Traditional Cash Budgets In The Healthcare Industry

319 Words1 Page
bulb-icon

Recommended: Importance of cash budgeting

Financial executives in the healthcare industry rely heavily on cash budgets to help facilitate in the forecasting of cash flows and decision making on any additional financing that may be needed (Cleverley, Cleverley, & Song, 2012). Of course the budgets are not a guarantee that the forecasted plans will go accordingly as they were planned, but with close monitoring, management will be able to make any adjustments as needed for business needs. Businesses can choose to utilize a fixed budget or decide to go with a rolling budget period. A fixed budget is more traditional annual forecast for most firms and a rolling budget differs from the traditional way in regards to its timeframe and more comprehensive analysis (Hill, 2016). The traditional

Show More
Related

  • Hospital Budget Analysis Paper

    441 Words  | 1 Pages

    I attended the Saturday Lab 1 session discussing the Denison Specialty Hospital case study. In our session, we had a through discussion into the different budget terminology. I learned about the difference between accrual and cash accounting methods, which is based on the timing of when the revenue and expenses are recognized. I also learned about responsibility centers as an organizational unit under the supervision of a manager, who is responsible for its activities and results. In addition, the manager is accountable for the budget of the department that they head. Therefore, a centralized form of management in developing the budget because it makes easier to because the information for the department budget is located

    Read More

  • The Revenue Cycle in Healthcare

    866 Words  | 2 Pages

    The revenue cycle is known as the process by which healthcare providers receive reimbursement for care provided. Bringing in revenue is necessary for the efficient operation of any healthcare facility. The revenue cycle consist of all the steps involved in patient care starting from bringing in the patient, meeting their needs, and receiving payments for services provided (Gillikin).

    Read More

  • Allocation of Scarce Healthcare Resources

    1808 Words  | 4 Pages

    Resources have always been inadequate for food, economics and healthcare and all scarce resources are rationed in one way or another. Healthcare resources can be in the forms of medicine, machinery, expensive treatment and organ transplantation. For decades, allocation of healthcare resources in an equitable manner has always been the subject of debate, concern and analysis, yet the issue has persistently resisted resolution. Scarcity of resources for healthcare and issue of allocation is permanent and inescapable (Harris, “Deciding between Patients”). Scarcity can be defined in general, in emergency and in crises as well as shortage of certain kind of treatment, medicine or organs. As a result of scarcity of resources, and some people may be left untreated or die when certain patients are prioritized and intention of is that everyone will ultimately be treated (Harris, 2009: 335). Allocation of limited resources is an ethical issue since it is vital to address the question of justice and making fair decisions. Ethical judgments and concerns are part of daily choice in allocation of health resources and also to ensure these resources are allocated in a fair and just way. This paper will explore how QALYs, ageism and responsibility in particular influence the allocation of healthcare resources in general through the lens of justice, equity, social worth, fairness, and deservingness.

    Read More

  • Developing A Strategic Pl Budgeting And Timeline Tools

    761 Words  | 2 Pages

    The budget is a tool that quantifies activities in financial terms (Baker & Baker, 2014). Fiscal planning is an important activity in strategic planning. The nurse manger must have the knowledge and ability to forcast when developing a budget (Marquis & Huston, 2015). The manager must also take into consideration and plan for time resources. A GANTT chart or a program evaluation review technique can be utilized to assist in managing time resources (Laureate Education, 2013).

    Read More

  • Cost Containment In Health Care

    743 Words  | 2 Pages

    Cost containment is what a facility or company does to control the expenses that are needed to operate a company or complete a company’s project. And to do so while remaining within a budget that has been pre-determined for that facility. The intention is to keep the overall costs down to only what is necessary and required in order to maintain the desired budget. This can result in companies or facilities “cutting costs” in areas that may not need to be overlooked. This causes frustration and embarrassment of the company or facility’s employees, lower productivity and quality of service, and the possibility of spending more money than they intended to save. It is understood that the goal of containing costs is to maximize the profit of the facility, but at what cost to the general presentation and reputation of the facility?

    Read More

  • Top-Down Budgeting Methodology

    1840 Words  | 4 Pages

    Top-down budgeting has benefits such as time efficiency, low utilization of staff and resources, considerations of political environments, and holistic organizational needs. Time efficiency is one of the benefits to top-down budgeting because executive or legislative branches, or upper levels of management, make all the decisions. This enables middle and lower levels of management and staff to focus on their primary duties within an organization. This results in lower cost and resource intensity because involving staff in the budgeting process may require staff to complete extensive investigation and analysis. As top-down budgets are created by the top decision makers, budgets may be ...

    Read More

  • Essay On Beyond Budgeting

    1789 Words  | 4 Pages

    Quantitative plans are called budgets. Budgets are prepared to impose cost controls on the activities of an organization (Chenhall, 1986).Budgets are then used to evaluate the performance of the management and budget itself is considered as a standard to evaluate the performance Solomon, 1956). The purpose of the budget is also to implement the strategy of the organization and communicate it to the employees of the organization Rickards (2006). The change in the external environment has led to the change in the budgeting approaches from the initial cash based budgets to the zerio based budgets (Bovaird, 2007).

    Read More

  • Creating a Viable Budget

    800 Words  | 2 Pages

    Have you struggled in the past to create a budget, but you unfortunately find yourself being unable to stick to it? If so, you're not alone. Many people find it difficult when it comes to compiling, planning, and sticking to a personal budget. However, you can easily and quickly set up a budget that is relatively easy to stick to if you follow a few basic steps.

    Read More

  • Forecasting Sales and Developing Budgets

    1836 Words  | 4 Pages

    As one can see, this paper synthesized the findings from Cassar and Gibson’s (2008) study on the effects of budgeting and internal accounting reports on forecasting. Also discussed was a similar situation related to forecasting that involved the pharmaceutical industry. In addition, another source with a different point of view was also analyzed that focused specifically on how budgets affect forecasting. Finally, this paper also discussed the relationship between planning and performance as well as which industries benefited the most from planning.

    Read More

  • Towards a Methatheory of Budgeting

    1134 Words  | 3 Pages

    Top-down budgeting is listed in Towards a Metatheory of Budgeting as a normative theory of budgeting. Normative theories are defined as complete theories of budgeting that incorporate the budget, appropriations, preparation, and decision events. Normative theories are not intended to describe what occurs in the budgeting process but prescribe considerations for future implementation as a best practice (Williams & Calabrese, 2011). However, with the evolution of organizational complexity, top-down budgeting has become a positive theory. Positive theories explain an observation of the budgeting process and attempt to analyze why that behavior exists as an aspect of organizational culture (Williams & Calabrese, 2011). Top-down budgeting is not a desired best practice and therefore not a normative theory, because the methodology does not include key stakeholders in decision making. Top-down budgeting is used as a way to save time, centralize decision making, and limit the amount of controls given to lower levels of the organization. As organizations become flatter and remove excessive layers of management to become more nimble, the centralization of budget decisions has evolved (George, 2012). The traditional top-down budgeting approach is dated. Under the category of positive theory, top-down budgeting is a descriptive theory that explains an aspect of the budgeting process. It is an observation of practice. In an evolved definition, decisions from leadership are not the end of a process. Instead, they are a factor considered in the decisions for a final budget and department goals.

    Read More

  • Importance Of Budgets And The Budgeting Cycle

    3687 Words  | 8 Pages

    A budget could also be a group of interlinked plans that quantitatively describe an entity's projected future operations. A budget is used as a yardstick against that to live actual operative results, for the allocation of funding, and as a concept for future operations. The budgeting methodology typically begins with a technique planning session by senior management. The management team then applies the united strategic direction to a series of plans that roll up into a master budget. The plans embody a sales budget, production budget, direct materials budget, direct labor budget, producing overhead budget, sales and body budget, and stuck assets budget. All of those plans roll up into the master

    Read More

  • Cons And Limitations Of Budgeting: Limits And Limitations Of Budgeting

    1096 Words  | 3 Pages

    The budget established at the beginning of an accounting period is continually amended to reflect variances that arise due to changing circumstances on the project level. Finance with the help of the project delivery teams makes provision for reviewing the budget versus the forecast over 3 main

    Read More

  • The Importance Of Budgeting

    1495 Words  | 3 Pages

    After growing a custom to living with your parents at home where they typically provided everything necessary for living for you, it can be a challenge to be out on your own for the first time. Many times teens/young adults aren’t taught on how to properly budget their money. So when they move out on their own they have horrible money handling skills. Budgeting became problematic because I tended to buy thing I don’t actually need or when I had unexpected emergency expenses that I couldn’t avoid. This essay will go into detail on how I handled budgeting my money while away from home from my parents living in my own apartment and on my own for the first time.

    Read More

  • The Importance Of Budgeting

    772 Words  | 2 Pages

    Reflecting on the pathway of my financial affairs reminded me of a quote by David Ramsey, “A budget is telling your money where to go instead of wondering where it went.” As young adults we have the proclivity not to consider our futures but concentrate on living in the present. Being put in better words by Charles Jaffe, “It’s not your salary that makes you rich, it’s your spending habits.” Without accurate knowledge, the effects of not budgeting comes with the responsibilities of debt; then comes the stress and need for more money. Which the restitution ends up having us fall to a fate trying to find a resolution.

    Read More

  • Diverse Roles of Budgeting in Business Strategies

    1084 Words  | 3 Pages

    Almost every enterprise, regardless of size, complexity or sector, relies heavily on budgets and budgetary systems to achieve strategic goals and budgets have various roles in an organisation from a management accounting perspective view (Raghunandan M, Ramgulam N & Mohammed K, 2012). Some organisation will use budget with “stretch” to motivate and increase their performance in sales; or by using a more “realistic” budget for planning to increase expected sales. However, most of the companies use the same document for both purposes. Large companies tend to use budgets mostly for control and smaller entrepreneurial companies use them primarily as planning tools (Barrett & Fraser, 1977). Therefore, organisations are able to use budget to control

    Read More

More about Traditional Cash Budgets In The Healthcare Industry

Open Document