Hsc 405 Week 3 Reporting Practices and Ethics

Reporting Practices & Ethics.

The health care industry is constantly growing and managing the finances of health care facilities is increasingly becoming a concern. In this day and age, management of finances in health care is very important when it comes to financial planning. Any organization that runs with the absence of proper planning will fail. The accounting records of an organization has to be accurate and kept updated, this is important because they don't want to fall below the guidelines that are supposed to be adhered to. Account records help an organization track the income and expenses and help them to know what the stand of the company is financially. This helps the organization to know if it is making more money than it's losing or losing more than it's making, and they are able to come up with better strategies on how to get the organization functioning and getting more profit.

The four elements of financial management are planning, controlling, organizing and directing, and decision making.

Planning: Planning involves the financial manager ensuring that the objectives of the organization are met by taking the needed steps to accomplish them.

Controlling: Controlling involves a financial manager ensuring that every area in an organization is meeting the goals that have been set.

Organizing & Directing: Organizing involves a financial manager managing the organization's resources effectively and this ensures that all set plans are followed through. Directing involves the manager keeping track on a daily basis of everything to make sure that the organizing is not disrupted in anyway.

Decision making: Decision making involves a financial manager making the best decision out of several options that is, making informed choices.

According to "Principles Or Gaap: What Does It Mean?" (2008) "Generally accepted accounting principles, or GAAP for short, are the accounting rules used to prepare and standardize the reporting of...