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Dealing with finance

The financial section of any business case is crucial and will be analysed closely. It’s important to get help and advice from your organisation’s finance department to make sure that any additional or hidden costs are stated clearly.

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Additional costs will have an impact on how you deliver the service, and the timing of delivery. If your bid is successful, the terms of the funding will be binding.

Financial information is usually broken down by separating the capital and revenue expenditure elements of the budgets.

  • Capital expenditure includes costs to acquire or upgrade fixed, physical, non-consumable assets such as buildings and equipment for a new business or extended business.
  • Revenue expenditure includes costs of the day-to day running of the service such as salaries, rent, electricity, heating, travel and consumables such as stationery.

Presenting the financial evidence

Include details of any joint funding you have acquired from another source for one part or element of the service. Clearly state the amount, the source and how it is to be used. 

Find out when your organisation plans future projects or investment and submit your case just before decisions are being made about money and resource allocation.

Check when and how funding will be released:

  • Will funds come via invoice or direct transfer to the bank?
  • Will they be monthly, quarterly or annually?
  • Will they be paid in advance or in arrears?

Staff time

Consult your finance or HR department for a set of current pay grades and scales for the staff you’ll need. Remember to include London weighting, higher cost allowance for unsocial hours etc. Add extra costs for National Insurance, incremental payments and pension contributions, bearing in mind that they may increase in a forecast over the next three to five years. 

To calculate payments for part-time staff, translate the hours into whole-time equivalents. 

Consider extra responsibilities, extended roles and generic posts. 

Add any costs associated with recruiting and inducting new members of staff into a setting-up part of the bid, as these are likely to be non-recurrent costs. Include any possible costs for training existing staff. Don’t forget staff expenses such as travel costs, if appropriate.


Ask the estates department to advise on costings for new builds and refurbishments. Procurement of building services is generally done through nominated contractors or, for smaller work, those directly employed by the organisation. Any planning applications are likely to be lengthy and will need architectural guidance. Fixtures and fittings are generally accounted within the building section; equipment costs should be specified separately. 

Increased activity may directly affect other areas both positively and negatively. For example, while increasing numbers of patients attending an organisation may increase the need for car park capacity, it will also increase income generated through parking.


You can buy, lease or rent equipment. When deciding which option, take into account maintenance, cost of disposables that the equipment uses and training costs. Make sure that all those who will potentially use the equipment are involved in the decision. Try an evaluation sheet to enable people to compare different types of equipment. 

Consult your finance or purchasing department for advice on the formal tendering process. Include items such as computers, telephones and bleeps, and identify storage facilities and the associated cost. Don’t forget future depreciation. 

Make sure that all equipment purchased is checked for health and safety according to your relevant organisational policy.

Next: Building evidence

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