Reporting Practices and Ethics Paper
Financial management is very major and very important in health care. Financial management in health care controls the inflow (revenue) and outflow (expenses), of a health care organization. It is a very vital part of health care and one that sometimes gets overlooked because job in financial management in health care are scarce. Without financial management the health care organization would not be able to function because a business can not run all by itself. That is why it is so important to make sure that all of the financial components of health care are taken care of efficiently and correctly.
In health care finance, there are four very important elements for a financial manager and they are as follows: planning, controlling, organizing and directing, and decision making. The purpose of planning is to identify any objectives and then to indentify the steps needed for completing the objectives. Controlling is when the financial manager of a health care organization makes sure that each part of the heath care organization is following the plans that have been set forth by the financial manager. Organizing is when the financial manager of a health care organization decides how to use the resources of the organization to carry out the plans that have already been set forth. Directing is when the financial manager of a health care organization on a day to day basis to keep the results of the organizing flowing smoothly. Decision making is when the financial manager of a health care organization makes choice on the available alternatives that they have to choose from.
Generally accepted accounting principles or GAAP are accounting standards used in the United States that allow the recording and reporting of financial information in a precise manner. GAAP is mostly used by business and also health care organizations in the United States to report their financial results. The aim of health...