Reporting Practices and Ethics
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Health care organizations can often be described as places that are organized, consistent, and supportive to their patients needs if they are managed correctly. It is important for the patients to always feel the security and consistency of the organization and its financial management. When the financial management is strong, more value is placed in the organization. A requirement of financial management is having the proper standards in ethics as well as good reporting practices. Financial management is when a manager of an organization helps that organization know and understand their financial objectives. Some of the main objectives of financial management are to reduce the misuse of funds, to maximize the profit further along in the business, to maximize the wealth of the company or business, and to fulfill the social responsibility. If all of these objectives are properly implemented, the financial system will be more effective and then no money will be lost.
The Four Elements of Financial Management
There are four elements of financial management and they are, organizing and directing controlling, planning, and decision making. Each of these plays a very important role in the financial management of a business or organization. Planning is something that helps to identify steps that have to be taken in order to meet the goals of the organizations objectives. Controlling helps the organization to make sure that every area implements the plans that are being organized. Organizing and directing is a great tool that helps that helps the organization stay organized and figure out the best way to use the organizational skills they have to carry out the plans in the most effective way. Decision making is how choices are made when there are many alternatives to choose from.
Financial Reporting
The structure of an organization depends on all of the four elements of financial management to be properly implemented and it is important to management because it has a very big impact on how management runs the business. In the structure of an organization there are two types of organizations and they are proprietary and not for profit. Proprietary oriented organizations are always responsible for paying taxes and as not for profit organizations do not pay income taxes. All of this is important for the financial side of things in an organization. Using a balance sheet in every organization can also help it to keep up with the financial status as well. There are three things a company or business should think about when discussing finances and they are making reports interactive, check the variance, and automate batch reporting. By trying to do each of these things, it could help the financial reporting to become more clear and easier to understand.
General Accepted Accounting Principles (GAAP)
The General Accepted