Client: A Medicare services provider, experienced significant challenges in their first year of operation after NPI & PTAN credentialing. Despite providing essential services, the company faced huge financial losses, minimal revenue, and struggled with large amounts of accounts receivable.

Challenge: The primary issues stemmed from the company using a cash accounting system, which failed to accurately reflect their financial situation. This led to improper invoicing, missed revenue, and delays in managing their receivables. As a result, they had difficulty gaining a clear understanding of their financial health, which affected decision-making and cash flow.

Solution: Our team recommended switching from cash accounting to accrual accounting, which would provide a clearer picture of their financial status. We helped streamline their complex invoicing process, ensured proper accounts receivable tracking, and provided guidance on managing their cash flow more effectively. This shift enabled the company to better track revenue as it was earned, rather than when cash was received.

Outcome: In the next fiscal year’s Financial Statements, the company saw a significant improvement. Their income was well above expenses, accurately projecting their financial position, thanks to the more accurate invoicing and receivables management. The adoption of the accrual system allowed them to make more informed financial decisions, improving their cash flow, and positioning the company for continued growth. We provide specialized services for the Healthcare industry, which is complex, requires timely submission and frequent review of receivables.