financial manag new

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Hamatu.

As healthcare organizations strive to provide the best care for patients, they also face constant pressure to maintain and grow revenues. As a result, accurate and fair financial reporting is more vital than ever, so ensuring your financial statements are as thorough and accurate as possible can help the industry and team better assess the facility's overall health, identify inefficiencies and deploy new cost-saving strategies (Lane, 2021). Furthermore, accurate and fair information on financial reporting is used by decision-makers to monitor performance and determine optimal strategies, investments, and modifications for continued growth (Lane,2021).

Rationale and Evidence

Fair and accurate financial reporting is important because it allows one to assess a healthcare facility's overall financial health by providing a quick means to determine if they have enough assets to meet upcoming liabilities. Moreover, financial reporting monitors facilities' growth by looking at previous statements to see how the numbers have changed over time (Lane, 2021).

Accurate financial reports can make the difference between making educated decisions and making a guesswork. Moreover, they will provide the necessary information to improve operations, increase income, reduce expenses, and ensure tax compliance (Orcutt & Company, 2021).

 Financial reporting should be accurate because these statements communicate important information about healthcare facilities. Financial accounting is often called "the language of business." Managers of health services organizations must understand the basics of financial accounting since the statements are the best way to summarize a business's financial status and performance (Reiter & Song, 2021).

Conclusion

In conclusion, healthcare professionals must keep in mind the fact that reporting is a huge part of both financial and clinical records; however, it is important to make sure balances are categorized correctly. Financial reporting in healthcare can help providers identify areas for improvement to increase revenue. It also helps integrated care management services in increasing their revenue.

References

Lane, L (April 14, 2021). Health Care Organization Financial Statements: Understanding Best Practices.  Richterhc.  https://blog.richterhc.com/health-care-organization-financial-statements-understanding-best-practices

Orcutt &Company (March 1, 2021). Understanding the need for accurate financial statements for a business.  https://www.orcuttfinancial.com/understanding-the-need-for-accurate-financial-statements-for-a-business/

 Reiter, K. L & Song, P. H (2021). Gapenski's Healthcare Finance: An Introduction to Accounting and Financial Management,  Seventh Edition. AUPHA/HAP Book.

Chevas.

The Sarbanes Oxley Act of 2002 came into effect as a result of many accounting scandals that arose between the time period of 2000 and 2002. (Webber, 2022) Fair and accurate financial reporting is extremely important in the healthcare industry. It helps in properly reflecting the actual and true performance of the organization that the firm has achieved. One added benefit of ensuring fair and accurate financial reporting is that its users would be ensured that the financial statements prepared are accurate, which in turn can help the health care organisations to better understand the overall health of the organization. (Lane, 2021)

 

Reliable and accurate financial reporting would also help in identifying any kind of inefficiencies and develop new strategies that could help in cost savings. (Lane, 2021) Effective reporting has been a key part of healthcare organisations for both financial and clinical purposes. This could help in making important decisions regarding providing quality services. This would help in gleaning valuable information, which can ultimately result in planning strategies and making vital decisions. (Rosario, 2021)

 

Overall, it can be said that accurate and fair financial reporting is the key to success for health care organisations. It tends to builds the trust of the users of the financial statements towards the organisation. Accurate financial reporting would help in achieving new financial goals easily. This would also contribute towards keeping the treatment costs comparatively low.

 

References

Webber, M. R. (2022, September 13).  The Enron Scandal and the Sarbanes-Oxley Act . Retrieved from www.thebalancemoney.com: https://www.thebalancemoney.com/sarbanes-oxley-act-and-the-enron-scandal-393497

Lane, L. (2021, April 14).  Health Care Organization Financial Statements: Understanding Best Practices. Retrieved from blog.richterhc.com: https://blog.richterhc.com/health-care-organization-financial-statements-understanding-best-practices

Rosario, C. (2021, February 19).  How Important is Financial & Clinical Reporting for Healthcare? . Retrieved from www.adsc.com: https://www.adsc.com/blog/how-important-is-financial-and-clinical-reporting-for-healthcare