Reporting Practices and Ethics

Reporting Practices and Ethics

HCS 405

January 14, 2013

Terri Andrews

Reporting Practices and Ethics

In order to run successful business nowadays it is vital to have good system in reporting practices and ethics establish at the core of the organization. In the health care environment it is extremely important that managers at every level have an understanding on the finance concepts to work in tune with the organization’s goal. There are some elements that are relevant when trying to accomplish these goals, but ethical and sound standards go hand to hand with these elements as well. Every organization is working to produce profit, however keeping high standards and providing the best care possible can help reach the goal at a faster rate.

In the healthcare field there is often a lack of structure and difficulty in the reporting of their finances, however this is about to change they have compromise to generally accept accounting practices, known as US GAAP, with the adoption of International Financial Reporting Standards (IFRS), which become mandatory in 2014 (PWC.com, 201-2013).  Generally accepted accounting principles, or GAAP for short, are the accounting rules used to prepare and standardize the reporting of financial statements, such as balance sheets, income statements and cash flow statements, for publicly traded companies and many private companies in the United States (Paul, 2008), and as stated before now it would also include health care organizations.

With these new changes there is a need to go back to basics to keep their organization a float, making organizational goals the main focus for their agenda. In order to been able to reach goals they would have to follow the four elements to financial management:

1. Planning- indentifying the steps to follow in order to reach organizational goals.

2. Controlling- financial manager is to ensure that each department is following the established guidance in order to reach the goals....