Accounting Pros for Doctors, Chiropractors, & More

CPA Firm Serving PA, NJ, DE, & NY

Healthcare Accountant in South Philadelphia

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

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.

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

Cash basis accounting, unlike accrual accounting, records revenue and expenses only when payment is received or made. This technique is often used by smaller businesses with limited resources due to its simplicity. However, it can result in an incomplete financial picture because income and expenses are often not recorded until much later.

As with accrual accounting, cash basis accounting has both advantages and disadvantages. It is simpler to manage, but can be less accurate when it comes to financial reporting. In addition, cash basis accounting is not acceptable under current GAAP standards, so it may not be appropriate if you 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.

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 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

For medical practices, depreciating assets such as equipment and vehicles decrease in value over time. It is important to accurately calculate the depreciation value of these assets for tax purposes, expense tracking, and insurance paperwork. Our accounting team at SD Associates, P.C. has the expertise to assist in accurately tracking depreciation values for these assets.

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

Contact Our South Philadelphia Healthcare Accountant Today

SD Associates, P.C. is a trusted healthcare accountant in South Philadelphia 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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