Top Accounting Services For the Medical Field

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Healthcare Accountant in Trevose

The financial management of a healthcare business can be challenging and requires significant effort. At SD Associates, P.C., our team of experienced healthcare accountants in Trevose can aid you in navigating the complexities of your medical practice’s finances. We provide reliable accounting guidance tailored to meet your unique needs.

Our team is dedicated to evaluating your present financial status and creating a comprehensive strategy that can help you achieve your objectives. We deliver an array of services such as budgeting, bookkeeping assistance, cash flow analysis, tax planning and filing, payroll processing, and health records compliance consulting. We are aware that the healthcare industry is a rapidly evolving domain, and we strive to provide our clients with current guidance on new regulations, tax credits, and other financial considerations. Additionally, we can help you enhance your profitability and increase your practice or organization’s efficiency.

Types of Healthcare Accounting Methods

Accrual Accounting

Accrual accounting entails recording income and expenses when they are earned or incurred, rather than when the actual cash transaction takes place. This means that a doctor’s office may record revenue when the patient receives treatment, rather than when the bill is settled.

Accrual accounting is a method that can provide a more precise representation of financial performance since it takes into account all income and expenses, not just those that involve cash. However, it has both benefits and drawbacks. The primary advantage is that it provides a more comprehensive view of the company’s financial status, whereas the major disadvantage is that it can be more challenging to track financial performance in real-time.

Cash Basis Accounting

Cash basis accounting is the practice of recording income and expenses only when they involve a cash transaction. For example, a doctor’s office would record revenue only when bills are actually paid – not when the bill is sent to a patient or insurance company. Cash basis accounting is generally simpler to track and manage because it only involves actual cash transactions.

However, the main disadvantage of this method is that it does not provide an accurate picture of a business’s financial performance since income and expenses are not recorded until after they occur. In addition, cash basis accounting is not acceptable under GAAP standards and therefore is not appropriate for businesses looking to adhere to these regulations.

Which Method is Best For Your Medical Practice

Choosing the best accounting method for your medical practice depends on your individual needs. For example, if you need a more accurate picture of financial performance, then accrual accounting is the best option. If you need a simpler and easier-to-track method, then cash basis accounting might be better suited for your practice.

Our healthcare accountant in Trevose can help you decide which method is best for your medical practice. SD Associates, P.C. offers comprehensive accounting services tailored to your unique business needs and goals.

Unique Aspects of Healthcare Accounting

Reporting

The reporting requirements for healthcare financials are complex and challenging. At SD Associates, P.C., our professional accountants possess the experience and expertise to offer you accurate and comprehensive financial statements in adherence to all relevant federal, state, and local regulations. Our team of experts are well-informed about the intricacies of healthcare accounting reporting requirements, allowing us to provide efficient and dependable service for your organization.

Depreciation Tracking

Depreciating assets are assets that lose value over time. This includes medical equipment, office furniture, and other assets for medical practices. It is essential to accurately track the depreciation of these assets for tax compliance and financial reporting. The professional accounting team at SD Associates, P.C. has a profound understanding of depreciating assets and can assist you in developing precise depreciation schedules that fulfill the requirements of your healthcare business.

Credit Balances

A credit balance arises when a patient has paid more for services than what was provided. Properly tracking and managing these balances is a crucial aspect of healthcare accounting, and our team at SD Associates, P.C. can provide guidance in this area to ensure that all balances are managed appropriately. We have extensive experience in tracking and managing credit balances across multiple providers.

Confidentiality

The Health Insurance Portability and Accountability Act (HIPAA) mandates that healthcare organizations maintain the confidentiality of patient information. Our team at SD Associates, P.C. recognizes the significance of ensuring that all data remains secure and confidential. We uphold the utmost level of confidentiality and security when handling your accounting requirements.

Healthcare Accounting FAQs

Why should my medical practice work with a professional accountant?

The expertise of a professional Trevose healthcare accountant, such as SD Associates, P.C., is invaluable when it comes to effectively managing your practice’s finances and staying compliant with industry regulations. Our team of experienced professionals provides comprehensive services ranging from financial planning to budgeting and forecasting, so you can make informed decisions that help your practice succeed.

Are medical practices subject to income tax?

Yes, medical practices are subject to federal income tax in the same way as other businesses. In addition, some states may have additional taxes or regulations that apply specifically to healthcare organizations. Our team of experts is well-versed in the relevant laws and will ensure your practice stays compliant with all applicable taxation requirements.

What deductions can physicians claim?

It is possible for physicians to deduct certain expenses, such as professional fees and medical supplies. Additionally, they may be able to take advantage of deductions related to wages paid to employees, rent or mortgage payments on office space and equipment costs. Your healthcare accountant can provide more detailed information about the deductions available in your specific situation.

How can I ensure my practice remains compliant with healthcare accounting regulations?

SD Associates, P.C. provides a range of services to help you stay in compliance with healthcare accounting regulations. Our experienced accountants are up-to-date on the latest industry changes and can help your practice remain compliant while maximizing efficiency and profitability.

Contact Our Trevose Healthcare Accountant Today

If you are in search of a team of experienced healthcare accountants in Trevose who can offer the best advice on managing your medical practice’s finances, look no further than SD Associates, P.C. Our knowledgeable staff has years of experience working with clients in all aspects of healthcare accounting. Contact us today at (215) 517-5600 to schedule your consultation.

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