Health Care Business Analysis Individual Paper

 Managerial accounting is defined as the activities carried out in a firm to provide its managers and other employees with financial and related information to help them make strategic, organizational, and operational decisions.

Financial Management is an important aspect of how a business operates efficiently. The way that the finances are controlled can determine how successful the company is. The finances of a business allows for the growth of the company. The five practices of financial management: capital structure decision, investment appraisal techniques, dividend policy, working capital management and financial performance assessment are critical when assessing a company. The performance of a company plays a key role on how successful the company is on meeting goals. There are different strategies and tools that a company can implement and if they are used to effectively the company can meet their goals. If a company has good finances, a good

Very informative post. Tricare is a type of managed care plan, which works well for the most part. The only drawback I have experienced using Tricare was when I needed to get my wisdom teeth pulled. My wisdom teeth had all fully erupted several years prior and had not given me any trouble until I broke one. Not wasting any time I called to set up an appointment for the next Monday but before I could get them pulled, I had to have a separate consult. By the time I could finally get my teeth pulled I had waited nearly two weeks and had been to the dentist three times; all because of the strict policy.

Even though financial management "is a broader concept than accounting", the idea of financial management is more than just accounting for where money is spent, it is based on the analyzation of organization's economic

The health care industry is one of the largest industries that encompass the economic structures on the market. Approximately seventeen percent of United States Government Gross Domestic Products (GDP) is spent on health care. Health care, including health insurance is a 3 trillion dollar industry. Within the job market, Health care accounts for nine percent of careers within the United States. This does not include careers in health insurance and underwriting which could easily boost the percentage by a few points making health care related careers one of the largest career fields in the world (Hughes, n.d).

The health care market comprises of various aspects which including delivering adequate care, keeping up with the supply and demand of health care products, cost, and provider reimbursement to list a few. Like any other industry, this is not without risk, one of the key issues is the loss of revenue which is a constant problem. There are also controversial matters that affect the business such as the advantages and disadvantages of HMO for the physicians and patients. There are many components of the health care market; nonetheless, the overall objective is the same which is to deliver care at an affordable cost while meeting the needs of the consumers.

According to Will S, Ray H, & Eric E.N. (2009), management accounting is a branch of accounting that is concerned with providing information to managers who direct and control the firm’s operations. Management directing function seeks to effectively use both the human and raw material wealth of a firm to achieve organizational set objectives on routine basis. Controlling function is the art of tele-guarding the activities of the organization to consistently fall in line with set objectives. Management accounting achieves this function through effective budgeting.

A major difference between financial accounting and managerial accounting is their differing uses in regards to present and future data for decision-making. Financial accountants prepare data from transactions that have already occurred and managerial accountants prepare statements in regards to future decision making for their company. According to countingtools.com, the economy is always changing and not everything can be predicted, therefore, managerial accounting could only be useful to a certain degree.

3. Managerial Accounting deals with procuring of data for the organisation's management i.e. to serve the internal users with necessary accounting information to carry out the management tasks of planning, organising, actualising and controlling. " Management Accounting is the presentation of accounting Information in such a way as to assist management in creation of policy and in the day to day operations of an undertaking". 4. Financial Management deals with the process adopted by an organisation for taking financial decisions through analysing and interpretation of financial data for meeting the organisations objectives.

Financial management is important to the organization because it provides pertinent finance and accounting information to help managers accomplish the purpose of the organization. Financial accounting provides accounting information to external users. On the other hand, managerial accounting is more for managers (internal users) to use for things like planning, budgeting, etc. The definition of finance has changed over the years, but it’s used to ultimately evaluate previous decisions and make assessments for future decisions of the organization.

Management Accounting Information is the process of planning, motivating and controlling. Managers in a company such as this, act as to benefit of the business by preparing reports, accounts, performance evaluation and operational control so that they can make day-to-day and short-term decisions. Also, organisation has to be in the company and try to solve problems may have. It could also help the managers

Unlike other areas of accounting, managerial accounting is inward facing and feeds information to a company’s managers. Managerial accounting empowers managers with relevant information and figures necessary for planning, controlling, and decision making within organizations. Financial accounting is outward facing and provides financial information and reports to external parties, including stockholders, creditors, and regulators. Due to the different users of financial and managerial accounting, financial accounting is mainly concerned with the financial performance of “past activities,

Managerial accounting is a set of methods used by managers to help them make effective and efficient decisions about financial resources. These methods were primarily designed to educate the decision makers within an organization. Managerial accounting primary focus is the whole company as well as segments within the organization, which are of major importance. Managerial accounting can be used strategically within a business to evaluate performance, pricing decisions, investments, and determining long range planning and policy development. Managerial accountants try to determine important factors to consider when trying to

Managerial accounting is for internal users as the purpose of a company to evaluate itself using things such as operational reporting to determine future decisions made by the upper management individual(s). Cost accounting is a sub-category of managerial accounting as it is for the purpose of costs to the company such as labor, expenses, and overhead. According to Gordon, Ready, & Sannella, (2016) “Financial statements, along with the accompanying footnote disclosures, are the primary source of publicly available financial information for investors and creditors” (p. 3) Financial accounting is for external entities outside of the company that

Customer value is the worth that a client puts on specific aspects of a product, and sustaining customers is essential to attaining better and improved sales and market share, and thus to achieve shareholder value. Shareholder value is also a central focal point for managers and includes enhancing the worth of the firm from the stockholders’ or owners’ viewpoint. Shareholders are generally attentive to increased lucrativeness, share value, and bonuses, and management are the ones responsible for delivering this. Businesses need to improve their competitiveness to enhance shareholder worth. Management accounting has a wider perspective that just the formulation and reporting of financial data. It also contains studies of non-financial resources, comprising production and sales performance information, and a variety of methods for handling expenses and other business resources. With management accounting, accounting procedures or external guidelines are not mandatory to follow. Therefore, reporting should be guided by high ethical values of the accountants. Financial specialists have a commitment to themselves, their associates and their firm to comply with high morals of ethical behaviour. The planning and control schemes are a fundamental aspect of management accounting. As part of strategy execution, entities need to formulate plans to set the direction of the business, and control structures to confirm that operations are taking place in regards to the