Running head: FINANCIAL REPORTING 1

Discuss the objectives of financial reporting in detail and describe how you will incorporate

its use in your future role as a healthcare manager

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FINANCIAL REPORTING 2

Discuss the objectives of financial reporting in detail and describe how you will incorporate

its use in your future role as a healthcare manager.

Assisting users in making decisions that are appropriate for their circumstances is the

ultimate purpose of providing relevant information to a wide variety of users through the use of

financial reporting. Several distinct goals can be attained through financial reporting.

Educating individuals on financial topics like investment and credit so that they may

make informed choices: Financial reports provide investors and creditors with crucial

information about a company's profitability, liquidity, and solvency, which they can use to

determine whether or not to invest in or lend money to the business. (Calzon, 2022)

Supplying data for use in assessing a company's leadership: A company's management's

performance can be evaluated based on the data shown in the company's financial statements.

Details on the company's operations, such as its income, expenditures, and net profit, are

provided here.Providing information for assessing a company's performance: Financial reports

provide information on a company's financial performance over time, which can be used to

assess its progress and identify trends. (Calzon, 2022)

The company's liquidity and solvency can be evaluated with the use of the provided data.

It is possible to speculate on whether or not the company will be able to pay its bills based on the

data supplied in the financial reports concerning the firm's liquidity and solvency.

Helping to maintain fair and efficient markets: Financial reports provide information that

helps to ensure that markets are fair and efficient by providing transparency and accountability

for publicly traded companies.

FINANCIAL REPORTING 3

Financial reports help to ensure that a company's resources are allocated effectively by

providing insight into the health and performance of the company's finances. Providing details

about the company's financial health helps achieve this goal. To get the greatest outcomes

possible, it's important to make the most use of available resources, and this data helps with that.

Investors, creditors, and other interested parties rely heavily on financial statements to have a

firmer grasp of a company's financial standing and make more informed judgments.

Stakeholders, in other words, use financial reports as a decision-making tool. (Calzon, 2022)

As a healthcare manager, incorporating financial reporting into my role would involve

monitoring and analyzing financial data in order to make informed decisions and ensure the

financial stability of the healthcare organization. This could include creating and reviewing

financial reports, such as income statements and balance sheets, in order to track revenue and

expenses, identify cost savings opportunities, and make projections for future financial

performance. Additionally, I would work closely with the finance department to ensure that all

financial reporting adheres to relevant regulations and compliance standards. Overall, my goal

would be to use financial data to make strategic decisions that support the overall financial health

and success of the healthcare organization. (Eisenstein, 2020)

FINANCIAL REPORTING 4

References

Eisenstein, L. (2020, July 3). Objectives of Financial Management in Healthcare. BoardEffect.

https://www.boardeffect.com/blog/objectives-financial-management-healthcare/

Calzon, B. (2022, September 2). What Is Financial Reporting And Analysis? Learn Its

Importance. BI Blog | Data Visualization & Analytics Blog | Datapine.

https://www.datapine.com/blog/financial-reporting-and-analysis/