Top Accounting Services For the Medical Field

CPA Firm Serving PA, NJ, DE, & NY

Healthcare Accountant in Southampton

At SD Associates, P.C., we understand that running a healthcare business is complex and time-consuming. That’s why our team of experienced Southampton 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 dedicated to evaluating your present financial status and creating a comprehensive strategy that can help you achieve your objectives. We deliver an array of services such as budgeting, bookkeeping assistance, cash flow analysis, tax planning and filing, payroll processing, and health records compliance consulting. We are aware that the healthcare industry is a rapidly evolving domain, and we strive to provide our clients with current guidance on new regulations, tax credits, and other financial considerations. Additionally, we can help you enhance your profitability and increase your practice or organization’s efficiency.

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.

Accrual accounting is a method that can provide a more precise representation of financial performance since it takes into account all income and expenses, not just those that involve cash. However, it has both benefits and drawbacks. The primary advantage is that it provides a more comprehensive view of the company’s financial status, whereas the major disadvantage is that it can be more challenging to track financial performance in real-time.

Cash Basis Accounting

The practice of cash basis accounting entails recording income and expenses exclusively when they involve a cash transaction. For instance, a doctor’s office would only record revenue when bills are paid, not when they are sent to a patient or an insurance company. Cash basis accounting is generally simpler to manage and monitor since it only considers 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 Southampton 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

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

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

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

The Health Insurance Portability and Accountability Act (HIPAA) mandates that healthcare organizations maintain the confidentiality of patient information. Our team at SD Associates, P.C. recognizes the significance of ensuring that all data remains secure and confidential. We uphold the utmost level of confidentiality and security when handling your accounting requirements.

Healthcare Accounting FAQs

Why should my medical practice work with a professional accountant?

The expertise of a professional Southampton 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 Southampton Healthcare Accountant Today

Are you seeking a team of skilled healthcare accountants in Southampton 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.