Key Results
Operational Costs
Savings
Identified
Prevented in Q1
The Challenge
A medical equipment distributor faced operational inefficiencies in financial controls, reporting accuracy, and AP/AR processes. These challenges led to increased tax exposure, delayed vendor payments, and potential fraud risks.
Client Profile
A prominent medical equipment distributor with services in Part B billing, durable medical equipment, and respiratory equipment & supplies is experiencing financial and operational difficulties.
The Solution
To address these challenges, we provided a comprehensive suite of financial and accounting services aimed at streamlining processes and enhancing accuracy. Our approach included deploying a team of experienced professionals and implementing financial controls.
| Role | Experience | Savings |
|---|---|---|
|
(2) AR Specialist |
5+ years in accounts receivable |
$86,000 |
|
Controller |
15+ years in financial management |
$103,000 |
|
AR Specialist |
7+ years in accounts payable |
$44,500 |
|
Medical Billing Specialist |
10+ years in medical billing |
$38,000 |
|
Sr. Corporate Accountant |
12+ years in corporate accounting |
$67,000 |
|
(2) Jr. Corporate Accountant |
3+ years in corporate accounting |
$80,000 |
|
AR/AP Manager |
10+ years in AR/AP management |
$53,000 |
Our Approach
The client was initially understaffed for the workload required in a highly regulated industry, which contributed to the company’s struggles.
01. Control Gap Identification
By identifying internal control gaps and implementing both detective and preventative controls, we helped the client avoid future financial and operational pitfalls.
02. Financial Statement Preparation
We prepared financial statements for FY 2022, 2023, and Q1 2024, ensuring accuracy and compliance.
03. Transaction Reconciliation
Thousands of credit card transactions were reconciled, and receivables were applied to hundreds of customers, ensuring the sub-ledger and General Ledger (GL) balances were accurate.
04. Inventory and Fixed Assets Reconciliation
We reconciled inventory and fixed assets, recomputed depreciation, and ensured accurate financial reporting.
05. Payroll Reconciliation
Payroll was reconciled between Sage and PayCore, eliminating discrepancies.
06. Loan and Interest Calculations
We created loan schedules and recalculated accrued interest to ensure accurate financial obligations.
07. Expense Reclassification and GL Entries
We reclassified expenses and posted necessary adjustment entries in the GL.
08. Record to Report Services
We provided comprehensive Record to Report services.
What started as an experiment with a single part-time remote worker has transformed our firm. We’re now more agile, competitive, and poised for growth than ever before.
- Representative from the firm
Results and Impact
The implementation of these services led to significant improvements in the company’s financial operations.
Key results included:
01. Identified and Rectified Hundreds of Erroneous Accounting Entries
02. Streamlined Accounting Processes
03. Ensured Timely Closing of Books
Provided up-to-date financial information for decision-making.
04. Implemented a Periodic Management Reporting System
Enabled informed decision-making and strategic planning.
05. Achieved Annual Cost Savings
06. Loss Mitigation
The partnership not only resulted in the successful preparation of the required financial statements but also transformed the company’s accounting function into a more efficient and effective operation. The enhanced accuracy and timeliness of financial reporting provided the company with better insights and control over its financial health, ultimately contributing to its overall success.