Hcs 405
Reporting Practices and Ethics
HCS/405
Reporting Practices and Ethics
A major aspect of health care organization operation is that of financial management. Financial management of health care organizations incorporates ethical standards and proper reporting practices. Financial practices and ethical finance concerns are important to the success of any organization, particularly within the health care industry. The four elements of financial management, generally accepted accounting practices (GAAP), and general financial ethics standards are part of ensuring fair and accurate financial reporting from health care organizations. Examining examples of ethical standards of conduct and reporting standards helps to understand the impact of financial reporting on an organization.
Financial Management
Financial management is a vital component to organizational success in health care. Financial management is defined as the planning, directing, monitoring, organizing, and controlling of financial resources within an organization (Business dictionary, 2011). There are four elements or components of financial management. The four components of financial management include planning, controlling, organizing/directing, and decision making (Baker & Baker, 2011). The first element of financial management is planning. Financial planning occurs when one identifies the steps that need to be taken for an organization to reach its objectives or goals. The second element of financial management is control. This includes controlling each area of an organization, making sure there is a plan in place, and making sure that plan is being followed by staff of the organization. The third element of financial planning is organizing and directing. When organizing, one should decide how to use resources most effectively for the financial gain of the organization. Directing allows an individual know everything is running smoothly and effectively. The last element
HCS/405
Reporting Practices and Ethics
A major aspect of health care organization operation is that of financial management. Financial management of health care organizations incorporates ethical standards and proper reporting practices. Financial practices and ethical finance concerns are important to the success of any organization, particularly within the health care industry. The four elements of financial management, generally accepted accounting practices (GAAP), and general financial ethics standards are part of ensuring fair and accurate financial reporting from health care organizations. Examining examples of ethical standards of conduct and reporting standards helps to understand the impact of financial reporting on an organization.
Financial Management
Financial management is a vital component to organizational success in health care. Financial management is defined as the planning, directing, monitoring, organizing, and controlling of financial resources within an organization (Business dictionary, 2011). There are four elements or components of financial management. The four components of financial management include planning, controlling, organizing/directing, and decision making (Baker & Baker, 2011). The first element of financial management is planning. Financial planning occurs when one identifies the steps that need to be taken for an organization to reach its objectives or goals. The second element of financial management is control. This includes controlling each area of an organization, making sure there is a plan in place, and making sure that plan is being followed by staff of the organization. The third element of financial planning is organizing and directing. When organizing, one should decide how to use resources most effectively for the financial gain of the organization. Directing allows an individual know everything is running smoothly and effectively. The last element