Top Accounting Services For the Medical Field

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Healthcare Accountant in Doylestown

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 Doylestown 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.

Our team is here to examine your current financial situation and develop a comprehensive plan that can help you meet your goals. We provide services such as cash flow analysis, budgeting, bookkeeping assistance, tax planning and filing, payroll processing and consulting on health records compliance. We understand that the healthcare industry is a quickly changing sector and strive to provide our clients with up-to-date guidance on new regulations, tax credits, and other financial considerations. Our team can also help you find ways to maximize your profits and increase efficiency of your practice or organization.

Types of Healthcare Accounting Methods

Accrual Accounting

In accrual accounting, income and expenses are recorded 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 receives medical care, rather than when the payment is made.

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 is the practice of recording income and expenses only when they involve a cash transaction. For example, a doctor’s office would record revenue only when bills are actually paid – not when the bill is sent to a patient or insurance company. Cash basis accounting is generally simpler to track and manage because it only involves actual cash transactions.

The primary drawback of cash basis accounting is that it does not offer an exact representation of a business’s financial performance since income and expenses are not recorded until after they happen. Furthermore, cash basis accounting is not compliant with GAAP standards, making it unsuitable for businesses that wish to comply with these regulations.

Which Method is Best For Your Medical Practice

The best accounting method for your medical practice depends on your individual needs. For example, if you require a more accurate portrayal of financial performance, then accrual accounting is the optimal option. If you need a simpler and more manageable method, then cash basis accounting might be more suitable for your practice.

Our healthcare accountant in Doylestown can assist you in determining which method is most suitable for your medical practice. At SD Associates, P.C., we provide comprehensive accounting services that are customized to meet your distinct business needs and objectives.

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

A depreciating asset is an asset that decreases in value over time. For medical practices, this includes medical equipment, office furniture, and other assets. Accurately tracking depreciation of these assets is important for tax compliance and financial reporting. SD Associates, P.C.’s expert accounting team understands the nuances of depreciating assets and can help you develop accurate depreciation schedules to meet your healthcare business needs.

Credit Balances

When a patient pays more for services than what was rendered, a credit balance occurs. Accurately tracking and managing these balances is a crucial element of healthcare accounting, and our team at SD Associates, P.C. can provide counsel in this area to ensure that all balances are managed correctly. We have expertise 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 Doylestown 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 Doylestown Healthcare Accountant Today

Are you seeking a team of skilled healthcare accountants in Doylestown who can provide expert guidance on managing your medical practice’s finances? Look no further than SD Associates, P.C. Our knowledgeable team has extensive experience working with clients in all facets of healthcare accounting. Contact us today at (215) 517-5600 to schedule your consultation.