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Integrated Financial Planning and Reporting in Nursing Homes

  • The reporting requirements of nursing homes and other health and social care facilities are increasing all the time. Along with informative reporting of the actual figures, supervisory boards are asking for larger sets of accurate forecasts as a sound basis for business decisions from a strategic perspective. Added to all that are the demands from banks for a full set of reports before deciding whether to issue a loan, for the monitoring of their loans, and in cases where restructuring becomes necessary.

  • What often happens in practice is that several standard financial plans, such as a budgeted P&L and a capital budget, are prepared concurrently, but these are not consistently interlinked in any way, while liquidity planning, cash flow planning and balance sheet planning are frequently disregarded all together. The integrated financial plan, however, is a logical, self-contained system where the profit and loss account, the balance sheet and the liquidity or cash flow plan are combined. In this system, it is also possible to integrate multi-year plans and run through planning simulations comparing worst-case and best-case scenarios. This provides a sound basis for business decision-making as well as a means of modelling the effects of investing and financing decisions and of recognising the early signs of a financial crisis in the business.

Benefits

  • learn about the necessity, requirements and structure of an integrated financial plan as a tool for comprehensive, reliable and predictive business management and planning (depicting worst-case and best-case scenarios)

    • find out about its implementation – in easy steps based on an Excel application

      • learn how to get the most out of integrated financial planning as a management tool, with particular reference to the development of individual balance sheet and cash flow items

        • look at possible applications of integrated financial planning as a management information tool (calculation of key performance indicators, process optimisation)

          • learn about the structure and requirements of the reporting system

            • learn how to display the integrated financial planning figures in the regular internal and external reports