Financial Viability

In: Business and Management

Submitted By kdaniels
Words 619
Pages 3
Kimberly Daniels
Paula Arceneaux
November 23, 2013 Accounting and Finance
Accounting and finance what are they and what’s the difference? Many people who are not in the profession may think they are the same thing and though they have a close relationship they are defiantly not one in the same.
Accounting is the bookkeeping part of the business. It is the collection and organization of the financial data of an organization. Accountants are those who are certified and educated in the collection and organization of this data. They must present this data to the company’s management in the form of statements such as balance sheets and income statements. These statements are them used by management to help keep the organization financially healthy. Accounting also involves the reporting of the organizations taxes.
Finance which is different but just as important is the use of the accounting data to make decisions for the organization. The data collected and given to management is now used to help with the financial planning, performance review of the organization, and to ensure the company is meeting all obligations including tax reporting. Finance helps with the management of the organizations funds. It helps management decide how and when the funds will be used so that the company can run smoothly and at its highest potential.
The accounting department is the backbone within a healthcare organization without it, it would be impossible for the organization to operate cost effectively. There is however strict principles and guidelines that all accounting departments must follow when compiling their financial statements. The most common is the GAAP or General Accepted Accounting Principles. If these standards are not followed the U.S. Security and Exchange Commission will fine the organization and may even pursue criminal charges to enforce the…...

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