Successful senior managers don’t make important decisions impulsively. Rather, they are guided by critical management reports to make precise and data-driven decisions. Similarly, behavioral health organizations must track and analyze these key reports throughout the year to pinpoint opportunities for growth and areas for improvement.
In this post, we will look at eight key reports that every behavioral health organization should be monitoring to analyze their performance and ensure stable financial health.
What reports should you monitor?
Accountable tracking and management of reports ensure behavioral health organizations make informed decisions and plan for the future. Moreover, reports help entities budget, allocate resources adequately, recruit and retain employees, improve and draft marketing plans, and improves the overall process of behavioral health billing.
The reports include the following:
- Annual report
- Accounts receivable (A/R) report
- Working capital report
- Marketing report
- Inventory report
- Online traffic report
- Sales and revenue report
- Payments and adjustments report
Comprehensive analysis of the reports
The reports are important markers of an organization’s management, especially for a behavioral health organization, because health services collapse without sustainable financial accountability.
1. Annual report
An annual report allows you to view what has been accomplished in the organization throughout the preceding year. It enables the organization to plan its expenditure, marketing, and advertising strategies for the long term. The report also provides clients and potential investors with much-needed information about your behavioral health organization’s management and financial state.
Moreover, it’s an important analysis tool because it contains essential financial statements that detail expenditures. The statements include the income statement, the cash flow statement, the balance sheet, and the shareholders’ statement. An annual report informs investors whether they should provide more funding and enables your clinic to make necessary financial management changes to curb unnecessary expenditures.
2. An Accounts Receivable (A/R) report
An A/R report highlights all the unpaid customer invoices grouped by the number of outstanding days. The report allows your health organization to keep track of unpaid customer invoices and how long they’ve been unpaid. The report also enables your entity to collect payments on time and in a set order while not losing track of other essential services, overall improving your behavioral health billing.
3. Working capital report
A working capital report entails the clinic’s currently available resources, drawn from the difference between available assets and liabilities. Current assets, including available cash deposits and inventories, can be disposed of within a year, similar to the current liabilities, which may include short-term debts that must be cleared within a year. A working capital report determines the entity’s long-term planning and management and the payment of services incurred. Also, the report will keep you informed of your health organization’s current assets, liabilities, and available expenditure budgets.
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4. Marketing report
A marketing report provides key data on all marketing strategies made by the clinic. The marketing strategies include content marketing and advertising, social media marketing, and analytics. The report enables the entity to make better financial decisions on marketing and create relatable customer content to grow its reach.
5. Inventory report
Health organizations should be keen to manage their inventories well, given the need for fully stocked and operational stores. An inventory report details how much stock an organization or entity has, how much of it has been utilized in a given period, and the demands. The report keeps track of your clinic’s inventory and is adequately placed to avail essential data throughout a period. A simple checklist can make an effective report, enabling your clinic to budget according to the most immediate needs.
6. Online traffic report
Website traffic is a growing need for many organizations, including health organizations. Customers can now easily access a checklist of services offered on social media sites and websites. Compiling reports will ensure your health management team allocates the necessary resources to increase the online presence. The clinic’s financial leaders can also cut in on any extra costs that may be wasted on unproductive marketing campaigns throughout the month or year, which may be tough to trace without adequate tracking.
7. Sales and revenue report
A sales and revenue report highlights your organization’s sales and revenue statistics over time. You can calculate your profit gains by studying the report to note the sales statistics. The report also allows the clinic to plan for future sales projections.
8. Payment adjustments report
A payment adjustment is a transaction that rectifies the details of a payment entry at a given period in time. A report detailing payments and adjustments enables the clinic to follow up on collecting any submitted payments while assessing the organization’s financial stability.
How to use the reports for the organization’s benefits
A behavioral health organization should be well managed to ensure its continued presence in the community because of the essential services it provides. Reports should be frequently monitored and used to the maximum advantage in decision-making processes to ensure its effective financial and operational management are consistent. Health entities can fully leverage them by doing the following:
- Utilize the reports to formulate targeted marketing and communication content. The reports can enable the clinic to be mindful of what clients desire to know. Moreover, they can use them to formulate marketing content that suits the current health needs in the community.
- Use available data from reports to determine societal health issues and trends. By compiling reliable inventory reports, your organization can note how the medicinal supplies and stocks are utilized. A clear analysis can determine the health trends and how to influence your health practices better.
- Apply them in financial decision-making processes. A clear tracking of sales, revenue, and working capital reports will inform your organization how key financial decisions have been made. For example, studying the balance sheets enables the management to note the agency’s financial health and make effective day-to-day expenditure planning or monthly spending cuts.
- Determine staffing and talent acquisition decisions. Recruiting new talent is always a priority for any organization that seeks to improve service delivery. Your clinic’s management can use the reports to determine how financially capable you are of recruiting new health workers and the costs needed to stay ahead of the pack.
How behavioral health billing software can help
Great management involves financial accountability, which is paramount for achieving behavioral health organizations’ short and long-term goals. Well-detailed reports can assist the financial management of your health organization and ensure your services aren’t affected negatively. The reports can also be used to ensure maximum gains in financial growth, social management, and service provision.
Logik’s behavioral health billing software helps organizations improve their financial health and revenue cycle management (RCM). With detailed custom reports such as payment and adjustment reports, account receivable reports, charge reports, and more, behavioral health organizations can make better financial decisions. Logik helps to provide your clinic’s financial performance across different departments, levels of care, and types of treatment in specific time frames.
Leverage our expert advice and analysis for all your clinic’s billing questions and concerns. Schedule a demo today to learn more about our solutions and how they can help your organization.
DateMarch 13, 2023