Top Accounting Services For the Medical Field

CPA Firm Serving PA, NJ, DE, & NY

Healthcare Accountant in Bucks County

SD Associates, P.C. is a leading healthcare accountant in Bucks County, PA. We provide comprehensive accounting, tax and financial services for the medical industry. Our team of certified public accountants (CPAs) and healthcare experts have decades of combined experience with all aspects of medical accounting and bookkeeping, including Medicare/Medicaid reimbursements, practice management, cost reporting and more.

We understand the complexities of healthcare accounting and are committed to helping our healthcare clients maximize their profits and increase efficiency. Our financial experts leverage the latest technology and accounting software to provide accurate and timely financial information. We strive to build lasting relationships with our healthcare clients by providing quality service, personalized attention and responsive communication. We’ll work with you to develop customized solutions that meet your specific needs and goals.

Types of Healthcare Accounting Methods

Accrual Accounting

Accrual accounting is the practice of recording a transaction when it takes place and not when the money is actually received or spent. The purpose of accrual accounting is to match income with expenses in the same period that they were incurred. For example, if you provide healthcare-related services to patients in June, but the bills aren’t sent out until July, those services are still recorded in June under accrual accounting.

Accrual accounting comes with both advantages and disadvantages. The main advantage of accrual accounting is that it provides a more accurate financial picture since income and expenses are recorded in the same period. However, it can also be difficult to manage cash flow unless you have a good system in place for tracking receivables and payables.

Cash Basis Accounting

In contrast to accrual accounting, cash basis accounting is the practice of only recording transactions when money is actually received or spent. Therefore, income and expenses are recorded in different periods.

Cash basis accounting can be beneficial for small businesses with limited resources because it does not require as much tracking or complexity as accrual accounting. However, this method can also lead to an incomplete financial picture since income and expenses are not recorded in the same period. This means that cash basis accounting may not provide an accurate view of a business’s overall financial health. In addition, cash basis accounting is not considered acceptable under GAAP standards, so it may not be ideal for businesses looking to uphold these principles.

Which Method is Best For Your Medical Practice

Selecting the right accounting method for your medical practice will depend on the size and complexity of your business, as well as the services you offer. The best choice for your practice will depend on factors such as the number of clients you serve, the complexity of your services, and whether you have a system in place for tracking receivables and payables.

At SD Associates, P.C., our expert Bucks County healthcare accountants can help you find which accounting method is best suited to the needs of your medical practice. We have extensive experience working with clients in the healthcare industry, and can provide you with tailored guidance on which accounting method will be most beneficial for your business.

Unique Aspects of Healthcare Accounting

Reporting

Healthcare financial reporting is an important part of the financial management process. As a healthcare accounting firm, SD Associates, P.C. has the expertise to provide clients with accurate and timely financial reports to keep them compliant with all applicable regulations. We can also help analyze these reports for opportunities to improve efficiency or reduce costs and offer solutions tailored to your organization’s individual needs.

Depreciation Tracking

A depreciating asset is an asset that decreases in value over time. For medical practices, understanding the value of these assets is critical to ensuring accurate financial reporting. SD Associates, P.C. has the experience and knowledge needed to track and report on depreciation accurately so that clients can make informed decisions about their investments and stay compliant with applicable regulations.

Credit Balances

Oftentimes, medical practices have credit balances that accumulate due to billing errors or patient refunds. SD Associates, P.C. is skilled in the process of reconciling these accounts and returning funds to patients promptly and accurately. Our expertise allows us to ensure that all applicable regulations are followed while helping our clients maintain positive relationships with their customers.

Confidentiality

According to the Health Insurance Portability and Accountant Act (HIPAA), health care organizations must maintain the confidentiality of their patients’ information. SD Associates, P.C. understands this regulation, and our team is dedicated to ensuring that all client data remains secure and confidential at all times. We use industry best practices and the latest technologies to guarantee that patient information remains safe and secure while allowing us to provide timely and accurate financial reporting.

Healthcare Accounting FAQs

Why should my medical practice work with a professional accountant?

The expertise of a professional Bucks County healthcare accountant can ensure that your medical practice is compliant with the latest regulations, in addition to providing sound financial advice. Working with an experienced healthcare accountant like SD Associates, P.C., can provide you with peace of mind knowing that your finances are in capable hands and free up valuable time to take care of more important day-to-day tasks.

 

Are medical practices subject to income tax?

Yes, medical practices are subject to income tax as they are considered businesses. The process of filing taxes for a medical practice can be complex because of its unique services, employees, and expenses. A professional accountant with expertise in healthcare accounting like SD Associates, P.C., will make the process simple and straightforward, ensuring that your taxes are filed accurately and on time.

 

What deductions can physicians claim?

It is possible for physicians to claim deductions for certain expenses that have been incurred during the course of their practice. Common deductions include health insurance premiums, office supplies and equipment, travel expenses, and educational costs related to continuing medical education. An experienced healthcare accountant can provide guidance on which specific items are eligible for deduction so you can maximize your savings.

Contact Our Healthcare Accountant in Bucks County Today

If you are looking for a reliable healthcare accountant in Bucks County, contact SD Associates, P.C. today to get the advice and support you need. Our team of experienced professionals is here to ensure that your finances stay compliant with the latest regulations while taking advantage of every available deduction. Contact us today at (215) 517-5600 to schedule your consultation.