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Health Care Accounting Cycle

Miami Health Care Accounting Cycle

‘The Health Care Accounting Process’ itself is quite a vast topic to discuss. There are numerous factors involved in it which finally complete the cycle. The Health Care accounting process is also known as the Health Care Accounting Cycle. It starts with recording a transaction and ends with the closing of books by your Health Care Accountants. There are several methods used to record, analyze and finally close the data as final data of the year. Double checking the transactions recorded analysis of the data and creating a balance sheet for the upcoming year is also a part of this process.

Health Care Accounting site 5 major steps which complete the Health Care accounting process. The following are the 5 steps:

Identifying the Event:

Identification of a transaction or any other similar event which needs to be recorded is the first step in the Health Care accounting process. The Health Care Accountants needs to recognize whether this event is of any value to the accounting books of the company or not.

Preparing Source Documents:

The second step is to prepare the source document of the transaction. The source document can be a promissory note, an invoice and so on. Without the creation of this document, it won’t be possible to record the transaction.

Analysis of the transactions:

Analyzing and classifying the transactions refers to quantifying the transaction in monetary terms. This means that the money paid or the credit created should be present for recording.

Recording Transactions:

This part includes recording the transactions into the journals. There are different journals such as the purchase journal, sales journal and so on. Each transaction needs to be recorded in its respective journal.

Analyzing Entries:

By transferring the entries to the ledgers and then finally into the balance sheets and income statement, a double check is made on the credibility of the transactions. In various cases, while transferring the transactions to the ledgers, faults are spotted in recording by the Health Care Accountants.

These are the five basic steps of the Health Care accounting process. Without these steps, it is impossible for an organization to check the profit and loss of the year.

About 

Gustavo A Viera is the managing partner of Gustavo A Viera, PA. His experience spans more than 25 years. He started his career in public accounting at PriceWaterHouseCoopers where reached the level senior audit manager. His Fortune 500 experience includes positions as CFO – Latin America Region for both Hewlett Packard and Telefonica of Spain. Gustavo also writes a blog twice a week that addresses trending accounting and tax issues. He is an SBA Advisor and teaches workshops for aspiring entrepreneurs. His office is located at One Alhambra Plaza Floor PH Coral Gables FL 33134, and is admitted to practice in the State of Florida as a licensed Certified Public Accountant. Gus welcomes questions and he can be reached at 786-250-4450.

About the Author

Gustavo VieraGustavo A Viera is the managing partner of Gustavo A Viera, PA. His experience spans more than 25 years. He started his career in public accounting at PriceWaterHouseCoopers where reached the level senior audit manager. His Fortune 500 experience includes positions as CFO - Latin America Region for both Hewlett Packard and Telefonica of Spain. Gustavo also writes a blog twice a week that addresses trending accounting and tax issues. He is an SBA Advisor and teaches workshops for aspiring entrepreneurs. His office is located at One Alhambra Plaza Floor PH Coral Gables FL 33134, and is admitted to practice in the State of Florida as a licensed Certified Public Accountant. Gus welcomes questions and he can be reached at 786-250-4450.View all posts by Gustavo Viera →

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