Medical Accounting For The Area’s Top Doctors

CPA Firm Serving PA, NJ, DE, & NY

Healthcare Accountant in Norristown

As a leading healthcare accountant in Norristown, 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.

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

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.

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

When it comes to financial reporting, medical practices have distinct requirements that demand special attention. At SD Associates, P.C., we understand the nuanced needs of medical accounting and report to our clients using medical-specific software systems for maximum accuracy and efficiency. Our team provides detailed yet legible financial reports tailored to meet your specific practice needs.

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. Tracking these credit balances can be a daunting task for most practices. Our accountants have the experience and expertise to ensure that all credit balances are accurately tracked and reported, enabling our clients to remain organized and informed about their financials.

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 Norristown 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 Norristown Healthcare Accountant Today

Our team of experienced healthcare accountants at SD Associates, P.C. in Norristown 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.

 

You might also be interested in:

• Business Tax Services in Norristown
• Construction Accountants in Norristown
• General Contractor Accountants in Norristown
• Legal Accountants in Norristown
• Real Estate Accountants in Norristown