Reporting Practices and Ethics Paper

Reporting Practices and Ethics Paper

Financial reporting is an important aspect of all health care organizations. The ethical standards associated with the financial reporting are also important. Financial statements must be reported fairly and accurately by the health care facilities. Stakeholders, such as patients, employees, vendors, and investors, are notably influenced by the reported financial data. Finance managers of health care facilities should have a large knowledge about generally accepted accounting principles (GAAP), the four elements of financial management, and the ethical financial standards to make sure financial practices are acceptable and the organization will be sustainable.

Four Elements of Financial Management

When in the planning process a financial manager will examine the organization’s objectives to come up with a precise process to ensure those objectives are met. A considerable amount of planning is necessary for health care facilities to be sustainable and successful. Health care reform is a large concern. Health care facilities must develop a plan to deal with compliance issues that can influence their core. This includes new information systems, risk management, and new equipment purchases. Controlling shows that each individual department in the facility is adhering to the planned and set up financial decisions. Denying or approving capital expenditures is one example of controlling expenses. Most times an organization’s assets are increased by capital expenditures. Capital expenditures are typically considered to be a part of an organization’s budget. During the controlling part a financial manager must confirm that the capital expenditure adhere to the budget of the organization and ultimately will lead to an increase in assets. During organization and directing, financial managers decide how to meet short and long-term goals by using finances, human resources, and equipment. A health care facility...