CPA Firm Serving PA, NJ, DE, & NY

Healthcare Accountant in Rittenhouse Square

SD Associates, P.C. takes pride in providing outstanding accounting services to local medical practices. Our healthcare accountants in Rittenhouse Square comprehend the distinctive requirements and obstacles faced by healthcare organizations today. With our expertise and qualifications, we can offer the necessary guidance to assist them in achieving 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

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

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.

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

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.

SD Associates, P.C. has experienced healthcare accountants in Rittenhouse Square who can assist you in determining the most suitable accounting method for your medical practice.

Unique Aspects of Healthcare Accounting

Reporting

Healthcare financial reporting can be much more intricate and complicated than in other industries. It’s essential for any healthcare accountant to have a deep understanding of the relevant laws, regulations, and standards that pertain to financial reporting in this field. Our team is well-versed in the complexities of healthcare accounting and provides accurate financial reports that adhere strictly to 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, 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 Rittenhouse Square can advise you on the most advantageous deductions for your medical practice.

Contact Our Rittenhouse Square Healthcare Accountant Today

If you’re looking for a reputable healthcare accountant in Rittenhouse Square that offers a wide range of accounting services for medical practices, SD Associates, P.C. is your best bet. Call us today at (215) 517-5600 to find out how our expertise can assist your practice and help improve its profitability.