-specialty, multi-facility practices. But the organization struggled to adapt its outdated accounting system to changing needs.
The finance team wanted better transparency into UCH’s multi-entity, multi-location financial data. They also wanted to reduce the amount of manual data entry and other drains on IT resources. They wanted to support a paperless workflow environment, and a new system needed to integrate and connect with the organization’s payroll and integrated care software.
As UCH’s technology partner, LBMC Technology Solutions helped the company assess their needs, weigh upgrading their current solution against implementing a new one, and determine the best path moving forward.
After choosing Intacct, a leading provider of best-in-class cloud ERP software, the organization was able to document more than $500,000 a year in savings through staff and IT costs. It also dramatically shortened UCH’s monthly close by 40%, and freed eight days a month by automating invoicing, accounts receivable and reporting.
With better information and technology-enabled processes, cash flow improved by $125,000.
“With the time we’re saving from mundane processes, we’re able to focus on really understanding what drives our business and monitoring key trends, such as the rising expense of medical supplies and medications, “ said Timothy Carlew, UCH’s controller. “Now we’re truly a partner to the business; helping make strategic decisions about how to get our costs down, as well as where to invest in new ventures as we enter growth mode.”
Carlew also noted that the organization was able to get better information through executive-level dashboards, allowing leadership to respond more quickly and adjust to evolving requirements. The dashboards include “performance cards,” for example, that display flash metrics to help the CEO and executive director monitor cash flow and gross margin from week to week, month to month and year to year.
“It’s so helpful that we can drill into a deeper view of our data as needed, or roll everything up to a very high-level picture of our financials for board meetings – all from the same reports,” he said.
In the end, UCH was able to improve productivity, reduce complexity and strengthen its return on investment through identifying the right financial and business management solution better suited for its new needs.