Reporting Practices and Ethics
Reporting Practices and Ethics
There are four elements of financial management in health care finance. Also there are generally accepted accounting principles and general financial ethical standards that health care professionals should be aware of. Some examples from two different articles reflect ethical standards of conduct and financial reporting practices and there is some significance to these examples.
According to (Baker, 2011), “The four recognized elements of financial management include planning, controlling, organizing and directing, and decision making.” Planning is when a financial manager finds ways and steps to perform the organization’s mission and objectives. Controlling is when a financial manager of an organization verifies that the plans there were set up are being pursued. Organizing is when the manager finds resources to use and how they should be used to make sure that their plans are carried out as they were previously established. With directing, which is part of organizing; directing is making sure that on a day-to-day basis that organizing is running effectively. Finally, decision making is when a financial manager makes alternative choices but it also happens at the same time as planning, organizing, and controlling. All four of these elements are important, if one of the elements is left out of the financial management process it is like a piece of the puzzle is missing. “Generally accepted accounting principles (GAAP) are accounting standards used in the United States that allow the recording and reporting of financial information in a uniform manner. In health care, using generally accepted accounting principles allows companies to report revenue that still may be outstanding. Also, GAAP rules allow insurance companies and financial institutions to compare the health aid business to other businesses in the industry and determine credit worthiness. If an organization uses generally accepted accounting
There are four elements of financial management in health care finance. Also there are generally accepted accounting principles and general financial ethical standards that health care professionals should be aware of. Some examples from two different articles reflect ethical standards of conduct and financial reporting practices and there is some significance to these examples.
According to (Baker, 2011), “The four recognized elements of financial management include planning, controlling, organizing and directing, and decision making.” Planning is when a financial manager finds ways and steps to perform the organization’s mission and objectives. Controlling is when a financial manager of an organization verifies that the plans there were set up are being pursued. Organizing is when the manager finds resources to use and how they should be used to make sure that their plans are carried out as they were previously established. With directing, which is part of organizing; directing is making sure that on a day-to-day basis that organizing is running effectively. Finally, decision making is when a financial manager makes alternative choices but it also happens at the same time as planning, organizing, and controlling. All four of these elements are important, if one of the elements is left out of the financial management process it is like a piece of the puzzle is missing. “Generally accepted accounting principles (GAAP) are accounting standards used in the United States that allow the recording and reporting of financial information in a uniform manner. In health care, using generally accepted accounting principles allows companies to report revenue that still may be outstanding. Also, GAAP rules allow insurance companies and financial institutions to compare the health aid business to other businesses in the industry and determine credit worthiness. If an organization uses generally accepted accounting
References: Baker, J. L. (2011). Health Care Finance: Basic Tools for Nonfinancial Managers (3rd ed.). Unknown: Jones and Bartlett Publishers. Investing Answers. (2013). Generally Accepted Accounting Principles (GAAP). Retrieved from http://www.investinganswers.com/financial-dictionary/financial-statement-analysis/generally-accepted-accounting-principles-gaap-992 Ray, L. (2013). GAAP Strengths. Retrieved from http://yourbusiness.azcentral.com/gaap-strengths-16918.html Richards, J. (2013). How Does a GAAP Aid in Health Care? Retrieved from http://smallbusiness.chron.com/gaap-aid-health-care-36841.html