New Life Trust Company is a medical service provider company, who offers a wide range of medical and surgical services towards the hospitals, especially, Ipsborough Hospital and Pelawton Hospital. The financial condition of these both hospitals is not up to the mark. Whereas, the accident and energy departments of these hospitals do not have the proper financial resources to run their operation smoothly. At the same time, the key personnel of New Life Trust Company must hire a financial consultant to determine the direct and indirect financial factors of an organization that may impact the decision-making process of the organization to provide a better financial position. Also, for those who are seeking healthcare dissertation help, New Life Trust Company always stands ready in place to provide the best assistance.
On the other hand, this study also reflects the critical financial issues, which must be considered by the board of the New Life Trust before making a closure decision. Moreover, this study also provides appropriate advice for the board to evaluate the value for money of the potential closure. Thus, it will help the company to accomplish a better financial position to sustain in the competitive market.
Income Statement: Income statement is one of the direct financial factors, which is needed to be considered by the consultant of the New Life Trust. It is the financial scorecard of every business organization. This financial factor includes several financial components to complete this financial statement, which helps an organization to take adequate decisions to accomplish a better financial position. The board of the New Life Trust organization, which provides a wide range of medical and surgical services towards two major hospitals, such as Ipsborough Hospital and Pelawton Hospital. Hence, the financial consultant of New Life Trust Organization must look after the cost of their raw material, while making any financial strategy.
On the other hand, operating expenses, i.e. all overhead and labor cost must be determined by the financial expert while making adequate decisions for the betterment of their organization (Bonner, Clor-Proell, and Koonce, 2014). The financial consultant of the New Life Trust Organization must be recognized the difference between gross profit margin and total costs, which helps them to take appropriate decision to provide a better financial position of the organization (Abernathy et al., 2017). Depreciation and taxes are also considered the major financial components, which has significantly influenced the financial decision of every organization. Therefore, the financial consultant of the New Life Trust organization must have proper knowledge of the income statement of their organization to decide an adequate strategy for the betterment of their organization (Griffin, 2015).
Cash flow Statement: Cash flow statement is one of the most popular financial tools, which help an organization to determine business requirement and the cash flows of an organization. Moreover, it can be asserted that the cash flow statement helps an organization to develop an appropriate business plan, which helps the organization to sustain in the current competitive market (Gordon et al., 2017). Cash flow statement begins with cash on hand and the revenue amount, whereas, the cash flow statement ends with the net cash flow. The financial consult of New Life Trust organization must be prepared an authentic cash flow statement for the organization to determine the business requirement, which helps to decide an appropriate financial strategy to carry out their business operating efficiently. The cash flow statement helps to determine the other income of an organization, i.e. income derived from investment, interest rate, liquidation of an organization’s assets (Sarmah, 2015). Moreover, it helps the financial export of New Life Trust Organization to identify the requirement of Human resources to run their business activity properly. Thus, this financial factor has positively influenced the decision-making process to make and implement appropriate plans to attain a better financial position (Ratcliffe, 2018).
Balance Sheet is the most important direct financial factor, which has gravely impacted the decision-making process of an organization. The balance sheet helps an organization to determine the current assets and liabilities of an organization. Therefore, it will significantly help in the decision making of an organization (Ma, 2017). Moreover, the balance sheet is developed on an annual basis. The higher authorities must be hired a skilled financial export, who develops an authentic balance sheet for determined the current financial state of an organization.
Economy: Economy is one of the essential indirect financial factors, which has significantly influenced the decision-making process of an organization. The economic position of a country has directly impacted the organizational decision. The unemployment rate, interest rate, GDP growth, inflation and deflation rate are the most important economic factors, which must be taken into consideration by the financial expert and the higher authorities of New Life Trust Organization while making adequate decisions in order to provide a better financial position of a company (Del Negro and Sims, 2015). In the inflation situation, the price of the products is rising day by day and accordingly the purchasing power of the customers is falling. Therefore, the financial expert of the New Life Trust Company must be incorporate certain adequate strategies to take appropriate decision to overcome this unfavorable economic situation. Whereas, deflation is also significantly impacted the decision-making process of the company.
Auditing: Audit is a financial process, which helps an organization to examine the financial records of an organization. Therefore, it will help an organization determine loopholes in their organization. Whereas, an auditor is an official staff member, who checks the all business operation related data (Hayes, Gortemaker and Wallage, 2014). There are primarily two types of auditors, i.e., external auditors and internal auditors. External auditors come outside to examine the financial records of an organization.
Moreover, they express their view about the condition of the financial statements of a company. Whereas, internal auditors are the staff members of an organization and the higher authorities of an organization promoting them as an internal auditor, who looks after the auditing operating of the company. The New Life Trust organization must be appointed an auditor to examine their financial records, which helps them to determine any loopholes and any requirement of the organization. Therefore, it will help to make appropriate decisions to mitigate the organizational loopholes in an appropriate manner (Louwers et al., 2015).
On the other hand, it can be argued that an auditor must have an independent approach towards the organization, which helps to audit the financial records of an organization authentically. Whereas, auditing operation helps to decide organizational accounting policies and norms, which helps an organization to control their internal organizational works efficiently. Moreover, the additional responsibilities of an auditor are to check the accuracy of the organizational transaction and to give appropriate advice for the organization to eradicate the organizational issues and discrepancies effectively. Therefore, this indirect financial factor has gravely impacted the decision-making process of the New Life Trust organization (Baldi, Peri and Vandone, 2014).
By the information above, it can be argued that these direct financial factors and indirect financial factors have positively impacted the decision-making process, which helps the financial exports and the higher associates to take adequate decision for the betterment of their organization.
Generally, there are several types of the financial issues, which has adversely impact the performance of an organization. Journal entry issues, contra entry, depreciation issues, budgeting issues, tax payment issues are the main critical issues, which must be considered before making an appropriate closure decision. Financial transaction of an organization must be entered into a journal for preparing a trial balance, which helps an organization to run their financial business operation smoothly (Freyer et al., 2017). As it is known to all that, every tangible asset has paid a certain amount of depreciation for using the assets. The financial expert must calculate the useful life of a tangible asset to calculate the depreciation amount of the tangible assets. The finical expert must be prepared a flexible budget for an organization to run their business operation effectively.
It can be argued that the financial consultant of the New Life Trust Company must look after those mentioned above critical financial issues before making a close decision. The financial expert must entry the all-organizational transaction into the Journal properly to get an authentic financial statement. Appropriate journal entry helps the financial expert to prepare appropriate ledger, which helps the organization to prepare appropriate trail balance. Therefore, it will help the company to make an appropriate decision for the betterment of their organization (Cleverley and Cleverley, 2017). On the other hand, the auditor of New Life Trust must be looked after the contra entry while examining the organizational transaction. The main responsibility of the auditor is to identify that the contra entry is correct or not, which must be taken into consideration while making and implementing the appropriate decisions. The financial expert of the company must be separately allocated funds for different organizational activities, which helps the organization to mitigate the business operation related issues efficiently.
Moreover, the financial head of the New Life Trust Organization must be organized a market research session to determine the current and future trends of the market. Hence, it will help the financial expert of the company to make an appropriate flexible budget for the organization, which help the organization to run their business operation efficiently (Bonner, Clor-Proell and Koonce, 2014). Tax calculation is one of the factors, which must be looking after by the financial department of the New Life Trust to make adequate decisions for the organization. It can also be determined that if the financial consultant of the company has not given any importance towards the aforesaid critical issues, then the organization may be suffered from loss and may be faced a severe problem in the organizational profitability. Therefore, it has adversely impacted the organization to carry out their business properly (Baldi, Peri and Vandone, 2014).
Based on this discussion above, it can be recommended that the consultant of the New Life Trust company should be aware of these issues mentioned above while making a close decision for the company’s betterment. Therefore, it will also help the Ipsborough and Pelawton hospital to improve their working capacity to compete with their market competitors to survive in the current competitive market.
The New Life Trust Company provide a wide range of medical and surgical services towards major hospitals. This study has an upright aim to determine the direct and indirect financial factors, which have a significant impact on the decision of the New Life Trust Company. Moreover, it also helps to improve the financial position of the company. However, certain factors such as training and development, communication, profit margin, productivity, teamwork and others factors also affected the decision-making process of an organization. Based on these factors, the company will accomplish a better financial position in the current market.
Training and Development: Training and development is an upright initiative, which has been incorporated by the Human Resource Manager (HRM) of an organization to improve organizational capabilities. Hence, the higher authorities of the New Life Trust Company must conduct training and development programmes for their employees to improve their employee’s knowledge and skill, which will help the organization to accomplish their pre-determined organizational goals appropriately (Freyer et al., 2017). Whereas the financial expert of this company must be calculated the cost of the training and development programmes and if the cost of the training and development programmes is high, then the higher authorities of the company must choose an alternative measure to enlarge their employee’s knowledge and skills.
Communication: Communication is one of the essential paths to evaluate the value for money of the potential closure. Moreover, it can also be asserted that effective communication plays a vital role in the success of an organization. An effective communication tool helps an organization to build a healthy and friendly relationship between the employers and employees. The financial expert of this company must examine the cost of the communication tool; if it is favorable for an organization, then the company must implement communication tool in their business operation to determine the organizational conflicts and drawbacks (Louwers et al., 2015). Therefore, it will help the top-level management of the New Life Trade Company to take adequate decisions to accomplish their organizational objectives efficiently.
Profit Margins: The financial expert of New Life Trust Company must always calculate their profit margins on a regular basis, which helps to identify the financial growth of the company. Therefore, it will help the higher authorities of this company to take proper decision to earn a huge amount of profits.
Productivity: The higher authorities of the company must do appropriate market research programmes to determine the actual market demands of the provide products and services of the company. Therefore, it will influence the productivity of an organization. Moreover, it can be recommended that higher authorities of the New Life Trust Company must improve their organizational productivity as per the demands of their provided products, which will help the company to earn success efficiently (Hayes, Gortemaker, and Wallage, 2014).
Teamwork: Teamwork helps to provide an upright opportunity for the employees of an organization to create a connection with other employees, which will help a business organization to eradicate the organizational disputes efficiently. Hence, it can be recommended that the higher associates of the company try to build an appropriate friendly atmosphere within their organizational premises to maintain the organizational peace (Abernathy et al., 2017).
Grounded on the different aspects, it can be determined that income statement, cash flow statement and balance sheet are the most popular direct financial factors, which must be considered by the financial expert of the New Life Trust Company while making and implementing adequate decisions for the betterment of the organization. On the other hand, economy and auditing have been considering as the indirect financial factors, which have significant impact the decision of an organization. The GDP growth, interest rate, inflation and deflation rates are the most important economic factors, which must be taken into consideration by the consultant while taking any decision for the betterment of an organization. Moreover, the company must be hired by a loyal auditor to scrutinize their financial records to determine the organizational loopholes. Thus, it will help to make an appropriate decision to overcome the loopholes appropriately. The higher authorities of the organization must be organized training and development programmes to improve their organizational capabilities, which will help the company to attain their pre-determined goals effectively. On the other hand, the financial expert of the organization must look after the cost of the training and development and productivities cost, cost of the communication tools, while making or implementing any decision for improving the performance of the organization. Therefore, it can be concluded that the consultant of the New Life Trust organization must be aware of the direct and indirect financial factors before deciding on strategies for the betterment of the organization.
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