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Category: Business and Industry
Date Submitted: 09/09/2015 10:24 AM
Reporting Practices and Ethics Paper
Carolyn Ervin
HCS/405
August 31, 2015
Joe Gazdik
It is the responsibility of a health care manager to understand the basic principles of accounting and finance, and have the knowledge and the understanding of a financial report and what it means. Without these skills and ethical standards it could result in poor management. Financial management is a vital part of organizational effectiveness and success, and using ethical standards of honesty, an organization can expect to remain in business. Financial management requires four elements in order to operate properly. Planning is the first step in financial management. Planning is the responsibility of the financial management understanding company goals and decides appropriate steps to achieve the goals set up by the organization. The second step in financial management is controlling. It is the financial managers’ responsibility to ensure each division of the organization is following the plan set by the shareholders and owners. The financial manager compares reports and decides where improvements are needed to reach goals set by the company. The third step is organization and directing. The financial manger decides where resources are used to accomplish goals for the company and directs the day to day jobs and assists where needed. The fourth step is decision making the financial manager analysis reports from the departments and chooses the path to follow to reach set goals or evaluates the task and chooses an alternative path if needed ("The Association of Accounts and Financial Professionals in Business", 2005).
Generally accepted accounting principles are accounting standards and guidelines used in financial accounting and reporting. It set out standards for managing accounts, preparing financial statements and accounting, methods and techniques. The main principles that ensure fair and accurate accounting free from inconsistencies: Regularity to...