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Healthcare Accountant in Mt Airy

SD Associates, P.C. is pleased to offer exceptional accounting services to nearby medical practices. Our healthcare accountants in Mt Airy understand the distinctive demands and difficulties encountered by healthcare organizations today. With our experience and qualifications, we can offer the sound advice necessary to help them achieve long-term financial stability.

Our accounting team at SD Associates, P.C. is committed to offering a personal touch while upholding the highest standards of professionalism. We take the time to closely listen to our clients’ needs and offer guidance tailored to their unique situation. Our knowledgeable staff is also available for consultation, answering questions on specific topics and providing valuable insights into the healthcare industry. Our team of experts can assist medical practices in making informed decisions regarding the management of their finances, from understanding reimbursement rates to analyzing financial trends, to ensure that our clients have the financial resources they need to promote patient care and provide high-quality services.

Types of Healthcare Accounting Methods

Accrual Accounting

Accrual accounting is the practice of recording revenue and expenses when they are incurred, regardless of when payment is received or made. For example, a medical office might record revenue when they provide services, even if the patient has not yet paid. This is often the case with medical practices, as the business has to bill insurance companies instead of the customer paying right away.

While accrual accounting provides a more comprehensive view of a business’s financial performance, it can result in cash flow and liquidity problems if anticipated payments are not received on time. Our team of experienced healthcare accountants at SD Associates, P.C. can help you understand and manage accrual accounting for your practice.

Cash Basis Accounting

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

Cash basis accounting has advantages and disadvantages, just like accrual accounting. While it is easier to manage, it can lead to less accurate financial reporting. It should also be noted that cash basis accounting does not comply with GAAP standards, which may not be suitable if you want to adhere to these regulations.

Which Method is Best For Your Medical Practice

It can be challenging for medical practices to choose between cash-based and accrual-based accounting. It is essential to weigh the pros and cons of each option carefully before deciding on the best approach. The decision should be based on how each method works and the impact it will have on your business financially.

Our Mt Airy healthcare accountant, SD Associates, P.C., can help you decide which method is best for your medical practice. Our team of experienced accountants is familiar with the challenges faced by medical practices and can help you choose an accounting method that best fits your needs.

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

Accurately tracking the depreciation of assets such as equipment and vehicles is critical for medical practices in terms of tax reporting and insurance paperwork. These assets decrease in value over time and need to be accounted for properly. Our accounting team at SD Associates, P.C. has the expertise to assist in accurately tracking the depreciation values of these assets to ensure accurate financial reporting.

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 Mt Airy can advise you on the most advantageous deductions for your medical practice.

Contact Our Mt Airy Healthcare Accountant Today

SD Associates, P.C. is a trusted healthcare accountant in Mt Airy who provides comprehensive services for medical practices of all sizes and specialties. Contact us today at (215) 517-5600 to learn more about our accounting services and how we can help you maximize the profitability of your practice.

 

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