Essay on Financial Mang

814 Words Mar 27th, 2012 4 Pages
Reporting Practices and Ethics

HCS/405
2/5/2012

Reporting Practices and Ethics

Financial management in healthcare is the management of monetary inflows and outflows of the organization. Financial management plays a very important role in the success or growth of an organization as it relates to the funds or profits of the organization and supports the company’s pursuit of high performance goals and achievements. It is important for financial professionals to remain complaint with the rules and regulations while practicing ethical values within the organization. There are four elements of financial management: planning, controlling,
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The rules are created by the Financial Accounting Standards Board (FASB). FASB is a nonprofit organization created to publicize and modify GAAP guidelines when needed. The GAAP rules only apply to businesses within the United States. While performing their duties, financial professionals must adhere to the ethical standards determined by the FASB and financial organizations to achieve high ethical values amongst financial professionals. Financial professionals must practice integrity, objectivity, competence, fairness, confidentiality, professionalism, and diligence. For example the American Institute of CPAs discloses that financial professionals must avoid conflicts of interest. They must not, for example, work for a friend, relative, or organization they have invested strong interest or feelings in. Although it is difficult and challenging to remain objective and detached, financial professionals must practice fairness regardless of their feelings or personal desires and they must not alter or manipulate records to show a prearranged result. When working with financial information, it is important for financial professionals to keep information disclosed confidential. Financial representatives have access to private information, such as employee names, addresses, and personal accounts as well as the names of firms

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