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Healthcare Accountant in Kensington

Our healthcare accountants at SD Associates, P.C. in Kensington 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.

Our accounting team is dedicated to providing a personal touch while maintaining the highest standards of professionalism. We take time to listen closely to our clients’ needs and offer guidance tailored to their individual situation. Our knowledgeable staff is also available for consultation, answering questions on specific topics and providing valuable insights into the healthcare industry. From understanding reimbursement rates to analyzing financial trends, our team of experts can help medical practices make informed decisions regarding the management of their finances. We strive 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

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.

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 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

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

Our experienced team at SD Associates, P.C. understands that managing credit balances in medical practices can be a daunting task. We have developed efficient processes for tracking and processing credit balance refunds for patients, ensuring that your practice remains compliant with all regulations.

Confidentiality

According to the Health Insurance Portability and Accountant Act (HIPAA), all healthcare data must be kept confidential and secure. When accountants take stock of a medical practices’ finances, they often have to view sensitive patient information. We put the highest priority on patient privacy and security, adhering strictly to all HIPAA regulations so you can be confident that your practice’s data is properly safeguarded.

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

Contact Our Kensington Healthcare Accountant Today

With years of experience in healthcare accounting, SD Associates, P.C. is a highly recommended accounting firm for medical practices in Kensington. 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.