In recent years, many veterinary practices have shifted to using cloud-based Practice Information Management System (PIMS) programs. The overall response by veterinary staff to the new software has been positive. Staff members appear to be adjusting to programs quickly once trained—and noticing improved operations within the practice. That said, some challenges have emerged with the financial reporting generated by these new systems. It’s important to be aware of the benefits of cloud-based PIMS programs, the impact of new systems on financial reporting, and the actions you can take to combat financial reporting issues.

Benefits of Cloud-based PIMS Software

Cloud-based veterinary PIMS software offers several benefits including:

• Improved accessibility and staff collaboration on both the hospital and administrative side
• Staff training and support
• Streamlined workflow
• Cost-savings, as less hardware is required
• Automatic updates
• Integration capabilities with other software and programs
• Improved overall efficiency & patient care

Financial Reporting Issues

While cloud-based PIMS systems seem to be a success from the operational standpoint, a number of practices in recent years have struggled with the financial reporting generated from the new systems. Cloud-based systems enable staff to change invoices and data in real-time, which can affect previously reported numbers. This can leave bookkeepers, office managers, practice managers, and accountants constantly chasing ever-changing numbers. Many of the new cloud-based PIMS lack proper cutoffs when it comes to financial reporting.

Running different reports for the same figure (i.e. gross sales) for the same exact time period may generate completely different numbers on one report vs. another (i.e. gross sales on a summary report do not match gross sales on an invoice by revenue type report)—so which one is right?

It is important to understand what is being included and/or excluded from each report:

• Is one report net of discounts and the other not?
• Does one report include sales tax and the other not?
• Is one report based upon “closed” invoices only and the other based on both “open” and “closed”?
• Is one report set to show cash basis numbers and another accrual basis?
• Were the reports run at different times? Numbers can subsequently change in the new cloud-based PIMS systems and not correlate to other reports if not run at the exact same time.

How To Combat Financial Reporting Issues

There are several ways to manage and prevent these kinds of discrepancies in your financial reporting:

• Schedule a meeting with your veterinary PIMS software representative
  • Ask questions about discrepancies: you’ll want to understand exactly what specifications the reports are based upon and why the numbers on reports are different. Accurate reports will provide you with a true picture of your practice’s performance.
• SCHEDULE YOUR REPORTS
  • Many systems allow you to schedule reports to run at a specific time, date, day, month-end, etc.
  • Scheduling all necessary reports for the same time will help you avoid the issue of numbers subsequently changing—and the need to chase numbers when trying to do your financial reporting.
• Make sure you use reports run on the same parameters, i.e. accrual basis, closed invoices only, gross or net of discounts, etc.
• Train your staff
  • Ensuring that your invoices are closed and included in the financial reporting of the month earned will help you analyze and manage your practice’s performance.
  • Make sure your staff closes any open invoices by month-end to avoid timing differences from month to month.

Gone seem to be the days when veterinary PIMS systems cut off at the proper times and reports would never change. Now, it is important to figure out ways to extract the data you need before it’s too late to get it. For additional guidance on your practice’s financial reporting—and for all of your other accounting, tax, audit, and advisory needs—please don’t hesitate to reach out to our experts at RBT CPAs. Give us a call and find out how we can be Remarkably Better Together.