Financial Management

Financial management is very important to today’s healthcare financial plans. Companies are not able to function without proper financial planning. It is important that all the accounting records are kept up-to-date. They follow specific guidelines that helps keep track of how a company is doing in order to better have conscience of where their money is going which contributes to determining if they have a profit or a loss. This can allow them to change things around in order to prevent losing money.   Generally accepted accounting principles (GAAP) is a set of financial guidelines used for financial accounting. The GAAP sets guidelines for preparing financial statements and setting standards for organizations’ accountants. Third party accountants can use these statements to determine how a company is doing. The third party is used to prevent any bias analysis. According to All Business, "the generally accepted accounting principles serve as guidelines precisely, a group of objectives and verified conventions that were permanently set up over time to standardize how financial statements must be prepared or presented” (FASAB, 2010).

There will always be differences among organizations, thus, normally a corporate behavior would be based on the ethics implemented by the organizations or corporations. Most organizations focus on the organization's surroundings, human and social rights, and direct responsibilities when trying to study all the emotions that the ethics causes within the organization. All GAAP standards are included into all corporations’ policies on ethics and are referenced to the way that they handle all of their financial guidelines that are cut throughout the organization's financial accountants. Similarly, with some current health care organizations that operate differently and with several principles and different techniques, they all need to look at the specific code of ethics they follow. This is done when they are able to grasp the business...