Accounting Pros for Doctors, Chiropractors, & More

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Healthcare Accountant in North Philadelphia

SD Associates, P.C. is proud to offer exceptional accounting services to local medical practices. Our North Philadelphia healthcare accountants understand the unique needs and challenges faced by healthcare organizations today. With our experience and qualifications, we are able to provide the sound advice needed to help them sustain long-term financial stability.

Our accounting team at SD Associates, P.C. is devoted to delivering a personal touch while upholding the utmost standards of professionalism. We take the time to listen attentively to our clients’ needs and provide tailored guidance to their individual circumstances. Our knowledgeable staff is also available for consultation, answering questions on specific topics and offering valuable insights into the healthcare industry. We can assist medical practices in making informed decisions about the management of their finances, from comprehending reimbursement rates to analyzing financial trends, to ensure that our clients have the financial resources they need 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 accurate picture of a business’s financial performance, it can lead to cash flow and liquidity issues if expected payments are not received by the due date. At SD Associates, P.C., our team of experienced healthcare accountants can assist you in understanding and managing accrual accounting for your practice.

Cash Basis Accounting

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

The decision to choose between cash-based and accrual-based accounting can be daunting for medical practices. Before selecting a method, it is essential to consider the advantages and disadvantages of each. Your choice should depend on how each approach works and its impact on your financial situation.

Our North Philadelphia 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

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

Depreciating assets in medical practices, such as equipment and vehicles, decrease in value over time. Accurately accounting for the depreciation value of these assets is crucial for tax preparation and insurance paperwork. At SD Associates, P.C., our accounting team has extensive experience in tracking asset depreciation values to help ensure accurate reporting and compliance.

Credit Balances

As a healthcare accountant, we know that managing credit balances is an integral part of medical practice accounting. At SD Associates, P.C., our team has extensive experience in managing credit balances and can provide you with the guidance needed to track and process refunds accurately and efficiently.

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 North Philadelphia can advise you on the most advantageous deductions for your medical practice.

Contact Our North Philadelphia Healthcare Accountant Today

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