ACC 281 week 1 dq 2
How would healthcare companies operate without accounting? Why do we need financial and managerial accounting and what are the fundamental differences between the two? You must respond to at least two of your classmates ' postings to receive full credit.
Accounting plays a huge role within healthcare industry. If healthcare companies did not have an accounting department, it would be nearly impossible for it to operate effectively. Without an accounting department, it would be difficult to determine exactly how an organization is doing financially. According to Emporia State University (2013), “Accounting is the language of finance, and accountants are the soldiers on the front lines of financial success. They provide businesses with the data that determines the financial health of an organization and help inform solid business decisions”. Organizations could not grow and thrive without accounting.
We need financial and managerial accounting in order to determine exactly how a business is doing from a financial standpoint. Without financial and managerial accounting, an organization would not be able to determine whether it is making revenue or not. These tools make it possible for an organization to identify exactly how it is functioning. There are fundamental differences between financial and managerial accounting. Financial accounting delivers information that is used mainly by stockholders, creditors, and others externally. In comparison, managerial accounting concentrates on information that is used by managers, and staff members who work inside of the organization. A.J. Filipovitch (2004) explains, “There are two types of accounting—financial accounting (provides information to outside parties and is subject to outside audit) & managerial accounting (provides information to an organization’s managers and is normally not shared outside the organization)”. They are equally important in order for an organization to operate successfully.
References
Accounting plays a huge role within healthcare industry. If healthcare companies did not have an accounting department, it would be nearly impossible for it to operate effectively. Without an accounting department, it would be difficult to determine exactly how an organization is doing financially. According to Emporia State University (2013), “Accounting is the language of finance, and accountants are the soldiers on the front lines of financial success. They provide businesses with the data that determines the financial health of an organization and help inform solid business decisions”. Organizations could not grow and thrive without accounting.
We need financial and managerial accounting in order to determine exactly how a business is doing from a financial standpoint. Without financial and managerial accounting, an organization would not be able to determine whether it is making revenue or not. These tools make it possible for an organization to identify exactly how it is functioning. There are fundamental differences between financial and managerial accounting. Financial accounting delivers information that is used mainly by stockholders, creditors, and others externally. In comparison, managerial accounting concentrates on information that is used by managers, and staff members who work inside of the organization. A.J. Filipovitch (2004) explains, “There are two types of accounting—financial accounting (provides information to outside parties and is subject to outside audit) & managerial accounting (provides information to an organization’s managers and is normally not shared outside the organization)”. They are equally important in order for an organization to operate successfully.
References
References: Accounting - School of Business | Emporia State University. (2013). Emporia State University. Retrieved from http://www.emporia.edu/business/programs/accounting/ A.J. Filipovitch (2004). Financial Accounting. Krypton – Personal Website – Getting Started – Information and Technology Services – Minnesota State University, Mankato. Retrieved from http://krypton.mnsu.edu/~tony/courses/473/Financial%20Accounting.htm