The Customer
A New York-based healthcare management company affiliated with an Independent Physician Association (IPA) sought a comprehensive accounting partner. They wanted to streamline its financial operations. The client empowers healthcare providers and payors through contract and claims management, information support, and technology-driven enablement.
Despite offering innovative solutions within healthcare, the organization was challenged by outdated and inconsistent internal finance practices. Flatworld Solutions was engaged via its parent entity to deliver structured, scalable, and audit-ready accounting support.
The Challenge
Before onboarding Flatworld, the client's finance function was hindered by several roadblocks:
Their bookkeeping lacked structure and consistency. The month-end closings were unorganized and prone to delays. Their financial records contained inaccuracies and incomplete documentation.
The third-party accounting vendors failed to adhere to specific instructions. Frequent errors in transaction posting disrupted the company's financial accuracy. And, there was no reliable process to ensure accountability or compliance.
The company faced the inability to scale due to inefficient financial systems. Overdependence on internal resources led to overburdened teams, which further impacted the company's strategic activities, such as acquisition planning.
The firm suffered poor documentation readiness, a lack of reconciliation controls, and approval hierarchies. They also didn't automate routine financial dealings that impacted their audit cycles.
The CFO was forced to dedicate much of the time to addressing those issues, rather than focusing on upper-level strategies, such as due diligence and business expansion.
The Solution
Flatworld Solutions conducted a comprehensive audit of the client's accounting ecosystem, identifying significant gaps and highlighting industry best practices. The approach was implemented across three dimensions:
To establish structure and accuracy, we refined the SOPs for the month-end activities and set a MEC tracker to record a description of the work. We incorporated GL reconciliation standards and built a Monthly Approval Sheet with clear sign-off flows. We automated repetitive tasks in the accounting software, improving efficiency by 40%.
To strengthen the client's financial operations, Flatworld implemented tailored solutions grounded in process efficiency and Lean Six Sigma principles. These initiatives targeted key gaps in consolidation, reporting, documentation, and automation.
- Macro File for Consolidated Financials: Flatworld had come up with a special macro file that eased the process of preparing the consolidated financial statements. This automation enhanced the accuracy of reporting and freed around the controller's 50 hours.
- Document Management Enhancements: File upload workflows were standardized across the shared drive, ensuring consistent documentation and traceability.
- Treasury & Reporting Optimization: An insightful treasury report was created to meet the client's internal needs for treasury accounting.
- Platform Migration Support: Flatworld facilitated a smooth migration of all accounting data into Sage Intacct and designed a detailed chart of accounts for newly acquired entities.
- Task Execution Controls: To eliminate recurring posting errors, Flatworld documented all accounting instructions and ensured strict adherence during task execution.
The Result
The collaboration yielded quantifiable returns across multiple aspects of the client's finances. The results and improvements were as follows:
- Enhanced Bookkeeping Efficiency: Financial records are now properly maintained, reconciled, and easily traceable.
- Accurate and Timely Month-End Closing: Month-end close cycles are consistently completed within the agreed timelines, saving nearly four business days per cycle.
- Reduced CFO Involvement: The CFO's involvement in day-to-day review processes has reduced by an estimated 40 hours per month, enabling greater focus on strategy and expansion.
- Business Growth Enablement: The client successfully expanded its operations from 6 to 20 entities by standardizing its financials and ensuring audit-ready documents.
- Enhanced Satisfaction and Trust: The client has continuously been using Flatworld Solutions to manage the entire bookkeeping process, resulting in greater trust and transparency, better service delivery, and improved communication.
A Scalable, Compliant, and Audit-Ready Accounting Transformation!
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Flatworld Solutions
116 Village Blvd, Suite 200, Princeton, NJ 08540
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INDIA
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