explain the relationship between finance and accounting, and how they operate to determine financial viability within a health care organization
Accounting do all the accounting activites,accounting records through the accounting standerds and organization polices.
financial management start using the data to analze and study the results,compering it with the statitics reports,financial indicator, performance reports and sharing the management board to reach for the resoluations
Pls i need essaya and objective for financial accounting for 12 april 2012
Finance and accounting are closely related disciplines that play vital roles in determining the financial viability of a healthcare organization. While they have distinct focuses, they work in tandem to ensure financial stability and support decision-making processes within the organization.
Accounting primarily deals with the recording, summarizing, and reporting of financial transactions. It provides a detailed picture of the organization's financial activities, including revenues, expenses, assets, liabilities, and equity. Through various accounting systems and principles, such as accrual accounting and the Generally Accepted Accounting Principles (GAAP), accountants ensure accuracy, consistency, and transparency in financial reporting.
Finance, on the other hand, focuses on managing the organization's financial resources, making informed investment decisions, and assessing the organization's financial performance. It involves planning, analyzing, and controlling the flow of funds to maximize profitability and shareholder value. Financial managers use various tools and techniques, such as financial statements analysis, capital budgeting, and financial risk management, to evaluate the organization's financial health and make strategic decisions.
In a healthcare organization, finance and accounting operate together to determine financial viability. Accounting provides the necessary data that finance professionals use to analyze financial statements, perform cost analysis, and assess financial performance. It helps identify revenue sources, track expenses, and calculate profitability ratios. This information is crucial for financial decision-making, including budgeting, forecasting, resource allocation, and investment planning.
Furthermore, finance and accounting collaborate to ensure regulatory compliance, such as adhering to industry-specific accounting standards (e.g., the Healthcare Financial Management Association (HFMA) principles) and maintaining accurate financial records for audits and financial reporting. Accuracy, integrity, and transparency in financial information are vital to demonstrate the organization's financial viability and attract investments or secure funding.
In summary, finance and accounting in healthcare organizations have an interconnected relationship. While accounting focuses on the accurate recording and reporting of financial transactions, finance takes a broader perspective, optimizing financial resources, analyzing financial performance, and making strategic decisions. Together, they contribute to determining the financial viability of a healthcare organization and supporting its long-term sustainability.