Managing Financial Resources Report - CareTech Holdings Pvt Ltd

MANAGING FINANCIAL
RESOURCES IN
HEALTH AND SOCIAL
CARE

INTRODUCTION
Resources are very key part as well as highly significant for each and every business
enterprise when it going to establish and operate in the market. Without proper and adequate
resources it is not possible to exists and produce various types of products and services. In
context to this, financial resources are highly important and necessary for the firm to generate
sales and revenue. Apart from this, it is highly compulsory to manage financial resources for that
various aspects and elements available. In the current case, CareTech Holdings Public limited
company is chosen which operates in the health and social care sector. The report describes
about various systems and approaches as well as informations which are highly helpful to the
company in order to manage financial resources in adequate manner. Furthermore, it helps to the
reader to understand role of planning and organising in the health care firm to make plan and
manage available financial resources. In context to this, it focuses on ways and methods by
which financial constraints and shortfalls as well as suspected fraud can be reduce at the
workplace of CareTech Holdings Plc. At the last, it looks upon different systems and processes
by which financial resource can be manage in effectual way.
TASK 1
1.1 Explanation of costing's principles and various systems for business control which may be
adopted by CareTech Holdings Plc
In order to control over the business process and costs there are various types of
approaches and principles adopted by the selected business entity. With the help of respective
method's management of health and social care company able to control over the expenses
occurs at the workplace. Further, such approaches are analysed as below:
 Cost benefit analysis: It is one of the best method because here the firm focuses on the
only cost and expenses aspects. By this, different costs which comes into consideration
for producing healthcare services are to be analysed (Bahn, 2015). Through this
management able to identify that at which stage or process cost incurs high. On the basis
of respective information level of costs can be control in easy manner.
 Cost centre: The criteria or department in which all the costs are recorded which occurs
in various functions of CareTech Plc is identified as cost centre. With the current
department the company is highly able to assess expenses and on the basis of this level of
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selling price of the healthcare services is to be determined. On the basis of cost centre
profitability ratios are calculated and further decisions are taken.
 Break even: As per the respective system the company is able to know situation of no
loss and no profit. The point at which total cost of production as well as revenue both are
same and intersect is known as break even point (Durst and Wilhelm, 2012). On the basis
of this CareTech Plc know about the cost and make plan to manage the services as well
as financial resources.
 Forecasting: The system of controlling in which different financial informations like as
sales, cost and profit is to be assumed on the basis of past data is known as forecasting. It
is the best method to control over the costs and make the firm more beneficial in the
health and social care industry.
1.2 Identification of different information which are needed for managing various financial
resources
When the manager going to manage different financial resource available in the firm then
use various types of informations needed which are analysed as below:
 Direct and indirect expenses: First and foremost information require for the CareTech Plc
to know about the availability of resources as well as managing is related to the costs and
expenses. The costs which are directly as well as indirect way comes into consideration
are known as direct and indirect expenditures respectively (Edwards and et.al., 2013). For
example: direct material, labour, equipments purchase, loss of productivity, rent on
property, depreciation on assets etc.
 Variable and fixed expenses: Those types of expenses which are varied as per the level of
output and remain constant even production units changes are called as variable and fixed
respectively. On the basis of such costs CareTech Plc able to know that how much
financial resources are required and on the basis of this further decision taken and
manage. Such costs are like as suppliers of therapeutic, wages to snipers, administration
cost, utility, maintenance, insurance etc.
 Competitive factors: On the basis of competitive firms pricing decisions are taken by the
company (Kopitin, 2013). Due to the respective system, financial resources fluctuates and
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