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Healthcare Accountant in Washington Crossing

The financial management of a healthcare business can be challenging and requires significant effort. At SD Associates, P.C., our team of experienced healthcare accountants in Washington Crossing can aid you in navigating the complexities of your medical practice’s finances. We provide reliable accounting guidance tailored to meet your unique needs.

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

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 involves recording income and expenses solely when they involve a cash transaction. This means that 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 easier to track and manage because it only includes 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 Washington Crossing 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

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 refers to an asset that diminishes in value over time. For medical practices, this includes medical equipment, office furniture, and other assets. Precisely tracking the depreciation of these assets is necessary for tax compliance and financial reporting. Our accounting team of experts at SD Associates, P.C. understands the intricacies of depreciating assets and can help you devise accurate depreciation schedules that align with 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

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 Washington Crossing 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 Washington Crossing Healthcare Accountant Today

Are you seeking a team of skilled healthcare accountants in Washington Crossing 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.