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Healthcare Accountant in Society Hill

Our healthcare accountants at SD Associates, P.C. in Society Hill 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

In healthcare accounting, accrual accounting is the method of recording revenue and expenses when they are incurred, irrespective 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 common in medical practices where the business has to bill insurance companies instead of receiving immediate payment from the customer.

While accrual accounting provides a more accurate picture of a business’s financial performance, it can lead to cash flow and liquidity issues if expected payments are not received by the due date. At SD Associates, P.C., our team of experienced healthcare accountants can assist you in understanding and managing accrual accounting for your practice.

Cash Basis Accounting

Cash basis accounting, unlike accrual accounting, records revenue and expenses only when payment is received or made. This technique is often used by smaller businesses with limited resources due to its simplicity. However, it can result in an incomplete financial picture because 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

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 Society Hill, 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 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

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

Contact Our Society Hill Healthcare Accountant Today

If you’re looking for a reputable healthcare accountant in Society Hill 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.