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Healthcare Accountant in Germantown

SD Associates, P.C. is pleased to offer exceptional accounting services to nearby medical practices. Our healthcare accountants in Germantown understand the distinctive demands and difficulties encountered by healthcare organizations today. With our experience and qualifications, we can offer the sound advice necessary to help them achieve 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

The practice of accrual accounting in healthcare accounting involves recording revenue and expenses when they are incurred, regardless of whether payment has been received or made. For instance, a medical office might record revenue when services are provided, even if the patient has not yet paid. This is often the case with medical practices that have to bill insurance companies instead of receiving immediate payment from the patient.

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

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

With SD Associates, P.C.’s knowledgeable healthcare accountants in Germantown, 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

Accurate healthcare financial reporting demands a comprehensive understanding of the complex laws, regulations, and standards that govern financial reporting in this field. At SD Associates, P.C., our expert accountants specialize in healthcare accounting and are fully equipped to provide reliable and accurate financial reports that meet all applicable 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 can quickly become a significant challenge for medical practices. That’s why our team at SD Associates, P.C. is committed to providing our clients with the support they need to manage credit balances efficiently. We have the experience and knowledge necessary to ensure that your practice remains compliant with all regulations regarding credit balance refunds.

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

Contact Our Germantown Healthcare Accountant Today

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