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INTRODUCTION Resources are an integral part of an enterprise without this a business cannot run in a market. It is necessary to manage financial and accounting informations in order to derive financial performance of the business. The present case is related to health and social care sector where various principles and systems are described to effectively manage its financial resources. The report focuses on the role of planning, various sources of income as well as various factors influence the financial resources in a positive and negative manner. It describes about budgeting and expenditures in terms of its importance in the health and social care business. The present report indicates several types of financial systems as well as various processes which help the management to manage the financial resources.

TASK 1 1.1 Explanation of the principles and business control systems in a residential care For each and every element, various principles and control systems are there to manage the business effectively. In order to this, costing also has several principles to manage financial resources which are given as below:  Cause effect relationship: In a business every cost is related with particular reason and incurred to produce goods and services. (Swayne, Duncan and Ginter, 2012). According to the principle cost must be passes from a function of organisation, if not then it will not consider as a total cost of services.  Cost is charged after its incurrence: A cost which is not incurred in production process, will not be charged from the customers. For example: in company wastage are born by the production process which is normal loss for the firm but it is not considered in total cost of production.  Double entry principle: Every financial transaction had a double entry system which helps the management in reducing error at the time of preparing cost sheet. The system is important for preparing proper and correct cost sheet where all the costs are controlled by managers.

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Managing Financial Resources  

Various principles of costing and regulatory requirements are helpful to manage financial resources in health and social care sector. Read t...

Managing Financial Resources  

Various principles of costing and regulatory requirements are helpful to manage financial resources in health and social care sector. Read t...

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