What Does a Healthcare Manager Need to Know Flashcards
(7 cards)
How System works in Healthcare (what makes a healthcare financial system work)
- The original records: provide evidence that some event has occurred
- The information system: gathers this evidence
- The accounting system: records the evidence
- The reporting system: produces a report of the effect
Basic System Elements
- chart of account (MAP)
- books and records
- reports
Communicating Financial Information to Others
- Create a report as your method of communication
- Use accepted terminology
- Use the standard format accepted in the accounting profession
- Begin with an executive summary
- Organize the body of the report in a logical flow
- Place extensive detail into an appendix
chart of account (MAP)
outlines the elements of the company and
maps out account titles. It uses numeric coding to compile financial data in a uniform manner that the user can decode.
books and records
captures when an individual transaction occurs once a process begins.
All transaction records in a subsidiary journal are to be gathered, summarized, and entered in the general ledger to be reviewed and adjusted then reflected in the trial balance at the end of the process by creating the statement that reflects all transactions that occurred in a specific period.
reports
it is the final product of the process that commences with an original transaction
the annual management cycle
- Daily and weekly operating reports: contains raw data to provide immediate information
to use for day-by-day management purposes - Quarterly reports and statistics: contain verified, adjusted and balanced data that is generated during the reporting period of the
organization and not at the end of that period. - Annual year-end reports: it include the overall transaction within full year and usually it is used to present the data to outsiders not internal managers.
