As the baby boomer generation increasingly seeks senior living options, the industry is additionally poised for significant growth, presenting both challenges and major opportunities. According to the U.S. Census Bureau, by 2030, all baby boomers will be over 65 — a demographic shift that will greatly impact the need for senior living communities. This will require chief financial officers (CFOs) of these facilities to strategically balance financial oversight and planning to address the rising demand for diverse services.
In this dynamic ecosystem, CFOs must skillfully navigate a complex regulatory landscape, ensuring compliance with continuously evolving standards. The industry's shift towards a person-centered care paradigm, encompassing independent and assisted living as well as specialized memory care and skilled nursing, demands nuanced financial stewardship. Within this context, the CFO’s role is indispensable, effectively orchestrating resources to sustain both economic viability and high-quality care.
Challenges and Opportunities for Senior Living Healthcare CFOs
CFOs of senior living healthcare face the tough task of managing increasing operational costs while strategically investing in infrastructure and technology updates. Advanced technologies are revolutionizing the operational frameworks within senior living facilities, enhancing both efficiency and the quality of resident care.
Industry data indicates that operating expenses in senior living facilities are expected to rise by 3% to 5% annually, in line with inflation and increased labor costs. Despite these hurdles, many opportunities exist for CFOs who can turn potential setbacks into growth opportunities.
Enhancing Senior Living CFO Capabilities With Sage Intacct
Sage's comprehensive business management platform plays a crucial role for CFOs in senior living healthcare, offering an array of tools designed to streamline financial management and strategic planning. With Sage products, CFOs can automate workflows, conduct precise financial analyses, and make informed decisions, aligning closely with their strategies for resilience and growth.
Sage Intacct offers strong financial reporting features, helping CFOs get real-time insights into budgeting, forecasting and financial performance. This is especially useful in managing the financial complexities of senior living facilities by providing a clear view of cash flow and expenses, enabling better decision-making.
Another key Sage Intacct tool is its automation capabilities, which decrease manual data entry and the chance of human mistakes. This automation supports smooth accounts payable and receivable workflows, allowing CFOs to dedicate more time to strategic projects. This improved efficiency is shown by Sage users reporting a notable decrease in financial reporting time, demonstrating strong operational effectiveness.
Sage Intacct also provides advanced analytics tools that leverage data to spot trends and guide strategic planning. This is essential for adapting to demographic shifts and changing market demands, helping senior living healthcare facilities address both current needs and future growth opportunities.
5 Key Strategies Senior Living Center CFOs Can Take Advantage of With Sage Intacct
CFOs are the financial architects guiding senior living organizations toward long-term resilience and growth. Here are five strategies CFOs of senior living centers can employ, leveraging Sage Intacct.
1. Advanced Financial Modeling
By using sophisticated financial models, CFOs can predict market trends and allocate resources proactively, protecting the organization from economic fluctuations. Implementing predictive analytics can improve financial planning accuracy by 25%.
2. Leveraging Data Analytics
Data analytics provide essential insights that improve operational efficiency and resident satisfaction. These insights support strategic decision-making, leading to better resource allocation. Integrating data analytics into facility operations can lead to notable gains in efficiency.
3. Championing Technology Integration
Leading technology initiatives are crucial for modernizing operations. By leading efforts in technological adoption, CFOs can unlock operational efficiencies, streamline processes and improve care delivery.
According to the 2024 J.D. Power U.S. Senior Living Satisfaction Study, CFOs who improve the resident experience through strong data analytics can achieve significant gains in satisfaction ratings, strengthening their market position.
4. Ensuring Regulatory Compliance
Following healthcare regulations protects both the financial health and reputation of the organization, avoiding compliance-related issues that could impede growth and impact annual revenue.
5. Forging Strategic Partnerships
Building and maintaining mutually beneficial relationships enhances services and strengthens the organization's position in the market, encouraging collaborative growth and innovation. Creating alliances with technology providers, healthcare networks, and government agencies boosts innovation and broadens organizational reach, paving the way for shared successes. For example, partnerships focused on renewable energy initiatives have been shown to significantly lower facility energy costs.
How Sage and Cherry Bekaert Can Help CFOs
As a top-ranked CPA and advisory firm, Cherry Bekaert not only provides tailored insights and strategic advice that boost financial leadership and foster organizational innovation, but also, as a top five Sage Partner, we’re positioned to help mid-market organizations thrive by delivering powerful software solutions through a full Sage product line.
By combining advanced technology solutions and tapping into digital advisory services from Cherry Bekaert, CFOs are well prepared to steer senior living organizations through the evolving landscape. Our team brings deep insight and hands-on experience to every engagement — guiding you through implementation and beyond with strategic support so you get the most from your Sage investment.
Contact us today for a complimentary consultation.
