Accounting Function of HD Dental Clinic

Table of contents Introduction The purpose of the accounting function of HD Dental Clinic The accounting function of HD Dental Clinic in the context of regulatory and ethical constraints. The context and purpose of the accounting function of HD Dental Clinic in meeting organizational, stakeholder, and societal needs and expectations The role of accounting in informing decision-making to meet organizational, stakeholder, and societal needs within complex operating environments. Hoang Duong, a sole owner who runs HD Dental Clinic, a small dental clinic in Hanoi, needs advice on

Table of contents
1. Introduction
2. The purpose of the accounting function of HD Dental Clinic
3. The accounting function of HD Dental Clinic in the context of
regulatory and ethical constraints.
4. The context and purpose of the accounting function of HD
Dental Clinic in meeting organizational, stakeholder, and
societal needs and expectations
5. The role of accounting in informing decision-making to meet
organizational, stakeholder, and societal needs within
complex operating environments.
6. Conclusion
7. Reference List

Introduction
Accounting is the gathering, analysis, and transmission of financial
data. The ultimate goal is to provide individuals with the most up-
to-date information possible so that they may make informed
judgments. It is pointless to create information unless it can help
people make better decisions. Accounting's purpose is to produce
accurate and timely financial reporting. While accountants do
perform this sort of job, it is not their exclusive purpose. The
accountant's role is to give financial information to users to help
them make better decisions. (Atrill, P., and McLaney, E., 2018) Dr.
Hoang Duong, a sole owner who runs HD Dental Clinic, a small
dental clinic in Hanoi, needs advice on the clinic's accounting
system to effectively manage the clinic's revenues.
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1 The purpose of the accounting function of HD Dental
Clinic
Accounting is the process of recording financial transactions that
can be used to present a complete picture of a company's financial
performance. Accounting programs are specifically designed to
meet the specific needs of more complex environments. This
reflects the development of the accounting profession to cover a
wider range of business processes. Accounting information is
essential for organizations to make informed decisions about their
future. Accounting is the process of collecting and disseminating
information to help people make informed decisions in their daily
lives. Accounting is the process of managing and recording
financial transactions, evaluating their results to judge
performance, and forecasting future operations.
The accounting process is essential to ensure the accuracy and
integrity of the financial system. The accounting process starts
with collecting and classifying data, followed by producing a
summary of financial information for further analysis. An
accounting system is a set of techniques that can help keep track
of financial statements. Use advanced technology to detect,
collect, analyze, calculate, classify, record, aggregate, and report
transactions. Lots of companies have written accounting
handbooks that detail responsibilities for various accounting
systems. Accounting manuals are a collection of accounting
instructions that can help you understand the individual
responsibilities and processes, as well as the forms and records
involved in the development and use of accounting data.
(Alexander, D. and Nobes, C. W., 2004)
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Starting a sole proprietorship is easy and inexpensive. The
operation of a company without an established legal or
administrative framework can be conducted without paying fees.
This refers to the legal status of the owners or shareholders of a
limited company, which is considered a legal entity separate from
the company that owns it. Accounting records are important for
ensuring that the company's financial statements are accurate.
Unlike limited companies, sole traders are not required to file
annual reports and account with the Registrar of Companies. On
the other hand, self-employed persons must file annual returns to
provide important financial information to be included in their
annual income tax returns to be filed with HM Revenue and
Customs. Sole proprietors are usually still small businesses and
can be seen as a disadvantage. A lack of business skills can limit
the business' potential. (Johal, P, Vickerstaff, B & McAuliffe, E
2014)
Dr. Hoang Duong, a sole proprietor, owns HD Dental Clinic, a small
dental clinic in Hanoi. The company was formed last year to
provide dental services, periodontal treatments, and esthetic
dentistry. Dental clinics offer a wide range of services, from simple
tooth extractions and teeth whitening to more complex root canals
and dental implants. Hoang Duong needs advice on the clinic's
accounting system to help manage the clinic's revenues better
and more scientifically. Clearly understand the income of the clinic
to facilitate communication with banks, governments, etc.
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2 The accounting function of HD Dental Clinic in the
context of regulatory and ethical constraints.
The largest and most immediate concern posed by medical waste
is disease transmission via infectious waste. If trash is not
managed to kill pathogenic organisms, deadly amounts of tiny
disease-causing agents will be present. These substances can
enter the body by skin punctures and other injuries, mucous
membranes of the mouth, inhalation into the lungs, ingestion, or
vector transmission (World Health Organization, 1992). Direct
contact with trash poses the greatest risk. Healthcare personnel,
cleaners, patients, visitors, trash collectors, disposal site
employees, scavengers, drug users, and people who use
"recycled" infected syringes and needles intentionally or
unwittingly are examples. Although sharps provide an intrinsic
physical hazard of cuts and punctures, sharps that are additionally
contaminated with infectious waste constitute a bigger concern.
Again, by pricking or reusing syringes/needles, health care
professionals, trash handlers, garbage collectors, drug users, and
anyone who manages sharps can become infected with HIV/AIDS
and hepatitis B and C. These infections have the potential to be
lethal (Johannessen, 2000). Contamination of water sources by
untreated medical waste can also be disastrous.
Medical examiners and treatment facilities must observe medical
waste management regulations. As a result, the garbage must be
collected and brought to the place where the state agency intends
to dispose of medical waste. A waste disposal strategy must be
included in the application forms for approval to operate the clinic.
During the operating term, the owner of the medical and medical
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institution shall nominate one manager responsible for medical
waste management and one department, department, or
employee responsible for medical waste management of the
hospital. The starting point Violations of the foregoing will be
penalized in line with Article 29, point b, paragraph 3 of Decree
No. 29. VND 10,000,000 to VND 20,000,000 for medical waste that
is not disposed of by the rules applicable to medical examination
and treatment facilities. (Quy định về việc xử lý phòng khám
không tuân thủ quy định của pháp luật về xử lý chất thải, 2016)
HD Dental Clinic violated two counts in this case: bundling
household and medical waste and improper disposal of medical
waste. The clinic must spend money to compensate for the
administrative costs caused by the error. It also shows that the
company violated important ethical standards by mishandling its
waste. In addition, by ignoring the clinic's errors and deciding to
continue the statement of environmental emergencies, the
company's accountants have shown bad ethics that accountants
should not have, but accountant ethics are all professional and
You must be frank and honest in your business transactions, work
with caution and adhere to appropriate technical and professional
standards when providing professional services, most importantly,
comply with relevant rules and regulations and avoid any behavior
that would offend the profession. In addition, if HD Dental Clinic's
accountant Lan Huong has false reports about fines, it means that
the clinic's business results have changed and gotten worse.
misleading, not truthful; Losses can be converted into profits and
vice versa. At the same time, the amount that the company will
have to pay in connection with the environmental impact is
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considered a contingent liability, which should have been detailed
in the financial statements, but will now be reflected only in the
notes section.
3 The context and purpose of the accounting function of
HD Dental Clinic in meeting organizational, stakeholder,
and societal needs and expectations
The accounting at HD Dental Clinic is crucial to meeting the needs
and expectations of stakeholders. The clinic's administration is
curious about its financial records and income statements to
better manage its revenues and costs, as well as its operations.
Management accounting is a procedure that aids in the effective
management of a company's resources. Managers use accounting
information to make educated decisions regarding the company's
performance, therefore limiting risk. Budgeting is an excellent
method of money management, and financial reporting may assist
managers in determining where cash should be allocated. Certain
measures, such as liquidity ratios, which reflect a company's
capacity to produce cash to satisfy short-term financial
commitments, and efficiency ratios, which are generally connected
to inventory turnover and profitability, can be used to measure a
company's performance. The owner's primary need for timely
accounting information about their organization is to keep track of
their financial performance, economic situation, and changes in
their organization's financial position. This will allow us to assess
the performance of the organization's managers and determine
whether they are doing a good job. Furthermore, this information
is important to the owner because it assists in determining
whether the business is maximizing profits and wealth.
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Furthermore, the clinic's accounting role has an impact on
neighbors, tax collectors, the public, banks, and lenders. As stated
in the report, the dental treatments provided by HD Dental Clinic
create harmful and infectious waste that must be appropriately
disposed of. Environmental and healthcare standards have cost
dental clinics a lot of money to cope with this sort of waste.
However, after paying this cost, the dentist made another
extremely major error by combining medical trash with domestic
waste without telling the garbage collectors and allowing the firm
to discharge straight to the city's treatment centers, which
resulted in the city being fined. The treatment center has caused
significant issues. The living conditions of the population in the
vicinity of the clinic and its influence on the urban environment. In
this case, the accountants did not include this information in their
report. This suggests that the company's financial statements may
not be accurate, which could have implications for its lenders and
tax collectors. When lenders receive an erroneous financial
statement, they may make incorrect judgments about whether the
institution is making enough profit to pay the interest on the loans
and whether the institution has the resources to do so. When the
amount is due for payment, the principal is refunded. On the tax
side, the financial statements show a company's income and
sources of income, the tax collector relies on the income in the
report to determine the tax rate for each company. When
reporting a contingent liability, this will have a significant impact
on the tax payable and the company is likely to have a profit or
loss from doing so, and if the tax is not paid, the company will
have to pay a fine.
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4 The role of accounting in informing decision-making to
meet organizational, stakeholder, and societal needs
within complex operating environments
A sole proprietorship is most likely suitable for small businesses.
The company is privately owned and operated by a single
individual who earns all profits. Although several people may work
there, the owner is the only beneficiary of the earnings.
Freelancers have full control over when and how they start and
end their business. The sole proprietor is also responsible for the
company's financing, risk-taking, choices, hiring employees, and
any debt or loan the company may have.
Partnerships are similar to sole proprietorships in that the business
is owned by two or more persons. The major distinction is how
much each partner invests in the firm, who is accountable for
what, and how profits are distributed. These components are
typically outlined in formal collaboration agreements. Because
there is a formal partnership agreement, the first legal
expenditures of establishing a firm are minimal. Partnerships are
created when two or more people work together, and the number
of partners in a partnership is limited to 20 except for specific
professions. A partnership can engage in any lawful activity that
all its partners agree to. This does not create a legal entity
between the partners. Each partner in a firm can be involved in
the operation of the business; they share in the firm's earnings;
they are jointly and severally liable for the firm's obligations, and
they are each accountable for the conduct of the other. If there is
financial difficulty, the private property of the partners may be
used to repay debts.
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An efficient accounting system makes it easy for partners and
lenders to evaluate the viability of investing or financing in a firm.
A good report can assist lenders in determining a company's
financial health. When it comes to partners, reports will boost your
confidence in your company's success and make you want to be a
part of it.
When considering changes that occur when entering into a
partnership, the most significant thing a single trader should do is
consider the interests of other stakeholders. HD Dental Clinic had
to consider what their partners wanted and what Global Clinic
Rating needed to build the company. If they want to be a top-tier
firm in the sector, they need to be able to address and fix their
environmental infractions and produce accurate financial reports.
In addition, to please Global Clinic Rating's partners and lenders,
they must value their capital and focus on improving the quality of
their department staff and infrastructure. Investigate and provide
transparent and fair pricing to help banks and partners gain more
trust in the company for Global Clinic rating accreditation.
Conclusion
In conclusion, applying the notion of accounting to business is
critical since it gives quantitative information to evaluate a
company's success. Maintaining clean and up-to-date accounting
records is critical to preserving our company's competitiveness in
today's dynamic business climate. Accounting can assist a firm in
understanding its performance, staying in compliance with rules,
setting corporate goals, and managing and monitoring cash flow.
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Accounting is necessary for the effective running of a company in
day-to-day commercial activities since it may help in the future
growth of the company. As a result, HD Dental Clinic's operations
will require the implementation of an accounting system. Aside
from that, in order to succeed in a highly competitive marketing
area, HD Dental Clinic must continue to reinvent its vision and
objectives. To ensure that HD Dental Clinic has a well-managed
financial system, the owners should find and hire someone with
the qualifications, expertise, and talents to assist them in
efficiently using the accounting system and addressing any
business management difficulties. This will give the Clinic both
short-term and long-term benefits, ensuring the Clinic's smooth
operation for a long time.
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Reference List
Alexander, D. and Nobes, C. W., 2004, Financial Accounting: An
International Introduction. 2nd ed. Harlow, England: Financial
Times Prentice Hall.
Atrill, P. and McLaney, E., 2018, Accounting and Finance for Non-
Specialists.11th Ed. Harlow: Pearson.
GRIN - The Users of Accounting Information and their Needs. An
Introduction to Accounting and its Branches n.d., Available at:
www.grin.com. (Accessed: 21 March 2022).
Johal, P, Vickerstaff, B & McAuliffe, E., 2014, Unlocking Financial
Accounting, Routledge.
Johannessen L. M., 2000 Healthcare Waste Management Guidance
Note. 68. Available at:
http://wbln0018.worldbank.org/hdnet/hddocs.nsf/c0d65c5ea6fcb46
88525670c004d14c2/0d8 (Accessed: 21 March 2022).
Nwachukwu, NC, Orji, FA & Ugbogu, OC., 2013, Health Care Waste
Management – Public Health Benefits, and the Need for Effective
Environmental Regulatory Surveillance in Federal Republic of
Nigeria, www.intechopen.com, IntechOpen.
Quy định về việc xử lý phòng khám không tuân thủ quy định của
pháp luật về xử lý chất thải 2016, Dịch vụ luật sư | Luật Tiền
Phong, , Available at: <https://luattienphong.vn/quy-dinh-ve-viec-
xu-ly-phong-kham-khong-tuan-thu-quy-dinh-cua-phap-luat-ve-xu-
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