Espresso Case Study

Avamere Health Services improves efficiency of AP/GL with implementation of Espresso

In any multi-facility organization, the major business challenge is capturing and organizing financial data across all aspects of the business. Before Avamere Group implemented Espresso in 2008, facilities across the organization were utilizing MDI Achieve AP/GL and QuickBooks for their accounting activities. Due to the various lines of business, using two different systems created a major challenge when it came to preparing consolidated financial reports. The two separate software applications also inhibited the ability to create a consistent chart of accounts and made it difficult to do an analysis of AP vendors. These challenges, among others, moved Avamere to seek out an integrated system designed for multi-location organizations.

Single data warehouse translates into time savings

Avamere's process of extracting data from two systems was cumbersome. With the switch to Espresso, data across the entire Avamere enterprise is stored in a single database. "By utilizing the single data warehouse, consolidation of financial reports is efficient and accurate," says Zilda Heusinkveld, facility controller at Avamere Health Services. "Another benefit we've found is Espresso's flexible chart of accounts. It is flexible enough for all of our lines of business which has also helped with consolidated reports." Heusinkveld adds, "Our accounting staff feels the biggest benefit is the data warehouse because of the time savings."

In addition to consolidated reports, Espresso has expedited the journal entry process. Before Espresso, staff found themselves doing double the work. Entries were created in Excel first, then approved, and finally entered into the accounting software, creating a lot of additional data entry. Using Espresso's direct interface with Avamere's AR module, templates for both recurring and generic journal entries can be created to ensure consistency in data entry, eliminating the need for duplicate entries. Heusinkveld notes, "Elimination entries for consolidated reporting are easier to identify because we can pull information by primary code groups to ensure all accounts are included. The reporting capability on journal entries is also flexible and we can run by entry date or range of entry numbers. Also, accurate posting from the AR module to the General Ledger improved with Espresso, resulting in time savings for us."

Improved management of important information

On the Accounts Payable side, Avamere had a need for more statistical information than was previously available. "Census was the only information we had and we needed labor hours and other information for the ancillary companies," stated Heusinkveld. "Now, statistical accounts have been added for labor hours, exams, visits and episodes."

There was also difficulty in identifying intercompany transactions. "Espresso has improved this process as well. Intercompany invoices created in the AR module pop up automatically in the AP module when entering these invoices. There is a report available to identify what invoices have been created in AR but not entered into AP yet," explained Heusinkveld.

Security has also improved since implementing Espresso. "There was very little security with the previous accounting systems. The only limitations were related to which companies and modules someone could access. Journal entries were approved upon entry," said Heusinkveld. "Now, security is controlled by accounting staff. Access to individual menu items can be controlled easily. Approval limits can be maintained and one person can't set up a new vendor, enter invoices and cut checks."

Efficient data querying improves proactive decision-making

Another benefit of implementing Espresso is directly seen in budgeting. The Budget Management and Tracking feature allows Avamere to view and compare current-to-previous and budget-to-actual for YTD or Period. Previously, budgeting had to be done in Excel and imported into the GL software, making it extremely difficult to consolidate numbers for management's review. Heusinkveld reiterates the power of the data warehouse, "It makes it extremely easy to do data mining. Often times, queries had to be run and then compiled in Excel. Queries that used to take hours can now be done in minutes. We can pull actual and budget data as well as comparing data over years or months." Comparing different budget scenarios aids in making proactive business decisions.

"Overall, the accounting staff is pleased with the aspects of Espresso," states Heusinkveld. "Our facility staff has been given inquiry access to Espresso, but some have been hesitant to learn the software. We have conducted a number of training sessions and often walk them through how to look up things themselves. Those who use it the most find they have access to more information than before. Through time, and once they find how easy it is to use, even more people will discover the benefits."