That looks like slug, or snail, damage to me. Cold caffienated coffee sprayed on the leaves can help, shallow containers of stale beer (or yeast mixed in water) placed in the soil can also help. Sharp edged material, egg shells, Diamotaceous Earth, in pretty large quantities, might also help. Encouraging predators of slugs, toads, snakes, birds, to hang around can reduce populations as well. Slugs, and snails, need a cool, moist environment to live in so eliminating any place, rocks, boards, mulches where those conditions are can also help.

There used to be a lot of little flies (not sure what kind) all over the plants. Once I started using the insecticidal soap they went away. Tonight I went out and looked at the plants with a flash light. I saw spiders and earwigs. I sprayed the earwigs I saw with the insecticidal soap and set some traps for others. We will see what the traps look like in the morning! Do you have any other recommendations? Thank you!

I am not anti-mannmade-chemical, but I do use them only after reading up on them in scientifically-based literature and I do my best to choose the least harmful alternative, which sometimes includes not growing a particular plant. Personally, I wouldn't use Bayer Advanced, and I'd advise anyone who chooses to do so to act with good info and care as to timing so that it isn't likely to be present in the plant when the flowers bloom. Its main ingredient is Imidacloprid which is a systemic insecticide that acts as an insect neurotoxin and is one of the insecticides in the general class of neonicotinoids, which have been getting a fair amount of press for the last few years. The problem is that they are nonspecific and act generally on all insects and are long-lasting (info says protection for 30 days). So if you put it on your lilies, and then bees and other pollinators visit the blooms, it will kill them, not just the targeted bad bugs. IME knocking the lily beetle larvae and adults into soapy water is more time consuming, but effective and far healthier for the garden as a whole, but others have said that Bayer Advanced is the only insecticide that seems to work on the lily beetles. Captain Jacks Dead Bug Brew contains spinosad, which comes from a bacteria. It has similar effects on bugs that it effects to neonicotinoids in that it works as a neurotoxin, but once it has dried for 3+ hours, doesn't have nearly as much effect on bees. So it's much safer to use in the garden. I know it's effective for caterpillars of various sorts and thrips, but I don't know if it has any effect on red lily beetles. Another option for caterpillars like the ones on the broccoli and other cabbage family plants is Bt, a bacteria that only harms caterpillars. It's most effective when used on smaller caterpillars.

I didn't realize slugs eat heucheras as well as hostas Oh, dear!