Reporting Practices and Ethics Paper
Reporting Practices and Ethics Paper
By
Lawrence D. Williams HCS/405
Health Care Financial Accounting
Financial management is a very complex process across the business organizations. The increasing competition, complexity of business, rising expectations of investors etc can lure any organization to use unethical financial management tactics to make their books look better. But this can be extremely chaotic In future. Healthcare organizations are especially prone to such practices because of the extreme financial pressure and critical nature of business operations. The purpose of this paper is to discuss the different aspects of the financial management, generally accepted accounting principles and the suggested ethical practices in this regard.
Financial management is not merely a record of debits and credits. It is a measure of the health of an organization. The four elements of financial management consist of: planning, control, organizing and directing, decision making. The business operations must be planned and the management must be well aware of all the business aspects. The management needs to follow a systematic process to make ethical decisions in sync with the goals of the organization. It must be ensured that sufficient fund is available to perform business operations in time. The management must have the control of business operations and thus the financial activities. The management needs to ensure that each part of the organization is adhering to the goals established for it. The management needs to decide how effectively the resources can be used to achieve the goals. This helps in maintaining the financial health of the organization. There is always a possibility of a financial situation in an organization when a difficult decision is to be taken. Such circumstances require prompt decision making capability along with the understanding of the consequences of the decisions.
In addition to the complexity of financial management,
By
Lawrence D. Williams HCS/405
Health Care Financial Accounting
Financial management is a very complex process across the business organizations. The increasing competition, complexity of business, rising expectations of investors etc can lure any organization to use unethical financial management tactics to make their books look better. But this can be extremely chaotic In future. Healthcare organizations are especially prone to such practices because of the extreme financial pressure and critical nature of business operations. The purpose of this paper is to discuss the different aspects of the financial management, generally accepted accounting principles and the suggested ethical practices in this regard.
Financial management is not merely a record of debits and credits. It is a measure of the health of an organization. The four elements of financial management consist of: planning, control, organizing and directing, decision making. The business operations must be planned and the management must be well aware of all the business aspects. The management needs to follow a systematic process to make ethical decisions in sync with the goals of the organization. It must be ensured that sufficient fund is available to perform business operations in time. The management must have the control of business operations and thus the financial activities. The management needs to ensure that each part of the organization is adhering to the goals established for it. The management needs to decide how effectively the resources can be used to achieve the goals. This helps in maintaining the financial health of the organization. There is always a possibility of a financial situation in an organization when a difficult decision is to be taken. Such circumstances require prompt decision making capability along with the understanding of the consequences of the decisions.
In addition to the complexity of financial management,
References: Freeman, K. (2010). Setting a standard in transparency and ethics. Retrieved from http://www.healthcarefinancenews.com/blog/setting-standard-transparency-and-ethics on 23 January 2012 Investopedia. (n.d.). Generally Accepted Accounting Principles - GAAP. Retrieved from http://www.investopedia.com/terms/g/gaap.asp#axzz1kKis7xEz on 23 Januay 2012. Tyler, J. L. (2004). Maintaining the strength of your convictions: given the recent rash of ethical transgressions within and beyond health care, discussions about ethical standards, conflicts of interest, and moral decision making are occurring nationwide. This is a good thing!. Retrieved from http://findarticles.com/p/articles/mi_m3257/is_5_58/ai_n6077782/ on 23 January 2012