FASB and GAAP

Use of FASB is needed because of its importance and influence in the improvement of financial reporting and accounting practices for the purpose of regulation and standards in financial accounting.  FASB issues statements of financial accounting standards that represent authoritative expressions of generally accepted accounting principles.  It is because financial accounting as represented by the numbers does get complicated that Generally Accepted Accounting Principles (GAAP) are established so that there is uniformity about how accounting is organized, operationalized, and regulated.  Audits, both internal and external, provide support for how well the organization adheres to accounting principles and insight into the benefits of improvement.  Keep in mind that in today’s business world in general, and in the healthcare industry in particularly, the financial staff must be able to provide analyses to support contract negotiations, partnership or joint venture decisions, and, in summary, help lead the organization towards future visions.