Unit 13 Managing Financial Resources

Task 1

1.1 Determining the principles of costing and business control system needed to be adopted in CareSouth Group care home

There are different sources and techniques which will be fruitful in managing the business operations as well as financial system in organisation. To analyse the various techniques and methods the professionals will be helpful as they will have all the information relevant to the financial requirements in the firm (Drummond, Sculpher and Torrance, 2015). CareSouth Group care Home will have appropriate control over costs and expenses made during the period as to perform the business operations which in turn will be effective and helpful to have appropriate gains and management of resources. Similarly, there are various principles of costs which will be helpful in managing the business operation such as:

Cost must have relevant with cause: There must be proper record of the costs and expenses which were being addressed in the reports. Therefore, to have appropriate cost management in an industry there is need to have proper evidence and concrete records which brings the reliability over the funds spend in such activities. The managerial and accounting professionals of CareSouth Group Care home has been suggested to make effective changes into operations which in turn will be effective and helpful as to manage the financials of business.

Abnormal costs must be charged in costing: there must be consideration of all the costs, expenses and losses incurred in the business operations (Kelly, 2015). Therefore, the costs which are relevant with theft, riot, fire and negligence does not have any records in the direct costs but these are the losses which were bare by a firm. CareSouth Group Care home must have records of all the costs which incurred during the period.

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Costs must be charge after it's incurred: There is need to avoid the forecasted costs which is planned by the managers that tit will be incurred in the future time. Thus, the costs which are needed to be recorded by the business professionals which must have incurred during the period that mill required to have appropriate records of all the transactions. CareSouth Group Care home must records transaction only after completion of that particular time and costs of the business.

There should not be influences of past costs: Accounting professionals of CareSouth Group Care home must make records of the transactions which are mainly incurred in the current time (Sommers, Gawande and Baicker, 2017). Therefore, the past costs and expense need not to be considered by them as to plan the future costs. Therefore, the current requirements and costs will have clear estimations over the funds needed to have in the business.