Healthcare Business Analysis. Student’S Name. Institution

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Healthcare Business Analysis
Student’s Name
Institution Affiliation

Healthcare Business Analysis
Decision making process in creating a budget A budget is a financial document that contains a detailed plan in writing (usually in monetary form) expressing the expected financial implications of the various management strategies for attaining the organization’s primary goals and objectives in the coming financial period (Clowes, & Scriven, 2015). A budget is a very important tool for any given organization. By enabling the organization to create a spending plan for its finances, the budget ensures that the company will be able to meet all its important obligations. Given the importance of the budget, significant effort and
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This involves determining when and how the budget will be evaluated.
Role of variance analysis in operating budget Variance analysis is an important tool when it comes to the management and maintenance of operating budgets. Budgets allows organizations to set financial targets for the coming financial periods. However, it is not a given that actual results will be the same as the budgeted results. Therefore, to ensure that the company attains its primary goals and objectives, it is critical that the financial managers find ways of managing and controlling the budgeted versus the actual costs. An important tool that allows mangers to maintain organizational productivity by properly managing budgeted versus actual costs is variance analysis. Through variance analysis, organizations are able to determine where costs are not performing according to plan and bring such costs back into the desired range (Keagy, & Thomas, 2012). Periodic variance analysis can help Patton-Fuller community hospital to manage overall financial performance by facilitating comparisons between actual and expected financial results.
Difference between managerial and financial accounting Financial and managerial accounting are integral functions that allow organizations to manage its operational activities. In addition to budgets and variance analyses, both financial as well as managerial accounting are vital elements of healthcare finance. It is therefore important
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