How Evergreen Care Reduced Costs by 50% With AP Software

Evergreen Care offers a fresh perspective on nursing home care in Ireland. They proudly focus on creating a kind, caring and happy community for every resident.

Established in late 2020, during the peak of Covid-19, Evergreen has achieved remarkable growth. Starting with just two care homes, they rapidly expanded through acquisitions and new openings and now operate 12 nursing homes.

In 2022, Evergreen centralised its support functions, and Shane McGloin joined as Accounts Payable Manager to help manage the growing business's financial needs.

Sage 50

Accountancy Software

2000

docs processed per month

Evergreen save 40 hours on admin each week with AP automation

The Challenges Before AP Automation Software

Before implementing Lightyear, Evergreen Care's accounts payable (AP) processes were entirely manual. Shane explains:

"When I joined, everything was manual in Sage 50. Everything was printed out, manually entered and filed in a big folder – the proper old-fashioned way."

AP processes were time-consuming and labour-intensive, requiring team members to spend countless hours reconciling statements, physically searching for documents and rigorously checking each others work.

"We have 13 entities, 2000 invoices a month, all with work dockets on them and they're multiple pages. You’re looking at 4000 pieces of paper monthly for the group which all have to be stored in the attic. Logistically, that's a nightmare."

The geographically dispersed nature of Evergreen Care's operations added further complexity:

"We have homes as far north as Monaghan and as far south as possible, so centralising everything and getting a set process in place has been tough but worth it. We had to get so many staff members and suppliers across the country out of old habits, like dropping an invoice on a desk or providing handwritten invoices."

The lack of AP digitisation caused bottlenecks and data-sharing issues within the finance department, who struggled to complete tasks remotely as they relied on paper stuffed folders kept on site. It was difficult for the finance team to compile all the paperwork required in a timely manner, especially during month end.

Integrating Lightyear With Sage 50

In 2023, Evergreen Care implemented Lightyear to automate invoice processing. The quality of the integration between Lightyear and Sage 50 was a key consideration.

"It was vital for Lightyear to respect the lock date in our Sage account as we wouldn't want the accounts changing. Luckily, Lightyear and Sage work together in a way that respects this when importing files” said Shane.

AP automation has become an important piece of the puzzle as it provides control over when invoices go into their accounting software.

"Being able to control the flow of invoices between Lightyear and Sage 50 is a big positive since we're dealing with multiple entities. We can close everything off whilst invoice approvers are still working and everything is kept separate", explains Shane.

Automating repetitive tasks, such as invoice processing and statement reconciliation, reduced the finance team's workload significantly, saving them over 40 hours a week.

Significant Time & Cost Savings

One of the most tangible benefits of automating the AP process is reduced labour costs. Shane was able to adapt his role of AP Manager and hire a part time administrator, streamlining operations and permitting the reallocation of resources.

"I still oversee the accounts payable team but as far as day-to-day processing it requires minimal work. We've almost halved labour costs whilst taking on another care home."

The storage issues that plagued Evergreen Care were resolved, making remote working and data sharing effortless. Previously, the company had to store massive amounts of paperwork, leading to logistical challenges that caused delays. Now, everything is stored digitally within Lightyear:

"With 13 different entities, the storage required for paper was just never-ending and people never had what they needed, but now the ability to work collaboratively is incredible. Staff can see what they need in Lightyear and complete their reporting from anywhere."

Audit Efficiency & Enhanced Reporting

The implementation of Lightyear simplified Evergreen Care's audit processes, which were becoming increasingly rigorous due to significant capital expenditure.

"During our 2023 audit, we had 500 document requests. Rather than going to the attic to find 500 pieces of paper, we gave the auditors Lightyear access and left them to it."

Furthermore, it's enabled Shane and his team to focus on more strategic tasks as “now that invoice processing is handled by Lightyear, the team can work on things like cash flow forecasts which are crucial as we're expanding so quickly”.

As a manager, Shane firmly believes that "people have much better things to be doing than filing" and has noticed that since the implementation of Lightyear the team's quality of work has improved, and less time is spent correcting errors.

Standout Software Support

The onboarding process was smooth for Evergreen Care despite their initial inexperience with automated systems. Shane was impressed by the flexibility and support offered by the Lightyear onboarding team:

"I had minimal experience with automated processes before but knew that not every software will suit every business. A strength of Lightyear is that it can be tailored to suit individual needs, which made a huge difference for us."

Key Takeaways

Evergreen Care's experience with Lightyear highlights the benefits of automating accounts payable processes, particularly for businesses in the Aged Care Industry or those experiencing rapid growth.

Evergreen reduced its accounts payable team's workload by 40 hours per week and reduced costs by almost 50%, all whilst managing an expanding portfolio of care homes.

"Ultimately, we've saved time, money, and the environment, but you still need your competent team members; it's not a replacement and it shouldn’t be seen as that." concludes Shane.