Accounting Pros for Doctors, Chiropractors, & More

CPA Firm Serving PA, NJ, DE, & NY

Healthcare Accountant in Northern Liberties

SD Associates, P.C. takes pride in providing outstanding accounting services to local medical practices. Our healthcare accountants in Northern Liberties 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 at SD Associates, P.C. is committed to offering a personal touch while upholding the highest standards of professionalism. We take the time to closely listen to our clients’ needs and offer guidance tailored to their unique situation. Our knowledgeable staff is also available for consultation, answering questions on specific topics and providing valuable insights into the healthcare industry. Our team of experts can assist medical practices in making informed decisions regarding the management of their finances, from understanding reimbursement rates to analyzing financial trends, to ensure that our clients have the financial resources they need to promote patient care and provide high-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.

Accrual accounting provides a more precise representation of a business’s financial performance. However, it can lead to cash flow and liquidity issues if expected payments are not received by the due date. Our team of experienced healthcare accountants at SD Associates, P.C. can help you manage and understand accrual accounting for your practice.

Cash Basis Accounting

In contrast to accrual accounting, cash basis accounting is the practice of recording revenue and expenses only when payment has been received or made. This method is simpler and often used by smaller businesses with limited resources. However, it can also lead to an incomplete financial picture as income and expenses are often not recorded until much later.

While cash basis accounting is simpler to use than accrual accounting, it may not give an accurate financial picture. Furthermore, it does not meet GAAP standards and may not be suitable for businesses that wish to follow these regulations.

Which Method is Best For Your Medical Practice

Choosing between cash-based and accrual-based accounting can be a difficult decision for medical practices. There are pros and cons to each option, so it is important to understand the differences before making a decision. You’ll have to consider how each method works and the resulting effects on your financial picture.

Our Northern Liberties 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

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

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

The security of healthcare data is a top priority for medical practices, and our accounting team at SD Associates, P.C. recognizes the importance of keeping sensitive patient information confidential. We adhere strictly to all HIPAA regulations, ensuring that all financial information is secure and protected.

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 Northern Liberties can advise you on the most advantageous deductions for your medical practice.

Contact Our Northern Liberties Healthcare Accountant Today

SD Associates, P.C. is a trusted healthcare accountant in Northern Liberties who provides comprehensive services for medical practices of all sizes and specialties. Contact us today at (215) 517-5600 to learn more about our accounting services and how we can help you maximize the profitability of your practice.

You might also be interested in:

• Business Tax Services Chinatown
• Business Tax Services Northern Liberties
• Business Tax Services Old City
• Construction Accountants Chinatown
• Construction Accountants Northern Liberties
• Construction Accountants Old City
• General Contractor Accountants Chinatown
• General Contractor Accountants Northern Liberties
• General Contractor Accountants Old City
• Legal Accountants Chinatown
• Legal Accountants Northern Liberties
• Legal Accountants Old City
• Real Estate Accountants Chinatown
• Real Estate Accountants Northern Liberties
• Real Estate Accountants Old City