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Healthcare Accountant in Port Richmond

Our healthcare accountants at SD Associates, P.C. in Port Richmond are dedicated to providing exceptional accounting services to local medical practices. We are familiar with the unique needs and challenges that healthcare organizations face today. With our expertise and qualifications, we can offer the guidance necessary to help them attain 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

Accrual accounting is the practice of recording revenue and expenses when they are incurred, regardless of when payment is received or made. For example, a medical office might record revenue when they provide services, even if the patient has not yet paid. This is often the case with medical practices, as the business has to bill insurance companies instead of the customer paying right away.

Accrual accounting comes with both advantages and disadvantages. On the one hand, it allows for a more accurate picture of a business’s financial performance. On the other, it can result in issues with cash flow and liquidity if all expected payments are not received by the due date. At SD Associates, P.C., our team of experienced healthcare accountants can help you understand and manage 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

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.

SD Associates, P.C. has experienced healthcare accountants in Port Richmond who can assist you in determining the most suitable accounting method for your medical practice.

Unique Aspects of Healthcare Accounting

Reporting

Accurate and reliable financial reporting is crucial for healthcare organizations to maintain their financial stability and credibility. Our team at SD Associates, P.C. is well-equipped to handle the intricacies of healthcare accounting, including the relevant laws, regulations, and standards, and can provide accurate and compliant financial reports that meet your organization’s specific needs.

Depreciation Tracking

Accurately tracking the depreciation of assets such as equipment and vehicles is critical for medical practices in terms of tax reporting and insurance paperwork. These assets decrease in value over time and need to be accounted for properly. Our accounting team at SD Associates, P.C. has the expertise to assist in accurately tracking the depreciation values of these assets to ensure accurate financial reporting.

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

According to the Health Insurance Portability and Accountant Act (HIPAA), all healthcare data must be kept confidential and secure. When accountants take stock of a medical practices’ finances, they often have to view sensitive patient information. We put the highest priority on patient privacy and security, adhering strictly to all HIPAA regulations so you can be confident that your practice’s data is properly safeguarded.

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 Port Richmond can advise you on the most advantageous deductions for your medical practice.

Contact Our Port Richmond Healthcare Accountant Today

SD Associates, P.C. is a trusted healthcare accountant in Port Richmond 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.

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