Cash flow issues - The importance of planning ahead
Challenge: A global physical therapy company was growing at a rapid pace, but the company was consistently facing cash flow issues. This posed a significant problem, as it was difficult to plan ahead. The company also lacked financial models for planning and needed a budget as it was going through a major growth phase.
Action: Modern CFO took a deep dive into the financials and completed an in-depth analysis of their data to develop a cash flow model. We also developed a budget and planning model to aid in cash flow forecasting. Combined with this information, we worked with the CEO to develop a strategic growth plan.
Result: Our cash flow model allowed the company to plan ahead, anticipating any cash flow issues before they occurred. Furthermore, our approach led to accurate budget projections within 1% of actuals, demonstrating the effectiveness of our models. Most importantly, the CEO now has a long-term finance strategy in place, without the worry of unplanned cash flow issues slowing growth down.
Challenge: A major medical group was growing through acquisitions. Modern CFO was tasked with evaluating ongoing M&A activity and reviewing financial pro formas. The newly formed Business Development team faced challenges in gathering and validating data from clinics and consolidating various P&L statements.
Action: Modern CFO met with key stakeholders to better understand their challenges and developed a standardized pro forma P&L statement for all acquisitions. We created a checklist to ensure no data/documents went missing and set up monthly meetings to review actual performance against the pro forma.
Result: The standardized workflow cut assessment time in half and provided senior leadership with consistent, standardized information for decision-making.
M&A – Identifying opportunities for growth
Digital Transformation – utilizing Business Intelligence to improve operations
Challenge: A healthcare company recently transitioned to new Electronic Medical Records (EMR) software, but it lacked flexibility in reporting and data extraction.
Action: Upon evaluating the options, Modern CFO determined the use of a Business Intelligence tool was the best option. Upon approval from the CEO, we worked with the vendor to train on the tool and create reports, and concurrently worked with the leadership team to understand the gaps in reporting and business insight.
Result: Modern CFO created a schedule utilization report that generated over $300K in additional annual revenue and partnered with clinic managers to reduce cancellations by 15%.