Finance and Funding in Health and Social Care Management

HEALTH AND SOCIAL CARE MANAGEMENT
Accounting and financial Management
Finance and funding
Name of the Author

Table of Contents
Introduction...........................................................................................................................................2
Task1.....................................................................................................................................................3
Main uses of the financial information in the health and social care organization...........................3
Task-2....................................................................................................................................................3
Task-3....................................................................................................................................................8
Conclusion.............................................................................................................................................9
References...........................................................................................................................................11
Appendix.............................................................................................................................................13

Introduction
With the increasing complexity, each and every organization has been facing the
finance and funding issue in their business. It is analyzed that the main issue in business
process system of organization is related to arrangement of finance and deploying the funds
for the particular project. In this report, finance and funding issue in the health and social care
organization has been taken into consideration. In order to make the effective financial
decision, each and every company needs to collect the required financial information with a
view to arrange and deploy the capital for the particular undertaken project. In the first part,
use of financial information in the health and social care organization has been taken and
after that ratio analysis financial tool have been used to assess the financial performance of
company. This will help reader to evaluate whether company has performed well in market
and not. In the end, investment assessment tool have been used to assess the financial
performance of company and how well company has managed its business in long run.

Task1
Main uses of the financial information in the health and social care
organization
There are several data which could be used by students to take the financial decisions
such as balance sheet, accounts, financial books, profit and loss account, financial budget and
job sheet. This financial information is used to assess the financial situation of health and
social organization to make the profitable business and selecting the particular project in long
run. However, financial information is used by managers, investors, shareholders, creditors
and government regulatory agencies to make the effective financial decisions. There are
several uses of the financial information which could be used by these stakeholders as per
their individual uses. The main responsibility of the financial manager is to analysis the
project investment decisions and how well company could use financial information to make
the effective decisions. Financial manager uses the financial information to assess the
available financial capital, blockage of funds and capital required to fund the particular
project. Financial manager needs to assess the need of the shareholders who have invested
and ready to invest their capital in the health and social care organization. By using the
financial information, financial manager could easily determine require whether the invested
capital would create value on the invested or not. In addition to this, financial managers also
need to consider the point of view of investors. They invest their capital and assess the
viability of the investing company so that they could predict the future amount of dividend on
their investment. Financial manager could use financial information to determine whether
company is providing the required amount of capital in market. In addition to this, financial
managers use this information while applying for the loan capital from financial institutions
and banks- These are the entities which offer loans to company. They use the financial
information to determine the credit worthiness of company for the loan. Therefore, it could be
inferred that company could use these financial information to strengthen the business
functioning and creating value on the investment.