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Healthcare Accountant in West Philadelphia

Our healthcare accountants at SD Associates, P.C. in West Philadelphia 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.

At SD Associates, P.C., our accounting team is dedicated to providing a personalized approach while maintaining the highest standards of professionalism. We take the time to carefully listen to our clients’ needs and provide tailored guidance to their specific situation. Our knowledgeable staff is also available for consultation, answering questions on specific topics and offering valuable insights into the healthcare industry. Our team of experts can help medical practices make informed decisions about the management of their finances, from understanding reimbursement rates to analyzing financial trends, to ensure that our clients have the financial resources they require 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 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

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.

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.

Our West Philadelphia 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 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

Credit balances, or refunds owed to patients, can be a complex and time-consuming process. Our team at SD Associates, P.C. is experienced in managing credit balances for all types of medical practices, ensuring that any overpayments are accurately refunded to the patient in a timely manner. We have developed processes for efficiently tracking and processing credit balance refunds so you can rest assured that your practice is compliant with all applicable regulations.

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

Contact Our West 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 West 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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