My class is Accounting for Healthcare.
The discussion board is
- (Recording Financial Information- Chapter 7) The outside reading article entitled, “Redesigning Chart of Accounts Can Serve Broader Objectives” by Fred H. Mitchell and Cheryl Mitchell, briefly discuss the modifications that you would recommend to your organizations Chart of Accounts based on changes resulting from the Affordable Care Act that would affect your current operations.
- (Reporting Financial Information- Chapter 8) The statement of cash flows complements the accrual-based income statement by allowing users to assess a company’s performance on a cash basis. It also goes beyond presenting data relating to operating performance and looks at other activities that affect a company’s cash position. Please comment (hint: check out the three categories of cash flow on the Statement of Cash Flows)
I have to Reply to at least two of your classmates (appx. 100 words).
My first classmate Discussion.
- Recording Financial Information- Chapter 7) The outside reading article entitled, “Redesigning Chart of Accounts Can Serve Broader Objectives” by Fred H. Mitchell and Cheryl Mitchell, briefly discuss the modifications that you would recommend to your organizations Chart of Accounts based on changes resulting from the Affordable Care Act that would affect your current operations.
The most important thing here is the consistency and transparency and clarity of the financial statement. The healthcare providers together with the accounting department need payment clarity, visibility into and the ability to navigate the many obstacles to payment better. Today’s patients are savvy health care consumers, and demand transparency into what they will owe – up front. When patients receive timely, accurate information in advance, they are more likely to pay. Updating the accounting system on time is essential. Always, following the accounting standard will help in eliminating confusion. That is Asset = Liability + Net Asset. The general journal entry and the T- account will also make it clear for all transactions.
- (Reporting Financial Information- Chapter 8) The statement of cash flows complements the accrual-based income statement by allowing users to assess a company’s performance on a cash basis. It also goes beyond presenting data relating to operating performance and looks at other activities that affect a company’s cash position. Please comment (hint: check out the three categories of cash flow on the Statement of Cash Flows)
The cash flow statement is one of the primary financial statements used in the business operation, including small business. So creating a cash flow statement illustrates the amount of cash the business generated during the reporting period. There are three primary sections in the cash flow statement. 1. Operating activities. This section of cash flow illustrates the cash the business received and used during normal operative activities. Operating activities include accounts payable, account receivable, prepaid insurance and unearned revenues. 2. Investment Activates. This section shows investment activities. All the company’s investments listed under this category. Any purchase or sale of property, equipment, and assets qualify under this section. 3. Financial Activities. This section lists the information for the company’s financial activities. This includes the purchase of bonds/stocks and dividend payments.
My second classmate Discussion.
1. The modifications that I would recommend to my organization’s Chart of Accounts based on changes resulting from the Affordable Care Act that would affect your current operations would be cost reduction to our clients. As a worldwide pharmaceutical corporation, Pfizer manufactures specific ingredients and sell them to other pharmaceuticals whether it is for generics or patents, but depending on how much Pfizer wants to make and how much the ingredients cost to manufacture it is another market to analyze. With the ACA coming into play, to make health care “affordable” measures need to be taken in by every single aspect of the health care industry, especially when it comes to drug costs and what people will be paying for those drugs and what will or will not be covered under Medicare/Medicaid.
2. A cash basis is a simple and efficient way to see how the company is doing financially, but most importantly it is in comparison to what is then being put out when expenses arise to keep the company afloat. Depending on how flexible a company is, budgeting will then be relying on the inflow statements, due to cash being instantly presented in in the balance rather than later. All in all net income is what matters, the revenue and expenses is more of a daily number to follow and see how it balances, but the end of the month of what is left is the tell all. Another consideration is what a normal asset the company sees on a monthly basis should be automatically accounted for when cash is being counted, unless those investments tend to generate the cash.
