Top Accounting Services For the Medical Field

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Healthcare Accountant in Fairless Hills

At SD Associates, P.C., we understand that running a healthcare business is complex and time-consuming. That’s why our team of experienced Fairless Hills healthcare accountants are here to help you navigate the complexities of your medical practice’s finances and provide reliable accounting guidance that can be tailored to your unique 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

Accrual accounting is the practice of recording income and expenses when they are earned or incurred, rather than when the actual cash transaction occurs. For example, a doctor’s office might record revenue when the patient is seen, not when the bill is paid.

The accrual accounting method can offer a more accurate portrayal of financial performance as it includes all income and expenses, not just those related to cash transactions. Nevertheless, it has its pros and cons. The significant advantage is that it offers a more holistic view of the business’s financial situation, while the primary drawback is that it can be more difficult to monitor 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.

However, the main disadvantage of this method is that it does not provide an accurate picture of a business’s financial performance since income and expenses are not recorded until after they occur. In addition, cash basis accounting is not acceptable under GAAP standards and therefore is not appropriate for businesses looking to adhere to these regulations.

Which Method is Best For Your Medical Practice

Choosing the ideal accounting method for your medical practice depends on your distinct requirements. For instance, if you need a more precise picture of financial performance, then accrual accounting is the best choice. If you need a more uncomplicated and easier-to-track method, then cash basis accounting may be better suited for your practice.

At SD Associates, P.C., our healthcare accountant in Fairless Hills can help you identify the ideal method for your medical practice. We deliver all-encompassing accounting services that are personalized to meet your unique business requirements and aspirations.

Unique Aspects of Healthcare Accounting

Reporting

Healthcare financial reporting requirements are demanding and intricate. Our skilled accountants at SD Associates, P.C. have the expertise and knowledge to provide you with accurate and complete financial statements in accordance with all pertinent federal, state, and local regulations. Our team of professionals understand the nuances of healthcare accounting reporting requirements, enabling us to deliver reliable and prompt 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

A credit balance arises when a patient has paid more for services than what was provided. Properly tracking and managing these balances is a crucial aspect of healthcare accounting, and our team at SD Associates, P.C. can provide guidance in this area to ensure that all balances are managed appropriately. We have extensive experience in tracking and managing credit balances across multiple providers.

Confidentiality

Healthcare organizations are required by the Health Insurance Portability and Accountability Act (HIPAA) to uphold the confidentiality of patient information. Our team at SD Associates, P.C. understands the significance of ensuring that all data remains secure and confidential. We maintain the highest level of confidentiality and security when handling your accounting needs.

Healthcare Accounting FAQs

Why should my medical practice work with a professional accountant?

The expertise of a professional Fairless Hills 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 Fairless Hills Healthcare Accountant Today

Do you require the services of a team of experienced healthcare accountants in Fairless Hills who can provide valuable advice 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.