Accounting Perspective in Hospital

Abstract

The hospital is an organization whose main purpose is to provide services in the form of examinations, treatment, medical measures and other diagnostic measures needed by each patient within the limits of technological capabilities and facilities provided by the hospital. In addition the hospital also provides consulting services that provide information and advice to patients. Hospitals in carrying out operational and investment activities are inseparable from the costs. Various kinds of services in hospitals incur costs. Transaction cycle in Hospital: (1) Revenue cycle related to providing hospital services to patients or other parties and receiving patient payments or bills from other parties; (2) The expenditure cycle is related to the procurement of goods and / or services from other parties and the settlement of debts and obligations; (3) Production / service cycle related to the transformation of hospital resources into hospital services; (4) Financial cycles related to the acquisition and management of capital funds (capital funds), such as working capital (sources of cash funds or other liquid funds) and long-term funding sources; (5) The financial reporting cycle is not related to the operating cycle as the first four cycles above. This cycle obtains operating and accounting data from another cycle and processes them into financial statements in accordance with generally accepted accounting principles.