Ethics

Financial planning and policy is essential for large corporations to manage financial decisions and to report accurate results internally and externally (WK 1 RESERVED ARTICLE).As with any other industry, the need for financial analysis within health care organizations is great (A COMPARISON). Standards for reporting monetary income and expenses have to be timely, relevant, and accurate. Meeting those standards requires following acceptable accounting principles and financial ethical standards.

Four Elements of Financial Management

The four elements of health care financial management; planning, controlling, organizing/directing, and decision making. Planning involves identifying organizational financial goals and the best way to achieve those goals. Controlling is actively ensuring that all areas of the organization are following the established plans of goal achievement. Management can compare past and present statistical information as a way to determine progress or regression. Organizing and directing uses available company resources to carry out plans for financial success. Daily monitoring of the implementation of such plans ensure efficiency in operations. Decision- making occurs simultaneously with planning, controlling, organizing, and directing. Making informed choices, among alternatives, to reach the goals of an organization requires continual decision making in a working environment.

Generally Accepted Accounting Principles and Ethical Standards

Large corporations have a need to establish guidelines for financial planning and policy (WK 1 RESERVED ARTICLE). Financial planning is a key to success for the survival of any company. Financially reported information must be concise and without bias. To ensure the validity of such reports, Generally Accepted Accounting Principles (GAAP) have been developed and instituted among financial representatives through the United States. Generally accepted accounting principles were developed over a long...