...HCA240 September 3, 2012 Determining Financial Viability What’s the difference – Finance and accounting, accounting and finance? Accounting is a necessary input and subfunction to finance (World Academy, n.d.). The treatment of funds and decision making, relate to the primary distinction between accounting and finance. Finance and accounting are not the same, but accounting is concerned with financial records, while finance relies on accounting reports and data base. The future depends on past events as pointers. The principles of accounting organize and prepare financial statements for an organization (Cleverly, 2011). The success to any business is critical from both accounting and finance. Accounting is knowledge and finance is the know what to do with that knowledge. Viability is about being able to generate sufficient income to meet the commitments, debts, payments, and where applicable, to all or growth while maintaining service levels in a health Care organization. Both accounting and finance are different; however, they have a close relationship to each other. Accounting involves the preparation of a balance sheet, which at a certain date will reflect on the financial position of an organization (Let’s learn finance, n.d.). Accounting shows the profit or loss of an organization during the year with concerns of recording of business transactions of a company, then presenting it in a profit and loss account. On the broader end of this concept, finance makes use...
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...Diana C. Gutierrez Health Care Accounting and Bills 240 July 7, 2013 Paula Arceneaux Determining Financial Viability When it comes to finance and accounting they are both part of the financial form of a business. These two departments deal with finances in different ways. Accounting mainly deals with examining and preparing financial records and making sure their accurate, that their taxes are paid properly and in a timely manner, and to ensure that all financial operations are ran efficiently. Then again, finance handles primarily with making important financial decisions for the business and helps to make plans and strategies to reach their financial goals. (Financial Managers 2012). It is also essential that the finance mangers uses the financial information gathered by the accounting department to make the best decisions for the business. Nonetheless, accountants and financial managers must work together to make sure they operates effectively and efficiently to ensure the continued short and long term financial viability of any health care organization. The way they work together to determine financial viability within a health care organization is by working together in creating “a company’s budget”. Accounting concerns itself with recording the information regarding profit and loss accounts, which shows the gain and loss of the business overall. Also, the accounting department will provide a balance sheet showing the finances of the business at certain times, which...
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...Determining Financial Viability Finance and accounting go hand- in- hand so to speak. It is hard to have one without the other. Individuals who are in finance control money. Finance is the business or act of managing the monetary resources of an organization or person. Accounting is the activity, practice, or profession of maintaining the business records of a person or organization and preparing forms and reports for tax or other financial purposes. There is a need for both to determine financial viability within a health care organization. “A business’ finances are just as important, but very different from the accounting. When considering a business’ finances, you will review all of the accounting data to make monetary decisions affecting the business. The accounting data may help you with financial planning, reviewing the performance of the business, and ensuring that the business is meeting the legal obligations, such as tax reporting.”(Elgar, Peter, 2011 pg 1) So with this being said, both departments are very important not just to the organization but to each other as well. Financial viability is the ability to continue to achieve its operating objectives and fulfill its mission over the long term of the business. Having the funds available to excel in the health care organization is critical not just for consumers but for healthcare professionals, hospitals and clinics. Finances makes for more opportunities to invest in newer technology and studies. So it goes...
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...Variance Analysis Blake Richardson Grand Canyon University HCA-240 March 16, 2013 Variance Analysis To really understand this paper, one should understand what variance analysis does for the entity. Variance analysis is the process of examining every variance between what is actual and budgeted or expected and standard cost to develop reasons as to why the budgeted results were not met. In hospitals, there are many different factors that a financial manager should consider before submitting a variance report to the vice president of the entity. These factors can include staff receiving too much overtime, hired too many staff members for the increase in patients, and maybe even one of the staff members forgot to scan in all of the equipment. Once the problem is recognized and determined it is sent up the chain of command, where the variance reports are interpreted and the expected results are given. In this setting, there could be quite a few factors that had potentially created higher salaries and lower supplies. To determine this we need to look at the changes in input prices, productivity and the changes in departmental volume. (Cleverley, Song, & Cleverley, 2011, p. 386) For a manager to be able to determine this they should first recognize the problem, determine the cause, and then correct the problem. Looking at the efficiency cost, we can determine how long it has been going on for, the loss per time unit, and if the problem is correctable. Once the...
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...Determining Financial Viability The relationship between finance and accounting are very similar but they definitely have their differences. “Accounting and finance are the methodical or precise recording, reporting, and assessment of financial deals and transactions of a business. Accounting is an essential part of finance. Accounting produces information about the operations of a business. The end-product of accounting is composed of financial declarations such as balance sheets, income declarations which include the profit and loss accounts, and the declaration of changes in financial position which includes sources and uses of funds declaration” (Difference Between Accounting and Finance). Accounting and finance both need each other. A company needs both. To determine financial viability within a heath care organization, they need a functioning finance and accounting departments. In a health care organization, there needs to be a high functioning finance department. There needs to be an innovative way to run a health care facility. “The current economic situation, together with the uncertainty of healthcare reform, has fueled the demand for efficient and effective facilities” (Elting, D. 2009). Financial departments have to run an efficient department to assure that they are not faced with high debts that could cause a healthcare to shut down. With all of the changes occurring in healthcare there needs to be a financial team that can try and run a...
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...Abstract The key objective of the given study is to comprehend various aspects of project management and their application in the Palm Islands project in Dubai. In the initial section of the report we will present in detail the evolution of project management into a full fledge discipline of management studies. We then move further to understand various tools devised for the purpose of project management like NPV, PRINCE2. Moving further, we will then take a look at the Palm Islands Dubai and try to assess the human resource requirements in terms of their organizational structure, leadership abilities etc. Finally, we will device a project management strategy in order to construct a hotel on the Palm Islands Dubai using the various tools of project management. Task 1: Project Management Principles – An Understanding Task 1.1 :Project Management As A Discipline. The initiation of project management as an altogether distinct discipline in the area of management studies began with a formulation by Henry Gantt in early 1900’s i.e. Gantt Chart. Gantt chart till date happens to be one of the very popular project management tools used. They are widely used due to their importance in the field of project planning and control. The further development in the field of project management began with the advent of increasingly complex projects and the need of the market to make the project competitive in terms of time and money consumed. It was this competitive pressure of the market...
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...10/24/2011 WHAT IS A FEASIBILITY STUDY • A feasibility study is defined as an evaluation or analysis of the potential FEASIBILITY STUDY impact of a proposed project or program. It is conducted to assist decision‐ makers in determining whether or not to implement a particular project or p g program. • The study is based on extensive research on both the current practices & the proposed project & its impact on the current practice of the enterprise. • The feasibility study will contain wide‐ranging of data related to financial & operational impact & will include advantages & disadvantages of both the current situation & the proposed plan. • The feasibility study is conducted during the deliberation phase of the business development cycle prior to commencement of a formal Business business development cycle prior to commencement of a formal Business Plan. It is an analytical tool that includes recommendations & limitations, which are utilized to assist the decision‐makers when determining if the Business Concept is viable (Drucker 1985; Hoagland & Williamson 2000; Thompson 2003c; Thompson 2003a). Mahfuzul Hoque Ph D Mahfuzul Hoque Ph. D Professor , Faculty of Business Studies, Department of Accounting & Information Systems, University of Dhaka. October 24, 2011 • • • DMH‐ Project Management 1 THE IMPORTANCE OF A BUSINESS FEASIBILITY STUDY It is estimated that only one in fifty business ideas are actually ...
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...hired S. Caldwell IT Consulting Firm to develop and install a benefit election system to support the tracking and reporting of Huffman Trucking employees. The consultant team will describe the consideration needed to address possible security requirements and describe possible risks associated with the requested benefits election system. The Consulting Team S Caldwell IT Consultants believe their role is to act as an adjunct for Huffman Trucking Human resource department, bringing benefits, knowledge, experience and skills. The team will Perform all of plan management functions needed to ensure an effective and efficient delivery of health and dental benefits election to the employees while focusing on long term financial viability. Security Requirements Employers today have moved away from the old ways of enrolling and administering benefits with paper. Huffman Trucking is ready to use a paperless enrollment and...
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...[pic] Diploma of Business BSB50207 |Course Code & Title: |BSB50207 Diploma of Business | |Unit Code & Title: |BSBMKG501B: | | |Identify and evaluate marketing opportunities | |Assessments Type |Report Writing & Presentation | |Assessment No: |One | |Delivery and Assessment Mode(s) |Classroom | |Term |One | |Unit Duration |Three Weeks | Assessment 1-Report Writing & Presentation BSBMKG501B Identify and evaluate marketing opportunities BSB50207 Diploma of Business Version 2.1 Australis Institute of Technology and Education ABN 17 120 701 911 Address Level 2, 25 George St, Parramatta, NSW 2150...
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...improvement projects under consideration: lease under-utilized space to an unrelated third party, Planet Karaoke Pub, or invest greater capital to open and manage your own nightclub, Beach Karaoke Pub. Using the predominant valuation methods, we have analyzed the relevant quantitative and qualitative data over their useful lives. In our assessment, we discuss the strengths and weaknesses of each approach as well as their relative weights in determining the financial viability of each project. There are three underlying assumptions driving our calculations: 1) a 10.75% discount rate, 2) a 10% guest room erosion rate, and 3) the omission of irrelevant staffing costs (16% of sales) due to long-term salary contracts. We have determined that while both options are profitable, Beach is more so. However, before a final decision is made, more research into the qualitative aspects of these undertakings needs to be done; community footprint impacts and room revenue erosion rates must also be examined in more detail. In order to assess the viability of each project we must first determine the initial outlays and the relevant cash flows, assigning an appropriate discount rate based on the weighted average cost of capital. Taking the weight of equity (75%), the cost of equity (12%), the cost of debt (10%) and the corporate tax rate (30%), we have calculated and recommend a discount rate of 10.75%, which is much higher than the initial 5% estimated by Mr. Manming. From the initial outlays...
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...consulting service provider of an, IT department for a small business may seem costly, it is well worth developing to help a business reach their goals. Businesses, who seek to use a consultant IT service department can expect to operate their business more effectively. Consultant IT services provides businesses with software applications and the essential tools which improve a business operation by decreasing the business financial liability but increasing their flexibility and revenue. “Make sure that the IT investments go toward projects that earn the company the most money” (Rainer, & Turban, E (2008). Information systems, second edition, para. 1. Generally a small business like the size of Club IT would need to look at software applications, data storage capability and business IT consulting services in determining the viability of hiring a consulting IT department. Currently Club IT information resources include a small informational gateway from the Internet the worldwide communication network and Intranet a private network. In determining if Club IT should obtain an IT service provider if the role of such provider would strengthen their private network and achieve the outcome of cost effectiveness, data effectiveness, managerial effectiveness and sustainability The goal is to determined through the use of informational software application resources and clearly define that Club IT would benefit and can take advantage of restructuring their business by applying...
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...The financial structures of health care entities non-profit, for-profit and government are different with funding, ownership, and type of services rendered. Financial managers, financial markets, and investors are the essential components that make up the financial world within a healthcare organization. Financial managers basically rely on investors to supply money through the financial markets when determining whether to use debt or use equity financing. To understand the full benefit of the financial resources, it is important to understand the overall financial structure. In other words how it is set up. In this paper, I will try to compare the financial environment of for-profit Pruitt Health Clinic, not-for-profit Phoebe Memorial Hospital, and VA Clinics. (to the best of my ability) In the health care sector entities regardless of their status (for-profit, not-for-profit, or government owned) should have the same common goal of providing quality healthcare to the residents of its community. Health care organizations are very different compared to other business when it comes to finances. The financial structure is described as the way funds are financed and the balance sheet shows what the organization looks like at a particular point in time. For example Phoebe Putney Memorial Hospital will compare fiscal year to another fiscal year to decide what needs to stay, go or be “tweaked”. Some organizations have a method to reading the spread sheet as well. PPMH for...
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...with an insurance firm. It is a process conducted internally by an insurer to determine the reliability and viability of its risk management and current and future solvency needs under normal and extended stress occasions. An analysis of reasonably predictable and relevant material risks such as underwriting, credit, market, operational and liquidity risks that could affect the insurer’s ability to meet its policy holder agreements already underwritten is required from insurers. As the term “Own” in ORSA suggests, an insurance organisation does the assessment of its current and prospective risks. This prepares the management to anticipate probable capital needs that can arise and a suitable action to be taken to provide for the needs efficiently. ORSA is the main component in capital management strategy of an organisation. This can be backed up by the three main components that ORSA accomplishes. First it is responsible for determining the risks an insurer faces in its operations. These risks are mainly financial risks highlighted earlier. By determining the risks that are faced, the insurer can put in place measures and directives to alleviate or deal conclusively with them. Another important factor to consider is that ORSA determines the amount of capital to protect a firm against such risks. This is in event where actually the risks are inevitable. Therefore financial resources, have to be put sought so that in case of such occurrence, the risks are taken care of be the predetermined...
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...Question 2 Financial information is important even in a company or doing a small business. It refers to the signal, instruction, data and message which were generated during the process of organization and management of currency in circulation, variety of financial securities trading, credit and financial settlement activities. It includes government financial information, stock market information, customer credit information and others. There are few types of users who need financial information below: I. Managers. The managers had to overall responsibility for the financial department day-to-day. They had to organize and develop the financial management system and supervise the implementation. They are not only had to develop, maintain, and improve the financial management procedures and policies of the company nut also had to manage the fund and asset of the company. They had to prepare for the financial plan and annual development. II. The bank. The bank will need some information when they are having some deals with the customers. For examples: The owner wants to borrow money for use in the business, the customer want to get back the amount of fixed deposit which he had been saved money in the bank for 20 years. III. Owner of the business. The owner wants to be able to see whether the business is profit or loss. They had to analyzing the profitability and the viability of their investment and determining any future course of action. IV. A prospective buyer...
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...Financial Accounting Systems Tracy Pankey HCS/571 August 20, 2012 Professor Debra Vaughn Financial Accounting Systems The profession of nursing has enveloped itself into the development of gaining the skill and knowledge of health care financial systems within the health care arena. With government regulations and measures needed to improve the health care reform, it is expected that all members of the health care organization become actively involved in terms of the aspect of financial accounting. Accounting information is useful in determining organizational performances both in the past and is a great predictor in terms of future financial viability. The purpose of this paper is to explain generally accepted accounting principles (GAAP), describe each principle, its intent, and how it relates to health care. In an effort for health care organizations to maintain financial soundness, the preparation of financial statements is a key factor in terms of identifying and correcting accounting errors. A popular accounting method used among many organizations and firms is the generally accepted accounting principles (GAAP). For example, Finkler, Kovner, & Jones (2007) stated “GAAP are rules established by the Financial Accounting Standards Board (FASB). Certified public accountants (CPA) are experienced in accounting and the performance of audits. CPA’s examine financial records, seek to identify errors found in the financial documents, evaluate the organization’s...
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