Aug 1st, 2011
Reporting Practices and Ethics Paper
Managers who are managing health care organizations must be attentive to the accounting practices and must obey and practice the financial management procedures to be able to solve any issues if any should arise. With the continuation of the high costs of health care managers as well as consumers must know how to budget carefully. According to All Business. (2010), the cost of providing health care services, patients way of payment for these services and the environment in which those patients reside and receive those services are important elements that affect the care this is or may not be provided. This paper expresses the elements of financial management important to health care organization. Elements of Financial Management
Different sources refer to elements or principles of financial management and some sources discuss up to ten principles. Four elements that direct compliance are to follow all the rules and regulations essentially set by general accepted accounting principles. Similarly, the ethics is set by the organization for their personnel, including their policies on ethics and the standard course of action. According to Corporate Governance (2010), the four elements are important to health care organizations reporting practices. Generally acceptable accounting principles, and general financial ethical standards.
Financial managers must know the short and long-term goals of this or her organizations to formulate plans from meeting those goals. Planning is more than the upper management of an organization deciding what it wants to accomplish. Effective planners define strategies when planning and seek the input of everyone involved in the process, and ensure everyone supports the plans and understands their roles in executing the plans. Generally accepted accounting principles (GAAP) usually are regarded...