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Healthcare Accountant in Chestnut Hill

SD Associates, P.C. is proud to offer exceptional accounting services to local medical practices. Our Chestnut Hill healthcare accountants understand the unique needs and challenges faced by healthcare organizations today. With our experience and qualifications, we are able to provide the sound advice needed to help them sustain long-term financial stability.

Our accounting team at SD Associates, P.C. is devoted to delivering a personal touch while upholding the utmost standards of professionalism. We take the time to listen attentively to our clients’ needs and provide tailored guidance to their individual circumstances. Our knowledgeable staff is also available for consultation, answering questions on specific topics and offering valuable insights into the healthcare industry. We can assist medical practices in making informed decisions about the management of their finances, from comprehending reimbursement rates to analyzing financial trends, to ensure that our clients have the financial resources they need to promote patient care and provide quality services.

Types of Healthcare Accounting Methods

Accrual Accounting

The practice of accrual accounting in healthcare accounting involves recording revenue and expenses when they are incurred, regardless of whether payment has been received or made. For instance, a medical office might record revenue when services are provided, even if the patient has not yet paid. This is often the case with medical practices that have to bill insurance companies instead of receiving immediate payment from the patient.

While accrual accounting provides a more accurate picture of a business’s financial performance, it can lead to cash flow and liquidity issues if expected payments are not received by the due date. At SD Associates, P.C., our team of experienced healthcare accountants can assist you in understanding and managing accrual accounting for your practice.

Cash Basis Accounting

The practice of recording revenue and expenses only when payment is received or made is known as cash basis accounting, in contrast to accrual accounting. This method is frequently used by smaller businesses with limited resources because of its simplicity. However, it can result in an incomplete financial picture since income and expenses are often not recorded until much later.

As with accrual accounting, cash basis accounting has both advantages and disadvantages. It is simpler to manage, but can be less accurate when it comes to financial reporting. In addition, cash basis accounting is not acceptable under current GAAP standards, so it may not be appropriate if you wish to follow these regulations.

Which Method is Best For Your Medical Practice

Choosing between cash-based and accrual-based accounting can be a difficult decision for medical practices. There are pros and cons to each option, so it is important to understand the differences before making a decision. You’ll have to consider how each method works and the resulting effects on your financial picture.

When it comes to accounting for medical practices, SD Associates, P.C. understands the complexities involved and can offer expert guidance on which method will work best for you.

Unique Aspects of Healthcare Accounting

Reporting

Healthcare accounting reporting can be complex and intricate, and requires expertise in the relevant laws, regulations, and standards. Our team at SD Associates, P.C. is well-versed in the intricacies of healthcare accounting and can provide accurate and comprehensive financial reports that adhere to all relevant rules and regulations.

Depreciation Tracking

Depreciating assets in medical practices, such as equipment and vehicles, decrease in value over time. Accurately accounting for the depreciation value of these assets is crucial for tax preparation and insurance paperwork. At SD Associates, P.C., our accounting team has extensive experience in tracking asset depreciation values to help ensure accurate reporting and compliance.

Credit Balances

Credit balances, or refunds owed to patients, can be a complex and time-consuming process. Our team at SD Associates, P.C. is experienced in managing credit balances for all types of medical practices, ensuring that any overpayments are accurately refunded to the patient in a timely manner. We have developed processes for efficiently tracking and processing credit balance refunds so you can rest assured that your practice is compliant with all applicable regulations.

Confidentiality

The security of healthcare data is a top priority for medical practices, and our accounting team at SD Associates, P.C. recognizes the importance of keeping sensitive patient information confidential. We adhere strictly to all HIPAA regulations, ensuring that all financial information is secure and protected.

Healthcare Accounting FAQs

Why should my medical practice work with a professional accountant?

Working with a professional accountant can provide many advantages to your medical practice. Professional accountants have the experience and knowledge to accurately track and analyze financial data, ensuring that you remain compliant with applicable rules and regulations while maximizing the profitability of your business. They also understand the complexities of healthcare accounting and have access to specialized tools and resources that can help you meet your goals and objectives in a timely manner.

 

Are medical practices subject to income tax?

Yes, medical practices are subject to income tax. Medical practices must report any income that is earned from services rendered or products sold. This includes income from patient care, laboratory services, and other ancillary services. Depending on the type of practice, taxes may also be due on rental income or other associated business activities.

 

What deductions can physicians claim?

It is possible for physicians to claim various deductions. Common deductions include business expenses such as supply costs, rent or lease payments, payroll costs, and professional fees. Other potential deductions may include research expenses, charitable contributions, marketing expenses, and home office expenses if applicable. Our healthcare accountant in Chestnut Hill can advise you on the most advantageous deductions for your medical practice.

Contact Our Chestnut Hill Healthcare Accountant Today

If you’re looking for a reputable healthcare accountant in Chestnut Hill that offers a wide range of accounting services for medical practices, SD Associates, P.C. is your best bet. Call us today at (215) 517-5600 to find out how our expertise can assist your practice and help improve its profitability.

 

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