OrthoFi, a tech enabled service for orthodontic practices based in Denver, Colorado, needed a trusted solution to manage their complex revenue recognition system. After evaluating both, internal and external options, they decided to implement Tensoft Revenue Lens.
Anne Richard, the Controller at OrthoFi, joined us for a video interview to share their experience with Tensoft Revenue Lens and the benefits achieved. Watch the case study video or read the transcript below:
“OrthoFi is located in Denver, Colorado. We’re a tech enabled service for orthodontic practices. We provide a technology solution that allows patients and practice to identify treatment options. Our vision is to help more patients smile by allowing orthodontic practices to focus on quality patient care.
OrthoFi decided to research options for revenue recognition assistance, because we have such a complex stream of revenue. We have actually six revenue streams, three of which require recognition over a period of time. We have to recognize that revenue over the length of either the patient treatment time or a collection of insurance claims and it’s tracked on an individual patient basis. So, we have over 300,000 transactions each month that need to have revenue recognition applied to them.
Prior to using Tensoft we used Excel for our revenue Recognition. It was a very complex system of spreadsheets. We had three different workbooks we were tracking revenue in. It was very challenging to track those adjustments through from the individual revenue recognized through to the changes. Our auditors actually saw this as a material weakness. Additionally, the Excel workbooks became unwieldy and would often time-out on us, meaning we would lose hours of work.
When OrthoFi decided to look for a revenue recognition tool, we assessed both internal and external options. The development work in house would have involved significant effort. Additionally, as good as our developers are, they’re not GAAP experts, and it would have been challenging for them to understand the nuances to revenue recognition.
After researching our alternatives, OrthoFi decided to implement Tensoft Revenue Lens.
The Solution: Tensoft Revenue Lens
Implementation of the Tensoft system was very efficient and straightforward. It was communicated clearly to us, and we were presented with a number of consultants who were able to walk us through the implementation process efficiently and cleanly.
The main reasons we chose this system where that they focus on revenue, which means their teams understand the nuances associated with revenue recognition.
Additionally, the Tensoft system has provided us with an efficient monthly process, which used to take 2 to 3 days, and was greatly reduced. It’s a very clean and clear process with great outputs.
We can now consistently count on our revenue recognition to be accurate and no longer have concerns about incurring a material weakness on our annual audit. In fact, our auditors let me know last year during my first annual audit with OrthoFi, how glad they were that we implemented Tensoft.
Tensoft provides a number of monthly reports that make our financial analysis around our revenue much easier. That includes both summary, and detail level reporting, revenue by client, revenue by revenue stream and a revenue forecast. These reports are very handy for us to interpret changes in revenue month over month and identify areas where we might want to follow up and drill in more detail.
Implementing Tensoft has allowed us to reduce the amount of time it takes us, to present our financial information to the Board on a monthly basis and it also has reduced the amount of time spent on revenue recognition testing during our annual audit.
OrthoFi plans are to continue to grow and add new lines of revenue, and we expect that Tensoft will be able to meet our needs through those periods of growth. So, we’re very satisfied with the Tensoft system and their ability to meet our growing needs.”
– Anne Richard, Controller at OrthoFi