Question

How does cash flow affect the overall decision making process of a healthcare administrator? Do you feel that differences exist in cash positive versus cash negative facilities? What type of decision making situations would be on the top of your list (e.g. hiring, lay-offs, budget concerns)

Answer 1

The cash flow statement is a financial report that records a company's cash inflows and outflows at a given time it is one of the most Essential elements in the financial management of a company in since it is an important indicator of firms liquidity the cash flows summarises Healthcare organisation generate transaction from its operational strategic activities the organisation received or pays money to parties it's transaction business with. The cash flow statement summarises these transactions into total receipt and payment as generated by different activities of your Healthcare organisation or specified period. The cash flow statement helps you monitor the cash collections and expenses generated from your Healthcare operations cash inflows from operations are revenue you generate directly from your patience and from insurance reimbursement cash outflows arise from your payment for wages taxes rent and utilities purchases of items such as medicine close detergent disinfectants also generate cash outflow from operations.

The cash flow statement summarises the income and expenses you generate from investment and capital assets your Healthcare organisation may acquire long term assets such as land and building ambulances of Technology such as x-ray equipment this helps you determine whether or not the long term investment of your health care organisations are generating sufficient income compared to your capital inputs.

Financing concerns the changes that occur in the capital structure of your health care organisations such changes arise when you borrow money issue shares or buy back shares from investors they may also result from the repayment of your debt. Distribution of dividends and reinvestment of portions of your profit the cash flow statement enables you to update these changes at the end of accounting period.

Cash is what your company uses to pay bills. Cash flow is the movement or flow of cash.

operational cash is driven by the activities shown on the income statement positive operational cash flows include that your company is able to fulfill fund operations from saints when operational cash flow is negative cash flow from investing and financing must make up for the operational cash shortfall or your company will quickly burn through the cash show on its balance

budget

A budget is a financial plan which is on priority before planning anything else it also includes planned sales volumes and revenues resource quantities cost and expenses assets liabilities and cash flows company government family Healthcare organisation uses to express strategic plans of activities or events is an estimation of revenue and expenses over a specified future period of time it is combined Andre value on a periodic basis budgets can be made for person family organisations