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relationship between finance and accounting, and how they operate to determine financial viability within a health care organiza - Essay Example
Finance & Accounting
Pages 3 (753 words)
Finance and Accounting Insert Name Insert Grade Curse Insert Insert Date Finance and accounting play major roles in organizations regardless of type and form. Be it a profit making, not for profit, private or public organization, the two functions are essential for normal operations…
On the other hand, there are linking elements of the two functions that create a difficulty in distinguishing between them that shall be highlighted in this paper. Consequently, the analysis will involve the role of finance and accounting; and how they operate to determine financial viability within a health care organization. To begin, it is important to understand the definition of the two functions of organizational operations. Finance in organizations generally refers to the activities that are associated with funding an organization’s processes and operations. On the other hand, accounting refers to the processes relating to the recording, analysis and reporting of financial figures from an organization’s financial transactions. From the onset, the relationship between finance and accounting arises from the role of the two functions in any organization. Since finance utilizes accounting figures for the purposes of analysis, the two are inseparable. For instance, business finance analysts usually review accounting information to be able to determine the efficiency and effectiveness of operations (Bruce & Kristin, 2007). Accounting is also dependent on the finance function because it basically utilizes data from financing operations for recording and reporting so that organizations are able to make prudent decisions. ...
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