Reporting Practices & Ethics Essay

fiscal management rouse be defined as both an artistic production and a science of organizing the fiscal resources of an formation in such a room as to procure maximum out seat from the finances that atomic number 18 oper satisfactory to the boldness. (Brigham & Ehrhardt, 2004). m unmatchabletary management is one of the key aspects that totally(prenominal) organization including healthcare facilities need to put more than emphasis on to increase efficiency. The four elements of fiscal management There are four implicit in(p) elements that guide the art of monetary management (Baker & Powell, 2005) these embarrassi) pecuniary accounting and report This element of financial management enables both the financial managers and the general managers to be able to undertake the legal reporting responsibilities by providing the cultivation and data that can be scrutinized. ii) Financial Analysis It is an indicator of the performance of an administration or a comp whats oever. It can be used to demote likely shortcomings or all weaknesses which the management should put more focus on to be able to meet both short and long depot goals of the foot. iii) Financial plan & BudgetingThe first two elements of financial management i. e. financial accounting and reporting and financial reporting, lead to the third element which is financial planning and budgeting. The financial plans and budgets are prepared from the first two beams and will succor to guide the fellowship or design in both the short pelt along and the long run (Brigham & Ehrhardt, 2004). This is an important financial tool that can help to break any shortfalls or deficits in the internal funds in an institution and thus point to the need for external keep such as debt or equity financing.iv) Financial Activities These are the activities which a order can search to be able to discover up for any deficit in the internal budget. These sources of financing could entangle retai ned earnings, contributions from donors and governments, equity and debt financing and leases or concessions. chiefly acceptable accounting Principles There are some(prenominal) principles that can be considered as acceptable in financial management and these include i) Consistency-this means that crosswise all time periods, all information that is poised and presented should be the same.It holds that a company/institution cannot for pillow slip change the way in which they do their inscription without a valid reason for the change universe included in the financial sayments. ii) Relevance-this stands for the appropriateness of the information that is contained in the financial statements presented. These statements should be able to help one to predict the future financial state of the company or institution. Reliability-an self-sustaining party should be able to verify the information that is presented in the financial statements.The institution must be sure that an indepe ndent auditor would come up with the same findings if they were to obtain out the same analysis (Brigham & Ehrhardt, 2004). This is a commodious way for the company or institution to probe that it is transparent and can be trusted. iv) Comparability- this means an institutions financial statements can relate with connatural personal line of credites within the same attention. This enables investors to note the differences within an industry to compare the performance of a company in relation to others in the industry. These generally acceptable principles interpret that all the companies are on the same aim playing grounds.General Financial Ethical Standards The honorable standards that should be closely observed in financial management include i) Conflict of Interest It occurs as a result of a clash of the secret interests of an individual with the interests of the company. As a result of these actions one is unable to effectively carry out the duties collect to him/her i n the organization. This can too be as a result of an individual or a member of his/her family receiving personal benefits in an improper way due to the position they hold in the organization (De Boers etal, 2007).Another case that can bring around a conflict of interest is when one at the time of working for a company has associations with a competitor. Thus all staff of a company should report to the executive officers any transaction that is probable to bring about any conflict of interest. ii) embodied opportunities This deals with the fact that one should evermore help the company to advance its interests first wherever possible and thither should be no use of corporate topographic point or information for improper personal deliver the goods. Employees are also prohibited from competing with the company or organization either directly or indirectly.This ensures that the institution always gets top priority from its employees and at such improves business practices. iii) C ompliance and Reporting All the employees of financial institutions should make it top priority to identify any potential problematic issues. They should also seek for help whenever they book doubts about the codes of conduct in the financial institution (De Boers etal, 2007). Any violation of this should lead to subsequent disciplinal action. This standard is important as it helps the institution to identify any potential problem way beforehand they occur if all the employees observe this standard keenly.iv) world Disclosure The information in the public domains should not only be fair and accurate, but also timely and understandable and should include the interest of all the key stakeholders in the institution. Information should not be knowingly misinterpreted or omitted or be presented in such a way as to vex others to do the same. This standard helps the institution to win the agency of the public and more so the shareholders as it displays that their operations are trans parent. v) Fair DealingEach employee in the institution should strive to be fair in their dealings with all the involved parties and especially the clients, suppliers and operate providers as well as employees and competitors alike. This helps the institution to gain goodwill of all the people the deal with and it helps to word form the reputation of the institution (Baker & Powell, 2005). Reporting Illegal and unethical Behavior It is the duty of all employees to report any one that is deemed to be going against these ethical standards.This reporting can either be internal or external and it should be treated with utmost confidentiality. References Brigham, E. & Ehrhardt, C. (2004). Financial solicitude Theory and Practice. Boston Massachusetts southbound Western College Publishing. De Boers, P. , Ruud, B. , & Wim, K. (2007). The Basics of Financial Management An canonic course in finance, management accounting and financial accounting. New York Routledge Publishers. Baker, K . ,& Powell ,G. (2005). Understanding Financial Management A Practical Guide. New Jersey buns Wiley & Sons Inc.