When it comes to healthcare, financial management plays a key role in healthcare financial planning. Several financial decisions are made daily from accounting and all other business transactions that take place. Most decisions made are based on the financial objectives of the organization, although some are made according to generally accepted accounting principles. Maintaining accurate financial records protects organizations from audits and mismanagement of funds. Generally Accepted Accounting Principles (GAAP) is considered the guiding framework for financial accounting and the jurisdiction for all accounting standards. (GAAP) includes the standards, conventions and rules that the organization's accountant follows when recording and summarizing all transactions during the preparation of financial statements. Third parties involved in reporting rely on information free of bias and inconsistency, without debate. All companies state that “generally accepted accounting principles are precisely guidelines, group objectives and conventions that have been established over time to define how financial statements are prepared and presented (Corporate Government 2010) . There is a priority when it comes to managing the finances of different organizations. Organizations that process any type of financial data must comply with GAAP standards so that external creditors can view their financial statements with little or no difficulty. For example, Financial Accounting Standards (FASB) is a private, nonprofit organization that oversees the majority of different organizations in the United States, including the healthcare industry. American security and ex...... middle of paper ... ...these standards at all times to be in compliance with state, federal, and corporate standards and responsibilities. Conclusion We can see that there are many things to do when running a healthcare organization. There is the question of balancing the budget and respecting federal laws. The code of ethics problem tends to be the meat and potatoes of all organizations. I saw beautiful hospitals and nursing homes on the outside, but inside, the health care ethics code is gone. 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 answer how the money is spent and why. The key to having stress-free organizations is to hire productive accountants and keep accurate records when balancing the budget..