Discussion:Cash basis for medical practice
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| Revision as of 18:09, 31 March 2009 CrowJD (Talk | contribs) (Harry, I had no) ← Previous diff |
Revision as of 18:11, 31 March 2009 PBinNJ (Talk | contribs) (I'm happy to pro) Next diff → |
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Revision as of 18:11, 31 March 2009
Discussion Forum Index --> Advanced Tax Questions --> Cash basis for medical practice
Discussion Forum Index --> Tax Questions --> Cash basis for medical practice
| 31 March 2009 | |
| Client is a hand massage therapist, S corp. Normally I prepare returns on an accrual basis but I'm wondering if it is permissible to report the revenues on a cash basis in this case. The receivables are much higher than the likely net realizable amount and because of the multitude of contracts with different insurance companies and the uncertainty of Medicare reimbursements, it is very difficult to A/R at 12/31. Seems to me that reporting revenues on a cash basis would be more accurate but don't know if it is permissible. Thanks for any comments. | |
Harry Boscoe (talk|edits) said: | 31 March 2009 |
| This corporation is allowed to choose to report its income and deductions on the cash basis. | |
| 31 March 2009 | |
| Does she only massage hands, or does she only use her hands?
Keep in mind, if she's on the cash basis, all that cash has to be counted. With her working with her hands (or working on hands) all the day long, is she really going to feel like counting that cash up come 5pm? She should probably let it accrue in a drawer or safe, and have one of her cured patients count it once a month as a form of therapy. I'm assuming that this young lady is on the up and up, and is not doing anything to violate the fire code (pants on fire, etc.) | |
Harry Boscoe (talk|edits) said: | 31 March 2009 |
| When OP said "Thanks for any comments" he forgot to whom he was speaking, eh?
I guess whenever a patient is cured we should say that the therapy was on the accural basis... | |
| 31 March 2009 | |
| Harry, I had no idea that these therapists had become so specialized. I think she was wise to pick a body party of which we have two of, as there's more money in it. | |
| 31 March 2009 | |
| I'm happy to provide a moment of levity. Btw, she treats patients with carpal tunnel, etc. And she does very 'hand'somely. | |
