Managing Financial Resources in Health and Social Care

MANAGING FINANCIAL RESOURCES
IN HEALTH AND SOCIAL CARE

INTRODUCTION
Financial resources means proper planing, organizing, directing and controlling all activities
that related with finance. In organization financial management play important role because
through this they make strategy for proper utilization of resources and provide better services
and produce quality product and services with low and cheap cost (MacLeod, 2017). Care
south group is a health care corporation and it was founded in 1995 and headquarter situated in
Augusta, Georgia and USA. That provide home care services to patients. This report will be
cover principle of costing, sources of income, factors that affect resources, budget expenditure
and effects of finance affect service user.

1.1 principles of costing.
 Costing is a process of record all original cost of assets, liabilities and investment. It is use by
care south for manage all information of finance and it helps in operate organization
effectively. It also helps in reduce cost and control for increase profit. Organization compares
actual cost and expected cost and then follow following principles for control.
 Stakeholder engagement :- this principle helps in control cost of health and social care
organization because through this care south group engaged all stakeholders that direct and
indirectly relate with organization so it helps in control cost because it includes all stakeholders
and include cost so that they manage and control for reduce cost and increase profit.
 Data accuracy :- this principle also use by care south corporation because through this they
record accurate data and it helps in get fair result so it makes easy to evaluate real cost and
helps in cost control system. For this they use journal entries, ledger, trial balance according to
staying patients and clinical staff and then take decision.

Business control system
is very important for care south because through this system organization focus on achieve
objective and goal. It includes evaluation of staff and analyze their performance and duty that
they do work proper or not. After evaluation managers and owners of health and social care
system make rules, regulations and standard
Following principles use for business control :-
 Materiality :- this principle helps in control of business and analyze that employees and
staff and cost give proper and expected return or not so after that managers and owners of
care south group make rules and regulation for manage and control work for increase
profitability.
 Consistency :- through this principle all department of organization measure
their cost so it makes easy to evaluate and control. Because all department evaluate their
own cost and record originally.

.2 information need for manage finance.
 Many types of information need for health and social care organization for manage
financial resources.
 Care south group has need financial resources for payment of liabilities like payment of
staff, purchase material, equipment, medicines and bed.
 So all things are managed through finance and for meet objective they have to proper plan
acre of their resources.
 It receives revenues from fee of patients and other revenues so information of finance has
to keep accurately and transparent that helps in manage finance.

CONTINUE
 It also has to make plan for face risk that possible and may occur in future suddenly. So
this risk includes in health and social care like neglect to patient, failure of operation and
death of patient during treatment that is risk for care south. So information include like
preparation of budgets, auditing, administrative expenditure, financial cost and renovation
of buildings and equipment needs in manage finance. All these records and information
helps in manage finance.