Type: Analysis
Pages: 2 | Words: 303
Reading Time: 2 Minutes


– Shutter Health Care is a non-profit making organization based in Sacramental, California serving more than one hundred communities.

– In the past, they had problems involving recovery of bad debts, loss of customer information and poor quality accounting systems.

– For this reason, California Shutter Health Care is employing a new system that will help in solving all these issues (Souza & McCarty, 2007).

– Therefore, an analysis of the system California Shutter Health Care uses is done.


– The first accounting principle of California Shutter Health Care is accountability and transparency. This is to ensure that they are connected with the revenues collected.

– Cost reduction is the other accounting principle Shutter Health Care applies. In this case, unification of the system is made. Secondly, they train their existing employees rather than hiring professionals for purposes of cut costs (Souza & McCarty, 2007).

– Another accounting practice is the use of efficiency. Shutter health care is introducing a new system for performance evaluation to increase efficiency.

Alternative Measures

– Reduction of the debt collection period should be another alternative accounting principle (Rauscher & Wheeler, 2008).

– To reduce bad debts they should introduce a new accounting practice where the patients are ranked according to their ability to pay the bad debts (Solomon, 2011).

– Shutter Health Care should introduce an accounting practice in the system where patients pay for their services before they are treated to reduce bad debts (Trans Union, 2007).

Informed Opinion

– The system increases revenues after implementation because Shutter Health Care had an increase in revenues collected.

– Secondly, there was an increase in quality of services due to the training given to the employees if shutter company.


– Since Shutter Health Care is a community based organization it has been able to solve the problem of collecting bad debts resulting in increase in revenues and increase in quality services delivered.

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