Medical Accounting For The Area’s Top Doctors

CPA Firm Serving PA, NJ, DE, & NY

Healthcare Accountant in Hatboro

As a top healthcare accountant in Hatboro, 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.

At SD Associates, P.C., we understand the unique challenges that healthcare organizations face. We strive to provide solutions that are both efficient and effective. Our CPA firm has collaborated with various medical practices in over 3 decades of time in business, so we have an in-depth understanding of the healthcare environment. We know the ins and outs of healthcare-specific regulations and can help you navigate the ever-changing landscape of healthcare accounting. Whether you’re a pediatrician, chiropractor, or director of an assisted living facility, our healthcare accountants have the experience and expertise to provide you with tailored financial solutions.

Types of Healthcare Accounting Methods

Accrual Accounting

Accrual accounting is a financial recording method that involves recording transactions based on when they occur, as opposed to when payment is made. In healthcare accounting, this may refer to recording revenue when treatments are provided, rather than waiting for payment. This approach assists in ensuring that revenues and expenses are accurately reported in the accounting period they occur in, leading to a more accurate financial picture.

However, this method can also be more time-consuming, as it requires detailed tracking of every transaction and its associated revenue or expense. It requires thorough attention to detail and excellent organization 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.

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.

At SD Associates, P.C., our experienced healthcare accountants can help you determine the best accounting method for your practice. Our team is dedicated to providing tailored services and helping you accurately assess and manage your finances.

Unique Aspects of Healthcare Accounting

Reporting

Financial reporting for medical practices has unique demands that require special attention. At SD Associates, P.C., we understand the specific requirements of medical accounting and employ medical-specific software systems to report to our clients with maximum accuracy and efficiency. Our team provides comprehensive yet comprehensible financial reports customized to meet the specific needs of your practice.

Depreciation Tracking

A depreciating asset is an asset that decreases in value over time. For medical practices, it is important to track and properly classify all depreciating assets in order to accurately reflect their value on the balance sheet. Our accountants at SD Associates, P.C. can track and compute depreciation for medical practices of any size, ensuring that your books are kept up-to-date 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) mandates that medical practices keep patient records confidential at all times. As healthcare accountants, we recognize the significance of confidentiality and take additional precautions to ensure the security 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 Hatboro 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 Hatboro Healthcare Accountant Today

At SD Associates, P.C., our team of highly experienced healthcare accountants in Hatboro 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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