Accounting Pros for Doctors, Chiropractors, & More

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Healthcare Accountant in Mt Airy

SD Associates, P.C. takes pride in providing outstanding accounting services to local medical practices. Our healthcare accountants in Mt Airy 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

Healthcare accounting commonly employs accrual accounting, which involves recording revenue and expenses when they are incurred, irrespective of whether payment has been received or made. For example, a medical office might record revenue when services are provided, even if the patient has not yet paid. This is often the case with medical practices that have to bill insurance companies instead of receiving immediate payment from the patient.

While accrual accounting provides a more comprehensive view of a business’s financial performance, it can result in cash flow and liquidity problems if anticipated payments are not received on time. Our team of experienced healthcare accountants at SD Associates, P.C. can help you understand and manage accrual accounting for your practice.

Cash Basis Accounting

Unlike accrual accounting, cash basis accounting is the practice of recording revenue and expenses only when payment is received or made. This method is often used by smaller businesses with limited resources due to its simplicity. However, it can result in an incomplete financial picture as 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

When it comes to selecting between cash-based and accrual-based accounting, it can be a tough call for medical practices. It’s vital to evaluate the advantages and disadvantages of each method before making a decision. The choice should depend on how each approach works and how it affects your finances.

When it comes to accounting for medical practices, SD Associates, P.C. understands the complexities involved and can offer expert guidance on which method will work best for you.

Unique Aspects of Healthcare Accounting

Reporting

Healthcare accounting reporting can be complex and intricate, and requires expertise in the relevant laws, regulations, and standards. Our team at SD Associates, P.C. is well-versed in the intricacies of healthcare accounting and can provide accurate and comprehensive financial reports that adhere to all relevant rules and regulations.

Depreciation Tracking

A depreciating asset is an asset that decreases in value over time. For medical practices, these can include equipment and vehicles. Knowing the exact depreciation value of these assets is essential for accurately tracking expenses, preparing taxes and filing paperwork with insurance companies. We understand the importance of properly accounting for depreciating assets and have extensive experience in tracking asset depreciation values.

Credit Balances

Credit balances can quickly become a significant challenge for medical practices. That’s why our team at SD Associates, P.C. is committed to providing our clients with the support they need to manage credit balances efficiently. We have the experience and knowledge necessary to ensure that your practice remains compliant with all regulations regarding credit balance refunds.

Confidentiality

HIPAA regulations require that all healthcare data be kept confidential and secure, which is why our team at SD Associates, P.C. takes the utmost care when managing financial information for medical practices. Our experienced accountants are well-versed in HIPAA compliance and are committed to safeguarding your patient data.

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 Mt Airy can advise you on the most advantageous deductions for your medical practice.

Contact Our Mt Airy Healthcare Accountant Today

If you’re looking for a reputable healthcare accountant in Mt Airy that offers a wide range of accounting services for medical practices, SD Associates, P.C. is your best bet. Call us today at (215) 517-5600 to find out how our expertise can assist your practice and help improve its profitability.

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