Why Your CPA Firm Should Have Long-Term Care Specialists

Date December 7, 2022
Categories

When it comes to finances, your business faces more complex and nuanced challenges than most. Extending your services to more patients and maximizing your bottom line while you maintain regulatory compliance requires the financial support of a CPA firm that specializes in serving long-term care facility and home care providers. Before you engage a CPA firm, be sure they have the necessary capabilities and expertise.

Operational knowledge. A CPA firm that works extensively with long-term care facilities will understand the nuances and intricacies of operating a long-term care facility or providing home care. In particular they will understand the variety of costs that impact your business, how those costs are incurred and must be accounted for to maximize profitability. They will be able to use their understanding of the industry to build projections and break-even analyses that allow you to know the occupancy levels you need to sustain your organization. They will know how income and costs should be reflected in income statements and tax returns.

Benchmarking. An industry-savvy CPA firm with a large long-term care practice will know how and have the resources to benchmark your facility’s performance against county and state standards and against your competitors. They will have the expertise and tools to compare your performance to industry averages or to a particular facility anywhere in your state. They will be able to provide specifics on how you are faring in terms of nursing, social activities, administration costs, and capital costs—and provide insights on your most important metric, your cost per day per patient.

Cost reporting. A firm with professionals who specialize in long-term care will be able to do the cost reporting required, in some cases directly, by Medicare and Medicaid to determine reimbursement, the cost reporting critical to maximizing your return per patient. They understand the reimbursement process, from wavier patients to private insurance to Medicare and Medicaid.

Wage analysis. A healthcare-savyy CPA firm will understand the importance of wage analysis with regard to your nursing costs to ensure you are paying a market competitive rate without over paying. They will be able to help you determine levels of compensation that will help you recruit and retain nurses without the expense of engaging a placement agency.

Operational efficiencies: data analytics. Your CPA firm should be practiced at spotting opportunities to improve operational efficiency, providing appropriate direction, and implementing effective solutions. That includes data analytics: ensuring the your facility is reading and interpreting, then employing the critical and sensitive data it amasses internally to maximize profitability.

Acquisitions. A CPA firm with a wide range of expertise will have in-house valuation experts to help you determine the viability of an acquisition target, their financial strengths and weaknesses, and how they might contribute to your growth and profitability. They will be able to run a variety of scenarios on how an acquisition might impact your per bed per day costs and income. They will be expert healthcare M&A consultants who will work with you to the successful completion of the transaction.

Speak to one of our professionals about your organizational needs

"*" indicates required fields

hbkcpa.com needs the contact information you provide to us to contact you about our products and services. You may unsubscribe from these communications at anytime. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, check out our Privacy Policy.



Why Your Construction Company Needs a Benchmarking Analysis

Date June 25, 2019
Authors Kyle Melewski

Michael Kapics, CPA, CCIFP, and Construction Industry Group Leader for HBK CPAs & Consultants, would like to share the following article written by Kyle Melewski, CPA, which highlights several important recommendations illustrating why a benchmarking analysis is so advantageous for a construction company.

Why A Benchmarking Analysis is Key

Knowing where you stand in your marketplace and how your operational and revenue/growth performance compares to that of your associates vying for the same customers is key to remaining competitive. You want to know where you stand among your construction company peers and HBK CPAs & Consultants (HBK) can help you acquire this knowledge by performing a benchmarking analysis on your business.

What is a Benchmarking Analysis?

A benchmarking analysis is a specific type of market research that allows organizations to compare their existing performance against those of companies similar in scope and services. This enables construction company owners and operators to make improvements that complement their overall business approach and ultimately benefit the company’s profitability. The main objectives of a benchmarking analysis are to determine what improvements are necessary and where they are applicable, to scrutinize how successful competitors achieve their high performance levels, and to use the data gathered to improve efficiencies, operations, and the overall performance of the construction company undergoing the benchmarking study.

How We Work with You

We compare your company and its performance to other companies of similar size, geographic region and scope of service. We evaluate your company’s financial performance by comparing key performance indicators (KPIs) against those of your peer group, including: working capital, amount of backlog, return on equity and assets, and generated revenue. We help you determine the effectiveness of operational functions, such as billing, collection, labor force efficiency, and how you leverage debt. By drawing these comparisons, we are able to assess the overall productivity and profitability of your organization.

HBK serves more than 500 construction firms across the eastern U.S., consulting owners and operators on ways to improve top and bottom line performance. We use our knowledge and experience in benchmarking to provide our construction firm clients with a blueprint for improving their bottom line and support their efforts to grow, expand, and succeed in all aspects of business.

To learn more about obtaining a benchmarking analysis for your construction company, please contact Kyle Melewski at kmelewski@hbkcpa.com or HBK Construction Group Industry leader Michael Kapics at MKapics@hbkcpa.com.

Speak to one of our professionals about your organizational needs

"*" indicates required fields

hbkcpa.com needs the contact information you provide to us to contact you about our products and services. You may unsubscribe from these communications at anytime. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, check out our Privacy Policy.