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Healthcare Accountant in Center City

SD Associates, P.C. is pleased to offer exceptional accounting services to nearby medical practices. Our healthcare accountants in Center City understand the distinctive demands and difficulties encountered by healthcare organizations today. With our experience and qualifications, we can offer the sound advice necessary to help them achieve long-term financial stability.

At SD Associates, P.C., our accounting team is dedicated to providing a personalized approach while maintaining the highest standards of professionalism. We take the time to carefully listen to our clients’ needs and provide tailored guidance to their specific situation. Our knowledgeable staff is also available for consultation, answering questions on specific topics and offering valuable insights into the healthcare industry. Our team of experts can help medical practices make informed decisions about the management of their finances, from understanding reimbursement rates to analyzing financial trends, to ensure that our clients have the financial resources they require to promote patient care and provide quality services.

Types of Healthcare Accounting Methods

Accrual Accounting

In healthcare accounting, accrual accounting is the method of recording revenue and expenses when they are incurred, irrespective of whether payment has been received or made. For instance, a medical office might record revenue when services are provided, even if the patient has not yet paid. This is common in medical practices where the business has to bill insurance companies instead of receiving immediate payment from the customer.

Accrual accounting provides a more precise representation of a business’s financial performance. However, it can lead to cash flow and liquidity issues if expected payments are not received by the due date. Our team of experienced healthcare accountants at SD Associates, P.C. can help you manage and understand accrual accounting for your practice.

Cash Basis Accounting

Cash basis accounting, unlike accrual accounting, records revenue and expenses only when payment is received or made. This technique is often used by smaller businesses with limited resources due to its simplicity. However, it can result in an incomplete financial picture because income and expenses are often not recorded until much later.

Cash basis accounting has advantages and disadvantages, just like accrual accounting. While it is easier to manage, it can lead to less accurate financial reporting. It should also be noted that cash basis accounting does not comply with GAAP standards, which may not be suitable if you want to adhere to these regulations.

Which Method is Best For Your Medical Practice

Choosing between cash-based and accrual-based accounting can be a difficult decision for medical practices. There are pros and cons to each option, so it is important to understand the differences before making a decision. You’ll have to consider how each method works and the resulting effects on your financial picture.

Our Center City healthcare accountant, SD Associates, P.C., can help you decide which method is best for your medical practice. Our team of experienced accountants is familiar with the challenges faced by medical practices and can help you choose an accounting method that best fits your needs.

Unique Aspects of Healthcare Accounting

Reporting

Accurate and reliable financial reporting is crucial for healthcare organizations to maintain their financial stability and credibility. Our team at SD Associates, P.C. is well-equipped to handle the intricacies of healthcare accounting, including the relevant laws, regulations, and standards, and can provide accurate and compliant financial reports that meet your organization’s specific needs.

Depreciation Tracking

For medical practices, depreciating assets such as equipment and vehicles decrease in value over time. It is important to accurately calculate the depreciation value of these assets for tax purposes, expense tracking, and insurance paperwork. Our accounting team at SD Associates, P.C. has the expertise to assist in accurately tracking depreciation values for these assets.

Credit Balances

Credit balances, or refunds owed to patients, can be a complex and time-consuming process. Our team at SD Associates, P.C. is experienced in managing credit balances for all types of medical practices, ensuring that any overpayments are accurately refunded to the patient in a timely manner. We have developed processes for efficiently tracking and processing credit balance refunds so you can rest assured that your practice is compliant with all applicable regulations.

Confidentiality

Confidentiality is key when it comes to managing the finances of a medical practice. Our team of experienced accountants at SD Associates, P.C. understands the importance of protecting patient information in accordance with HIPAA regulations. You can trust us to keep your data secure and confidential.

Healthcare Accounting FAQs

Why should my medical practice work with a professional accountant?

Working with a professional accountant can provide many advantages to your medical practice. Professional accountants have the experience and knowledge to accurately track and analyze financial data, ensuring that you remain compliant with applicable rules and regulations while maximizing the profitability of your business. They also understand the complexities of healthcare accounting and have access to specialized tools and resources that can help you meet your goals and objectives in a timely manner.

 

Are medical practices subject to income tax?

Yes, medical practices are subject to income tax. Medical practices must report any income that is earned from services rendered or products sold. This includes income from patient care, laboratory services, and other ancillary services. Depending on the type of practice, taxes may also be due on rental income or other associated business activities.

 

What deductions can physicians claim?

It is possible for physicians to claim various deductions. Common deductions include business expenses such as supply costs, rent or lease payments, payroll costs, and professional fees. Other potential deductions may include research expenses, charitable contributions, marketing expenses, and home office expenses if applicable. Our healthcare accountant in Center City can advise you on the most advantageous deductions for your medical practice.

Contact Our Center City Healthcare Accountant Today

With years of experience in healthcare accounting, SD Associates, P.C. is a highly recommended accounting firm for medical practices in Center City. Our services cater to practices of all sizes and specialties. To learn more about how we can help your practice achieve financial success, call us today at (215) 517-5600.

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