Reporting Practices and Ethics Essay Example for Free

Reporting Practices and Ethics EssayFinancial practices and ethics can play an important part of every organization including the wellness c atomic number 18 environment. In order for the health plow organization to be successful one must(prenominal) adopt an efficient monetary practice and possess ethical standards. The solicitude of finances for a health care organization may be a challenge for theater directors. This is why the health care manager will follow four basic elements for fiscal management. The basic elements include planning, controlling, organizing and directing, and decision making (Baker Baker, 2011). Health Care Organizations have write up principles generally acceptable and will stick with with the financial practice and the practice of ethics to avoid fraud or abuse of the report practices. Elements of Financial direction Financial management has four basic elements, which assist the manager in making effective decisions for the health care organiza tion. The first element of financial management is planning. The financial manager needs to identify the ill-uses that he or she needs to take to accomplish the addresss of the organization.However, first the manager must determine what the goal is for the organization and at that time determine what steps to follow to achieve the goal. The next element is controlling a plan is in place that severally area of the organization must follow. The financial manager must take in that the areas are following such plans. The staff can view the current reports and set a comparison with reports from the past. In comparing previous and current reports the financial manager can see if an area in the organization needs much attention because the area may not be meeting its goals.The third element is organizing and directing. In organizing the financial manager must decide on what resources are best to use to be more effective. The manager must also determine how to use those resources effe ctively to reach the goal of the organization. In directing, the manager must provide supervision daily to run the organizing element efficiently. The final element is decision making. The manager must make decisions with the alternatives available such as tuition in the reports.Decision making should be side-by-side with planning, controlling, and organizing. When making a decision the manager must analyze and evaluate the nurture to make effective decisions (Baker Baker, 2011). unimpeachable Accounting Principles Generally accepted accounting principles (GAAP) provides guidelines to the companys financial manager. The guidelines will cover the principles of accounting and practices. The generally accepted accounting principles guideline, guides the financial manager in the reporting and recording the financial information.For example, the financial manager will use the guidelines when preparing the financial statements such as the balance sheet. One health care organizations p ractice for releasing financial information will perform a practice of reconciliation in accounting. One organization reviews the balance sheets and makes them compatible as one. The next step is to determine the classification of each balance sheet such as high risk or low risk. The final step is the organization must decide a reporting schedule such as monthly or yearly.In knowing and understanding the documents and how to analyze the information this prevents an auditor from finding misstatements (Cox, Draa, 2008). Standard Financial Ethics Making an ethical decision is a requirement of health care managers. One must ensure the meeting of needs of individuals within the organization. Principles of ethics include fairness, justice, and professionalism. The organization possesses a code of ethics when interpreting the organizations transactions such as losses or assets.The Health Care Portability and Accountability Act help reduce abuse and fraud concerning finances whether it is d eliberate or unintentional. Fraud and abuse is increasing because of the enlarge in the delivery of health care. Organizations take better actions in working toward the reduction of fraud and abuse. One way to do this is to develop a abidance program, which a financial manager will play a key role. Compliance programs allow a proper practice on reporting the financials, and comply with the ethical conduct standard by avoiding fraud and abuse (Hern, n.d. ).Conclusion For an organization to be successful it needs to ensure the following of the financial reporting practices and maintain a standard of conduct ethically. The organization should follow the basic elements of financial management. When an organization follows the steps in the correct order there is slight of a medical prognosis the organization will receive an audit. As long as the organization follows the generally accepted accounting principles there is less chance of an audit, and less of a chance of fraud or abuse w hen reporting the finances. References.Baker, J. Baker, R. (2011). Health care finance Basic tools for nonfinancial managers (3rd ed. ). Sudbury, MA Jones Bartlett Publishers Cox, B. , Draa, M. (2008). plump for to basics with account reconciliations. Business Finance, 14(6), 38-38. Retrieved from http//search. proquest. com/docview/211076250? accountid=35812 Hern, W. (n. d. ). Corporate compliance is a necessity, not an option healthcare financial managers role in helping their organizations prevent financial fraud. Retrieved from http//findarticles. com/p/articles/mi_m3257/is_n1_v51/ai_19146070.