Top Accounting Services For the Medical Field

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Healthcare Accountant in Bristol

Managing a healthcare business can be overwhelming and time-intensive. SD Associates, P.C. comprehends this and has a team of seasoned healthcare accountants in Bristol to help you navigate the complexities of your medical practice’s finances. Our accounting guidance is dependable and can be customized to meet your distinct needs.

We are committed to examining your current financial position and crafting a thorough plan that can aid you in reaching your goals. Our services include cash flow analysis, budgeting, bookkeeping assistance, tax planning and filing, payroll processing, and advising on health records compliance. We recognize that the healthcare industry is constantly changing, and we aim to provide our clients with up-to-date advice on new regulations, tax credits, and other financial matters. Furthermore, our team can assist you in maximizing your profits and enhancing the efficiency of your practice or organization.

Types of Healthcare Accounting Methods

Accrual Accounting

The practice of accrual accounting involves recording income and expenses when they are earned or incurred, rather than when the actual cash transaction occurs. For instance, a doctor’s office may record revenue when the patient is treated, rather than when the bill is paid.

This method can provide a more accurate picture of financial performance since it includes all income and expenses, not just those that involve cash. However, it has both advantages and disadvantages. The major benefit is that it provides a more holistic view of the business’s financial situation, while the main downside is that it can be more difficult to track financial performance in real-time.

Cash Basis Accounting

Cash basis accounting involves recording income and expenses only when they involve a cash transaction. For instance, a doctor’s office would record revenue only when bills are paid, not when they are sent to a patient or an insurance company. Cash basis accounting is generally easier to manage and track since it only takes into account actual cash transactions.

The main drawback of cash basis accounting is that it does not offer a precise depiction of a business’s financial performance since income and expenses are not recorded until after they occur. Furthermore, cash basis accounting is not acceptable under GAAP standards, making it unsuitable for businesses that aim to adhere to these regulations.

Which Method is Best For Your Medical Practice

Selecting the most appropriate accounting method for your medical practice depends on your specific requirements. For instance, if you require a more precise representation of financial performance, then accrual accounting is the optimal choice. If you need a more straightforward and easier-to-manage method, then cash basis accounting may be better suited for your practice.

Our healthcare accountant in Bristol can help you decide which method is best for your medical practice. SD Associates, P.C. offers comprehensive accounting services tailored to your unique business needs and goals.

Unique Aspects of Healthcare Accounting

Reporting

The reporting requirements for healthcare financials are complex and challenging. At SD Associates, P.C., our professional accountants possess the experience and expertise to offer you accurate and comprehensive financial statements in adherence to all relevant federal, state, and local regulations. Our team of experts are well-informed about the intricacies of healthcare accounting reporting requirements, allowing us to provide efficient and dependable service for your organization.

Depreciation Tracking

Depreciating assets are assets that lose value over time. This includes medical equipment, office furniture, and other assets for medical practices. It is essential to accurately track the depreciation of these assets for tax compliance and financial reporting. The professional accounting team at SD Associates, P.C. has a profound understanding of depreciating assets and can assist you in developing precise depreciation schedules that fulfill the requirements of your healthcare business.

Credit Balances

Credit balances occur when a patient has paid more for services than what was delivered. Effectively tracking and managing these balances is an essential component of healthcare accounting, and our team at SD Associates, P.C. can offer assistance in this area to guarantee that all balances are managed correctly. We have proficiency in tracking and managing credit balances across multiple providers.

Confidentiality

According to the Health Insurance Portability and Accountability Act (HIPAA), healthcare organizations must maintain the confidentiality of patient information. Our team at SD Associates, P.C. comprehends the importance of guaranteeing that all data is kept secure and confidential. We maintain the highest standard of confidentiality and security when managing your accounting needs.

Healthcare Accounting FAQs

Why should my medical practice work with a professional accountant?

The expertise of a professional Bristol healthcare accountant, such as SD Associates, P.C., is invaluable when it comes to effectively managing your practice’s finances and staying compliant with industry regulations. Our team of experienced professionals provides comprehensive services ranging from financial planning to budgeting and forecasting, so you can make informed decisions that help your practice succeed.

Are medical practices subject to income tax?

Yes, medical practices are subject to federal income tax in the same way as other businesses. In addition, some states may have additional taxes or regulations that apply specifically to healthcare organizations. Our team of experts is well-versed in the relevant laws and will ensure your practice stays compliant with all applicable taxation requirements.

What deductions can physicians claim?

It is possible for physicians to deduct certain expenses, such as professional fees and medical supplies. Additionally, they may be able to take advantage of deductions related to wages paid to employees, rent or mortgage payments on office space and equipment costs. Your healthcare accountant can provide more detailed information about the deductions available in your specific situation.

How can I ensure my practice remains compliant with healthcare accounting regulations?

SD Associates, P.C. provides a range of services to help you stay in compliance with healthcare accounting regulations. Our experienced accountants are up-to-date on the latest industry changes and can help your practice remain compliant while maximizing efficiency and profitability.

Contact Our Bristol Healthcare Accountant Today

Are you looking for a team of experienced healthcare accountants in Bristol who can provide the best advice on how to handle your medical practice’s finances? Look no further than SD Associates, P.C. Our knowledgeable staff has years of experience working with clients in all aspects of healthcare accounting. Contact us today at (215) 517-5600 to schedule your consultation.