Infrastructure Development

Introduction

Financial resource plays a crucial role in the health and social care without which, the health and social care professionals cannot manage the expenditure and improve the quality of their health and social service (Economou et al., 2014). The aim of the study is to identify the financial resources through which the health care providers can manage the financial accounting and develop proper infrastructure so that they can maximise the quality of the health and social care service. through discussing the financial resources, availability of the resources, cost accounting and monitoring budget, it is possible to understand the financial accounting system. Additionally, the study is effective as it provides a scope to recommend some suitable suggestions in order to improve the financial system and process in long run so that the health and social care organisations can manage their operational activities efficiently.

1.1 Principals of costing and business control system

There are relevant principles of costing and business control mechanism through which the health and social care institutions can manage the business operational activities proficiently. The principals are such as data accuracy, stakeholder engagement, consistency, transparency, materiality, cost management system and financial accounting and these principles are beneficial for the health and social care institutions to manage the operational activities and manage the organisations efficiently (Manetti, 2014). The business needs to manage transparency and accountability and build string relationship with the stakeholders so that it is possible to build trust and loyalty among the stakeholders. Business control system in this regard mainly depend on the financial accounting system and cost management where the organisations try to invest more and allocate the resources to improve economies of scale and minimize the cost of the servo so that in long run it is possible to generate revenue and maximise the profitability of the organisations.

1.2 Identifying the information needed to manage financial resources

The information that are required in the health and social care institutions are such as the amount of asset and liability of the company as well as credit liabilities, trade recipients and tax amount so that it is possible to develop effective budgetary report of the institutions. The amount of corporate tax, financial resources and total asset of the company are also considered as crucial factors to manage the financial resources and, in this regard, it is necessary for the top management team to reveal relevant and valid information regarding the asset of the company so that it is possible to manage the financial accounting of the health and social care institutions (Grubnic Thomson and Georgakopoulos, 2015).

1.3 Regulatory requirements for managing financial resources

It is necessary for all the health and social care institutions to follow regulatory framework in the health and social care sector so that the management team can manage the financial accounting efficiently. The regulatory frameworks involve payment of taxes. Financial statement preparation by financial reporting council, licensing and price tariff and requirement of safety and quality of services by Care Quality Commission. Cooperation among the Care Quality Commission, local government, international financial reporting standard (IFRS) and financial managers of the institutions are helpful to manage the financial accounting of the organisations where the management team can follow the regulations and run the operational activities ethically (Challis and Clarkson, 2017).

1.4 Evaluating the system of managing financial resources in health and social care

The management team of the health and social care institutions try to manage the performance of the employees and monitor the financial accounting process in order to improve efficiency to achieve the pre-specified goals and objective of the company. in this regard, the financial accounting system, cost control and management system and payment system are beneficial where the company can organize the resources and utilize it proficiently. These systems are effective for the organisations as it helps to facilitate competitive pricing, minimising cost of the service, improving resource allocation and controlling cost which in turn helps the management team to manage the financial accounting system and generate revenue in long run.

2.1 Diverse sources of income encountered in the health and social care

In the health and social care institutions, there are diverse sources of income which will be helpful for the institutions to manage the operational activities. The major source of income depends on the number of patients where the organisations set the price of the health and social care service and generate revenue by retaining more patients for their service (Kelly, 2015). In this regard, the number of patients admitted in the health and social care institutions is raising at a rapid rate and it is beneficial for the health and social care institutions to generate revenue and maximise profitability of the organisations in long run. this profitability can be utilized by the organisations by reinvesting the money for more research and development to maximise the quality of the health and social care service. The second source of income is the price of share where it is the extra income of the organisations and in this regard the health and social care organisations try to build strong relationship with all the shareholders to manage the shares and gain in long run.

2.2 Factors influencing availability of financial resources in health and social care

There are some factors which have crucial impacts on the availability of the financial resources in the health and social care institutions. The main factors are such as reputation of the organisations, creditworthiness, government funding policies, size of the organisations and brand image in the society. These are the major factors on which the credit availability of the company depends. Brand reputation influences the customers, investors and lenders to involve with the business and get effective benefits from the management team of the health and social care institutions. On the other hand, government funding policies care also effective where the government, NHS do funding for improving the quality of the health and social care institutions (Cervero-Liceras, McKee, and Legido-Quigley, 2015). Additionally, the creditworthiness means that the organisations have the capability to meet the financial obligations and it further helps the institutions to retain more efficient shareholders and investors to the company which in term helps to improve the quality of the health and social care service in long run. size of the organisation, financial reports, balance sheet, assets and budgetary control are also considered as effective factors on which the availability if the finance depend where the organisations in efficient to convince the banking institutions and other shareholders to invest more for maximising values for all the stakeholders involved in the business including government, employees, customers, shareholders and the financers.

2.3 Budget expenditure in the health and social care organisations

Budget is mainly the estimation of income and expenditure where the organisational financial managers try to develop effective budget for controlling the income generation and expenditure of the health and social care institutions. The health and social care organisations try to achieve the financial effectiveness and efficiency through developing effective income side and expenditure side so that it is possible to generate revenue by retaining more clients for the institutions. The estimation of income anticipated, and the expenditure further provides a scope to the health and social care institutions to follow suitable strategic planning and measure cost of delivering the service so that they can estimate the revenue in long run. There are different fields on which the income will be spent and the health and social care organisations try to spend the income on different fields which the manpower, equipment, research and development, Information Technology, communication, marketing planning and financial resources which provides a scope to the management team for successful resource allocation and utilization through which the institutions can maximise the aim and objectives of providing quality health and social care service (Correia, Dussault and Pontes, 2015).

2.4 Decisions about expenditure within the health and social care organisations

It is necessary for the health and social care professionals and management team, to make effective decision after analysing the business situation and in this regard the organisations need to conduct environmental audit through SWOT and PESTLE analysis which in turn helps to identify the upcoming opportunities for the organisation. This is effective as it provides a scope to the health and social care organisations to analyse internal and external environment of the business where the management team can acknowledge the estimated benefits of investing on the business. On the other hand, making effective decision depends on the cost benefit analysis where the health care institutions try to analyse the return on investment and the benefits from investment in the business (Drummond et al., 2015). Once it has been done, it is easy for the decision makers to take effective decision of whether the company should invest on the plant and equipment of the health and social care institution or not. Hereby, the decision of expenditure depends on the cost benefit analysis and the environmental audit where the firm can understand the return on investment whether they can generate revenue through investment or not. In this regard the health and social care institutions need to acknowledge various sources of finance and utilize it well After analysing the internal and external environment as well as cost benefit analysis to achieve the organisational aims (Arnaboldi, Lapsley and Steccolini, 2015).

3.1 Explaining the financial shortfalls

Financial shortfalls are one of the major issue of the health and social care organisations which occur when her is financial liabilities and obligations of the entity or when the organisations cannot repay the loans. It is essential to identify the financial shortfalls so that the management team can operate efficiently to handle the upcoming shortfalls. If the organisations cannot repay the loan from bank, the banking institutions can charge higher amount for penalties and interest. This lead to bad creditworthiness for the particular health and social care institutions and this creates bad impression for the institutions. It is important for the health and social care institutions to manage the possible financial shortfalls so that it is possible to manage the financial accounting of the organisations (Finkler et al., 2016). The organisations need to develop effective corporate relationship with all the shareholders where the management team can sale more share to repay the loans. The second strategy of managing the financial shortfalls is to build strong relationship and negotiate with the managers of the banking institutions so that they can repay the loans successfully in long run. hiring a financial consultant is also other tactics to get effectivities to repay the loans where the management team can manage the financial accounting successfully. These are the major strategic planning through which it is possible to manage the financial shortfalls.

3.2 Explaining the actions taken in the event of suspected fraud

There exist diverse types of fraud who are engaged in criminal activities with the health and social care institutions and it is the role of the managers to identify the fraud and handle them efficiently to suspect them and mitigate the negative effects on the business. In this regard the types of fraud in the financial institutions are such as steeling cash of the company, manipulating the payroll for personal gain, collision the suppliers and consumers and manipulating the banking reconciliation. Hereby, it is the responsibility of the managers of the health and social care organisations to suspect the fraud and manage them efficiently to get rid of the risky situations (Ball, Grubnic and Birchall, 2014). In this regard conducting ion depth inquiry with them and identify the fraud is necessary where the management team can identify the culprits and save the business. The management team try to investigate the fraudulent activities and involve the police force for suspecting the fraud. In this regard proper cooperation and internal communication are required through which the team as a whole can investigate and save the business operations successfully.

3.3 Monitoring budget in the health and social care organisations

Budget monitoring is necessary in the health and social care organisations where the income and expenditure in a specific period time are forecasted and the budget is declared, and it is approved by the top management team and board members of the institutions. The planning process of budgetary control is effective to manage the expenditure as per the plan and the organisation also can generate revenue according to the pre-specified planning. Actual performance of the company as well as the profitability volume depend on the budgetary control. For budgetary monitoring process, the management team try to assess the income and expenditure for a specific period of time and in the next stage, the budget is implemented, and performance will be evaluated for identifying the result of such implementation planning. He third stage involves in conducting in depth analysis for acknowledge the gap between actual performance and budgetary performance. In the last stage, the management team tries to improve the action planning by reducing the existing gap so that the budgetary performance can be maximised in the health and social care institutions and it will have positive impacts o the next budgetary planning (Epstein, 2018).

relating in the health and social care organisations

It is necessary to get adequate information and data related to the finance of the Identifying the information required in the health and social care organisations so that it is possible to make effective decision for the institution to achieve the prespecified aims and objectives. The first information required in the Identifying the information required in the health and social care organisations is assets of the company and its value so that they can improve the infrastructure of the institution to provide better care and practices to the patients. Additionally, the information related to property, plant and equipment is also necessary to develop the buildings, hospitals and nursing homes so that the health care professionals can improve their capabilities. the decision makers of the health and social care organizations also need proper information about the intangible asset such as goodwill of the institutions, copy right and trademarks (Dzau et al., 2017). Moreover, the information of trade receivable amount and inventories also need to be considered in order to make effective financial decision of the health and social care institutions. In addition to these, the decision makers try to calculate the profitability of the company so that they can conduct more in-depth research and development as well as implement effective Information technology solutions for maximising the quality of the health and social care institutions. Moreover, the organisations need to gather proper information about the timings of cash inflows and outflows for evaluating the profitability of the organisations so that they again reinvest the amount for the betterment of the health and social care organisations. Financial information is therefore beneficial for understanding reliability, sufficiency and validity and these are effective for the decision makers to make effective financial decisions.

delivered, costs and expenditure

There is direct connection between the health and social care service delivery cost and expenditure. The health care professionals aim at maximising the quality of the health and social care service and they try to provide the best possible service to the patients with developed equipment and infrastructure. In this regard, in order to provide quality service, the firms need to invest more in the plant and equipment for providing efficient service to the patients after proper diagnosis with developed infrastructure (Glasby, 2017). Hereby, there is positive relationship between the cost of the health and social care service and the quality of the health and social care service. If the organisation can increase the cost of the health and social care service and develop effective instruments, Information Technology Infrastructure and improve the plants and equipment, it is possible for the health and social care professionals to improve their practice and provide efficient service to the patients which in turn helps the health and social care organisations o improve their quality of the health and social care service. If the organisation is efficient to manage the economies of scale, it is possible to reduce the unit cost of the health and social care service and in this regard, the profitability volume of the institutions can be maximised where the health and social care professionals can provide quality service by minimizing the cost of the health and social care service. Hereby, it can be said that there is positive relationship between the quality of the health and social care service and the cost of the service where the organisation tries to invest more and provide high quality efficient services to the patients.

the health and social care service

The financial considerations always need to be under taken in the financial accounting of the health and social care organisations and during the decision-making practice of the companies. the considerations include the sources of finance, profitability of the health and social care organisations and the expenditure of the institutions which have crucial impacts on the decision-making behaviour and the service users. The users of the health and social care service need to understand the sources of finance what they can beer and the price of the health and social care service which is necessary for identifying the price in which the health and social care providers can provide quality health and social care service to the individuals. For example, the public health and social care organisations develops effective health and social care service for the population and price of the public health and social care service is low as compared to the private health and social care service. On the other hand, the private health and social care institutions are trying to maximise profitability and generate revenue and the quality of service is high where they charge high price for their quality service. Hereby, these financial considerations need to be included which have crucial impacts on the service users to choose the best possible health and social care service as per their affordability (Cleverley, 2017).

changing financial systems and processes

Proper management of financial system and process is required to improve the health and social care service where the management team can monitor and assess the financial system and improve it in long run. evaluating the performance in real time is required and it can be improved through integrated Information and Communication Technology (ICT) through which the health and social care managers can handle the staff members and professionals and improve their performance through cooperation and communication. ICT is also effective for managing financial system, and the audit team of the hospitals and nursing homes are also playing significant role for managing the financial system and in this regard the managers need to hire efficient audit team who can manage the financial system efficiently. Cost and unit estimation per head also need to be included in the financial accounting process so that the management team can calculate the financial accounting in real time. Reassessment of the expenditure is also necessary in this regard which will provide a scope to improve the financial accounting system of the health and social care organisations where the management team can manage the accounting system proficiently. Moreover, prioritise the task in the financial accounting system is also essential where the management team can handle the tasks successfully. Reinvestment process also need to be monitored efficiently so that some percentage of profitability can be reinvested in more research and development which will help further to the health and social care organisations can improve their infrastructure and technology to serve the patients in a better way by managing quality of the health and social care service.

Conclusion

The financial accounting management has significant impacts on the delivery of the health and social care service where the health care professionals and management team aim at developing effective infrastructure and improving technology so that it is possible to provide high quality health and social care service to the service users. In this regard the management team need to gather effective information regarding the assets, liabilities, trade pay receivables and other finance related information so that it is easy to develop effective decision which can helps the organizations to achieve the pre-specified aims and objectives. the determinants of the competencies of the health and social care organisations are price of the service, financial accounting, reinvestment in organisational plants and equipment and quality of the service and these factors are also effective for the service users to get benefits of the quality health d social care service. In this regard, in order to improve the financial accounting process of the health and social care organisations, the institutions need to improve assessment of the financial assets, monitoring the performance of the team members, implementing ICT and developing the Information technology infrastructure in the health and social care organisations.

Reference List

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