BSBFIM601 Manage Finances - Assessment Task 2

Task 2

PART B: DEVELOP A BUDGET

Now that you have analysed the previous year’s financial performance, your manager has now asked you to develop a month-month budget for the upcoming financial year.

The budget you develop must be comprehensive and reflect business needs and goals for the upcoming year. Your budget must use informed estimates of new items that need to be included based on the business’ goals and your own research about how this will be achieved.

The Principal Consultant would like a new venue for the conference this year and would like you to research local options for the new venue and find out prices of the venue, and then help prepare a bid for the new venue. This must be allowed for you in your budget.

Your budget must be developed in accordance with the Financial Management Policy and Procedure provided and developed in Excel. You must use the same income and expense accounts as per the existing financial statements, unless the item is a new addition. Your budget must show all allocations for payroll tax, income tax, and superannuation.

To prepare your budget, ensure you:

1. Use the information in the business plan to establish critical dates and new initiatives that the organisation intends to implement in the upcoming year that will generate income. Ensure these are reflected appropriately in your budget.
2. Ensure that your budget includes the estimated income and costs for the conference and e-book to be implemented in 2019. This is provided to you as a separate document.
3. Consider any resources required to implement new initiatives and account for them in your budget.
4. Research new venues and find out the costs of the venues. You must provide options for two different  venues that can accommodate up to 120 people and can provide food and drinks and a place for presenters to speak. Include an allowance in the budget for the venue hire. Fill in the Venue Summary Form to show the outcomes of your research.
5. Ensure that the analysis of the previous year’s data and future plans as indicated in the business plan are taken into account in determining projected income and expenditure.
6. Ensure your budget includes the revenue growth that the organisation intends to make and any cost impacts this will have.
7. Include a list of assumptions you have used to develop your budget.
8. Assume a 5% increase in all general costs, as well as a 10% increase in income for consulting and executive recruitment service. Input costs and income for the conference and e-book as per the data provided in the conference document.