Finance Management for Health & Social Organisations
Finance Management in Health & Social Care
Financial management is crucial for the success of any organisation, be it private, government or non-government. Successful enterprises watch their finances very carefully and therefore take the right decisions at the right time, ultimately leading to success. Most businesses have a well-structured finance department responsible for looking after the accounts and finances of the company. On the other hand, health and social care organisations most often do not consider financial management to be a priority and lack adequate financial knowledge. This is often characterised by poor financial planning and adequate financial systems in place.
Very often health and social care organisations work effortlessly towards implementing projects that cater to the need of deprived people and in this process do not pay enough attention to financial control. This practice makes health and social care organisations vulnerable to financial losses. In the absence of proper backup plans and funds, health and social care organisations are unable to cope with the funding crisis.
health and social care organisations should realise that managing their finances is of critical importance and they should incorporate necessary measures towards risk management, resource mobilisation and budgeting. It is the responsibility of health and social care organisations leaders to plan their expenditures and investments and manage funds in a way that leads to a sustainable enterprise.
The purpose of this guide is to introduce health and social care organisations to basic financial procedures and systems that are required for the efficient functioning of an health and social care organisations. By implementing the processes and systems mentioned in the guide, you will be able to manage your finances and accounts more competently.
Financial Management is a vital activity in any organisation. It is the process of planning, organising, controlling and monitoring financial resources with a view to achieving organisational goals and objectives. It is an ideal practice for controlling the financial activities of an organisation such as procurement of funds, utilisation of funds, accounting, payments, risk assessment and every other thing related to money.
In other terms, Financial Management is the application of general principles of management to the financial possessions of an enterprise. Proper management of an organisation’s finance provides quality fuel and regular service to ensure efficient functioning. If finances are not adequately dealt with an organisation will face barriers that may have severe repercussions on its growth and development.
There are several options that one can use for managing their finances, this could be either managing them on your own, hire a full-time employee, hire a part-time accountant or a third party who manages all finance related activities for you, for example, a Chartered Accountant.
Most often organisations have a dedicated department that looks after the financial matters of the company. A finance manager is designated for handling finance and managing its resources within an enterprise. All finance-related decisions are taken at this position. Depending on the company profile the finance department can have several designations to cater to the various needs of the company.