Fair and Accurate Financial Reporting in The Healthcare Industry.

Financial reporting provides a level of insight that assists businesses in remaining compliant while streamlining their income or expenditure-focused initiatives across the board. According to Calzon (2022) research, leveraging information to construct more proficient marketing reports and make more informed decisions can increase marketing productivity by 15 to 20%, amounting to up to $200 billion calculated on the basis of annual global marketing spend of $1 trillion per year.

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It is critical to keep accurate records in order to understand the financial status of any business. Having solid, comprehensive accounting reports on hand when needed is a good step toward ensuring a company’s current financial state (Treece, 2021). Taxes are likely the most critical reason for financial statement analysis. Most businesses would probably use management dashboards instead of financial reports if financial reports were not legally required. Because the best accounting software generates a plethora of reports, it is critical to understand which ones should be used and paid close attention to. According to Calzon (2022) research, the majority of respondents recognized financial reporting’s “insufficient level of detail” as the main issue. Close management software can help businesses generate financial reports more quickly and accurately by speeding up the financial close process (Azih, 2022). The trend toward greater financial reporting transparency will only continue and it is important that data is accurate to implement accounting standards.. Accepting that changes are unavoidable and putting in place the appropriate tools and processes are critical to staying ahead of them.

Reference

Azih, G. (2022, February 28). 4 ways to improve financial reporting quality and processes. LeaseQuery. https://leasequery.com/blog/improve-financial-reporting-quality-processes/

Calzon, B. (2022, February 11). What is financial reporting and analysis? learn its importance. BI Blog | Data Visualization & Analytics Blog | Datapine. https://www.datapine.com/blog/financial-reporting-and-analysis/

Treece, D. D. (2021, December 1). What are accounting reports? Business News Daily. https://www.businessnewsdaily.com/16092-what-are-accounting-reports.html

Peer 2: There are probably many reasons for healthcare industries to have fair and accurate financial reporting, but I am going to focus on two: it tells organizations if they are meeting their financial goals and how much money is coming in and out of the organization and lastly if financial reporting is not managed correctly the probability of going to jail is imminent.

Rosario (2021) states whether or not a practice or organization is for sale or not it is still very important that they know and meet their financial goals and know how much money is coming and going.

Also, accurate and timely financial reporting helps to understand how well the organization is doing and points out new opportunities to make better decisions for the future. (“What is Financial Reporting”, 2022).

In my research I came across the article about two Chief Financial Officers that cooked the books (made fraudulent entries on the financial statements in their company) all because they were greedy. (McCann, 2017). In the article they both gave their own personal account of what happen to a group of CFOs in the hopes they would not make the same mistakes they did. One of the statements Beam said was “greed is a recipe for fraudulent behavior, and that is what lead him to adjust accounting estimates which eventually caused him to spend 3 months in jail and have a felony record. (McCann, 2017). Smith was the other CFO that cooked the books, he explained in greater detail of how it was done, he was also the Whistleblower, spent 27 months in jail and has a felony record. (McCann, 2017).

In conclusion, if you are an accountant or financial leader or lead of a healthcare organization keep and prepare accurate and timely financial statements for your organizations. Be transparent and ethical in dealing with your organization’s money. I am positive if we could speak with Beam and Smith today, they would both say that having that status and money was not worth it in the end.

References

McCann, D. (2017, March 27). Two CFOs Tell a Tale of Fraud at HealthSouth.

https://www.cfo.com/accounting-tax/2017/03/two-cfos-tell-tale-fraud-healthsouth/

Rosario, C. (2021, February 19). How Important is Financial & Clinical Reporting for Healthcare? https://www.adsc.com/blog/how-important-is-financial-and-clinical-reporting-for-healthcare

What is Financial Reporting? (2022) https://planful.com/blog/what-is-financial-reporting/

Fair and Accurate Financial Reporting in The Healthcare Industry.