Medical Accounting For The Area’s Top Doctors

CPA Firm Serving PA, NJ, DE, & NY

Healthcare Accountant in Glenside

SD Associates, P.C., is a top healthcare accountant in Glenside. We specialize in providing professional and cost-effective accounting services to healthcare organizations, both large and small. Our team of experienced accountants will tailor their services to meet your specific needs and goals.

Understanding the unique challenges that healthcare organizations face, we at SD Associates, P.C. endeavor to provide solutions that are both efficient and effective. Our CPA firm has worked with numerous medical practices in over three decades of business, giving us a comprehensive understanding of the healthcare industry. We are well-acquainted with healthcare-specific regulations and can assist you in navigating the ever-evolving landscape of healthcare accounting. Whether you are a pediatrician, chiropractor, or director of an assisted living facility, our healthcare accountants have the experience and knowledge to provide customized financial solutions.

Types of Healthcare Accounting Methods

Accrual Accounting

Accrual accounting is the practice of recording financial transactions on the basis of when they occur, rather than when payment is made. In terms of healthcare accounting, this could refer to recording revenue when treatments are provided, rather than waiting for payment. This method helps to ensure that revenues and expenses are reported accurately in the accounting period they occur in, which can contribute to a more accurate financial picture.

However, this method can also be more time-intensive as it requires meticulous tracking of every transaction and its associated revenue or expense. It necessitates careful attention to detail and excellent organizational skills.

Cash Basis Accounting

Cash basis accounting is the method of only recording a financial transaction when cash is received or paid out. This method typically requires less effort, as it focuses on tracking payments only and not the details of each purchase or sale.

Nevertheless, this method can result in reporting inaccuracies since revenue may be recorded too late or expenses too early if payment isn’t received or made immediately. Medical practices that use cash basis accounting may also miss out on tax deductions and other benefits associated with accrual accounting. It’s worth noting that cash basis accounting is not acceptable under GAAP regulations, so this method may not be appropriate for your business if you want to comply with these principles.

Which Method is Best For Your Medical Practice

The right accounting method for your medical practice depends on its size, complexity, and goals. Accrual accounting is often the best choice for larger practices that need to keep a detailed record of transactions and anticipate their financial needs long-term. Smaller practices may prefer cash basis accounting due to its simplicity.

The experienced healthcare accountants at SD Associates, P.C. can assist you in determining the appropriate accounting method for your practice. Our team is dedicated to providing customized services and helping you accurately assess and manage your finances.

Unique Aspects of Healthcare Accounting

Reporting

Medical practices have distinct financial reporting requirements that necessitate special attention. At SD Associates, P.C., we are aware of the nuanced demands of medical accounting and employ medical-specific software systems to provide our clients with the most accurate and efficient reports possible. Our team delivers detailed yet easily understandable financial reports that are tailored to meet your practice’s specific needs.

Depreciation Tracking

A depreciating asset is an asset that decreases in value over time. It is critical for medical practices to track and appropriately categorize all depreciating assets to reflect their value accurately on the balance sheet. Our accountants at SD Associates, P.C. can track and compute depreciation for medical practices of any size, ensuring that your books are up-to-date with accurate values for all depreciating assets.

Credit Balances

Medical practices handle many payments from insurance companies and Medicare, each with its own timeline. Keeping track of these credit balances can be a major challenge for most practices. Our accountants have the expertise to ensure that all credit balances are properly tracked and reported so that our clients stay organized and informed about their financials.

Confidentiality

The Health Insurance Portability and Accountability Act (HIPAA) requires that medical practices maintain the confidentiality of patient records at all times. As healthcare accountants, we appreciate the importance of confidentiality and take additional measures to safeguard our clients’ sensitive data. Patient data is always handled in accordance with HIPAA regulations, providing our clients with peace of mind.

Healthcare Accounting FAQs

Why should my medical practice work with a professional accountant?

A professional healthcare accountant can help with your practice’s day-to-day financial operations and provide you with specialized knowledge in areas such as tax compliance, reporting and audit preparation. Working with an experienced accountant can also give you greater insight into the performance of your practice, allowing you to make more informed decisions about its future.

 

Are medical practices subject to income tax?

Not only are medical practices subject to income tax, they also have stricter reporting requirements than other businesses. It is essential to work with an experienced accountant who understands the complexities of healthcare accounting, such as filing for credits and deductions. Our certified professionals can help you stay on top of your tax obligations and maximize the financial health of your practice.

 

What deductions can physicians claim?

It is possible for physicians to claim deductions for expenses related to their medical practice, such as medications and office supplies. Additionally, physicians may be able to deduct certain employee benefits, advertising costs, insurance premiums and other business operating expenses. Our experienced team of Glenside healthcare accountants can help you maximize your deductions and ensure you are in compliance with all applicable laws.

 

Why would a medical practice be audited?

The IRS may audit your medical practice for a variety of reasons, including failing to accurately report income or deductions, neglecting to pay taxes in a timely manner, and not filing returns. It is important to have an experienced accountant on your side who understands the complexities of healthcare accounting and can help you prepare for and navigate through an audit if necessary.

Contact Our Glenside Healthcare Accountant Today

At SD Associates, P.C., our team of highly experienced healthcare accountants in Glenside is committed to helping you achieve financial success. Our comprehensive services include tax compliance, audit preparation and reporting assistance. Contact us today at (215) 517-5600 for more information about how we can help your medical practice thrive.

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