Medical Accounting For The Area’s Top Doctors

CPA Firm Serving PA, NJ, DE, & NY

Healthcare Accountant in Montgomery County

Local medical practices and businesses trust SD Associates, P.C., their Montgomery County healthcare accountant, to provide accurate and up-to-date accounting services. Our experienced team of CPAs and financial experts will help you navigate the complex financial world of health care. We understand the language, regulations, and laws that affect your practice’s financial decisions and have the knowledge to create a customized solution for you.

Our full-service accounting firm provides comprehensive financial advice and solutions to medical practices, long-term care facilities, and pharmacies. From developing financial models and creating budgets to analyzing cash flow issues and preparing complex tax returns, our team is committed to helping you make sound decisions for your business. We provide you with accurate financial data quickly so that you can make informed decisions in a timely manner and provide the best patient care possible.

Types of Healthcare Accounting Methods

Accrual Accounting

Accrual accounting is the practice of recognizing revenue and expenses when earned or incurred, rather than when cash is received or paid. This method allows businesses to have a more accurate representation of their financial position at any given time. It is commonly used by businesses in the healthcare sector, as it helps to provide insight into how medical treatments and procedures are being billed.

However, there are both advantages and disadvantages to accrual accounting. For example, this method does not always provide an accurate representation of cash flow since it does not take into account any payments that have not yet been received. Additionally, there is more complexity in tracking and recording transactions that occur over extended periods of time.

Cash Basis Accounting

Cash basis accounting is a method that records transactions when cash is received or paid. This approach is more straightforward than accrual accounting, and it also provides an accurate representation of cash flow.

In addition, this method can be inaccurate for businesses in the healthcare sector since it does not account for payments that have not yet been received from patients for services already rendered.  Under cash basis accounting, it is more difficult to gain an accurate understanding of financial obligations, such as taxes or accounts payable.  It should be noted that cash basis accounting is not acceptable under GAAP and will not be appropriate if you wish to follow these regulations.

Which Method is Best For Your Medical Practice

The right accounting method for your medical practice will depend on a variety of factors. You will need to consider the size of your practice, the complexity of your accounting needs, and how quickly you need to have accurate financial information.

At SD Associates, P.C., we understand that every healthcare organization is unique and requires a tailored approach to its accounting needs. Our team has extensive experience in helping businesses in the healthcare sector select and implement the right accounting method for their needs.

Unique Aspects of Healthcare Accounting

Reporting

It can be difficult to keep track of all the financial and operational data associated with running a healthcare practice. As experienced healthcare accountants, SD Associates, P.C. provides comprehensive reporting of key performance indicators that allow you to make informed decisions about your business. Our reporting services provide insight into areas such as budgeting, forecasting, profits & losses, cash flow analysis and more.

Depreciation Tracking

A depreciating asset is an asset that decreases in value over time. For medical practices, this can apply to items such as medical equipment, computers and other technology. SD Associates, P.C. understands the importance of depreciation tracking as it relates to healthcare accounting and provides comprehensive services to ensure that all assets are accounted for and tracked in a timely manner.

Credit Balances

Credit balances can occur in any healthcare organization, and if left unchecked can result in incorrect reimbursements. It is essential for medical practices to have a comprehensive credit balance reconciliation process in order to ensure that the correct reimbursements are being made. SD Associates, P.C. has experience in credit balance reconciliation and can help your practice stay compliant with industry regulations.

Confidentiality

According to the Health Insurance Portability and Accountant Act (HIPAA), all patient information must remain confidential. As professional healthcare accountants, SD Associates, P.C., understands the importance of protecting sensitive data and ensuring that it is being handled in accordance with industry laws and regulations. We provide secure solutions to ensure that client data remains safe and confidential at all times.

Healthcare Accounting FAQs

Why should my medical practice work with a professional accountant?

A professional healthcare accountant in Montgomery County can help medical practices navigate the complex financial landscape that comes with running a successful business. At SD Associates, P.C., our years of healthcare accounting experience allow us to offer expert advice and insights on how to make your practice financially viable in the long-term. We aim to provide financial solutions that are tailored to the unique needs of your practice, and can help you improve efficiency, reduce costs, and maximize returns.

 

Are medical practices subject to income tax?

Yes, medical practices are subject to the same income tax laws that apply to other businesses. It is important to understand how much of your practice’s income is subject to taxation, and what deductions you can claim in order to keep more of your money. At SD Associates, P.C., we specialize in healthcare accounting and have the expertise necessary to provide you with the best advice on how to minimize your tax liabilities.

 

What deductions can physicians claim?

It is possible for physicians to claim a variety of deductions when filing their taxes. Some common medical practice deductions include the cost of professional licenses, equipment and supplies, advertising expenses, travel expenses for conferences or seminars, rent or mortgage payments for office space, as well as health insurance premiums. We have extensive knowledge of all applicable deductions and can help you maximize your tax savings.

Contact Our Montgomery County Healthcare Accountant Today

At SD Associates, P.C., we are committed to helping medical practices maximize their financial performance. If you are looking for a healthcare accountant in Montgomery County, we can help you minimize taxes and improve efficiency with tailored solutions that meet the unique needs of your practice. Still deciding on what accounting firm to choose? Just read our Google reviews of some of the most recent satisfied clients!  Contact us today at (215) 517-5600 to learn more about how our services can help you succeed.