HSA 4191 Chapter Notes - Chapter 10: Cost Accounting, Managed Care, Financial Statement
Document Summary
The highly competitive and regulated environments in which healthcare organizations operate requires timely and accurate financial information that enables managers to monitor and guide operational performance. Managers are acutely aware of the importance of sound financial management in guiding operational performance. Financial information systems : support operational activities such as: Investment management: also provide information to management for controlling and evaluating organizational performance. Analyzing of the current/historical information helps in projecting future financial needs of the organization. Financial information systems require input from: transaction-processing systems, external sources, strategic organizational plans. Transaction-processing systems : record the organization"s routine activities, collecting information from other administrative subsystems including: Inventory control: these transactions are the basis for many financial reports required by management. External data are also needed to support effective financial decisions, examples of external data include the following: An organization"s strategic plan should contain financial goals and objectives that help provide the frame work for preparation of financial reports.
