Care Home Revenue Management
Managing revenue in a care home can feel like juggling an impossible amount of tasks at once, with funds coming from various sources like self-funding, local authorities and the NHS.
It’s a complex task, but with the right tools, you can process and track your revenue streams quickly and accurately.
In this article, we’ll talk about how accounting software for care homes handles various revenue streams with ease.
The Financial Climate
The social care sector has faced significant challenges in recent years. For the finance function, this has highlighted the importance of maximising revenue and closely monitoring financial performance.
However, according to Knight Frank’s 13th annual Care Homes Trading Performance Review, things are looking up. Occupancy rates are back to pre-pandemic levels and reliance on costly agency staff is much lower.
Now is the perfect time to equip yourself with the tools to overcome any financial challenges that come your way in the future.
UK Care Homes Trading Performance Review 2024
Knight Frank surveyed 1/5 of the UK Care market across 67 counties, finding that occupancy levels are up to 88.3% and staff costs have fallen to 56.7% of overall income.
“With the economy beginning to stabilise and investors ramping up activity, we can say that in combination with the KPIs presented in this report, the sector is well-positioned for further growth.”
Sage Intacct is a leading cloud-based accounting solution that’s loved by growing care homes, thanks to its abilities to breeze through complex processes.
Let’s dive into how Sage Intacct helps you handle various revenue streams.
Revenue Recognition
Not all accounting solutions can handle the additional complexities that come with running a care home, especially when you have residents funded by a mix of income streams.
Sage Intacct’s revenue recognition module automates your day-to-day revenue recognition tasks. It uses recognition templates and rules which you set up for each of your revenue streams to automatically recognise revenue.
You can set up as many revenue recognition schedules as you want and use different combinations to tailor it to your needs.
It also gives you a complete view of your revenue lifecycle with metric-based reporting, removing the complexity, time and frustration associated with revenue recognition.
Reporting & Dashboards
The reporting tools in Sage Intacct enable you to quickly and easily build detailed reports, tracking financial performance and revenue. Dimensions enable you to tag every transaction that comes into the system. For example, you can use dimensions to see what portion of your revenue is from which source.
Customisable dashboards let you monitor KPIs in real-time, such as average revenue per resident, beds occupied and cost per resident per day. From there, you can click to go straight to the source data, so you don’t have to spend a long time looking for answers.
You can filter the reports on the dashboard by revenue stream, so you can clearly see the value for each and a total value at the end. You can also compare revenue streams per location/entity side by side.
Multiple Entities
Managing multiple care homes can be challenging if your accounting software isn’t built for growth. Sage Intacct enables you to manage everything from one login, while restricting certain users based on their role and location.
All your entities run on the same database, so any data you share across locations or entities, like suppliers and chart of accounts, can be updated all at once. Reporting across different entities is easy with Sage Intacct. You can quickly monitor and report on metrics such as revenue, gross margin and profitability at group level or filter down to locations or groups of locations.
When entering cross-company transactions, Sage Intacct automatically posts journals in both entities, helping you to save time and prevent mistakes when moving revenue or costs between entities. Sage Intacct also consolidates multiple locations and entities for you, taking away the manual work and speeding up the month end close.
Cloud Accounting Software for Care Homes
Sage Intacct frees you from the burden of time-consuming and error-prone manual tasks. It automates repetitive tasks such as entering Purchase Invoices into the system, so you can focus on the bigger picture.
Here are some more benefits of Sage Intacct:
- No need for expensive server hardware and maintenance
- Compliance with regulatory requirements
- Automatic quarterly updates and backups every 4 hours
- Integration with external software using reliable open AI
- Secure cloud storage with 24/7 threat monitoring
- Modular system that grows with your business
More information about Sage Intacct.
Gold Care Homes Case Study
Prior to this project, Gold Care Homes struggled with loading speeds and performance issues due to outgrowing their system. Now, with Sage Intacct, they efficiently manage all their homes in one place.
“It has really been great project work with yourselves and team at PKF SCS.” – Vivek Goradia, Director of Finance
Read the full case study here.
We understand that you’re already juggling many tasks, so the idea of changing your accounting system might seem daunting.
If you’d like to know more about Sage Intacct, we can connect you with one of our care home clients. They’ll share their experience with you first-hand, so you can see how we make the transition as smooth as possible.
For more information about Sage Intacct, complete the enquiry form.
