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Healthcare Accountant in Port Richmond

Our healthcare accountants at SD Associates, P.C. in Port Richmond 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 at SD Associates, P.C. is committed to offering a personal touch while upholding the highest standards of professionalism. We take the time to closely listen to our clients’ needs and offer guidance tailored to their unique situation. Our knowledgeable staff is also available for consultation, answering questions on specific topics and providing valuable insights into the healthcare industry. Our team of experts can assist medical practices in making informed decisions regarding the management of their finances, from understanding reimbursement rates to analyzing financial trends, to ensure that our clients have the financial resources they need to promote patient care and provide high-quality services.

Types of Healthcare Accounting Methods

Accrual Accounting

Healthcare accounting commonly employs accrual accounting, which involves recording revenue and expenses when they are incurred, irrespective of whether payment has been received or made. For example, 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

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.

SD Associates, P.C. has experienced healthcare accountants in Port Richmond who can assist you in determining the most suitable accounting method 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

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

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

Contact Our Port Richmond Healthcare Accountant Today

For expert healthcare accounting services in Port Richmond, 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.