A rapidly growing radiology group practice was looking for an alternative solution to having an in-house accounting team. They were struggling to centralize processes and maintain accurate and timely books as they acquired new radiology locations. Withum’s Outsourced Accounting Systems and Services (OASyS) Team took on the entire accounting function for the group while also implementing new systems and services such as Sage Intacct, bill.com and Expensify to streamline and automate internal accounting and financial processes. Withum’s OASyS Team also offered guidance on how the radiology group could qualify for pandemic-related funding, such as assistance with PPP loan calculations and forgiveness and CARES Act Provider Relief Funding (PRF).
The client is a healthcare radiology group practice in a highgrowth mode. Located in Northern New Jersey, the company was formed when two radiology groups merged. Over two years, the radiology practice grew from six sites to 20 sites. The healthcare company continues to look for opportunities to expand throughout New Jersey.
The radiology group knew that if they were going to grow, they needed a more efficient way to onboard new practices to ensure uniformity with all accounting functions and processes.
Their biggest challenges before engaging Withum as their dedicated outsourced accounting team were:
- Lack of automation to process bills and payments; everything was done manually.
- Difficulty maintaining accurate books based on location due to limitations in their current bookkeeping software.
- Onboarding new radiology practices to follow unified accounting and financial processes and procedures.
- Tracking expenses to properly allocate to the appropriate location.
The Approach And Solution
The lead originated from a healthcare attorney who introduced Withum to the radiology group to assist with financial due diligence when the individual radiology practices planned their initial merger. At the end of the transaction, the group reconnected with Withum to meet their outsourced accounting needs. Knowing Withum was a leader in the healthcare services space with an extensive pool of resources outside of their OASyS team, the radiology group engaged Withum.
The radiology practice’s immediate need was to outsource its entire accounting function. Having a centralized team would eliminate the need to onboard new people as the business grows. Once engaged, Withum’s OASyS team introduced three new cloud-based systems to position the company to support sustainable growth.
- Sage Intacct Implementation: Withum introduced Sage Intacct to support multiple entities under one operating company. Quickbooks was a practical solution when the practice was a single location; however, it couldn’t support the company’s rapid growth.
- Bill.com Implementation and Training: Withum proposed bill.com as a solution to automate the healthcare entity’s bill pay and approval process. AP functions now happen instantly, saving time and maintaining accuracy while integrating directly to Sage Intacct through two-way sync.
- Expensify Implementation and Training: Withum updated company expense tracking and reporting through Expensify. Before automating the expense process, management was combing through receipts from company credit cards, and as the practice grew through acquisition, this became a daunting task. Once trained on Expensify, Withum enabled staff and management to have a centralized place for expense approval and helped eliminate unnecessary spending. Expensify also allows for the proper allocation of expenses to the appropriate entity.
Additionally, as a result of the pandemic, Withum consulted on various COVID-19 relief packages that garnered additional funding for the business.
- COVID-19 Related Financial Assistance: Withum’s Healthcare Advisory Team provided assistance, training and education to the radiology group in securing financial aid due to the pandemic. Withum assisted with the SBA’s Paycheck Protection Program (PPP) loan calculations and forgiveness in addition to offering guidance on qualifying expenses under the CARES Act Provider Relief Funding.
The Results, ROI
Withum’s OASyS Team positioned the radiology group to scale and grow its practice by performing all outsourced accounting responsibilities. As part of the outsourced accounting role, Withum upgraded ineffective accounting systems from QuickBooks to Sage Intacct to support multiple operating entities, automated bill approval and payments through bill.com and streamlined the haphazard expense process with Expensify. The radiology practice also benefitted from Withum’s healthcare advisory guidance to qualify and receive pandemic-related funding via the SBA’s Paycheck Protection Program and the CARES Act Provider Relief Fund.
Additionally, because of Withum’s expertise with healthcare entities and wealth of resources in tax and advisory services, the radiology group also uses Withum’s tax services. Having both the outsourced accounting and tax teams “in-house” saves the company time and effort. Any accounting or finance conversation can take place seamlessly behind the scenes and all financial records are in a centralized location for easy access by both Withum teams.
Contact Withum’s team of professionals if you have any questions or concerns.