Medical Accounting For The Area’s Top Doctors

CPA Firm Serving PA, NJ, DE, & NY

Healthcare Accountant in Lafayette Hill

As a leading healthcare accountant in Lafayette Hill, SD Associates, P.C. specializes in offering professional and cost-effective accounting services to healthcare organizations, regardless of their size. Our team of experienced accountants will customize their services to match your distinct needs and goals.

Understanding the unique challenges that healthcare organizations face, we at SD Associates, P.C. endeavor to provide solutions that are both efficient and effective. Our CPA firm has worked with numerous medical practices in over three decades of business, giving us a comprehensive understanding of the healthcare industry. We are well-acquainted with healthcare-specific regulations and can assist you in navigating the ever-evolving landscape of healthcare accounting. 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

Accrual accounting is the practice of recording financial transactions on the basis of when they occur, rather than when payment is made. In terms of healthcare accounting, this could refer to recording revenue when treatments are provided, rather than waiting for payment. This method helps to ensure that revenues and expenses are reported accurately in the accounting period they occur in, which can contribute to a more accurate 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.

Nevertheless, this method can result in reporting inaccuracies 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’s worth noting that cash basis accounting is not acceptable under GAAP regulations, so this method may not be appropriate for your business if you want to comply with these principles.

Which Method is Best For Your Medical Practice

The right accounting method for your medical practice depends on its size, complexity, and goals. Accrual accounting is often the best choice for larger practices that need to keep a detailed record of transactions and anticipate their financial needs long-term. Smaller practices may prefer cash basis accounting due to its simplicity.

At SD Associates, P.C., our experienced healthcare accountants can guide you in determining the optimal accounting method for your practice. Our team is devoted to delivering personalized services and aiding you in accurately evaluating and managing your finances.

Unique Aspects of Healthcare Accounting

Reporting

Financial reporting for medical practices has unique requirements that necessitate special attention. At SD Associates, P.C., we comprehend the specialized requirements of medical accounting and employ medical-specific software systems to provide our clients with the most accurate and efficient reports possible. Our team offers comprehensive yet readable financial reports that are customized to meet the particular 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 own timeline. Keeping track of these credit balances can be a significant challenge for most practices. Our accountants have the knowledge and expertise to ensure that all credit balances are correctly tracked and reported, allowing our clients to stay organized and informed about their finances.

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 Lafayette Hill 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 Lafayette Hill Healthcare Accountant Today

Our team of experienced healthcare accountants at SD Associates, P.C. in Lafayette Hill is committed to helping you achieve financial success. We offer a wide range of services, including tax compliance, audit preparation, and reporting assistance. To learn more about how we can assist your medical practice in thriving, please contact us at (215) 517-5600.

 

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