A Study Of The Internal Accounting Control System In The Chinese Hospitals

The internal accounting control system is vital and indispensable for modern hospitals in China. It plays an important part in the progress of management system reform in the hospitals. Effective internal accounting control system can guarantee the security and completeness of the hospital’s properties, the accuracy and reliability of accounting information, the correctness and executive of leadership decisions and the economy, efficiency and effectiveness of the business activities. Moreover, it also can make the self adjustment, constraint, planning, evaluation and control within the hospitals.Based on the study of the actual situation of hospitals in China, it summarised experience and deficiency of China’s hospital management mode of hospitals in the past few years. Drawing on literature review, fieldwork and interviews, it illustrated the important role of the internal accounting control system in hospitals’ development. It pointed out that only by establishing good the internal accounting control system, the hospital can have the better management. Then finally the hospital can have enhanced efficiency, harmonious personnel and the sustainable development.From the perspectives of hospital managers’ sense, staff’s quality education, system establishment, regulation set-up, computerised accounting information system and the mechanism of inspection and monitoring, it analysed the reasons why the internal accounting control system in the hospitals is not perfect. It also gave out the solutions. Firstly, managers should change their ideas and enhance their sense of the internal accounting control. Secondly, it should improve the structure of accounting organization in order to establish an integrated the internal accounting control system. Thirdly, it should pay attention to the inspection and monitoring of finance departments and the government so as to improve the hospitals’ internal accounting control system. Fourthly, it should improve the supervision and inspection mechanism of internal accounting control and strengthen the incentive intensity. Fifthly, it should enhance the computerised accounting information system and emphasise the accuracy and reliability of accounting information. Sixthly, it should improve the overall quality level of accounting personnel to full play the execution of the internal accounting control system. This study provided references to the establishment of the scientific and normative system of hospitals’ internal accounting control in China. It also had a strong guiding role on the improvement of hospitals’ internal management in the environment of market economy.