Role of Financial Management in London Health Unit

Financial management involves the development and maintenance of all the financial affair of an organisation. No matter whether may it be a profit or non-profit concern or else a government or nongovernmental sector.

London is very keen about the medical practice organisation in order to implement Financial management in the system has to take care of the following tasks:

  • To follow a good system of auditing.
  • To follow and manage a correct payroll system.
  • Proper records of accounts receivable and payable.
  • Knowledge about the revenue cycle, billing concepts and credit policies.
  • Proper record of revenue and cash flow into the organisation.

In a healthcare or medical practice segment of an organisation, financial management holds a significant role. It does the act of summation and preservation of financial information of the systems so as to ensure the profitability of the concern.

Without Financial management it is impossible to ascertain the actual financial position of an organisation. Thus to know whether an organisation is a profiteering concern or a loss bearing organisation, financial management is indispensable.

The task of Financial management involves the function of accounting, planning, budgeting, and analysis.  Revenue Cycle Management consists of the cash flow system of the organisation, including the billing concepts, bills payable and bills receivable period.

A perfect management of proper payroll systems and audit techniques can effective financial management. Through following the techniques only an organisation can ascertain his financial health in a particular period of time and will be able to find out which projects give more profit and which sector need more attention.

Financial management do not exactly historical in nature which only records the expenses after it is incurred. But the recording of the same will give you a standard to be followed and helps you to monitor the expenses in the future days.