Manage Finance Within Own Area of Responsibility Inm Health and Social Care or Children and Young Peoples Settings

Unit 158
Manage finance within own area of responsibility in health and social care or children and young people's setting

Outcome 1
Understand financial management in own work setting

Ac 1, 2 and 3
Within the nursery financial management plays a critical role in the financial success of the business.   Our main aim is to provide quality care and learning outcomes for the children but without having sound financial management systems in place we would not be able to cover our outgoings and make a profit, therefore affecting the care we provide.
Getting on top of financial measures of the nursery is an important part of running a growing business, especially in the current economic climate. Many businesses fail because of poor financial management or planning.                                                                                       The success of the business can depend on developing and implementing sound financial and management systems.

Over recent years we have seen a decline in the amount of children registered with us.   This has affected the nursery in many ways, but with good financial systems in place we have been able to survive and are know concentrating on building our numbers up again.

Some of the specific roles included in our financial management systems include:
        • Accounting - Any accounting system should measure, identify, record and communicate all of the financial information about the business.   This can be done in-house or by an outside body.   We use an accountant outside of the nursery to do our accounts.
        • Bookkeeping - . While the accounting system looks at the overall financial picture of the business, bookkeeping deals with the specific transactions that take place on a day-to-day basis.   Receipts and invoices for cash sales, credit card sales and cheque sales need to be kept and logged to account for all monies paid out.   In the nursery we have a book keeper who comes into the nursery monthly to prepare...