Accounting Practices and Entries

Accounting Practices and Entries - Accounting Practices and...

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Accounting Practices and Entries Financial Matters for Health Care Professionals February 1, 2009 Financial matters or accounting procedures are a daily part of running any business. Whether that business is a mom-n-pop hardware store or a large medical center that serves hundreds of thousands of patients a year, tracking finances is an important part of daily business. Accounting practices and principles are at the heart of financial management. To understand the financial transactions of healthcare organizations it is necessary to understand the different types of accounting practices and how entries are made and items recorded using each practice. Accrual accounting, cash flow accounting, and fund accounting are three practices used by healthcare organizations to manage finances. According to the Bureau of Labor Statistics (2008-09), accountants and auditors help to ensure that the Nations firms are run efficiently, its public records kept accurately, and its taxes paid properly and on time. All accounting transactions are recorded through journal entries that show account names, amounts, and whether those accounts are recorded as a debit or credit side of accounts. Debits include all money or revenue going out and credits are all money or revenue coming in. Accrual accounting, in simple terms, means that a profit is recognized at the time that a service is
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Accounting Practices and Entries - Accounting Practices and...

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