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Healthcare Accountant in Center City

SD Associates, P.C. is proud to offer exceptional accounting services to local medical practices. Our Center City healthcare accountants understand the unique needs and challenges faced by healthcare organizations today. With our experience and qualifications, we are able to provide the sound advice needed to help them sustain 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 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

Unlike accrual accounting, cash basis accounting is the practice of recording revenue and expenses only when payment is received or made. This method is often used by smaller businesses with limited resources due to its simplicity. However, it can result in an incomplete financial picture as 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

It can be challenging for medical practices to choose between cash-based and accrual-based accounting. It is essential to weigh the pros and cons of each option carefully before deciding on the best approach. The decision should be based on how each method works and the impact it will have on your business financially.

With SD Associates, P.C.’s knowledgeable healthcare accountants in Center City, you can get the assistance you need to choose the accounting method that’s right for your medical practice.

Unique Aspects of Healthcare Accounting

Reporting

Healthcare accounting reporting can be complex and intricate, and requires expertise in the relevant laws, regulations, and standards. Our team at SD Associates, P.C. is well-versed in the intricacies of healthcare accounting and can provide accurate and comprehensive financial reports that adhere to all relevant rules and regulations.

Depreciation Tracking

Depreciating assets in medical practices, such as equipment and vehicles, decrease in value over time. Accurately accounting for the depreciation value of these assets is crucial for tax preparation and insurance paperwork. At SD Associates, P.C., our accounting team has extensive experience in tracking asset depreciation values to help ensure accurate reporting and compliance.

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

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 Center City can advise you on the most advantageous deductions for your medical practice.

Contact Our Center City Healthcare Accountant Today

For expert healthcare accounting services in Center City, look no further than SD Associates, P.C. We provide tailored accounting solutions for medical practices and offer a wide range of services to help you manage your finances effectively. Contact us today at (215) 517-5600 to schedule a consultation with one of our knowledgeable healthcare accountants.