optimization

Article Dean Dorton

The Covid-19 pandemic challenged every assumption in healthcare. Systems that were supposed to be redundant and resilient were pushed to the breaking point and beyond. Problems that seem unthinkable became realities, one after another after another. No matter how the pandemic affected a healthcare provider, all of them think differently in the wake of it.

We can expect swift and sweeping changes as a result. Preventing a repeat of recent events will be the industry’s top priority. Every facet of healthcare will respond to this mandate in their own way, but none will ignore it. Continuing with the status quo represents too great a risk.

What will the new normal look like? Expect outsourcing to play a much greater role, especially in healthcare accounting and finance.

Why Outsourcing Make the Most Sense
Without receiving much notice, healthcare accounting teams were some of the hardest hit during the pandemic. They had to deal with a financial crisis that appeared out of nowhere while adapting to sudden remote work requirements and unpredictable staff shortages. Arguably, everything that could go wrong did go wrong.

Most teams adapted admirably and kept their organizations afloat through unprecedented difficulties. Nonetheless, it’s clear that most teams aren’t equipped for the next pandemic in terms of staff, technology, visibility, or expertise. Complicating matters even more, adding these missing pieces requires time, money, and other resources that are in short supply right now.

Outsourcing offers a shortcut between what healthcare accounting teams have and what they need. Outsourcing partners can introduce cloud-based accounting systems that facilitate remote work. They can step up to handle routine accounting obligations whenever necessary or deliver specialized financial insights on demand. They can also free up the in-house accounting team to focus on urgent objectives or long-term initiatives.

The new normal calls for healthcare accounting teams to be agile, informed, and robust. Building out those capabilities in-house involves a huge cost and a complicated, time-intensive effort. But not with outsourcing. Any healthcare accounting team plus the right outsourcing partner equals an elite unit prepared for whatever the future holds, good, bad, or unexpected.

Healthcare Accounting After Outsourcing
The greatest argument for outsourcing, especially under the present circumstances, is that it insulates accounting teams from uncertainty. Teams have whatever resources they need to keep the financial situation stable in the midst of chaos. They run on technology that makes powerful capabilities and the entirety of financial data available from anywhere. And they have a partner to consult with on the most complicated and critical financial questions of the day.

A tidal wave of change was already headed towards the healthcare industry before the pandemic started. Outsourcing increasingly looks like the best – even only – way to say ahead of this transformation. Prepare for the new normal sooner rather than later by contacting Dean Dorton.

Justin Hubbard, CPA, CGMA | Accounting and Financial Outsourcing Director
jhubbard@deandortonstg.wpenginepowered.com
859.425.7604

Article Dean Dorton

The biotech industry is booming. Projections suggest it will reach a $2.44 trillion market valuation by 2028 after growing at a CAGR of 15.83% for the next seven years straight. Forces driving the rapid expansion of biotech include supportive government policies, excited investors, new products, and rising demand – and they show no signs of changing in the near future.

Growth looks all but assured for any biotech company with a viable product or service and a competent business plan. But growth can be positive and negative. Companies that expand quickly and easily often leave themselves unprepared for running a bigger company with broader regulatory requirements, a larger product line, additional revenue streams, and a diverse market footprint. Biotech companies are often victims of their own success – phenomenal startups that grow into unsustainable enterprises – because they don’t scale their accounting and financial capabilities along with the rest of the company.

Running a robust accounting department depends on people and processes, of course, but it ultimately comes down to technology. Relying on under-powered or outdated software (often the product in place since day one of the company) puts a hard limit on what accountants can accomplish – and how much companies can grow. For fast-growing biotech companies, upgrading accounting software should happen sooner rather than later, and cloud financial management should be the only option.

Benefits of Cloud Financial Management in Biotech
There’s a reason why 75% of the life sciences companies studied by Gartner adopted cloud-first strategies in recent years: They see clear and compelling benefits to the cloud. Those include:

  • IT maintenance and security handled by cloud providers
  • Remote access to data and tools from anywhere.
  • Endless data storage and computing power available on demand
  • Redundancy and backups in the event of disaster

That list goes on. However, it’s more important to understand the overarching benefit of cloud financial management for biotech: stabilizing growth. Companies on an upward trajectory often encounter unexpected obstacles, especially in a heavily-regulated industry like biotech. As such, they don’t need accounting software to meet their needs; they need software that exceeds their needs and rises to occasions they don’t anticipate. To put it differently, they need software for today as well as tomorrow. Cloud financial management uniquely fits the bill.

The right product can handle the most complicated and consequential accounting challenges facing promising biotech companies. Everything from complying with revenue recognition standards to evaluating M&A opportunities becomes more streamlined. Likewise, critical processes involved in research and development or budgeting and planning run more efficiently and cost effectively thanks to the right cloud-based product.

Sage Intacct is a cloud-native financial management platform that offers the extensive accounting capabilities required of mature (or maturing) biotech companies. Beyond that, Sage Intacct delivers a superior cloud experience designed to enhance speed, accessibility, resilience, communication, collaboration, and so much more. Calling Sage Intacct accounting software doesn’t do it justice because it functions more like a complete business tool for biotech companies, facilitating growth at any speed or scale.

To demo Sage Intacct, contact a team at the intersection of accounting, technology, and biotech industry growth, contact us.