BSBFIM601 Manage Finances - Assessment Task 2

Task 2

PART A: ANALYSE FINANCES

1. Conduct research in preparation for your financial performance report. Review the provided business plan and financial statements for Grow Management Consultants.

1. Review the scenario information above and the 2017 – 2018 Profit and Loss Statements and the 2017 - 2018 Statement of Cash Flow which will be provided to you. Using this information, identify areas of the business that have generated a profit and those that have generated a loss.
2. Conduct research to establish why those areas have made a profit or loss. Your research should include a review of the financial data provided to you, economic conditions and business trends (which you can research on the internet) that may have resulted in the profit or loss. You will be required to report on your findings in the financial performance report as outlined below.
3. Conduct research on accounting software systems as per the scenario information. Make notes for use in your report.

2. In the business plan, you will note that one of the objectives in 2019 is to review the current accounting software system and ensure it meets the business’ goals and needs. Your manager has asked you to compare the current system used with at least two other accounting software systems and make a recommendation about whether the current system still meets business needs, or whether there is a case for change. The rationale for reviewing the system are outlined in the business plan. Conduct research into the current accounting software system and at least two others that the business could consider, identifying pros, cons and costs of each. Fill in the template called Accounting Software System Comparison.

3. Prepare a Financial Performance Report for the Principal Consultants using the template provided by your assessor that includes an:

a) Overview of the purpose of the report.
b) Analysis of the previous year’s (2017 – 2018) profit and loss statement for Grow Management Consultants, including revenue generated, cost of sales, gross profit/loss margin and net profit/loss margin and the areas of highest cost for the business.
c) Analysis of overall business performance including the performance of each of the income streams for 2017 – 2018 as proportionate to others.
d) Outline of reasons for profit or loss based on your analysis of the data and research on economic conditions and business trends.
e) Summary of the organisation’s goals and priorities for the upcoming financial year as documented in the Strategic Business Plan and make some recommendations about the financial resources required to achieve these goals, as well as key dates.
f) An analysis of cash flow trends as per the cash flow statement.
g) The outcomes of your research in relation to the accounting software system and making your recommendation, providing a rationale for your recommendations.
h) A summary of statutory requirements for compliance and tax:

1. GST reporting requirements (the company is required to report quarterly)
2. PAYG withholding obligations
3. PAYG income tax instalment
4. Payroll tax obligations (state government)
5. Superannuation entitlements and employer obligations regarding frequency of payment, choice of fund and reporting to staff.

i) Summarise any current tax or super liabilities based on the financial statements (Statement of Cash Flows and Profit and Loss Statement).
j) An outline of the due diligence checks you completed in preparing your analysis.
k) Analysis of the Ageing Debtor Summaries your Assessor will provide you with and any recommendations for better managing ageing debtors on an ongoing basis.