Audits and Avoiding Mismanagement of Funds

When dealing with health care financial management plays a key part of health care financial planning. Several of the financial decisions are made on a daily basis from accounting and all other business transactions that occur. Most of the decisions that are made are made, according to the organizations fiscal objectives, although some are made on the generally accepted accounting principles. Keeping accurate financial records keeps the organizations free from audits and mismanagement of funds.

General accepted accounting principles (GAAP) are considered to be the framework guidelines for financial accounting and jurisdiction of all accounting standards. The (GAAP) includes standards, conventions and the rules that the organization accountant follows when recording and summarizing all the transactions when preparing the financial statements. Third parties that are involved with the reports rely on the information to be free from bias and inconsistency without debate. All business states that, “generally accepted accounting principles are guidelines precisely, are a group objectives and conventions that have been established over time to set how financial statements are prepared and presented (Corporate Government 2010). There is a precedence that takes place when dealing with the finances of different organization. The organizations that deal with any type of financial data must comply with GAAP standards so that outside creditors can view their financial statements with little or no difficulty. For example Financial Accounting Standards (FASB) is private not-for-profit organization that oversees the majority of the different organizations within the United States including the healthcare industry.

The U.S. Security and exc...

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... these standards at all times to be in compliance with the state, federal and corporation’s standards and responsibilities.

Conclusion

We can see that there is a lot when running a health care organization. There are the issues of balancing a budget and being in compliance with the federal laws. The issue with the code of ethics tends to be the meat and potatoes of all organizations. I have seen beautiful hospitals and nursing homes on the outside, but inside the healthcare code of ethics went out the door. I like that U.S government gives these healthcare organizations someone to answer to. When an organizations is receiving federal grants or funding through Medicare, Medicaid they have to answer as to how the money is spent and why. The key to having stress free organizations is to hire productive accountants and keep accurate records when balancing the budget.