Why Must Nurses Understand Finances and Budgets - Assignment Example

The knowledge of budgeting and finances comes in as one needs to be able to figure out the needs of the hospital and prioritize them in order starting with what is needed the most going down and use this knowledge together with the budget they have been given to spend to determine the best way to utilize the money that has been handed to them

What Has Been Your Exposure to Your Organization’s financial statements? Who In Your Organization Might Provide You with Your Organization’s Financial Statements? What Is This Information Used For?

The amount of exposure to the organization’s financial statements has mostly occurred from the budgeting and shopping activities that are done for medical supplies when the time for replenishing the available stock arises. During this period, the hospital presents us (the nurses) with the amount of money that they are able to provide for these activities and using the size of the budget, one is able to determine whether the hospital’s financial status has improved, remained the same or even dwindled since the last time such an activity took place (Paul, 2008). If a hospital has done well then the size of the budget is more likely to increase while no change in the budget may mean there is no change in their finances either and so on. There are a number of individuals that present the nurses with the financial statements of the organization including the Program administrators and ward managers during budgeting and the chief financers when a review of the annual expenditure takes place. These statements are used to show the gains and losses that have been incurred during the year as well as the budget for the next batch of medical supplies that are needed.

How Does The Choice Of An Accounting System Influence The Functions Of A Health Care Organization?

The accounting system affects the different parts of the organization as a whole as it deals with the organization’s entire financial flow. Firstly, it will affect the speed with which they are able to get the funds that they need for the replenishing of medical supplies. This means that a slow system may affect the time with which the supplies are able to be replenished before they run out and one may have to figure out a way around that to avoid any potential shortage such as commencing the proposal/request for finances earlier than usual (Elaine, Joseph & Dan, 2011). The accounting system also affects the timing when the staff is able to get paid as again a slow accounting system will lead to a delay in the remuneration process that may cause unease among the organization’s various employees. For this reason, it is essential that a functional and efficient accounting system is chosen to run the organization’s finances.