Relationship between Finance and Accounting in Health Care - Essay Example

The paper "Relationship between Finance and Accounting in Health Care" is a good example of an essay on finance and accounting. Finance and accounting are two fields that differ from each other. Usually, the people who are not related to the business field have a misconception regarding these two fields. But, both of them are different from each other, though both are important for each other.

Accounting is a field of business that records the business transactions of any particular organization. It helps to maintain a record of all the past transactions that occurred in an organization. The transactions in accounting are recorded on a monthly, annually, semi-annually or quarter-annual basis, depending upon the policies and rules of the organization. Accounting an organization about its profit and loss that occurred in the past. It involves such calculations and tables that represent the financial state of an organization on a particular date. Accounting helps list the financial data of a company. In short, accounting is the subject that deals and analyses all the past financial activities of any organization.

Finance, on the other hand, is having a broader scope as compared to accounting. It is a vast field that includes many subjects such as cost management, tax laws, economics, actuarial sciences, and risk analysis, etc. accounting is also one of the sub-division of the enormous field finance. As accounting deals and records all the financial transactions of an organization of the past, finance uses that past data and judges the future financial position of an organization. It is no doubt profoundly important as any kind of business cannot flourish or not even maintain its position in the future without knowing its finance. Therefore, finance is the field that uses the information provided by accountants for the benefits of the company. It analyses the causes of the profits and losses that a business had to bear during the past times. It judges all such reasons and provides a way for an organization to minimize its loss and increase its profit. It helps in predicting the future through various facts and gives the business tricks to an organization so as to get the maximum output with a low amount of investment.

Both the fields, being different from each other, associate with each other. Both are extremely important for the financial position of a company. Without finance, accounting won’t be of much use and without accounting; it will be very difficult for finance to perform all the financial activities and judgments.

Therefore, both the fields are important as they both together give the strategies of success to an organization. (Relationship between Accounting and Finance)

The financial viability of an organization is the ability of that organization to meet all its targets. It also means how an organization manages its financial resources so as to fulfill its requirements and tasks.

Health care organizations play a vital role in society and are included in one of the noblest businesses as they are meant to serve humanity. Health care organizations, like any other organization, need proficient accountants and finance managers to run their organization in an effective and efficient manner. Accounting and finance play an important role to determine the financial viability of a health care organization. They provide strategies that enable the financial managers to facilitate the patients with the best of everything in a low amount of cost along with the required profit of the organization. Finance and accounting help in maintaining the standards of the health care organization. The financial management of such organizations might be difficult and different from other kinds of organizations as it requires proper planning and highly skilled accountants and financial managers.