Saturday, February 23, 2019
Reporting Practices and Ethics Essay
Financial devotes and ethics can run across an important character of any ecesis including the health care environment. In order for the health care governing body to be successful one mustiness absorb an efficient fiscal practice and possess ethical models. The worry of pecuniary resource for a health care organization may be a challenge for music directors. This is why the health care passenger vehicle pull up stakes trace four basic elements for fiscal management. The basic elements include planning, controlling, organizing and directing, and decision devising (Baker & Baker, 2011). health Care Organizations have accounting principles generally acceptable and go forth comply with the fiscal practice and the practice of ethics to avoid postiche or ill-use of the reporting practices. Elements of Financial Management Financial management has four basic elements, which assist the motorcoach in making legal decisions for the health care organization. The first elem ent of financial management is planning. The financial jitney call for to identify the go that he or she involve to take to accomplish the closings of the organization.However, first the manager must determine what the goal is for the organization and at that time determine what steps to follow to strike the goal. The next element is controlling a plan is in adorn that each area of the organization must follow. The financial manager must ensure that the areas are following such plans. The staff can learn the current reports and make a comparison with reports from the past. In comparing anterior and current reports the financial manager can see if an area in the organization needs more attention because the area may non be skirmish its goals.The third element is organizing and directing. In organizing the financial manager must judge on what resources are best to use to be more effective. The manager must also determine how to use those resources effectively to reach the goal of the organization. In directing, the manager must provide watch daily to run the organizing element efficiently. The final element is decision making. The manager must make decisions with the alternatives available such as information in the reports.Decision making should be side-by-side with planning, controlling, and organizing. When making a decision the manager must analyze and evaluate the information to make effective decisions (Baker & Baker, 2011). congenial Accounting Principles Generally accepted accounting principles (GAAP) provides guidelines to the companys financial manager. The guidelines will cover the principles of accounting and practices. The generally accepted accounting principles guideline, guides the financial manager in the reporting and recording the financial information.For example, the financial manager will use the guidelines when preparing the financial statements such as the balance sheet. iodine health care organizations practice for releas ing financial information will perform a practice of reconciliation in accounting. One organization reviews the balance sheets and makes them compatible as one. The next step is to determine the motley of each balance sheet such as high attempt or low risk. The final step is the organization must decide a reporting schedule such as monthly or yearly.In knowing and understanding the documents and how to analyze the information this blocks an auditor from purpose misstatements (Cox, Draa, 2008). Standard Financial Ethics Making an ethical decision is a requirement of health care managers. One must ensure the meeting of needs of individuals within the organization. Principles of ethics include fairness, justice, and professionalism. The organization possesses a formula of ethics when interpreting the organizations transactions such as losses or assets.The Health Care Portability and Accountability Act help reduce abuse and fraud concerning finances whether it is deliberate or unin tentional. Fraud and abuse is increase because of the increase in the delivery of health care. Organizations take better actions in working toward the reduction of fraud and abuse. One way to do this is to perplex a compliance program, which a financial manager will play a key role. Compliance programs allow a proper practice on reporting the financials, and comply with the ethical conduct standard by avoiding fraud and abuse (Hern, n.d. ).Conclusion For an organization to be successful it needs to ensure the following of the financial reporting practices and maintain a standard of conduct ethically. The organization should follow the basic elements of financial management. When an organization follows the steps in the correct order there is little of a go on the organization will receive an audit. As long as the organization follows the generally accepted accounting principles there is less chance of an audit, and less of a chance of fraud or abuse when reporting the finances. R eferences.Baker, J. & Baker, R. (2011). Health care finance Basic tools for nonfinancial managers (3rd ed. ). Sudbury, MA Jones & Bartlett Publishers Cox, B. , & Draa, M. (2008). patronage to basics with account reconciliations. Business Finance, 14(6), 38-38. Retrieved from http//search. proquest. com/docview/211076250? accountid=35812 Hern, W. (n. d. ). Corporate compliance is a necessity, non an option healthcare financial managers role in helping their organizations prevent financial fraud. Retrieved from http//findarticles. com/p/articles/mi_m3257/is_n1_v51/ai_19146070.