Are you being appropriately paid for the work you are doing?

Are you being appropriately paid for the work you are doing?

When working with clients in the medical space, oftentimes we are seeing providers and facilities not being paid for the hard work that they are doing. Over the past three years, it has been more difficult for organizations to get reimbursed from insurance contracts, and even self pay patients.

This requires a clean process that allows for easy tracking of metrics and for holding these other parties accountable. Related to this, JFS, LLC has a great story to share…

 

When JFS, LLC was engaged to support a small medical practice that specialized in primary care and behavioral health services, it became clear that the revenue did not align with the work performed and the expenses that were required to perform said work.

After deep diving into their financial data and electronic health record, it became clear that we had a couple of areas of opportunity.

First, was their billing company.

There was a clear lack of timely filing, coding accuracy, feedback loops for denials, and reporting that claims were not getting paid well or at all. This resulted in JFS working with the client to find a better solution, implement clear key performance indicators to hold these players accountable, and to streamline their internal workflows to help with the process.

The second opportunity was case mix.

Since the data was not clean to use for decision making, the owner of the entity was making decisions on patient care and services to offer with bad data. JFS supported by cleaning up their financial statements, clarifying how to run weekly reports around reimbursement, and how to engage other team members to make sure that the decisions were data-based and not just from a gut feel or from rumors within the industry.

The Third opportunity was Strategic Financial Planning.

Finally, there was no real clear strategic financial plan for the organization. By clearly setting goals and objectives decisions were then made that were in alignment with the long term plan.

 

Overall, facilities do not have the manpower or experience to identify these issues or on how to implement changes once they are found on their own. This is one of the many ways that JFS is happy to support our clients!

PPP Forgiveness Summary of HR 7010

PPP Forgiveness Summary of HR 7010

PPP Forgiveness Summary of HR 7010

As many of you may have heard congress has passed another bill relating to the PPP. This was intended to assist in clarifying many items relating to the forgiveness process. These are outlined below. We expect to see more changes and guidance arise as lenders start the forgiveness process.

 

Repayment Period of Loans Changed

The SBA originally assigned a 2-year requirement for repayment of the PPP loans for those proceeds that are not forgiven. With this new bill passing this has extended that to five years. Also, the payment of principle and interest will be deferred until the lender receives the forgiveness amount from the SBA. So please work closely with your lender on this.

 

Extension of Covered Period

The original act required that the costs incurred for forgiveness to take place within 8 weeks. This has now been extended to 24 weeks or December 31, 2020, whichever is sooner. This is a result of many state orders not allowing businesses to operate back at 100% capacity. Please note that the salary limits remain.

If you would still like to keep the 8-week period it is an option. You will just work closely with your lender for the forgiveness process.

 

What can proceeds be spent on?

Per the original CARES act, there was a cap of 25% for non-payroll related expenses that were specifically listed as part of the PPP. This was raised in the new bill to 40%, but please be careful about the type of expenses allowed and documentation. Also, there are specific rules surrounding those that do not meet these requirements that could result in the proceeds from the PPP not being forgiven.

 

FTE Count, what about it?

As mentioned in prior posts there is a requirement for businesses to restore their employee FTE count/salary amounts to levels that preceded February 15th. In the original bill, this was to be done no later than June 30th. This has now been extended to December 31, 2020.

There are other options surrounding this requirement relating to businesses that remain partially or fully closed through the end of the year. Please communicate with your accountant and financial team to clarify this requirement.

 

Can you defer payroll taxes even if you received the PPP?

There was a portion of the CARES act that addressed an incentive allowing employers to defer the employer’s 6.2% share of 2020 Social Security tax until 2021 (50%) and 2022 (50%). For PPP borrowers they can now partake in this deferral until the moment the loan is forgiven.

 

What else?

There are still many unclear questions that remain. This includes treatment for Self-Employed/Schedule C filers, waiting period to apply for forgiveness if the period is expended how does that affect tax deductions, etc. As we discover more information, we will be sharing it with our clients and those that tune into our educational materials.

Cash Flow Challenge!

Cash Flow Challenge!

Cash Flow Challenge!

Starting this Friday (05/15) we are starting a Cash Flow Challenge! This challenge is meant for small businesses who are looking to get control over their books and cash flow! You will be able to follow along with daily posts on our Facebook and Instagram or work at your own pace using this handout. Post your progress using #30daycashflow and #jfschallenge so we can share your growth!

Daily Challenges:

1) Check income
Subtract the cost of goods sold from your total revenue

2) Check Expenses
Add up all outgoing cash. Or subtract total income from total revenue

3) BrainStorm
Think of service lines you could add or ways to bring in more business.

4) Check all assets
Look at all resources owned by the business. Is there anything you can sell?

5) Compare Expenses
Compare your necessary (rent, utilities..etc) to your unnecessary.

6) Review AR
Review your Accounts Receivable for outstanding balances.

7) Your day to relax!

8) Send payment reminders
Remind those with outstanding balances that you are waiting for payment.

9) Check your pricing
Look at competitors in the area and online. Are your prices too low or are they on point?

10) Cancel unneeded subscriptions
Some free trails might have ended and could be sucking up your cash.

11) Make or update social accounts
Social media can keep your clients up to date and draw in new clients for free.

12) Analyze meals & entertainment
Some meals can be deductible, but some may be a waste of income.

13) Take the day off!

14) Renegotiate interest
Some loans & Credit Cards may be offering to lower interest. This is a great way to save extra cash.

15) Review Current Marketing Strategies
Look at what is work and where you can improve.

16) Join a chamber social media group
Local Chamber of Commerce offers great resources & networking opportunities.

17) Review Month to Date
Look at how far you have come in the last 17 days. You’re over halfway through!

18) Compare current month to last month
Look at the data you have now (income, expenses…etc) & see where you stand next to last month.

19) Check-in with your employees
A good relationship with your employees can make or break your business.

20) A day for yourself!

21) Make a post on social media
Communicate with your clients, let them know what is happening.

22) Create a Win / Win Referral program
Offer your current clients a discount when they refer someone.

23) Check-in with clients
Ask them how they are & what they need. Strong relationships build businesses.

24) Forecast projected income
Look at the projects you have lined up for the following month. See how they will affect you.

25) Support a local business
Supporting local businesses is a part of building a relationship with the community.

26) Post on a chamber media group
Where possible, make a post introducing your business or supporting others.

27)Take a break!

28) Review Progress
You’ve done a lot of work. Make sure you are organized & ready for the final push.

29) Create Next Month’s Budget
Use the data you collected to prepare for next month.

30) Check-in with your financial Team!
Keep your forward momentum going. Talk with your team to build a strategy to keep growing.

Budget and Cash Flow Preparation for Year-End

Budget and Cash Flow Preparation for Year-End

Budget and Cash Flow Preparation for Year-End

Cash flow is paramount in business success. Understanding your different service or product lines, revenue they produce, and matching expenses to these items can assist in determining profitability and productivity. As year-end approaches, businesses should take this time to not only reconcile transactions within their books for year-end reporting, but also prepare a budget and cash flow projections to set up next year for success. The budgeting process should include projections in income, fixed and variable expenses, as well as any capital purchases that will be needed for that year. Many accounting software providers then allow this budgeted information to be loaded into their system allowing clients to compare budget to actual performance throughout the year.

If you have any questions regarding budgeting, please do not hesitate to reach out.