Financial Management of Health Care Organizations
Latasha Rowell
August 4, 2015
HCS/405
Conway Brew

Financial Management
In any business, financial managers should ensure that financial reporting practices and ethical standards are being met as well as maintained. These practices are vital in the financial success for any company, especially in health care finance. Within this paper, a summary of the four elements of financial management, generally accepted accounting principles, and general financial ethical standards will be discussed.
Summary of the Four Elements of Financial Management
There are four main financial statements of a profit earning organization. They include the balance sheet, the statement of revenue and expense, the statement of fund balance or net worth, and the statement of cash flows. The balance sheet provides a snapshot of what an organization's owns and owes. This is displayed as assets and liabilities. The balance sheet provides a snapshot of a company’s net worth. The income statement provides an overview of the financial flow of an organization. This report is commonly extracted for a specific period of time rather than a single point in time. This statement is most often utilized in an audited financial report on a quarterly and annual basis. The statement of net worth calculates the non-operating expenses and allows the income statement to tie back to the balance sheet when the three statements are prepared for the same point in time. The cash flow statement displays how the cash enters and exits an organization (Baker & Baker, 2014).
Summary of Generally Accepted Accounting Principles
Generally Accepted Accounting Principles, also referred to as GAAP, are a set of guidelines established by the Financial Standards Board (FSB) to determine the financial position of an organization. This is done by gathering information