Reporting Practices and Ethics
August 31st 2015
Professor Joe Gazdik
There are a lot of important parts in health care organizations but what sticks out the most is financial management. Financial management needs to be taken seriously and everything has to be done accurately because there are consequences if errors occur and the organization cannot function properly. It also helps to see the profit and loss that the organization is having and to see what changes need to be done to fix anything.
Four elements in financial management
In financial management, there are four elements that are vital to any company and those are planning, ...view middle of the document...
It is to make sure that they are doing everything legally and that everything is ethical for the standards of manager. It is to prepare and standardize and reporting of financial statements and use balance sheets, which is what it owes and what it is worth. The income a statements and cash statement is the revenue and that brings an income and cash flow is the beginning stage in the organization and that is the subtotal from income and expenditure. “The Generally Accepted Accounting Principle is concerned with the measurement of economic activity, the time measurements are made and recorded, disclosures surrounding the activity, and preparation and presentation of summarized economic information in financial statements”. (General Accepted Accounting Principles or GAAP: What does it mean? 2008) If it wasn’t for GAAP, the companies would be free to decide the financial report and it would be difficult for the investors and creditors who are stakeholders on that company.
There are many ethical standards for financial accounting. Independence, it is a requirement to not have any conflict of interest with vendors and other medical services. It can lead to increase in pricing and products. Integrity and objectivity is another ethical requirement and that is to be trustworthy and is closely tied to the objectivity component. Competency, the financial accountant needs to have the appearance of integrity. Lastly, responsibility is to do the job as best as possible. It is to protect social interest, good check balance and the patient’s interest within.
Ethical standards and conduct and reporting practices
The ethical standards of conduct were used to provide the direction in which the healthcare profession...