ACCOUNTING AND BUDGETING It is imperative that a nursing home Administrator understands the concept of accounting and budgeting. The Administrator must have a thorough understanding of the financial process. While the decision-making processes of nursing home administrators tend to revolve around the needs of senior residents, they must also balance the needs of personnel to be equally effective.
Nursing home administrators also take charge of the financial aspects of their facilities by working with accounting and payroll software systems that enable budget and expense reports. The financial responsibilities of NHAs may include, but are not limited to: Bookkeeping for facility inventory cash flow, Managing billing for residents and families, …show more content…
Identifying the budget that is available and where those funds should be spent in order to maximize patient care and facilities in general is one responsibility of NHS's that benefits all involved. Often, nursing home administrators are asked to present to a board with proposed project
The vulnerability of nursing home residents makes it vital for owners of even the smallest residential care facility to implement proper bookkeeping techniques and closely monitor employees. In addition to ensuring bookkeeping methods comply with federal and state regulations, strong internal controls are necessary to prevent or deter instances of fraud and theft that not only violate the trust of nursing home residents but also can cripple the business.
Since its passage in 1965, Medicaid has become the nation's main public health insurance program for the low-income population. It is also the predominant source of coverage and financing of long-term care services for the elderly and individuals with disabilities. Medicaid plays many roles in our healthcare system and was expanded significantly as a base of coverage for the low-income population under the Affordable Care Act. Certificate of Needs (CON) is a term that I was not familiar with. Certificate …show more content…
(In many businesses that is in fact what happens, regardless of the accounting method.) As a result, the ending inventory is valued on your balance sheet at a cost closest to the current cost since prices tend increase over time. The cost of goods sold is based on a lower cost since older and therefore cheaper items are assumed to be the items sold. Under LIFO the assumption is that the last items purchased are the items sold, meaning the more expensive items were used. The cost of goods sold is therefore relatively higher and the value of goods remaining on the balance sheet is lower since those are older items purchased at a lower price. (Again, assuming that prices have increased over time.) Under LIFO your profits are lower compared to FIFO
Nursing home administrators also take charge of the financial aspects of their facilities by working with accounting and payroll software systems that enable budget and expense reports. The financial responsibilities of NHAs may include, but are not limited to: Bookkeeping for facility inventory cash flow, Managing billing for residents and families, …show more content…
Identifying the budget that is available and where those funds should be spent in order to maximize patient care and facilities in general is one responsibility of NHS's that benefits all involved. Often, nursing home administrators are asked to present to a board with proposed project
The vulnerability of nursing home residents makes it vital for owners of even the smallest residential care facility to implement proper bookkeeping techniques and closely monitor employees. In addition to ensuring bookkeeping methods comply with federal and state regulations, strong internal controls are necessary to prevent or deter instances of fraud and theft that not only violate the trust of nursing home residents but also can cripple the business.
Since its passage in 1965, Medicaid has become the nation's main public health insurance program for the low-income population. It is also the predominant source of coverage and financing of long-term care services for the elderly and individuals with disabilities. Medicaid plays many roles in our healthcare system and was expanded significantly as a base of coverage for the low-income population under the Affordable Care Act. Certificate of Needs (CON) is a term that I was not familiar with. Certificate …show more content…
(In many businesses that is in fact what happens, regardless of the accounting method.) As a result, the ending inventory is valued on your balance sheet at a cost closest to the current cost since prices tend increase over time. The cost of goods sold is based on a lower cost since older and therefore cheaper items are assumed to be the items sold. Under LIFO the assumption is that the last items purchased are the items sold, meaning the more expensive items were used. The cost of goods sold is therefore relatively higher and the value of goods remaining on the balance sheet is lower since those are older items purchased at a lower price. (Again, assuming that prices have increased over time.) Under LIFO your profits are lower compared to FIFO