WEEK 5 FININCIAL.docx - Financial information is crucial documents in the hospital The importance of financial information includes help the management

WEEK 5 FININCIAL.docx - Financial information is crucial...

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Financial information is crucial documents in the hospital. The importance of financial information includes, help the management to make effective decision making. Many healthcare organization sustainability depends on the accurate analysis of financial information. Financial information is important since it guides in administrative duties. Financial information is necessary for providing relevant, accurate and timely information needed by the healthcare organization. The core factor of financial statements is the provision of information necessary for decision making for all users. The main uses of financial information include; help in evaluating the healthcare financial condition, evaluating stewardship inside the entity, evaluating the helpfulness of healthcare operations, evaluating the efficiency of healthcare operation and finally is to discover the compliance of the healthcare operations and the directives. With relevant financial information, one is able to access the hospital condition in that the organization will be able to make some valid decision concerning the operations carried out in the hospital. With this information, the hospital will understand what they need to add and what they need to correct for the smooth running of the operations, (Frinkler, et al., 2019). The second use is assessing the stewardship within the premises, with financial information the hospital will understand the use of cash within the organization, the maintenance of hospital asset and the depression of those assets. With this information, it is easy to discover if the embezzlement of funds and employee fraud is taking place. The third use includes evaluating the helpfulness of operations, the organization will discover if the operations they are carrying out are helpful, effective or are loss-making. It is also easy to find out if the information is efficient. Efficient
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