Determining Financial Viability Of A Healthcare Organization Essay examples
Decisions for financial viability are based on the expertise of a financial leader that has a thorough understanding of the financial condition of an organization (Kaufman, n.d.). Several factors that should be reviewed for understanding are equity of the business, cash on hand and long term debt. Finance and accounting are key contributors within the organization for sharing of financial metrics to the governing board, senior leaders and to individual cost center managers. These metrics are clearly defined and provide an overview of the financial picture and forecast (Cleverley, Song, & Cleverley, 2011). This paper will discuss the partnership of finance and accounting along with the importance of the two in determining the financial viability of a healthcare organization.
Finance and Accounting
Finance and accounting work together to assist the organization in seeing the overall picture of operations in a financial report. Finance is “responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop strategies and plans for the long-term financial goals of their organization” (Financial managers: Occupational outlook handbook: U.S. Bureau of labor statistics, 2015). Accounting is a division of finance and provides information needed for the organizations financial leaders to make decisions for the overall good of the organization. The accounting department is responsible for…