Medical Accounting For The Area’s Top Doctors

CPA Firm Serving PA, NJ, DE, & NY

Healthcare Accountant in Elkins Park

SD Associates, P.C., is a top healthcare accountant in Elkins Park. We specialize in providing professional and cost-effective accounting services to healthcare organizations, both large and small. Our team of experienced accountants will tailor their services to meet your specific needs and goals.

At SD Associates, P.C., we comprehend the distinctive challenges that healthcare organizations encounter. We endeavor to offer solutions that are efficient and effective. Our CPA firm has worked with numerous medical practices over three decades of being in business, giving us an extensive understanding of the healthcare industry. We are familiar with healthcare-specific regulations and can assist you in navigating the constantly evolving landscape of healthcare accounting. Regardless of whether you are a pediatrician, chiropractor, or director of an assisted living facility, our healthcare accountants have the experience and knowledge to provide customized 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.

However, this method can also be more time-intensive as it requires meticulous tracking of every transaction and its associated revenue or expense. It necessitates careful attention to detail and excellent organizational skills.

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 approach usually necessitates less effort, as it concentrates on tracking payments only and not the specifics of each purchase or sale.

This method can lead to inaccuracies in reporting, since revenue may be recorded too late or expenses 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 also be noted that cash basis accounting is not acceptable under GAAP regulations, so this method may not be right for your business if you wish to follow these principles.

Which Method is Best For Your Medical Practice

The appropriate accounting method for your medical practice is determined by its size, complexity, and objectives. Accrual accounting is frequently the best option for larger practices that need to maintain a comprehensive record of transactions and anticipate their financial requirements 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 handle many payments from insurance companies and Medicare, each with its own timeline. Keeping track of these credit balances can be a major challenge for most practices. Our accountants have the expertise to ensure that all credit balances are properly tracked and reported so that our clients stay organized and informed about their financials.

Confidentiality

Medical practices are required by the Health Insurance Portability and Accountability Act (HIPAA) to keep patient records confidential at all times. As healthcare accountants, we understand the significance of confidentiality and take additional steps to ensure the protection of our clients’ sensitive information. Patient data is always handled in compliance with HIPAA regulations, giving our clients a sense of security.

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 Elkins Park 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 Elkins Park Healthcare Accountant Today

At SD Associates, P.C., our team of skilled healthcare accountants in Elkins Park is committed to aiding you in achieving financial success. We provide comprehensive services such as tax compliance, audit preparation, and reporting assistance. To discover how we can assist your medical practice in thriving, contact us today at (215) 517-5600.

 

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