✅ About Working with Blackmor CPA

• How is your firm different from a traditional CPA firm?

• We aren’t generic bookkeepers, but we also aren’t tax or audit CPAs. We are a team of experienced healthcare professionals with Accounting Manager and CFO backgrounds. Blackmor, CPA engagements fall entirely under AR-C 70, Preparation of Financial Statements. Our home health and hospices engage our team to prepare month-end closing journals and reconciliations as well as prepare all financial reports for management and the BOD. Because our agencies depend on us for timely financial statements, we engage under the AR-C 70 Preparation standards rather than attest standards. We are not ‘independent’ in the AICPA sense and are thus prohibited from performing reviews or audits of our own work. We work in tandem with audit firms to learn and incorporate new pronouncements into our closing standards and year-end audit preparation.

  • Compared to traditional external firms, we act and feel like an extension of your internal finance team, focusing on process optimization, compliance, internal controls, and overseeing functional processing roles like A/P and month-end close. We don’t offer tax and audit services but work in tandem with firms like E&Y, Deloitte, Crowe, Dixon Hughes, CitrinCooperman, etc. to provide clean TBs and prep for tax/audit season. We also frequently discuss and make recommendations for audit rotations — although not required in most private and NFP companies, we highly recommend the audit subcommittee select and approve a new firm every three-to-five-years.

• Do you replace our internal finance staff?
  In most cases, no. We complement your team by handling specialized functions like month-end close, reporting, and compliance, freeing your staff for operational priorities. At times we may substitute a position like our ‘Interim CFO’ services, but we emphasize the temporary nature of such assignments. We often work alongside the agency’s CFO/Director of Finance to free up internal resources and time or oversee the A/P, Payroll, and Billing team as the Accounting Manager.

• What systems do you work with?
  We adapt to your existing EMR, payroll, and accounting platforms and can help optimize workflows for efficiency and accuracy. We work in most billing, EMR/EHR, and Donor systems; however, we specialize in a handful of GL systems like Araize, CYMA/F9, Sage Intacct, and QuickBooks Online.

📊 Financial Reporting & Compliance

• What are the key compliance requirements for post-acute healthcare providers?

  • NFP GAAP for nonprofit entities / GAAP for for-profit entities

  • ASC 606 for revenue recognition and accurate allowance for bad debt recording

  • Medicare Cost Report (MCR) as well as the annual CAP report for hospices

  • State-specific reporting requirements, i.e. DHHS and Medicaid

  • Workpaper, checklists, and reconciling schedules for audit support

• How do you help with ASC 606 compliance?
  We ensure proper revenue recognition for patients on services and expected claim collection as well as any deferred revenue or liability to present accurate Net Patient Revenue. 

• What support do you provide for the Medicare Cost Report?
  We assist with accurate allocation of costs by program, payor, and level of care at the level of each NPI. We’re familiar with EMR reports to provide accurate days, visits, hours, mileage, as well as other allocation bases needed. We provide roll-forward workpapers and reconciliations of critical balance sheet accounts for cost report accuracy.

• What support do you provide for the CAP Reporting?

  We assist agencies in monitoring CAP status whether proportional or streamlined, or on an as-needed basis from your PS&R to test current CAP position relative to intake expectation. We can analyze CAP determination letters for accuracy and second opinion reporting.

🔍 Business Intelligence & Forecasting

• Can you help us understand our margins by service line?
  Yes. We provide BI dashboards or financial reporting that break down revenue and costs by program (home health, hospice, palliative) or sub-unit like separate homecare offices or states.

• Do you assist with forecasting and budgeting?
  Absolutely. We can build rolling forecasts, variance analysis, and multi-scenario budgets to support strategic planning if agencies require that extra level of FP&A support or are considering pro-forma and capex budgets for new business lines like a proposed IPU or new homecare office.

• How do you handle proper allocations?
  We apply cost allocation methodologies that comply with GAAP and CMS guidelines, ensuring appropriate program and cost center reporting for audits and reimbursement. We view the payroll, A/P, and employee expense reimbursement system setup and approval process as critical internal controls for accurate payroll and vendor expense by program, discipline (RNs, LVNs, Aides, etc.), and department (IT/Finance/HR, etc.). 

💼 Audit & Internal Controls

• Do you prepare us for audits?
  Absolutely! Our approach to month-end and workpaper documentation standards help with audit readiness by reconciling accounts, documenting and reviewing standard operating processes (SOPs), and ensuring compliance with best-known internal control standards.

• What internal controls do you recommend for revenue cycle oversight?
  Segregation of duties, accurate payment posting and bank reconciliation, a cumulative roll-forward and A/R reconciliation process with historical look-back, and no less than quarterly reviews of A/R aging and write-offs for dual authorization on all true patient A/R bad debt write-offs.

🧾 Accounts Payable, Payroll & Month-End Close

• Can you manage our AP and payroll processes?
  We provide A/P oversight and process support, ensuring timely payments, accurate payroll, and compliance with labor and tax regulations. We do, however, highly recommend local payroll providers and believe the payroll process is a critical internal behavioral driver that should remain ‘close to the action.’ We can, however, review and spot-check the payroll process to make recommendations and cross-check the payroll process to the general ledger mapping for accuracy.

• How do you ensure timely month-end close?
  We implement structured close calendars, journal entry checklists, reconciliation workpapers, and analysis of financial performance to deliver accurate financials on schedule with the appropriate context. This will depend ultimately on your team’s ability to commit to our month-end checklist of deadlines (Who/What/When?) so we have time for our closing and financial statement preparation.