(DOC) Managing Financial Resources in Health and Social Care
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Added on 2020-01-07
(DOC) Managing Financial Resources in Health and Social Care
Added on 2020-01-07
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Managing Financial Resourcesin Health and Social Care1
TABLE OF CONTENTSIntroduction..........................................................................................................................................3TASK 1.................................................................................................................................................31.1explain the principles of costing and business control systems...................................................31.2 identify information needed to manage financial resources.......................................................41.3 explain the regulatory requirements for managing financial resources......................................51.4 evaluate systems for managing financial resources in a health or care organisation.................6Task 2....................................................................................................................................................72.1 Discuss the diverse sources of income that may be encountered in health and social care.......72.2 analyse the factors that may influence the availability of financial resources in health and social care organisations...................................................................................................................82.3 review different types of budget expenditure in health and social care organisations...............92.4 evaluate how decisions about expenditure are made within a health or social care organisation.....................................................................................................................................11TASK 3...............................................................................................................................................113.1 explain how financial shortfalls can be managed.....................................................................113.2 explain the actions to be taken in the event of suspected fraud................................................123.3 evaluate budget monitoring arrangements in a health or social care organisation...................12TASK 4...............................................................................................................................................124.1 identify information required to make financial decisions relating to a health and social care service.............................................................................................................................................124.2 analyse the relationship between a health and social care service delivered, costs and expenditure.....................................................................................................................................124.3 evaluate how financial considerations impact upon an individual using the health and social care service.....................................................................................................................................134.4 suggest ways to improve the health and social care service through changes to financial systems and processes.....................................................................................................................13Conclusion..........................................................................................................................................13References..........................................................................................................................................152
INTRODUCTIONFinance is act like a rescue ship which saves the life of owner from the financial crisisincurred in the business. This provides unique name to an enterprise which helps in uplifting theirconditions in the external market. This report focuses delivering services in the health and socialcare homes along with the usage of financial resources.TASK 11.1explain the principles of costing and business control systemsCost is regarded as important for every business as the major concern of the management isto reduce all the expenses incurred in their business (Post and Byron, 2015). The cost will beeliminated incurred in the business as this will decreases the total sales eared by an entity. There aredifferent principles of costing need to be taken into consideration in assessing the business costs isgiven as below:Cause- Cost incurred in the business needs to be associated with the cause as without which therewill be no cost incurred in the firm. The cost incurred by the owner to purchase products is one ofthe causes of the costs.Abnormal costs- The uncertainty will be occurred in every business such as fire and theft or anykind of accidents which regarded as abnormal costs which will not be recovered by an entity. Thiskind of cost will be charged to the production of product or service as it is financial expenses.Controlling in business is important in order to regulate the expenditures incurred in thebusiness as this would decrease the ability of the business enterprise (Kaplan and Atkinson, 2015).The monitoring will be done by the owner by delegating their powers among most of the employeeswho are loyal towards the business in managing all the actions to be taken in the business. Thedecisions taken by the owner should be in the favour of the business as every wrong action will ruinthe existing performance of an entity. Some of our business controls which every business aims forimplementing in their business are given as below:Visual controls- Dashboards will be placed in the central location of an entity from which ownerwill monitor all the working of all employees through CCTV cameras placed in each and everyareas of the firm (Grant, 2016). The defaulters can be tracked through this system as theirdesignated actions are marked in this system if they do undesignated work the cameras will spotthem easily into the eyes of the owner. This unique idea will prevent all the crimes in the firm whichindirectly decreases the brand image of an entity in relation to its customers and existing businessplayers.3
Procedural controls- This emphasises of monitoring the whole procedures which is regarded asaudit trail in which whole business transactions are regulate in order to find out any kind of error inthem. Singular items of all the procedures will be checked in order to prevent all the legalconsequences to be incurred in the same business entity in the near future. This would safeguardsthe performance of an entity from all the intruders who intends to affect the current performance ofan enterprise. Overall movement of cash will be checked to prevent them before going into wronghands as cash is regarded as sensitive component in the firm which needs to be cared with extracare.1.2 identify information needed to manage financial resourcesThe primary objective of auditor is to examine all the financial statements in order toexpress their opinion related to true or fair view (Chong, 2014). The reliability of the financialstatements denotes that all facts and figures included in it are accurate and valid as auditors areassessed it in order to give their opinion while checking all the books of accounts of the businessentity. The financial information gained by an individual from the audited financial statementsprepared by an entity in which all business transactions are recorded over the years. There arevarious ways from which an individual can gather financial information which is given as below:Income statement- Sales earned by an entity after operating their business in a particular year arerecorded in this statement. Expenses such as operating and non-operating are deducted from thetotal sales achieved by the firm in a particular year. The amount determined after excluded theexpenses from the sales earned in order to determine the amount of profit which is regarded as thefinal outcome earned by an enterprise.ParticularsAmountParticularsAmountTo purchasesXXXBy salesXXXTo wagesXXXBy closing stockXXXTo GPXXXParticularsAmountParticularsAmountTo depreciationXXXBy GP brought downXXXTo PBDXXXBy commission receivedXXXTo NPXXXBalance sheet- The amount of capital invested is shown as equity in the balance sheet along withall other assets and liabilities are shown under this head (Post and Byron, 2015). The financialposition of an individual will be determined with the help of these statements. An entity are requiredto maintain their status in overall external market after meeting various standards and targets4
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