managing financial resources Essay

3020 Words Jan 15th, 2015 13 Pages
St. Patrick’s College London

HND Health and Social Care Management

MANAGING FINANCIAL RESOURCES IN HEALTH AND SOCIAL CARE



John Egharevba



CONTENTS PAGE

INTRODUCTION…………………………………………………………….….p.3

LO1 Understand how systems are used to manage financial resources in health and social care
1.1…………………………………………………………………………..………pp.3-4
1.2…………………………………………………………………………………..pp.4-5
1.3..............................................................................................................................pp.5
1.4..............................................................................................................................pp.5-6

LO2 Understand the role of planning in the management of
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by benchmarking, calculating the expenditure, the staff levels, the cost of resources and how much materials is needed and the actual cost and compare them with the standard and budgeted cost. Financial statements are written report which describes the financial health of an organisation. This includes an income statement and a balance sheet, and often also includes a cash-flow statement. Financial statements are compiled yearly. Cash-flow statements provide a look at the movement of cash in and out of an organisation. The cash-flow statement can be important in checking whether or not an organisation has enough cash to pay its bills, handle expenses, and acquire assets. At the bottom of a cash-flow statement, the net cash increase or decrease can be found (Dixon, 1993).
1.2 Information needed to manage financial resources
Performance measures of strategic goals are essential information needed in the context of managing financial resources. Measures include market share, cash flow, profitability and market position. Objectives laid down are achieved by improving customer satisfaction, organisational flexibility and productivity. Customer demands need to be managed and satisfied; changes in customer demands need to be identified and met efficiently and productivity must be effective. In order to manage financial resources in an organisation, organisation need to know…