Reporting Practices and Ethics
Financial management consists of ethical standards and reporting practices. Monetary managing is the supervision of a business or organization’s finances in order to reach financial goals. The main intention of financial management is to generate capital for the organization, produce a progressive cash flow, and deliver a suitable recurrence in funds. Moreover, there are four elements of financial management that are very important to any health care organization as well as the generally accepted accounting principles related to health care.
The four elements of financial management are planning, controlling, decision ...view middle of the document...
A few of them are the Financial Accounting Standard Board, the United States Securities and Exchange Commission, and the Public Company Accountant Oversight Board. Various organizations use the Generally Accepted Accounting Principles structure also known as GAAP. Generally Accepted Accounting Principles are strict rules that regulate how United States accountants conduct/format their reports. It is a must that all accounting records are observed by people outside the organization for transparency purposes. If business all across the world were to construct their own accounting reporting procedures, comparing financial statements would be ineffective, and it would make it easier to hide important information (Baker & Baker, 2011).
Generally Accepted Accounting Principles are the actions along with the values most business use to accumulate financial reports and illustrate how and where their money is being controlled. GAAP is a combination of dependable principles created by the policy boards, which are old ways of summarizing and recording accounting data. Although the principles are not backed by law, the United States Securities and Exchange Commission (SEC) require businesses to use them in their financial reporting (Baker & Baker, 2011).
Many professional organizations have said that competence is one of the main ethical standards a finance professional needs maintain. Financial professionals must have tenable education and practice that will prepare them for their job. They must also continue education by taking in new data that may have a positive effect on their practices, and they must stay up-to-date with GAAP in order to be competent ("Accounting Tools", 2013). The Association for Accountants and Financial Professionals in Business forbids financial professionals from using patient’s information to gain unethical or illegal advantage. When working with a patient’s financial information, professionals will have admittance to an ample amount of personal...