MANAGING FINANCIAL RESOURCES

Managing Financial Resources



Managing Financial Resources

Task 1

Explain what principles of costing and business control systems may be adopted in BUPA.

The principles of the costing and business control systems are going to matter a lot for the BUPA Home Care. The most important element for the Manager is to develop an understanding of the organization's budget. A proper note of the cash outflows must be recorded in order to study all the costs in detail. In this way, those areas that require cost savings can be analysed completely. Secondly, those costs those are necessary needs to be incurred at any cost. Some of the cost control measures that can be adopted by the company are:

Investigative Procedures for detecting variance between actual costs and budgeted costs.

Diagnostic procedures for identifying the cause of variance.

Implementation of Corrective Procedures between the Actual and Budgeted Costs.

The proper monitoring and assessment of all costs is going to be an important requirement for the BUPA Home Care. This will enable in addressing the short falls included in the Financial Statements. The future recommendations can be made only after having a comprehensive analysis of all the expenditures. Therefore, these are the necessary steps for the Company in having suitable business control systems.

What were main heads/amounts of income for BUPA in the last financial year?

The main heads/amounts of Income for BUPA in the last financial year is mentioned in the

Description of Income

Revenue

Financial income

Amount

£481,613

£7,868

These were the total heads/amounts of Income for BUPA in the Financial Year of 2012.

1.3 What regulatory requirements need to be satisfied while managing financial resources in BUPA?

The regulatory requirements matters for the management of the financial resources in the BUPA. The major regulatory requirements are to have proper registration of the company and the Government needs to have their important records. The inclusion of taxes also occurs in this regard. The regulatory requirements also are a mechanism to have proper record of the revenues and expenses. The option of meeting the regulatory requirements is going to help the company in performing legal transactions for the management of the financial resources.

Evaluate the systems for managing financial resources in BUPA

The major objective of the BUPA Home Care is to prepare a proper plan for the management of the financial resources. The concept of the Financial Management refers to the main principle of the managing an organization's resources in the best possible manner. A financial management comprises of several tools and processes which permits a necessary control, conservation, allocation and investment of an organization or program's resources. All these tools must be designed in an effective manner (Walshe & Rundall, 2001, pp.429-457). The organization must meet the external challenges in the effective manner. In some cases, the macroeconomic factors such as high rate of inflation and interest rates also produced a negative impact on the company's profitability.

Task 2

2.1 What are the diverse sources of income for BUPA?

The biggest source of the income for BUPA is ...