Based on the organization chart displaying the standard hospital finance department system, under the chief financial officer and the additional levels of management that would fall under the CFO are the chief accounting officer, the director of analysis and planning, the director of budgeting, the director of reimbursement, the director of data support systems, and the treasure (Weaver & Weston, 2008). On the basis of the position in the organization, I would believe the chief accounting officer directly involved with capital investment decisions.
Under the CAO, the CFO, and controller will control all parts of company accounting, including general ledger, account receivable, accounts payable, inter-company, fixed assets, and all financial transactions. The CAO role is to ensure the accurate analysis, compilation, and reporting financial transactions in the company’s accounting books data and reporting of accounting. The CAO contributes in implementation and development of the organizational accounting processes (Gough, 2007). It is also implementing, developing, and upgrading the organizational financial controls and structures.
The CAO is in charge to correct and review errors in financial entries, documents, accounts, and reports to present the accurate financial performance of the corporate to their stakeholders. In addition, during financial and operational audits, it also works with internal and external auditors because it mainly prepares financial statements, accounts, and other reports to present corporate financial circumstances (Weaver & Weston, 2008). The CAO and controller notify directly to CFO and interfaces directly with the management team. Also, it was monitored with company procedures with generally accepted accounting principles. Therefore, it was chosen to be this position in the health care organization.
Gough, J.A. (2007). Consultants and consulting organizations directory: Descriptive listings (30th ed.). USA: Thomson/Gale.
Weaver, S.C., & Weston, J.F. (2008). Strategic financial management: Applications of corporate finance. USA: Thomson/South-Western.