This website uses cookies to ensure you have the best experience. Learn more

Monitor The Financial Performance Of Privately Owned Business

1584 words - 7 pages

How can the financial performance of privately owned business be monitored? What are the main ways of monitoring to ensure the sound financial performance of an organization? Make use of examples to illustrate your arguments and answers.

Name: XIE Yang (Jasmine)
Tutor’s name: Diane Marsh
Date: 16/09/2013

Word count: 1403

A primary responsibility of any business is to understand the financial situation. With this understanding, the company can run accordingly with management. Shen Yuchu (2005) illustrates that it is significant for the privately-owned firms to understand whether profit status influences performance. “Financial performance ...view middle of the document...

In order to make some typical examples, only privately-owned firm not-for-profit and privatizing company will be discussed in this essay. As a private nonprofit organization, the U.S. Health Resources and Services Administration’ Bureau of Primary Health Care (HRSA/BPHC) represents the privately-owned nonprofit entities. “The finance committee or governing board will usually take the lead in establishing financial measures, their goals and reviewing progress. They will be the primary reviewer of the identified information” (Fishel. L, 2012).

Privately-owned company not-for-profit
To measure the financial performance of HRSA/BPHC, the finance committee adopts some financial criteria, including independent financial audit, interim financial statements, grant application, “trend or other reports that includes the required and any supplemental financial statement measures, financial statement and trend report comments” (Zellweger. T et al, 2006).

More specifically, as the first consideration, independent financial audit is required to work with generally accepted accounting principles. More importantly, the financial statement data is validated by the audit. In addition, the audit makes qualifying statements on its validity. At the same time, the audit handles interim financial statement data and can adjust it. HRSA/BPHC evaluates the financial performance of grantees by audit data.

As the second measure, “the financial statements of a firm represent the usual starting point for any assessment of financial performance. In particular, a valuation of a firm begins with a review of its current financial condition and its recent results” (Bertonèche, M. & Knight, R., 2001). A balance sheet, an activity’s statement and a financial changes’ statement are the main sectors in financial statements. More precisely, in order to calculate the HRSA/BPHC required measures, the capital and the debts in a balance sheet should be divided into present and long-term parts. Besides, “actual, budget and variance columns for both the current and year-to-date amounts are usually included in the interim statement of activity” (Fishel. L, 2012). They are so-called budget performance columns. Furthermore, a statement of changes may replace a statement of net cash flow in financial position.

As the third measure, the procedure of grant application contains the recognition of different aims in various periods, positive and negative conditions and some contributing factors for improving financial performance.

As the fourth concern, in order to perfectly show the operation of different financial statement measure every month, a trend report is necessary monthly. HRSA/BPHC requires not only five required financial performance measures, but also four supplemental financial statement measures. Firstly, as for the required ones, there are “total cost per patient and medical cost per medical visit. These two measures are based on operating data, patients and visits....

Other Papers Like Monitor the Financial Performance of Privately Owned Business

Effectiveness of Credit Risk Management on the Financial Performance of Philippine Universal Banks

1604 words - 7 pages Effectiveness of Credit Risk Management on the Financial Performance of Philippine Universal Banks Marylet H. Ilagan Master in Business Administration Lyceum of the Philippines University-Batangas Effectiveness of Credit Risk Management on the Financial Performance of Philippine Universal Banks Banks are considered to be in the business to safeguard money and other valuable of

South Africa’s Macroeconomic Performance Before, During and After the Global Financial Crisis of 2007-2008

1045 words - 5 pages had significant exposure to CDOs, which became known as toxic debt instruments in the wake of the financial crisis, the impact was experienced more speedily and more severely. South Africa had very limited exposure to these debt instruments, so the impact on their economy lagged other economies such as the USA. a) South Africa’s macroeconomic performance before, during and after the global financial crisis of 2007-2008 As indicated by the

Analysis of Eva as a Financial Performance Measure

2136 words - 9 pages Kaplan and Norton, which helps to identify the clear objectives of the business after the overall strategy is clearly understood. It captures a number of financial and non-financial measures, and each can be categorized into four perspectives such as customers, internal process, learning and innovations and financial performance, with two to five measures under each category (Kaplan, 1996). Clearly, EVA is one of the financial metrics which can

Impacts Of Social Networking In The Academic Performance Of Business Students

1382 words - 6 pages The effect of environment on student academic performance at secondary school level? In: Bachelors Degrees, Senior Secondary Certificate SSC [Edit categories] Answer: INFLUENCE OF SCHOOL ENVIRONMENT ON THE ACADEMIC PERFORMANCE OF SECONDARY SCHOOL STUDENTS IN LAGOS STATE ABSTRACT This study examines the influence of school environment on the student academic performance in secondary schools in Lagos State. Factors such as school facilities

Financial Applications of Business in Joint Stock Companies

1874 words - 8 pages liability only extends to the face value of their shareholding. This concept of limited liability largely accounts for the success of this form of business organization. Ordinary shares entitle the owner to a share in the company's net profit. This is calculated in the following way: the net profit is divided by the total number of owned shares, producing a notional value per share, known as a dividend. The individual's share of the profit is

The Future of Financial Reporting

1121 words - 5 pages /US%20GAAP%20v%20IFRS%20Dec%202011.pdf Karthik Ramanna, K. M. (2014, March 27). The IASB at a Crossroads: The Future of International Financial Reporting Standards (A). Retrieved from Harvard Business School: Summary of Statement No. 52. (n.d.). Retrieved from FASB:

Analysis of the Employees Performance System- Individual

2875 words - 12 pages , faithfulness and attention (White, 1954), but those information has been used in order for bureau head and Secretary of the department to monitor the performance and manage their discipline decisions. In late 19th and 20th century, performance appraisal systems were used mostly by military and government organisations due to their large size, hierarchical structure, geographic dispersal, and the necessity to promote the top performers to higher

The Future of Corporate Performance Management

2198 words - 9 pages : forecasting, budgeting, financial reporting, cloud computing The Future of Corporate Performance Management “Corporate Performance Management is a cycle that begins with budgeting and continues to comparison of actual performance against the plan” (Product Overview). “Reports and dashboards are used to analyze real-time data, and compare it to what was planned. Based on this analysis, the cycle begins again, with what-if analysis and re

Analyze the Performance of Metcash and Woolworths

2488 words - 10 pages ABSTRACT In this valuation report, we will analyze the performance of Metcash and Woolworths (Australia) in the past six years from 2007 to 2012 and make some forecasts in order to aid investors in making decisions about investments between these two companies. Two methods of DCF valuation and relative valuation are used during the analysis. Firstly, we estimate FCFF with calculated WACC to determine the two companies’ stock price, comparing

Production Performance Of The Existing Equipment

569 words - 3 pages . Thus, over 70% of Bulgarian companies, for example, had a portfolio that wasn´t related to a defined business strategy and vision for long term development, and its structure reflected the market situation. However, to stay competitive, small companies in all EU countries have had to re-think and optimize their activities; they have to search for new opportunities for their development. That is why they are being forced to create or update their

Identify the Main Users of Financial Reports

1102 words - 5 pages A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity . Relevant financial information is presented in a structured manner and in a form easy to understand. They typically include basic financial statements. • Income Statement: reports the results of operations for a specific period of time. • Retained Earnings Statement: reports the changes in retained earnings for a

Related Essays

New Financial And Statistical Measures To Monitor The Success Of Ge

4330 words - 18 pages New Financial and Statistical Measures to Monitor The Success of GE To :     The Board of Directors, GENERAL ELECTRIC COMPANY Subject : NEW FINANCIAL AND STATISTICAL MEASURES TO MONITOR      THE SUCCESS OF GENERAL ELECTRIC COMPANY      After Mr. Weltch announced my new assignment, I pondered how I could go about guaranteeing the best possible result: a creditable and

Financial Performance Of Grameenphone Essay

6613 words - 27 pages American International University-Bangladesh (AIUB) INTERNSHIP RESEARCH REPORT ON “Financial Performance Analysis of GrameenPhone Ltd.” An Internship Report Presented to the Faculty of Business Administration in Partial Fulfillment of the Requirements for the Degree of Bachelor of Business Administration Supervised By: Farah Rezwan Faculty, School of Business Administration Department of Finance Submitted By

The Effects Of Employee Satisfaction On Productivity, Performance, Customer Satisfaction And The Organization Financial Performance

1958 words - 8 pages Executive Summary According to modern scientific management theories, Employee satisfaction, Productivity, Performance, Customer satisfaction and the organization financial performance are interlinked. Any changes caused to any one of the above parameters may have strong impacts upon other parameters. Even though an organization may have lot of resources, human resources or the employees seem to be the most vital one because of the necessity of

How Managing Resources Can Improve The Performance Of The Business

832 words - 4 pages How managing resources can improve the performance of the business Managing costs is a very important aspect of managing financial resources. If expenses are not managed effectively, this can lead to low profits and the business being potentially unable to pay its expenses. Keeping within a budget, increasing income in order to cope with change, making sure that working capital is available and making sure that money set aside for emergencies