Accounting Pros for Doctors, Chiropractors, & More

CPA Firm Serving PA, NJ, DE, & NY

Healthcare Accountant in West Philadelphia

SD Associates, P.C. is pleased to offer exceptional accounting services to nearby medical practices. Our healthcare accountants in West 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 is dedicated to providing a personal touch while maintaining the highest standards of professionalism. We take time to listen closely to our clients’ needs and offer guidance tailored to their individual situation. Our knowledgeable staff is also available for consultation, answering questions on specific topics and providing valuable insights into the healthcare industry. From understanding reimbursement rates to analyzing financial trends, our team of experts can help medical practices make informed decisions regarding the management of their finances. We strive 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

Healthcare accounting commonly employs accrual accounting, which involves recording revenue and expenses when they are incurred, irrespective of whether payment has been received or made. For example, 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 comes with both advantages and disadvantages. On the one hand, it allows for a more accurate picture of a business’s financial performance. On the other, it can result in issues with cash flow and liquidity if all expected payments are not received by the due date. At SD Associates, P.C., our team of experienced healthcare accountants can help you understand and manage accrual accounting for your practice.

Cash Basis Accounting

Cash basis accounting, unlike accrual accounting, records revenue and expenses only when payment is received or made. This technique is often used by smaller businesses with limited resources due to its simplicity. However, it can result in an incomplete financial picture because 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

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.

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

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 can quickly become a significant challenge for medical practices. That’s why our team at SD Associates, P.C. is committed to providing our clients with the support they need to manage credit balances efficiently. We have the experience and knowledge necessary to ensure that your practice remains compliant with all regulations regarding credit balance refunds.

Confidentiality

According to the Health Insurance Portability and Accountant Act (HIPAA), all healthcare data must be kept confidential and secure. When accountants take stock of a medical practices’ finances, they often have to view sensitive patient information. We put the highest priority on patient privacy and security, adhering strictly to all HIPAA regulations so you can be confident that your practice’s data is properly safeguarded.

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

Contact Our West 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 West 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.

 

You might also be interested in:

• Business Tax Services in West Philadelphia
• Construction Accountants in West Philadelphia
• General Contractor Accountants in West Philadelphia
• Legal Accountants in West Philadelphia
• Real Estate Accountants in West Philadelphia