Top Accounting Services For the Medical Field

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Healthcare Accountant in Fairless Hills

At SD Associates, P.C., we understand that running a healthcare business is complex and time-consuming. That’s why our team of experienced Fairless Hills healthcare accountants are here to help you navigate the complexities of your medical practice’s finances and provide reliable accounting guidance that can be tailored to your unique needs.

Our team is dedicated to evaluating your present financial status and creating a comprehensive strategy that can help you achieve your objectives. We deliver an array of services such as budgeting, bookkeeping assistance, cash flow analysis, tax planning and filing, payroll processing, and health records compliance consulting. We are aware that the healthcare industry is a rapidly evolving domain, and we strive to provide our clients with current guidance on new regulations, tax credits, and other financial considerations. Additionally, we can help you enhance your profitability and increase your practice or organization’s efficiency.

Types of Healthcare Accounting Methods

Accrual Accounting

The practice of accrual accounting involves recording income and expenses when they are earned or incurred, rather than when the actual cash transaction occurs. For instance, a doctor’s office may record revenue when the patient is treated, rather than when the bill is paid.

This method can provide a more accurate picture of financial performance since it includes all income and expenses, not just those that involve cash. However, it has both advantages and disadvantages. The major benefit is that it provides a more holistic view of the business’s financial situation, while the main downside is that it can be more difficult to track financial performance in real-time.

Cash Basis Accounting

Cash basis accounting is the practice of recording income and expenses only when they involve a cash transaction. For example, a doctor’s office would record revenue only when bills are actually paid – not when the bill is sent to a patient or insurance company. Cash basis accounting is generally simpler to track and manage because it only involves actual cash transactions.

However, the main disadvantage of this method is that it does not provide an accurate picture of a business’s financial performance since income and expenses are not recorded until after they occur. In addition, cash basis accounting is not acceptable under GAAP standards and therefore is not appropriate for businesses looking to adhere to these regulations.

Which Method is Best For Your Medical Practice

The best accounting method for your medical practice depends on your individual needs. For example, if you require a more accurate portrayal of financial performance, then accrual accounting is the optimal option. If you need a simpler and more manageable method, then cash basis accounting might be more suitable for your practice.

Our healthcare accountant in Fairless Hills can guide you in choosing the appropriate method for your medical practice. At SD Associates, P.C., we offer comprehensive accounting services that are tailored to your specific business needs and goals.

Unique Aspects of Healthcare Accounting

Reporting

Healthcare financial reporting requirements are complex and demanding. At SD Associates, P.C., our professional accountants have the experience and knowledge to provide you with complete and accurate financial statements in accordance with all relevant federal, state, and local regulations. Our team of experts understand the nuances of healthcare accounting reporting requirements, allowing us to provide prompt, reliable service for your organization.

Depreciation Tracking

A depreciating asset refers to an asset that diminishes in value over time. For medical practices, this includes medical equipment, office furniture, and other assets. Precisely tracking the depreciation of these assets is necessary for tax compliance and financial reporting. Our accounting team of experts at SD Associates, P.C. understands the intricacies of depreciating assets and can help you devise accurate depreciation schedules that align with your healthcare business needs.

Credit Balances

A credit balance arises when a patient has paid more for services than what was provided. Properly tracking and managing these balances is a crucial aspect of healthcare accounting, and our team at SD Associates, P.C. can provide guidance in this area to ensure that all balances are managed appropriately. We have extensive experience in tracking and managing credit balances across multiple providers.

Confidentiality

Healthcare organizations are required by the Health Insurance Portability and Accountability Act (HIPAA) to uphold the confidentiality of patient information. Our team at SD Associates, P.C. understands the significance of ensuring that all data remains secure and confidential. We maintain the highest level of confidentiality and security when handling your accounting needs.

Healthcare Accounting FAQs

Why should my medical practice work with a professional accountant?

The expertise of a professional Fairless Hills healthcare accountant, such as SD Associates, P.C., is invaluable when it comes to effectively managing your practice’s finances and staying compliant with industry regulations. Our team of experienced professionals provides comprehensive services ranging from financial planning to budgeting and forecasting, so you can make informed decisions that help your practice succeed.

Are medical practices subject to income tax?

Yes, medical practices are subject to federal income tax in the same way as other businesses. In addition, some states may have additional taxes or regulations that apply specifically to healthcare organizations. Our team of experts is well-versed in the relevant laws and will ensure your practice stays compliant with all applicable taxation requirements.

What deductions can physicians claim?

It is possible for physicians to deduct certain expenses, such as professional fees and medical supplies. Additionally, they may be able to take advantage of deductions related to wages paid to employees, rent or mortgage payments on office space and equipment costs. Your healthcare accountant can provide more detailed information about the deductions available in your specific situation.

How can I ensure my practice remains compliant with healthcare accounting regulations?

SD Associates, P.C. provides a range of services to help you stay in compliance with healthcare accounting regulations. Our experienced accountants are up-to-date on the latest industry changes and can help your practice remain compliant while maximizing efficiency and profitability.

Contact Our Fairless Hills Healthcare Accountant Today

Are you seeking a team of skilled healthcare accountants in Fairless Hills who can provide expert guidance on managing your medical practice’s finances? Look no further than SD Associates, P.C. Our knowledgeable team has extensive experience working with clients in all facets of healthcare accounting. Contact us today at (215) 517-5600 to schedule your consultation.

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