Accounting Pros for Doctors, Chiropractors, & More

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Healthcare Accountant in Northern Liberties

SD Associates, P.C. is proud to offer exceptional accounting services to local medical practices. Our Northern Liberties 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.

At SD Associates, P.C., our accounting team is dedicated to providing a personalized approach while maintaining the highest standards of professionalism. We take the time to carefully listen to our clients’ needs and provide tailored guidance to their specific situation. Our knowledgeable staff is also available for consultation, answering questions on specific topics and offering valuable insights into the healthcare industry. Our team of experts can help medical practices make informed decisions about the management of their finances, from understanding reimbursement rates to analyzing financial trends, to ensure that our clients have the financial resources they require to promote patient care and provide 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

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.

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

The decision to choose between cash-based and accrual-based accounting can be daunting for medical practices. Before selecting a method, it is essential to consider the advantages and disadvantages of each. Your choice should depend on how each approach works and its impact on your financial situation.

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 financial reporting can be much more intricate and complicated than in other industries. It’s essential for any healthcare accountant to have a deep understanding of the relevant laws, regulations, and standards that pertain to financial reporting in this field. Our team is well-versed in the complexities of healthcare accounting and provides accurate financial reports that adhere strictly to all applicable 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

Our experienced team at SD Associates, P.C. understands that managing credit balances in medical practices can be a daunting task. We have developed efficient processes for tracking and processing credit balance refunds for patients, ensuring that your practice remains compliant with all regulations.

Confidentiality

Confidentiality is key when it comes to managing the finances of a medical practice. Our team of experienced accountants at SD Associates, P.C. understands the importance of protecting patient information in accordance with HIPAA regulations. You can trust us to keep your data secure and confidential.

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 Northern Liberties can advise you on the most advantageous deductions for your medical practice.

Contact Our Northern Liberties Healthcare Accountant Today

SD Associates, P.C. is a trusted healthcare accountant in Northern Liberties 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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