We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Budgeting for Unseen Changes Essay Sample

essay
The whole doc is available only for registered users OPEN DOC

Get Full Essay

Get access to this section to get all the help you need with your essay and educational goals.

Get Access

Budgeting for Unseen Changes Essay Sample

Financial managers must account for a portion of their budget to be designated for information technology changes and improvements. If a health care organization is planning for a large change to a new computer software system or making upgrades to their current system the financial manager must have figured this movement into the budget to help minimize surprise costs. Financial managers can also plan to acquire lending to help with the large costs incurred with information technology advancements. Planning must begin with making sure the new technology or the upgrade to the current system will be sustainable for the health care system as a whole and when this decision is made then moving forward with budget planning can begin. Budget planning by the financial manager must always have the health care organization’s best interests in mind. Businessdictionary.com defines capital outlay as “Money spent to acquire, maintain, repair, or upgrade capital assets” (“Capital Outlay,” 2013, p. 1).

Making sure that spending the money in the budget is in the best interest of improvement of the information technology is imperative. There is no need to spend money on unnecessary improvements because the money is in the budget. A good financial manager will have the money in the budget because the need is there and panning for the large capital outlay has been built into the budget. In the event of an unforeseen information technology issue with the need for large capital outlays the financial manager may need to seek funding outside of the planned budget. Loans are an option to help with unforeseen capital outlays. Although the funding will take time to be approved and processed it is an option to the financial manager. Adjusting the current budget to find the necessary amount of cash is also an option.

Although this may create other issues for other departments if there is other unforeseen problems. The financial manager will also need to take into account the need for increased staffing and training for the information technology system. In addition, the financial manager needs to prepare for additional costs while making the changes needed to the information system. Outages, downtimes, tweaking of minor programming issues, and possibly on-site training for physicians and office staff need to be accounted for in the funding of information technology changes.

References

Capital Outlay. (2013). Retrieved from http://www.businessdictionary.com/definition/capital-outlay.html

We can write a custom essay

According to Your Specific Requirements

Order an essay

You May Also Find These Documents Helpful

Ten Principles of Economics

The administration of society\'s assets is vital in light of the fact that assets are rare. Scarcity alludes to the constrained idea of society\'s assets. Economics includes the investigation of how society deals with its rare assets In many social orders, assets are allotted through the consolidated choices and activities of a huge number of family units and firms. Hence, financial analysts must examination: 1)...

The key elements of the financial plan

One of the fundamental tools used in managing account, profit forecasting and pricing strategies is definitely the “break-even analysis”, that can be defined as “a technique for analysing how revenue, expenses and profit vary with changes in sales volume or simply it is the analysis that enables any professional organisation to determine the break-even point”. The “break-even point” or BEP can be considered as “the...

Managing fixed and variable costs in a...

Explain the fixed and variable costs in relation to the organization In management accounting, cost management has a crucial role and finds its foundations in understanding “cost behavior”. “Cost behavior analysis” can be defined as “the study of how cost changes when there is a change in an organization’s level of activity”. Managers need to analyze the behavior of three different types of costs: -...

Types of Costs in Management Accounting

In management accounting, cost management has a crucial role and finds its foundations in understanding “cost behavior”. “Cost behavior analysis” can be defined as “the study of how cost changes when there is a change in an organization’s level of activity”. Managers need to analyze the behavior of three different types of costs: - Fixed costs; - Variable costs; - Semi-Variable (or mixed) costs. A...

Cost Sheet: Meaning, Advantages and Preparation

Like for any other business, it is very important for hotels tracking how much money is being spent when taking a new project and running their daily operations, considering the revenue made and the profit generated during a specific period. The most valuable tool to keep track of the expenditures is the “basic cost statement”, also known as “basic cost sheet”, that can be defined...

Get Access To The Full Essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?

Get access to our huge, continuously updated knowledge base

The next update will be in:
14 : 59 : 59
Become a Member