The Management of the Short-Term Securities
As far as the management of the short term securities is concerned, it is reported that since 2010 the main shareholders of the firm prefer to retain them rather than to sell them on the external markets. The main change in the management in the system of securities is that since the recent economic recession 2008-2010 the company refocused on the issuance of the long-term security instruments instead of the short-term ones. In particular, in 2007 the firm issued 143, 453 short term shares, while in 2011 the company was reported to issue only 93, 321 shares, while the issuance of the long-term share increased on 13% , according to the annual financial statements of the company (2007 and 2011 respectively).
The Management of the Accounts Receivables
With regard to the liabilities of the company it became evident that the firm is aspiring to overtake its arrears, although the repercussions of the recent economic downturn pose significant impediments to this task. The accounting department of the company in cooperation with the international accounting firm Ernst and Young is reported to re-channel the accrued revenues. The firm is allocating the 40% of the accrued revenues (approximately $ 1,7 billion ) to pay the existing and emerging an liabilities of the company. The main creditors of the firm are the commercial and government banks of the United States of America and chief suppliers and customers.
Overall, the marketing positions indicate that the firm is likely to manage the liabilities effectively provided that the current tempos of the profit allocation is remained.
The Management of the Inventories
In this firm, the inventory is conducted on the quarterly basis. Every four months, the internal and external auditors conduct effective auditing operation in order to ensure that the financial statements of the company have been compiled properly. The inventories are accounted by the internal auditors of the enterprise and by the external specialists. The spheres of auditing are the current sections of the balance sheet of the company and the annual financial statements of the firm.
Consequences of the Change in the Tax Status of the Firm
Currently, the firm is incorporated as a company which is aimed at receiving profits, in other words the status of the company is a for-profit company. Following this assumption, the company is obliged to pay the entire set of taxes of the profit-oriented company and the tax revenue service is obliged to ensure that all provisions of the United States tax law are scrupulously observed.
If the company changes its orientation to the non-profit one, it can be recapitulated that the tax burden of the company will be substantially alleviated. The negative aspect of this operation is that the accrued benefits of the company will be spent on the specific needs, and the profits of the firm will not be shared among the partners. Overall, the structure of the firm must be re-considered in order to incorporate the firm as a non-profit organization.
Revenue Cycle and the Health Care Reform Effect
With regard to the revenue cycle, it must be noted that the necessary portion of the financial resources are deducted to cover the operating expenses of the company, the rest of the profits are shared among the partners and the shareholder.
Generally, the Healthcare Reform affected positively the performance of the company. The course that has been taken by the Administration of Barack Obama considerably simplified the tax procedures and provided lucrative tax havens which are extensively used by the Medical Security Inc.