Advance Management Accounting Techniques for NHS Trust: Challenges, Identification, Explanation, and Critical Analysis

ADVANCED
MANAGEMENT
ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
(a) Current Challenges faced by the NHS...................................................................................3
(b) Identification and Explanation of Advance management accounting techniques.................4
(c) Critical analysis of the strength and weaknesses of techniques of Advance Management
accounting...................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Advance Management Accounting is a process in which the company analysis and
implement the best and suitable MA techniques within the business in order to fulfil the demand
of financial and non-financial resources along with proper utilizing it. The report will discuss the
current challenges faced by the NHS trust and how it affects their business performance. Further,
the report will identify and explain the two techniques of management accounting which help the
manager of the NHS trust to improve the trust performance. Lastly, the report will critically
analyse the strength and weaknesses of each technique.
(a) Current Challenges faced by the NHS
There are basically only one but the most significant challenge faced by the NHS trust in
the current environment which are as follows:
Limited or Lack of Resources:
The lack of physical, human and financial resources during the Covid-19 situation is one
of the biggest challenge which are affecting the overall performance of the NHS trust. The NHS
trust ability to optimize its performance with the limited resources is quite challenging for them.
It is because the funding they receive from the government is not sufficient and further because
of lack of people and staffs they are unable to control unnecessary expenses. The impact of
which the overall performance of the trust and the people are highly affecting. A lack of
resources in the healthcare sectors is one of the serious consequences which are badly affecting
the quality of the patience care and professional work environment of the NHS. It is also affected
the nurses, therapists, surgeon and other service providers. The challenges faced by the NHS is
also involved lack of supply of emergency equipments such as PPE kit, lack of supply of vaccine
dosages along with the technological issues. Not having the proper system and technique of
communication and documentation along with the categorization of total cost on the basis of
activities in four hospitals of NHS trust (Franz Skinner and Kelleher, 2019).
Lack of human resources are also one of the issue that NHS trust are facing because
nowadays doctors are starting their own private clinics business at small level. The supplies of
gloves, curtains, ECG electrodes, suction supplies and other kits are also not supplied to NHS
trust on timely basis. The impact of this challenge is major on the management and performance