When dealing with healthcare, financial management plays a vital role in healthcare financial planning. Many of the financial decisions are made daily by accounting and all the other business transactions that occur. Most decisions are made based on the organization's tax objectives, although some are made based on generally accepted accounting principles. Maintaining accurate financial records keeps organizations free from audits and mismanagement of funds. General Accepted Accounting Principles (GAAP) are considered the framework guidelines for financial accounting and the jurisdiction of all accounting standards. The (GAAP) includes the standards, conventions and rules that the organization's accountant follows when recording and summarizing all transactions during the preparation of the financial statement. Third parties involved in reporting rely on information to be free from bias and inconsistency without debate. All companies state that “generally accepted accounting principles are precise guidelines, group objectives and conventions that have been established over time to set how financial statements are prepared and presented (Corporate Government 2010). There is precedence that occurs when dealing with the finances of different organizations. Organizations that handle any type of financial data must comply with GAAP standards so that external creditors can view their financial statements with little to no difficulty. For example, the Financial Accounting Standards (FASB) is a private, non-profit organization that oversees most diverse organizations in the United States, including the healthcare industry. US security and ec...... middle of paper ... ... these standards must always comply with state, federal, and corporate standards and responsibilities. Conclusion We can see that there is a lot to do when managing a healthcare organization. There are the problems of balancing the budget and complying with federal laws. The issue of code of ethics tends to be the meat and potatoes of all organizations. I have seen beautiful hospitals and nursing homes on the outside, but on the inside the healthcare code of ethics has disappeared. I like that the US government gives these healthcare organizations someone to answer to. When an organization receives federal grants or funding through Medicare, Medicaid, it must be accountable for how the money is spent and why. The key to having stress-free organizations is to hire productive accountants and keep accurate records while balancing the budget.