Financial management is very crucial in today’s health care financial procedures. It is one the most important aspects of the financial health care. There are many assessments made- based the financial records and the business transactions that occur within the health care organization. It is crucial the financial records are kept up- to -date and they follow specific guidelines. The books kept up- to- date and in order, this will show the amount of money being brought into the organization for profit and the amount of money the organization has lost in profit. One thing that may cause the honesty of the organization to be on the brinks is the organization financial management and the correctness of the financial books. This paper is about information that will address financial reporting practices and ethics. It will address four financial management functions, summaries that accept accounting principles by generally accepted accounting principles (GAAP).It will also give an example from an article that has reflected ethical standards of conduct and financial reporting. The basic four components of financial management are planning, controlling, organizing and directing and decision making. The preparation is responsibility for financial management to recognize the purposes of the health care organization. The planning step is to “set directions and allocates resources, the organizing step brings people and material resources together in working condition, the leading step inspires people to best utilize these resources, and the controlling step checks that the right things happen, in the right way, and at the right time” (Lombardi, Schermerhorn, & Kramer, 2007,). Controlling is the process of the financial management to ensure that each department of the organization are going by the procedures that was decided. The financial manager should have the reports available to study the most recent financial reports. The reports will help to select...
References: Ethical Standards. (n.d.). Retrieved from http://easternct.imanet.org/ethical.html
Baker, J. L. (2011). Health Care Finance: Basic Tools for Nonfinancial Managers (3rd ed.). : Jones and Bartlett Publishers.
Lombardi, D.J., Schermerhorn, J.R., & Kramer, B. (2007).Health Care Management. Retrieved from The University of Phoenix eBook of Collection Database.
Healthfield, S.M.(2012). Human resources. Retrieved from http://humanresources.about.com/od/businessethics/qt/workplace-ethics.htm
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