Accounting Pros for Doctors, Chiropractors, & More

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Healthcare Accountant in Chestnut Hill

SD Associates, P.C. takes pride in providing outstanding accounting services to local medical practices. Our healthcare accountants in Chestnut Hill comprehend the distinctive requirements and obstacles faced by healthcare organizations today. With our expertise and qualifications, we can offer the necessary guidance to assist them in achieving long-term financial stability.

Our accounting team is dedicated to providing a personal touch while maintaining the highest standards of professionalism. We take time to listen closely to our clients’ needs and offer guidance tailored to their individual situation. Our knowledgeable staff is also available for consultation, answering questions on specific topics and providing valuable insights into the healthcare industry. From understanding reimbursement rates to analyzing financial trends, our team of experts can help medical practices make informed decisions regarding the management of their finances. We strive 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.

As with accrual accounting, cash basis accounting has both advantages and disadvantages. It is simpler to manage, but can be less accurate when it comes to financial reporting. In addition, cash basis accounting is not acceptable under current GAAP standards, so it may not be appropriate if you wish to follow 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.

SD Associates, P.C. has experienced healthcare accountants in Chestnut Hill who can assist you in determining the most suitable accounting method for your medical practice.

Unique Aspects of Healthcare Accounting

Reporting

Healthcare financial reporting can be much more intricate and complicated than in other industries. It’s essential for any healthcare accountant to have a deep understanding of the relevant laws, regulations, and standards that pertain to financial reporting in this field. Our team is well-versed in the complexities of healthcare accounting and provides accurate financial reports that adhere strictly to all applicable rules and regulations.

Depreciation Tracking

Accurately tracking the depreciation of assets such as equipment and vehicles is critical for medical practices in terms of tax reporting and insurance paperwork. These assets decrease in value over time and need to be accounted for properly. Our accounting team at SD Associates, P.C. has the expertise to assist in accurately tracking the depreciation values of these assets to ensure accurate financial reporting.

Credit Balances

Our experienced team at SD Associates, P.C. understands that managing credit balances in medical practices can be a daunting task. We have developed efficient processes for tracking and processing credit balance refunds for patients, ensuring that your practice remains compliant with all regulations.

Confidentiality

The security of healthcare data is a top priority for medical practices, and our accounting team at SD Associates, P.C. recognizes the importance of keeping sensitive patient information confidential. We adhere strictly to all HIPAA regulations, ensuring that all financial information is secure and protected.

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 Chestnut Hill can advise you on the most advantageous deductions for your medical practice.

Contact Our Chestnut Hill Healthcare Accountant Today

With years of experience in healthcare accounting, SD Associates, P.C. is a highly recommended accounting firm for medical practices in Chestnut Hill. 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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