Managerialaccounting is termed as the provision of information to decisionmakers and internal employers with an organization while financialaccounting is responsible for providing past financial information inorder for the company to make decisive business decisions with pastknowledge (Jackson,Sawyers & Jenkins, 2009).The differing ethical role between financial and managerialaccounting is the aspect of reporting back to the management team ofthe financial findings relaying to the company’s monetary value andstrength during crisis management processes. Crisis management isusually the process of protecting the health care organization fromfinancial strain and bankruptcy. Therefore, managerial accountingtends to oversee the entire process of accounting in the healthcarefacility while financial accounting is tasked with predicting thefuture financial capability of the facility. If the financialaccountants find it necessary to distort their financial findings sothat the accounting managers can revive the healthcare organizationthen their action is considered ethical to some level.
Financialmanagers should be concerned with quality initiatives in thehealthcare sector in order to avoid financial scandals due toembezzlement or corruption. They are tasked with the responsibilityof ensuring that the monetary information of their clients and theorganization is protected from hackers or unauthorized parties inorder to protect their patients and themselves from distortion orfinancial blackmail. The best quality initiative that any healthcareorganization should provide is psychiatric counseling for traumatizedpatients who undergone a life threatening ordeal which pertains toarson, homicide or attempted murder.For this initiative to besuccessful, the financial manager needs to allocate a large sum ofmoney to cater for the facilities and monthly wages for theprofessional psychiatrist the hospital will hire. The development ofan inpatient rehabilitation facility within the healthcareorganization is another quality initiative that requires decisivefinancial support from the financial manager to ensure that thefacility is fully equipped with the necessary rehabilitationmaterials (Jackson,Sawyers & Jenkins, 2009).
Jackson,S., Sawyers, R., & Jenkins, J. G. (2009). Managerialaccounting: A focus on ethical decision making.Mason, Ohio: South-Western.