Reporting Practices and Ethics

Reporting Practices and Ethics Paper

Jessie Hammond

June 20, 2011

Reporting Practices and Ethics Paper

When the topic is financial management the conversation can and often does run deep, because financial management is a wealth of ethical and legal regulations and guidelines. To cover every important detail regarding financial management would require a scope much wider than permitted in this essay alone. However, in an attempt to provide a brief explanation of financial management this essay will discuss the four elements of financial managements, Generally Accepted Accounting Principles (GAAP), and General Financial Ethical Standards (GAFES).

The Four Elements of Financial Management

Four elements are recognized in respect to the financial management of health care organizations. Baker (2011) discusses the four elements of health care financial management and identifies the elements as planning, controlling, organizing and directing, and decision making. Each of these four elements are essential and though many may combine the elements into three rather than four it is wisest not to condense these elements because of the time dedication needed to each.

The simple purpose of planning is to identify objectives and the steps necessary for accomplishing the identified objectives. The simple explanation of controlling is ensuring the plans established are followed throughout the organization. This is most often accomplished through the study of current reports compared to earlier reports. Organizing is the financial manager effectively carrying out the plans established by deciding how to use the organization’s resources.

Directing includes the financial manager is the day-to-day efforts to stabilize the efficiency of the organization. Decision-making requires the manager to make choices addressing available alternatives. The goal is to make informed choices based on all information. Decision making...