An accounting department plays an enormous role within the medical office. As the backbone of the organization, the accounting department allows the organization to operate at its fullest potential. Without an accounting department, it would be impossible for any type of organization to operate in a cost effective manner.

General Accepted Accounting Principles (GAAP) are the common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP, are simply put, the customarily accepted ways of recording and reporting accounting information. Each organization may operate differently but all have to follow by set guidelines within the organizations community, state and at the federal level. If these standards and procedures are not followed the U.S. Security and Exchange Commission (SEC) will fine the organization and possibly pursue criminal action to enforce compliance.

When operating a healthcare organization, the most important factor within the setting is the patient's overall satisfaction while allowing the accounting department to operate financial functions accurately. This task can be tricky, however, will allow for an organization to operate at its best potential, and most importantly, cost effective.

Hicks, J. (n.d.). The Role of Accounting in the Medical Office. Retrieved April 30, 2015, from http://medicaloffice.about.com/od/reimbursements/a/The-Role-Of-Accounting-In-The-Medical-Office.htmLinks to an external site.

QUESTION: Based on what you learned from your weekly reading, lectures and personal experiences. What could happen to a medical office if the accounting practices are not accurate? Post your response using personal experiences and a quote or two freom your weekly reading to support your opinion.

Answer rating: 100% (QA)

Answer Inaccurate accounting practices within a medical office can have detrimental effects on both the financial health of the organization and the q... View the full answer