Financial Management of Health Care Organizations
Running head: FINANCIAL MANAGEMENT OF HEALTH CARE ORGANIZATIONS
Financial management of health care organizations
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Introduction
Healthcare managers participate in various important roles that allow them to form and maintain flourishing organizations. Managers ought to be aware of the decisive elements of management and the generally accepted accounting principles. At the same time, they must realize, stick to, and put into effect the general financial ethical standards. Successful management of finances of healthcare is one of countless tests that mug the organization. Revenues and expenses of the organization are essential because they establish the external and internal finances of the company. The indispensable skills needed to administer the finances of the health care organization are to plan, budget and handle the revenue sets. When doing this, the elements that need to be considered are planning, controlling, organizing and directing, and decision making.
Generally accepted accounting principles and financial ethical standards
Accounting professionals must tolerate the ethical standards that regulate the kind of business they conduct, who they serve, and how they use their skills. The generally accepted accounting principles and financial ethical standards are:
Going concern
The principle of going concern specifies that the business unit will maintain its regular operations and will not finish its business maneuvers (Agtarap-San, 2011, p. 6).
Conservatism
The principle of conservatism offers that if there is a preference amongst a number of options, the accountant has to choose the one that will lead to the less positive outcome on the consequences of actions and financial settings (Agtarap-San, 2011, p. 6).
Competence
Competence is considered the key ethical principles that finance professional have to support. To be competent, financial professionals and accountant must carry on their education by
Financial management of health care organizations
Name:
College:
Date:
Introduction
Healthcare managers participate in various important roles that allow them to form and maintain flourishing organizations. Managers ought to be aware of the decisive elements of management and the generally accepted accounting principles. At the same time, they must realize, stick to, and put into effect the general financial ethical standards. Successful management of finances of healthcare is one of countless tests that mug the organization. Revenues and expenses of the organization are essential because they establish the external and internal finances of the company. The indispensable skills needed to administer the finances of the health care organization are to plan, budget and handle the revenue sets. When doing this, the elements that need to be considered are planning, controlling, organizing and directing, and decision making.
Generally accepted accounting principles and financial ethical standards
Accounting professionals must tolerate the ethical standards that regulate the kind of business they conduct, who they serve, and how they use their skills. The generally accepted accounting principles and financial ethical standards are:
Going concern
The principle of going concern specifies that the business unit will maintain its regular operations and will not finish its business maneuvers (Agtarap-San, 2011, p. 6).
Conservatism
The principle of conservatism offers that if there is a preference amongst a number of options, the accountant has to choose the one that will lead to the less positive outcome on the consequences of actions and financial settings (Agtarap-San, 2011, p. 6).
Competence
Competence is considered the key ethical principles that finance professional have to support. To be competent, financial professionals and accountant must carry on their education by