Accounting Pros for Doctors, Chiropractors, & More

CPA Firm Serving PA, NJ, DE, & NY

Healthcare Accountant in Old City

SD Associates, P.C. takes pride in providing outstanding accounting services to local medical practices. Our healthcare accountants in Old City comprehend the distinctive requirements and obstacles faced by healthcare organizations today. With our expertise and qualifications, we can offer the necessary guidance to assist them in achieving 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.

Accrual accounting provides a more precise representation of a business’s financial performance. However, it can lead to cash flow and liquidity issues if expected payments are not received by the due date. Our team of experienced healthcare accountants at SD Associates, P.C. can help you manage and understand 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.

While cash basis accounting is simpler to use than accrual accounting, it may not give an accurate financial picture. Furthermore, it does not meet GAAP standards and may not be suitable for businesses that wish to follow 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.

With SD Associates, P.C.’s knowledgeable healthcare accountants in Old City, you can get the assistance you need to choose the accounting method that’s right for your medical practice.

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

A depreciating asset is an asset that decreases in value over time. For medical practices, these can include equipment and vehicles. Knowing the exact depreciation value of these assets is essential for accurately tracking expenses, preparing taxes and filing paperwork with insurance companies. We understand the importance of properly accounting for depreciating assets and have extensive experience in tracking asset depreciation values.

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

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 Old City can advise you on the most advantageous deductions for your medical practice.

Contact Our Old City Healthcare Accountant Today

If you’re looking for a reputable healthcare accountant in Old City 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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