hen, review your peers’ initial posts to find out who is working or plans to work in the fields or professions most closely related to your own. In your responses to those peers, compare and contrast your responses. Specifically, comment on how important financial accounting is within that field or profession. Before taking this course, would you have held the same view? Why or why not?
Classmate # 1 Aaron
As I mentioned within the first module discussion post, I’m working towards becoming a Plant Manager or General Manager for the company I’m currently working for or another manufacturing company. This position has a critical role in the overall direction of the business, not only operationally but financially, and culturally. The day to day operations, require strong leadership and appropriate delegation of tasks to ensure the annual operating plan is met or exceeded and appropriate spending is controlled. This position does require a high level of knowledge regarding the operations, roles and responsibilities, and personnel management. Although you’re generally interacting with managers and higher-level individuals, your ability to accurately address situations that involve employees, labor laws, company codes and compliance, and state and federal laws are within the scope of your responsibilities.
At this level within the business it requires constant review of the budget, reviewing incurred expenses to specific general ledger accounts in comparison to the P&L (income statement). It’s critical to ensure expenses and accruals, are coded to the appropriate accounts, as it affects the EBITDA (Earnings before interest, taxes, depreciation, and amortization) calculation from cost of sales and cost of goods sold. Although the physical journal entries are not completed by the plant manager, a certain percentage of expenses that are created through credit card expenses and other purchase orders are coded to the appropriate general ledger account prior to month end. It’s the plant manager’s job to review these transactions that occurred for the month and ensure the appropriate GL account has been selected; and that amounts are accurate. This also included reviewing variable costs as production levels fluctuate, ensuring incurred expenses do not exceed account budgets due to lower output. This position generally analyses transactions, ensures segregation of duties is appropriate, maintains SOX compliance, and monitors the results from the plant as a whole.
It’s been rather enjoyable finding the steps and other functions that all levels have within the accounting process and utilizing what I’ve learned the last six weeks to connect the dots.
Classmate # 2 Kevin
My post will be relating to the relevance of Financial Accounting in the field of Business Analyst in a healthcare setting. Through the position of Business Analysis, healthcare managers derive knowledge and conclusions that assist them to make informed and innovative business decisions.
- Would be responsible for facilitating business change management by developing detailed business requirements and process flow diagrams in addition to other appropriate standard business analysis artifacts, in the Accounting functional area.
- Report on financial performance and prepare for regular leadership reviews – These Reports are helpful for the Top Management and Board to take a much more informed decision.
- Analyze past results, perform variance analysis, identify trends, and make recommendations for improvements – Comparative analysis can be done from previous years data, trends can be identified through Financial accounting. These trends depict the behavioral pattern of the Project and accordingly proper decision can be made after observing these trends in the data.
- Evaluate financial performance by comparing and analyzing actual results with plans and forecasts – Plan Vs Actual analysis can be done for both Revenue as well as Cost and Expenses and can check whether the variances are favorable or not.
This course has opened my eyes more to the financial aspect of my career path and given me a better view of the financial responsibilities that are inherent in this role in the healthcare community.
Business analyst healthcare domain knowledge. (n.d.). Retrieved April 8, 2019, from https://businessanalystfaq.com/2017/06/17/business-analyst-healthcare-domain-knowledge/