Accounting Pros for Doctors, Chiropractors, & More

CPA Firm Serving PA, NJ, DE, & NY

Healthcare Accountant in Northeast Philadelphia

SD Associates, P.C. is pleased to offer exceptional accounting services to nearby medical practices. Our healthcare accountants in Northeast Philadelphia understand the distinctive demands and difficulties encountered by healthcare organizations today. With our experience and qualifications, we can offer the sound advice necessary to help them achieve 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

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.

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

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.

Like accrual accounting, cash basis accounting has its pros and cons. On the positive side, it is simpler to handle. On the other hand, it can result in less accurate financial reporting. Furthermore, cash basis accounting is not recognized under GAAP regulations and may not be the best option for businesses that need to comply with these standards.

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

Accurate healthcare financial reporting demands a comprehensive understanding of the complex laws, regulations, and standards that govern financial reporting in this field. At SD Associates, P.C., our expert accountants specialize in healthcare accounting and are fully equipped to provide reliable and accurate financial reports that meet all applicable 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

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

Contact Our Northeast 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 Northeast 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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