Ethics

962 Words Dec 17th, 2012 4 Pages
Reporting practices and ethics
Rachel Salermo
HCS/405
September 3, 2012
Michael Shin

Reporting practices and ethics
Financial reporting practices are necessary in any successful business. They are used to keep track of a business finances, and to make sure the business is following legal and ethical standards. There are four elements to financial management; they are planning, controlling, organizing/directing, and decision making. Each of these plays a vital role in correctly reporting finances. Furthermore, there are principles in accounting for healthcare that help reiterate the reporting practices.
Generally acceptable accounting principles or GAAP are certain guidelines that are used to make sure a business’s finances are
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Financial reports are used to keep track of company’s finances. Some examples are a balance sheet, which is used to track assets, liabilities, and net worth (Baker & Baker, 2011). This is a very important tool in figuring out how much expenses are occurring in a business. Another report used in healthcare finance is a statement of revenue and expense. This is similar to a balance sheet, but covers a certain period as opposed to a daily sheet that can be accessible at any time. A statement of revenue can be used to show a fiscal year, while a balance sheet can be accessible and reported daily. A subsidiary report is a more detailed way to go over finances; this can be used in conjunction with the other financial reporting sheets to clarify exactly what is being spent or earned in a hospital or healthcare setting.
In conclusion, healthcare financing uses many of the same principles and guidelines many other business’s do. There is always a finance manager to implement the generally acceptable accounting principles, and four elements of financial management. It is important to use common sense and have good ethics when reporting finances. Without these guidelines, many reporting practices could be misinterpreted and lead to finances not being properly cited. A good finance manager will keep a company honest, and bring increase as well.

References
Baker, J., & Baker, R. W. (2011). Healthcare finance: Basic tools

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