Managing Finances Within A Health Care Organization Essay

792 Words May 15th, 2016 4 Pages
Determining Financial Viability
Managing finances within a health care organization can be seen as a daunting task. There is a lot of work that goes into the success of a health care organization. Finances and accounting are two areas of health care that manage and plan the spending of an organization. Together they create the means for a successful financial plan and bring in profits. This essay will examine the relationship between finance and accounting following with how they determine financial viability within a health care organization.
Before analyzing the relationship between finances and accounting, we must first understand what they deal with individually. Finances deal with the decisions that are made for the organization based on what information is found through accounting. With that being said, accounting shows how funds were utilized and provide previous financial performance of an organization. Accounting is very important so that funds can be traced and managers can see where the money is going and what money is coming in. Finances and accounting are extremely similar, but they do have different roles. Finances and accounting work hand in hand to ensure that spending is controlled. Accounting can show profits and losses of an organization and then finances can make decisions based on the data the accounting department presents. Finance and accounting work together to make educated decisions. Without accounting, finance would not have the information to…

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