Managing Financial Sources in Health and Social Care
The purpose of this study stands for the management of economic resources in the case of health as well as social care. In this study, the assessment will go through the analysis of managing economic resources of All Seasons Elderly Residential Care Home, Acton. Firstly, it will be assessed how this health care institution is performing on the maintenance of costing principles and systems of controlling the business. Then the information about managing economic sources will be jolted down. Eventually, the policies of legislation and other codes of rules will also be discussed. Next, a system for managing financial processes will be evaluated. Therefore, different economic resources gained by the health care institutions will be discussed. Review of two types of budget expenditure will also be reviewed eventually. After that, the controlling and monitoring of budget expenditure must be mentioned and the procedure of reducing disputes will be examined. Analysis of cost expenditure as well as services by All Seasons Elderly Residential Care Home will be coined. The study will be concluded after suggesting some ways to improve the services of health care. As this health care institution needs to sanction a loan for beds from Barclays bank, the report is taking place.
1.1 Principles of Costing and Business Control Systems for All Seasons Elderly Residential Care Home
Costing principles are something that is needed to be in hands of the manager of the All Seasons Elderly Residential Care Home. The costing is needed to be gathered in a specific way so that the manager can control the financial data to maintain all the services given by the institution. Besides that, the data of costing also helps to make knowledge of all economic resources of the institution as well. By having all the information, the manager will be able to fix all the cost expenditure in a particular way. Different types of cost are there, which are named as an indirect and direct cost, fixed, semi-variable, and variable cost as well.
There are other systems for managing the cost those are data accuracy, transparency, engagement of stakeholders, consistency, objectivity, and causality, and materiality. In the case of All Seasons Elderly Residential Care Home, Acton, the suitable systems will be applied after examining all of these systems (Epstein, 2018).
Data accuracy: In the case of health care services, the accuracy of the data is very important because the manager needs to know every single detail of costing expenditures. If the data of costing is not accurate, many troubles can arise such as payment issues of the customers or severe fraud issues in technical instruments also may take place.
Consistency: This kind of costing is also important because of its transparent and auditable modes. In All Seasons Elderly Residential Care Home, the management of the financial department must access this costing so that all the cost expenditures can be jolted down after the end of the year.
Materiality: References of this costing must be covered after the annual year so that it can provide the details of all apparatus and services that are used in health care.
Engagement of stakeholders: Stakeholders’ engagement is something that is a person is interested in the organization. In this case of health and social care, stakeholders can also be those staff who interfere by functioning non-financial attributes, such as patients, employees, and telecom service providers etcetera. In this way, the stakeholders can become shareholders. Now a shareholder must have some important business in financial ways of the organization. All the staff who are engaged through financial matters must go through all the accurate data of costing as well as related information of cost so that the manager can have that information in purpose of the company.
Now there come the business control systems, which are equally needed to be noted in case of All Seasons Elderly Residential Care Home. There are such reactive as well as proactive measures of control to help the company. There are severe issues take place like over spending of cost, misuse of resources and shortfalls. To prevent these issues in any circumstances, business control systems are important (Caniato et al. 2015).
Budget controlling system: This must have the access of possible projection along with achievable projection of profit as well as expenditure of All Seasons Elderly Residential Care Home. This system can track all the budget expenses of the company and transactions as well.
Expenditure: Controlling the expenditure, the institution can control over the misuse of resources and also can reduce wastages. The best price of apparatus and services must be accounted through this system.
Control on personnel: All Seasons Elderly Residential Care Home needs only those staffs who are accurate for the job. After selection procedure the institution must train those staffs in a proper way so that they become useful for the company as well. Besides that, the staffs will be taken good care by the authority of the company also.
1.2 Information for Managing Financial Resources
The information regarding financial resources comes after the cash flow statements, balance sheet and income statement.
Cash flow reflects all the incoming and outgoing cash flow of the company of a net financial year. It is included with all of the transactions done by All Seasons Elderly Residential Care Home and investment too.
Statement of income shows all the loss and profit information done by the company in particular span of time. This time period can be specified by quarterly, monthly and eventually yearly.
Balance sheet pronounces all the assets of the company, equity of shareholders for specific span of time, liabilities of the company. The balance sheet is so much precise at its work that it shows all the small details of transactions done by the institution (Moseley, 2017).
1.3 Regulatory Requirements in Terms of Legislation, Policies and Practices while Managing Financial Resources
Once a health sector is performing in somewhere, the government of the region provides some rules to be maintained by the organization. These rules are needed to avoid any kind of fraud or criminal activities in the institution. In case of All Seasons Elderly Residential Care Home, the institution has to follow some particular rules such as quality control of the services, of the company litigation authority and company house. By the company act 1985, all the companies need to provide their account reports after the end of the annual year. There are specific regulations by HMRC to control all the regulation regarding tax and business functions. All Seasons Elderly Residential Care Home must provide their tax files in a fair way after end of every financial year. Besides that, the quality control commission looks after the quality of services given by the company to the patients or consumers (Laudon, and Laudon, 2016).
1.4 Systems for Managing Financial Resources of All Seasons Elderly Residential Care Home
For managing financial resources there are particular systems such as IT system, audit system, budget system, training system and system of financial accounting. In case of All Seasons Elderly Residential Care Home, the audit system will be the best option because of its transparency and clear data structuring method (Ginter et al. 2018).
An audit system is something that can provide lots of facilities to the management of the company. First of all it is computerized technology so that most of the efficiency will be done automatically. Next it can help on producing all the important data in a specific way, such as library method. The system also helps to scrutinize the financial statement as is. Eventually it can state all the beneficial as well as fraudulent activities in the financial records. This procedure through auditing can also evaluate the improvement of financial sectors of the company. After that it can control over the incoming and outgoing flow of cash by recording them in a suitable way. Such insecurities are there just like if any data in this method is put inaccurately; the rectification is next to impossible (Langabeer, and Helton, 2015).
2.1 Diverse Sources of Income for All Seasons Elderly Residential Care Home
In case of running a health care organization funding for the company is severely needed. The fund does not come only from the given services but there are other recommendations such as receiving grant from the government, investments of shareholders, insurances paid by the third party, contributions and donations as well.
All Seasons Elderly Residential Care Home receives income from several of the above mentioned sectors. But the company must raise its gaining income from different other resources. The health care institution can apply for a governmental grant. As well as from other companies, of which the employees get a concession from the treatment or services (Wager et al. 2017). As soon as the income of the institution gets higher, the services, which are provided, will also be improved as well.
2.2 Analysing the factors those can Influence the Financial Resources
Financial availability is so much important for an organization such as health care that the organization cannot help the patients unless the company is itself capable of providing services. This is why; All Seasons Elderly Residential Care Home needs to cooperate with the government regulations so that the organization becomes able to receive a financial support from the government as well. The government spares money only when it sees that the organization is providing proper services on the note of proper grant money. There are so many other organizations those who grant or donate money to a health sector (Simonet, 2015). These organizations can be private, individual or statutory. The location of the institution also matters that if the health care service provider is situated in posh area, the patients may not look after it frequently. In that case the influence of having financial resources will be lower. All Seasons Elderly Residential Care Home has to show these organizations that how expanded is its service procedure, by this way the stakeholders will be able to see its vast field of work and the granted money will take place in a fruitful way.
2.3 Review of Two Different Types of Budget Expenditure
Budget expenditure is something that is provided to make a clear and clean registration of all financial accounting of the whole economic year of the company. Budget fixation helps the management of the organization to jolt down all the data regarding income, loss as well profit statement of All Seasons Elderly Residential Care Home, expenses for services and operational apparatus etc. Besides that, budget is also used to definite all the financial statements of the company, targets and turnovers. Two types of budget expenditure will be reviewed in this study (Cleverley, and Cleverley, 2017).
Operational Budget: This type of budgeting comes when it is using for a daily basis way of accounting. It reflects the expenses of the company upon the targeted expense and revenue, which are based on the system of quarterly, yearly and monthly. In case of All Seasons Elderly Residential Care Home, the institution will be able to comprise its expenditure and can focus on projected profit through this method.
Capital Budget: This kind of budget shows that how the profit as well as the incoming cash works over the specific sectors. Suppose a certain amount of money is expected to be used for a specific field of the company, then all the financial statements regarding this specific expense will be directly accounted to the capital.
2.4 Decisions about Expenditures made for All Seasons Elderly Residential Care Home
The ultimate target of a company belongs to the profitability and achieving good returns from the services. In case of All Seasons Elderly Residential Care Home, the company needs to consider its analysis based on the profitability functions of the company. The decision making process regarding financial attributes lies on some definite calculative terms such as accountabilities, strategy adjusting, benefit analysis, priorities and emotionalism (Rossom et al. 2016).
Priorities: This is very important in case of a health care institution. The ultimate priority of the company is tends towards the patients. The service to the patient is the foremost thing that is needed for the organization. All Seasons Elderly Residential Care Home must provide its expenditures on proper sections of services needed to the patients. Besides that, the authority of the organization also needs to take care of the income from the given services or if any patient is misusing the services so that a penalty cost for the patient will be granted immediately.
Emotionalism: As this report follows for a health care service provider, the significant point of emotionalism must take place. The nurses or the staffs must be very polite and helpful to the patients. Along with that the company also should observe if any kind of fraudulent is happening under the circumstances. Along with this, the management part of the institution must avoid this emotionalism so that any kind of negative impression may not reflect on the annual report of the company (Xesfingi et al.2016). The financial department of the company has to be aware of every single expenditure on the report. Thus the company will be able to project a proper investment through it.
3.1 Monitoring Expenditure and Managing Shortfalls
Monitoring the financial expenditure of the company must be maintained by the financial department in serious way so that any kind of shortfalls or misuse of cash may not take place. If All Seasons Elderly Residential Care Home becomes able to prevent the shortfalls, the expenditure of the institution can be monitored in a smooth way. There are specific measurements to reduce the shortfalls of the company, such as managing the flow of cash process, prioritizing and control over the economic resources (Mehta et al. 2017).
Managing the flow of cash lies on the process of monitoring the cash flow those are outgoing and incoming. Through this way the company can make records on the expenditure regarding the services as well as other expenses regarding buying any machinery.
Prioritizing works for evaluating the profitability of a particular service that is given to a patient. The finance department must analyse every single kind of service by the respect of profit and loss. This can be helpful to conduct a secure way of control on financial resources too.
3.2 Actions to be Taken on Fraudulent Activities
All Seasons Elderly Residential Care Home must have a huge surveillance over the whole service providing sector. If any kind of fraudulent activities come under watch, the authority must take action as soon as possible. The staffs of the company must be trained in a way that they may not participate in this kind of activities (Gray, 2016). Besides this, many consumers also misuse the service of the organization so that the organization also has to maintain surveillance over the customers also. Huge penalty and detention may not cure the shortfalls always but it can help to prevent these shortfalls for a time being.
3.3 Budget Monitoring Arrangements for All Seasons Elderly Residential Care Home
There are specific arrangements through which the budget of the company can be monitored such as balance sheet, auditing methods and monitoring budget through cash flow.
The managers who are assigned for monitoring budget must work with the spreadsheets and balance sheets so that they can have a surveillance over all the in and out cash flow of the company (Wang et al. 2014). It is previously said that the audit method is one of the most secured way of conducting the surveillance over the every details of investment, income, cash flow etc. But as audit method is computerized way, it can show issues if any kind of wrong data is placed in it.
4.1 Identification of Information that required to make Financial Decisions
To make a clear financial decision, all the departmental heads of the institution must conclude at a single one. Observations those are made by daily surveillance can help to jolt down all the information on a single page. After the analytical discussion about the statements of profit as well as loss and cash flow and budget, the company can come to decide about a definite decision (Ruiz et al. 2016). The decisions are included with all the financial aspects such as capital investment and performance of the company.
4.2 Analysis of the Relation between Care Home Services and Cost Expenditure
The relation between the services provided by the company is directly proportional to the cost expenditure. As the cost expenditure for the services get higher, the service that is providing for the patients will be improved eventually. To provide a good service, All Seasons Elderly Residential Care Home needs to make a healthy environment at the place of work. Not only has that, but the staffs of the company also needed to provide a polite service to the patients also (Pearlson et al. 2016).
As the manager of the institution, one must differentiate all the key issues those are prohibiting the performance of the company. After recognizing those issues, the management must get over with those issues very soon.
To make positive impacts upon the services, the organization’s service must have to be proficient, continuous, effective and well organized.
4.3 Evaluation of Financial Consideration Impact upon a Customer
All Seasons Elderly Residential Care Home must be very definite while selecting the staffs. Evaluative examinations can help the organization to choose a perfect service provider for the organization. By maintaining a proper focus on recruiting method, the company will achieve a few staffs but only those who are efficient, skilful and devoted to the work (Bailey et al. 2018).
As the company only choose those who are soundly skilled and polite, the customers will be able to get perfect services from that particular staff.
4.4 Suggestions of Ways to Improve Services through Changes in Financial Systems
Payment by results: There are certain policies of government, which maintain the health service providing system in a secure way. By this particular way, the health care sector will be motivated to provide standard services to the patients. As well as, when it comes after the monitory attention, all the staffs of the institution will be engaged to provide perfect services as well (Abdelhak et al. 2014).
Excellence and Equity: This method is applied in the health service so that the staffs get interested to their job and also get motivated to it. New ideas of providing services will be granted by the management and as a result the company will be able to see new ways of profit in a short span of time. Along with that, the pharmaceutical companies will also be encouraged to produce new medicines as a result the health sector will be improved soon. The contractual deals with pharmaceutical companies will also be benefited for All Seasons Elderly Residential Care Home.
All Seasons Elderly Residential Care Home has appealed to the Barclays bank for a loan so that the organization becomes able to buy beds for the patient. Thereafter the bank demanded for the financial attributed of the organization. As the manager of financial department of the organization, the report has been made. The report shows how All Seasons Elderly Residential Care Home has prepared its service providing structure by mean of financial whereabouts.
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