The practice of reporting financial information as a function in todays operation of a medical practice is particularly important due to intense demands for fiscal acuity. Therefore, its important to understandthe difference between cash and accrual accounting.What is the difference between cash-basis accounting and accrual accounting? How does each method affect the financial statements?
Part 2
A healthcare organizations financial statements provide various financial information that key stakeholders (investors, vendors, financial institutions, employees, etc.) use to evaluate an entitys financial performance. Financial statements are also important to an organizations managers because by publishing financial statements, management can communicate with interested outside parties about its accomplishment running the organization.Different financial statements focus on different areas of financial performances.What are the four basic financial statements and what does each report tell the healthcare manager?