Accounting Pros for Doctors, Chiropractors, & More

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Healthcare Accountant in South Philadelphia

SD Associates, P.C. is pleased to offer exceptional accounting services to nearby medical practices. Our healthcare accountants in South Philadelphia 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.

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.

Like accrual accounting, cash basis accounting has its pros and cons. On the positive side, it is simpler to handle. On the other hand, it can result in less accurate financial reporting. Furthermore, cash basis accounting is not recognized under GAAP regulations and may not be the best option for businesses that need to comply with these standards.

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.

With SD Associates, P.C.’s knowledgeable healthcare accountants in South Philadelphia, 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

Accurate healthcare financial reporting demands a comprehensive understanding of the complex laws, regulations, and standards that govern financial reporting in this field. At SD Associates, P.C., our expert accountants specialize in healthcare accounting and are fully equipped to provide reliable and accurate financial reports that meet all applicable rules and regulations.

Depreciation Tracking

For medical practices, depreciating assets such as equipment and vehicles decrease in value over time. It is important to accurately calculate the depreciation value of these assets for tax purposes, expense tracking, and insurance paperwork. Our accounting team at SD Associates, P.C. has the expertise to assist in accurately tracking depreciation values for these assets.

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 South Philadelphia can advise you on the most advantageous deductions for your medical practice.

Contact Our South Philadelphia Healthcare Accountant Today

With years of experience in healthcare accounting, SD Associates, P.C. is a highly recommended accounting firm for medical practices in South Philadelphia. Our services cater to practices of all sizes and specialties. To learn more about how we can help your practice achieve financial success, call us today at (215) 517-5600.

 

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