Top Accounting Services For the Medical Field

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Healthcare Accountant in Warrington

Our skilled healthcare accountants in Warrington at SD Associates, P.C. recognize the intricacy and time-consuming nature of managing a healthcare business. Hence, we are here to assist you in navigating through the complex financial aspects of your medical practice and provide trustworthy accounting counsel that is personalized to meet your specific requirements.

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

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.

At SD Associates, P.C., our healthcare accountant in Warrington 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 declines in value over time. For medical practices, this encompasses medical equipment, office furniture, and other assets. Precisely tracking the depreciation of these assets is crucial for tax compliance and financial reporting. Our expert accounting team at SD Associates, P.C. comprehends the intricacies of depreciating assets and can help you create precise depreciation schedules that meet the needs 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

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 Warrington 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 Warrington Healthcare Accountant Today

Do you require the services of a team of experienced healthcare accountants in Warrington 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.