Managing financial resources in health and social care Essay

Managing financial resources in health and social care - Essay Example One more key principal that the company may follow is that past costs should not be taken into the consideration for the future. The company should meet its all costs related with business control within stipulated time frame. If costs of earlier period are recovered in future period then it will be a wrong step from the organization. The organization can go for activity based costing. It will help the organization to measure each and every step of different activities. In this way the company can keep firm controls on its different activities. The organization needs information related with the different financial indicators of the company. Different information is EBITDA, revenue, earning per shares, profit before tax, dividend distribution, cash inflows of the company and different acquisition costs. All these information were very important for CareTech holding to manage their financial resources. EBITDA helps the organization to measure it operating profitability. This information is very important for the company to manage their operating expenses. It helps the organization to measure its core profitability. Revenue informs the organization about the amount of money that, the company earns from its different activities. Earnings per shares talks about the profitability of the company. The company’s profit related to each outstanding share can be measured with the help this indicator. PBT helps the organization to understand all its profit before paying tax. It gives significant importance to the organization. Cash inflows related information helps the company to understand and measure different cash inflows within a fixed time period. The Company can get significant information from their acquisition related costs. It will help the organization to understand different costs related with their recent acquisitions. Dividend distribution is also a very important aspect as far as the stakeholders are