Organizational Behavior: Financial and Managerial Accounting
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1. You have learned in this unit that creating the operational budget for a healthcare facility is not a once-per-year event. It is a continuous process with an annual cycle. List and describe the six key steps in the operational budget cycle, and briefly summarize the activities that take place in each step.
2. Explain the difference between financial accounting and managerial accounting. Provide at least one practical example of each for your own healthcare organization or a healthcare organization in your community of interest to you.
3. Review the website of the Healthcare Financial Management Association:
www.hfma.org
What is the role of this organization in modern healthcare leadership? What professional growth opportunities do they offer their members? Would you personally consider a career path involving Healthcare Financial Management Association (HFMA)? Why, or why not?
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Solution Summary
The difference between financial accounting and managerial accounting is that financial accounting is used to present the financial health of an organization to its external stakeholders. Board of directors, stockholders, financial institutions and other investors are the audience of financial accounting. Financial accounting presents a specific period in past and enables the audience to see how the company has performed.
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1. You have learned in this unit that creating the operational budget for a healthcare facility is not a once-per-year event. It is a continuous process with an annual cycle. List and describe the six key steps in the operational budget cycle, and briefly summarize the activities that take place in each step.
The goal of the budget process is to communicate organizational goals, allocates resources, provide feedback, and motivates employees. The budgetary process is standardized by using budget manuals, budget forms, and formal procedures. The budget process used by company will suit its need, be consistent with organizational structure, establish policies, formulate limits, enumerates resources needs, examine specific requirements, and provide flexibility. The budgeting process take into account a careful analysis of the status of the company. Therefore, the six key steps in budgeting process are:
1. Setting objectives - The budgeting committee must make objectives for future of the company. The objective include cost saving for which would require different form of budgeting.
2. Analyzing available resources - a business must analyze available resources and determine what it has available to reach its objective. The available resources will dictate the company's objective.
3. Projecting Future Needs - a budgeting committee has to estimates the future needs of the budgets. The sources of data to estimate the budget future needs are the available data on competitors and analysis of current and developing economic and regulatory trends that may make the coming years different than ...
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