Top Accounting Services For the Medical Field

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Healthcare Accountant in Yardley

At SD Associates, P.C., we understand that running a healthcare business is complex and time-consuming. That’s why our team of experienced Yardley 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.

At our firm, we aim to analyze your current financial status and devise a comprehensive plan to assist you in achieving your objectives. We offer various services such as cash flow analysis, budgeting, bookkeeping assistance, tax planning and filing, payroll processing, and consultation on health records compliance. We realize that the healthcare industry is rapidly evolving, and our team endeavors to provide you with the latest guidance on new regulations, tax credits, and other financial considerations. Moreover, we can help you identify opportunities to improve your profitability and increase 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.

Employing the accrual accounting method can produce a more precise depiction of financial performance since it considers all income and expenses, not only those associated with cash transactions. However, it has advantages and disadvantages. The principal advantage is that it offers a more comprehensive view of the company’s financial condition, whereas the main disadvantage is that it can be more challenging 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.

The major disadvantage of cash basis accounting is that it does not provide an accurate portrayal of a company’s financial performance since income and expenses are not recorded until they occur. Additionally, cash basis accounting is not recognized under GAAP standards, making it unsuitable for businesses that want to conform to these rules.

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.

Our healthcare accountant in Yardley 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

The reporting requirements for healthcare financials are intricate and challenging. Our professional accountants at SD Associates, P.C. possess the expertise and understanding to furnish you with precise and comprehensive financial statements in compliance with all applicable federal, state, and local regulations. Our team of professionals are well-versed in the specifics of healthcare accounting reporting requirements, enabling us to offer quick and dependable 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

According to the Health Insurance Portability and Accountant Act (HIPAA), it is essential for healthcare organizations to maintain the confidentiality of patient information. Our team at SD Associates, P.C. understands the importance of ensuring that all data remains secure and confidential. We maintain the highest level of confidentiality and security when managing your accounting needs.

Healthcare Accounting FAQs

Why should my medical practice work with a professional accountant?

The expertise of a professional Yardley 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 Yardley Healthcare Accountant Today

Are you looking for a team of experienced healthcare accountants in Yardley who can provide the best advice on how to handle your medical practice’s finances? Look no further than SD Associates, P.C. Our knowledgeable staff has years of experience working with clients in all aspects of healthcare accounting. Contact us today at (215) 517-5600 to schedule your consultation.