Medical Accounting For The Area’s Top Doctors

CPA Firm Serving PA, NJ, DE, & NY

Healthcare Accountant in Audubon

As a top healthcare accountant in Audubon, SD Associates, P.C. is dedicated to providing professional and cost-effective accounting services to healthcare organizations of all sizes. Our team of experienced accountants will personalize their services to fit your unique needs and goals.

We at SD Associates, P.C. acknowledge the unique challenges that healthcare organizations confront. We strive to offer solutions that are both efficient and effective. With over three decades of being in business, our CPA firm has collaborated with numerous medical practices, providing us with a deep understanding of the healthcare sector. We are well-versed in healthcare-specific regulations and can help you navigate the ever-changing landscape of healthcare accounting. Whether you are a pediatrician, chiropractor, or director of an assisted living facility, our healthcare accountants have the experience and expertise to provide tailored financial solutions.

Types of Healthcare Accounting Methods

Accrual Accounting

The practice of accruing accounting involves recording financial transactions based on when they happen, rather than when payment is made. In healthcare accounting, this could involve recording revenue when treatments are provided, instead of waiting for payment. This method assists in ensuring that revenues and expenses are accurately reported in the accounting period they occur in, resulting in a more precise financial picture.

This method, however, can also be more time-consuming as it involves tracking every transaction and its associated revenue or expense in detail. It requires excellent organizational skills and a great deal of attention to detail.

Cash Basis Accounting

Cash basis accounting is a financial recording method that involves recording a transaction only when cash is received or paid out. This method generally requires less effort, as it focuses on tracking payments only and not the details of each purchase or sale.

However, this method can result in inaccuracies in reporting since revenue may be recorded too late, or expenses may be recorded too early if payment isn’t received or made immediately. Medical practices that use cash basis accounting may also miss out on tax deductions and other benefits associated with accrual accounting. It should be noted that cash basis accounting is not acceptable under GAAP regulations, so this method may not be suitable for your business if you wish to adhere to these principles.

Which Method is Best For Your Medical Practice

The optimal accounting method for your medical practice is determined by its size, complexity, and objectives. Accrual accounting is often the best option for larger practices that need to maintain a comprehensive record of transactions and anticipate their financial needs in the long term. Due to its simplicity, smaller practices may prefer cash basis accounting.

The skilled healthcare accountants at SD Associates, P.C. can assist you in determining the best accounting method for your practice. Our team is committed to providing customized services and assisting you in accurately assessing and managing your finances.

Unique Aspects of Healthcare Accounting

Reporting

Medical practices have distinct financial reporting requirements that necessitate special attention. At SD Associates, P.C., we are aware of the nuanced demands of medical accounting and employ medical-specific software systems to provide our clients with the most accurate and efficient reports possible. Our team delivers detailed yet easily understandable financial reports that are tailored to meet your practice’s specific needs.

Depreciation Tracking

An asset that decreases in value over time is known as a depreciating asset. It is essential for medical practices to track and categorize all depreciating assets properly to reflect their value accurately on the balance sheet. Our accountants at SD Associates, P.C. can track and calculate depreciation for medical practices of any size, ensuring that your books are kept current with accurate values for all depreciating assets.

Credit Balances

Medical practices receive numerous payments from insurance companies and Medicare, each with its timeline. Keeping track of these credit balances can be a major challenge for most practices. Our accountants have the expertise to guarantee that all credit balances are correctly tracked and reported, providing our clients with organization and information about their finances.

Confidentiality

The Health Insurance Portability and Accountability Act (HIPAA) requires that medical practices maintain the confidentiality of patient records at all times. As healthcare accountants, we appreciate the importance of confidentiality and take additional measures to safeguard our clients’ sensitive data. Patient data is always handled in accordance with HIPAA regulations, providing our clients with peace of mind.

Healthcare Accounting FAQs

Why should my medical practice work with a professional accountant?

A professional healthcare accountant can help with your practice’s day-to-day financial operations and provide you with specialized knowledge in areas such as tax compliance, reporting and audit preparation. Working with an experienced accountant can also give you greater insight into the performance of your practice, allowing you to make more informed decisions about its future.

 

Are medical practices subject to income tax?

Not only are medical practices subject to income tax, they also have stricter reporting requirements than other businesses. It is essential to work with an experienced accountant who understands the complexities of healthcare accounting, such as filing for credits and deductions. Our certified professionals can help you stay on top of your tax obligations and maximize the financial health of your practice.

 

What deductions can physicians claim?

It is possible for physicians to claim deductions for expenses related to their medical practice, such as medications and office supplies. Additionally, physicians may be able to deduct certain employee benefits, advertising costs, insurance premiums and other business operating expenses. Our experienced team of Audubon healthcare accountants can help you maximize your deductions and ensure you are in compliance with all applicable laws.

 

Why would a medical practice be audited?

The IRS may audit your medical practice for a variety of reasons, including failing to accurately report income or deductions, neglecting to pay taxes in a timely manner, and not filing returns. It is important to have an experienced accountant on your side who understands the complexities of healthcare accounting and can help you prepare for and navigate through an audit if necessary.

Contact Our Audubon Healthcare Accountant Today

At SD Associates, P.C., our team of highly experienced healthcare accountants in Audubon is committed to helping you achieve financial success. Our comprehensive services include tax compliance, audit preparation and reporting assistance. Contact us today at (215) 517-5600 for more information about how we can help your medical practice thrive.

 

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