Understanding the concepts in finance and accounting is needed in every levels of management. It does not matter if you possess finance acumen or not, it is highly useful to know the tools of accounting, its concepts and techniques to equip yourself with decision-making relating to finance and accounting. In this context, knowledge of finance for non financial managers is gaining significance.
How do courses on finance for non-financial mangers help the business?
- Non-Finance managers undergoing courses on financial concepts can integrate financial policies while implementing decision making and budgeting. With the knowledge of concepts and terms, they could conduct the analysis of financial reports and statements like balance sheets and profit and loss statements. It will facilitate the non-financial managers to check the financial feasibility.
- It also enables them to understand the cash flow statements to determine the status of the business, calculate the cost of business activities and controlling the day-to-day financial requirements.
- Another benefit of undergoing courses on finance helps the non-financial managers to control and supervise the budgets deployed in different departments. Often, budgeting is a tedious process and demands the understanding of finance and accounting concepts and principles. Courses on finance help those mangers who are not involved with finance to understand the fundamental principles employed in budgeting. Ultimately, it aids in quick decision-making process.
- Courses on finance are intended to develop superior managerial skills among non-financial managers. Some companies insist the employees on gaining the knowledge on accounting and finance concepts. They can later put in to practice while analyzing the financial statements.
- Since finance is the lifeblood of a business, gaining knowledge about the financial principles and methods will be an added qualification for non-financial managers.
- Non-financial managers need to undergo crash courses to know about the various concepts like financial decision-making models, profit and cash flows, financial planning and budgeting.
- Courses on finance allow the non-financial managers to understand and make decisions on the financial matters in time.
- It helps in improving the productivity and expertise of the managers.
Finance for non financial managers facilitates easy decision-making process that involves financial matters. The courses may vary depending on the institution that offers the facility. However, the basic purpose of any such course is to impart knowledge in analyzing the financial reports like balance sheets and profit and loss accounts.
Healthcare industry as it relates to finance
The Health care industry has become highly dynamic with the onset of modern technology and the surfacing of information science. The changes seen are quick and drastic. At the same time the policy changes have made the operations more complex. The health care industry has a variety of issues in the changing environment. To make the conditions worse, healthcare costs are rising day by day, and the medical reimbursements dwindling. The issues faced by the hospital CEOs, are more often than not financial. The issues concerning reimbursements, bad debt losses, Medicare, Medicaid, etc are also alarming. The situation is finance for non financial managers.
To manage finances you have to take decisions which are sound, lenders like Simple payday offer loans to those within this industry, however they are more expensive as designed to be a short term fix. The decisions can be based on the financial indicators, which are tools in the hands of the managers.
The financial indicators generally consulted before making managerial decisions are:
Financial capability indicator
This is the ability to raise finance on its own to replace assets and technology and meet the growing demands in the service sector.
This is the ability to meet cash requirements within a specific time.
This is the ability to meet long-term financial demands, and perform the maintenance of the long-term assets.
This is seen as the ability to provide the best services in the industry, at the minimum cost.
Human resource efficiency
This is the ability to provide the best human resources, and ways to manage their practices.
These financial indicators when put into use gave the best results in terms of profits, utilization of the optimum capacity, and reduction in borrowings with time.
The reasons that necessitate the establishment of such sound methods include the reluctance on the part of the clinicians to involve themselves in the financial management practices, budgeting, costing and cost management. Most Healthcare organizations are with the non-profit sector. The government or the non-profit sector is not keen on preventing loss-making systems and to give incentives to the efficient systems. If such checks are present, they will curb the occurrence of such problems henceforth.
Health care organizations, when they employ financial recording methods, are faced with objections when it comes to budgeting and raising funds. The FASB has issued Accounting Standards updates to make accounting work more simplified and easy to infer from.
The lack of knowledge, and the implementation of efficient accounting methods, are causes for the bad financial health of the Health care organizations. Finance for non financial managers will help solve such problems.