(Doc) Managing Financial Resources- Health and Social Care

Managing financial resources in
Health and Social Care

TABLE OF CONTENTS
Introduction..........................................................................................................................................1
Task 1...................................................................................................................................................1
1.1 Principal of costing and Business control system..................................................................1
1.2 Information needed to manage the financial resources.........................................................2
1.3................................................................................................................................................3
Task 2...................................................................................................................................................4
(A)................................................................................................................................................4
2.1 Sources of income available for St. Patrick Hospital............................................................4
2.2 Analyse factors that may influence availability of financial resources.................................5
2.3 Different types of Budget expenditure...................................................................................6
Task 3...................................................................................................................................................8
Covered in PPT............................................................................................................................8
Task 4...................................................................................................................................................8
1.4 Systems for managing financial resources.............................................................................8
2.4 Evaluate the decisions about expenditure..............................................................................8
3.3 Budget monitoring arrangements...........................................................................................9
4.1 Require information for financial decisions making.............................................................9
4.2 Analyse the relationship.......................................................................................................10
4.3 Factors affecting the individual...........................................................................................10
4.4 Measures for improvements.................................................................................................10
Conclusion..........................................................................................................................................10
References..........................................................................................................................................12

INTRODUCTION
Cost is important to every business. Different types of cost are there for different type of
businesses. Generally two type of cost are their absolute cost and relative cost. In this case we
have to measure the method of costing through which the company St. Patrick Hospital can
analyze their cost and can improve their profit through this (Banerjee, 2006). This case involves
the method, practice and processes that can be adopted by the company for better managing their
cost of business. A number of costing are used for costing are used for costing products, cost
control and managerial decisions.
TASK 1
1.1 Principal of costing and Business control system
The cost accounting principle working at measuring the cost of business efficiently and
effectively that the company can manage their cost and reduce the expenses over that.
Stakeholder engagement
It is the process by which an organization can involve the people who can be affected through the
decision of the business. Costing can affect the supplier because it directly relates to the profits
of the business. Costing decision affects the management of the company and also the profits of
the company because it is related to the expenses (Xanthopoulou and et.al, 2009).
Data accuracy
Data collected on the basis of costing method should be accurate and clear because on the
basis of the data’s the results of actual cost which is in the business can be evaluated over a
period of time in the business.
Consistency
Accountants are expected to be consistent at the time of applying the method of costing.
This principal states that if any method of costing is adopted than the same should be followed in
the future costing process, so the company can analyze the cost effectively (Drake and Fabozzi,
2012). Using different method all the time make confusion every time in proper costing.
Comparability
Principle of costing states that the costs of the company could be compared to the cost of
previous year and to different companies, that can help the organization to improve the results.
Reliability
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Data on the basis of which the costing is done should be reliable and verifiable, this could
help the organization to evaluate actual cost of business and helps the organization to manage the
things effectively (Cortes, 2009).
Business control system
This is the business system that helps the company to protect from the costly things, careless and
uninformed behaviors or on taking wrong decisions. Three types of controls are there:
1) Visual control
It deals the numerical portion the business which includes the budgets, balance sheet etc.
If the right things are not going on in the business that issues can be solved with this method.
2) Procedural controls
It includes the things like two unrelated parties are there and cheeks the flow of
money .this procedure controls the flow of money into the wrong direction and the cost can be
controlled through this (Daly, 2011).
3) Embedded controls
This method includes automatic data backups and intentionally designed financial
controls that works automatically and the cost of different things can be controlled through this
because it focuses on the wrong expenditure which re going on in the business and attract the
managers towards those expenses that should be controlled.
1.2 Information needed to manage the financial resources
Managing the information of financial resources is the main important task of the
business that should be done effectively in any business. Profit and loss statements: To manage the financial resources information of profit and
loss account plays a vital role (Stolowy and Lebas, 2006). It evaluates the profits and
losses of the company through which a company can manage their financial resources.
 Balance sheet: Balance sheet is the document that analyze the total earning of the
business over a period of time. Recognize changes in plans and activities accordingly
helps to manage the financial resources of the company. Budgets of the company: Different types of budgets have to be evaluated regularly on
basis of which the financial resources can be managed effectively (Epstein and Buhovac,
2014).
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