This report has been prepared to analyze the financial management of Australian market. Finance related aspect has been evaluated to perform this study. This study would offer a brief idea to the user about the financial and tax plans of the company as well as country. For conducting this report, Australian tax has been evaluated and it has been found that what the significance of the financial management is. Further, this report would brief the user about entire pros and cons of tax system of the country.
Workplace is the environment of an organization where people come together to achieve the goal of organization as well as their own goals are also achieved by them. A workplace must be according to the culture of the state where it is situated. It has been found through analyzing over many articles, related to workforce, it has been found that workplace is crucial for workforce to manage and accomplish their work without any barrier. It has been found through this study that how a business must set the workplace with connecting the culture of the organization and the goals of the organization. Through this study, it has been analyzed that workplace significance is situated with many other factors as well as such as financial plans, safety programs, work health programs etc (ACCA, 2017).
Workplace is a motivation in itself. Now days, every organization understand the significance of workplace and manage the workplace in such a way that employees could fit in that place easily and could focus towards their work. Currently, young employees are looking for fulfilling and meaningful jobs. According to a research, around 89% contestants have agreed that a good workplace motivate them to work in that organization and work with efficiency. Monitoring the policies and plans of finance is important for an organization to manage the efficiency and funds of the company (ATO, 2017).
Financial plans are a study which is done over the organization’s strategy towards the financial policies. It is a constant effort which is done by the company to make policies, strategies and procedure to review the changes in the workplace of the company. It is required for every organization to maintain a review timely over the policies and plans of the company to make them more significant. Basically, plans and policies are made by the company after forecasting the future changes. It makes the plans more efficient. It has been found that the planning must be done according to every financial and non financial factor if the policies are not prepared in a well manner than company is suggested to make changes in them, so that the company could meet with its goals and objectives (Mirrlees, 2010).
Further, it has been analyzed that it is also crucial for an organization to manage the safety of the work force. If workforce feels safe in the organization then they feel motivated to be in the same organization and work efficiently. So it is suggested to the organization to make policies in such a manner that workforce could feel safe there. Different industries must make different safety plans for the employees such as mining industry are obligated to make some extra safety policies for its employees. According to a research, it has been found that firms which are involving in safety and health plans are more profitable than any other companies (ATO, 2017). Workforce health and safety impact positively over the company’s performance in terms of finance.
Companies could adopt many ways to enhance the safety and health policies which will directly make an impact over the financial performance of the company. If an organization make significant policies and implement then in a proper manner than it could help the organization to enhance its profitability as well as its financial performance. If an organization make safety and health policies of employees by forecasting every related factors than the employees get motivated and it directly impact over the motivation, employee turnover, employee efficiency, government intervention, concept of “maximum utilization of minimum resources” etc (Bell and Hindmoor, 2014). it enhances the work efficiency and reduce the training cost and other employees cost of the organization.
More, it has been analyzed that these safety and health policies boost the morale of the employee to accomplish their work with more effectively and efficiency. The health and safety polices of employees are covered under many laws, rules and regulations of Australia, thus, if an organization does not conform to the health and safety norms of workforce than company could have been penalized (ATO, 2017). The administration authorities could dangle the business functioning of the company for a particular period. Additionally, it has been found through a report that if an organization does not show its concern about its employees and their safety and health compliances than surely company is required to face huge issues further. An organization is made with the help of the society so if the society is not taken care by the organization than that organization could not survive for a long period in the society.
Thus it has been found that it took many years for a company to manage and make a brand image. If the company do not concern about such little things than the brand image of the company could be diminished (Whiteford, 2010). So it is suggested to the company to focus over the health and safety policies of the company as well as it is also required for the company to manage the financial and other policies after forecasting entire issues and pros of future. It would help the company to manage the better decisions in terms of the organization, its financial planning, performance of the company, profitability of the company etc. thus it could be suggested to a company to make a focus over the safety and health issues of a company.
Financial plans are a study which is done over the organization’s strategy towards the financial policies. It is a constant effort which is done by the company to make policies, strategies and procedure to review the changes in the workplace of the company. It is required for every organization to maintain a review timely over the policies and plans of the company to make them more significant. Basically, plans and policies are made by the company after forecasting the future changes. It makes the plans more efficient. It has been found that the planning must be done according to every financial and non financial factor if the policies are not prepared in a well manner than company is suggested to make changes in them, so that the company could meet with its goals and objectives.
It has been analyzed that it is required for every organization to manage and maintain the financial planning. A financial planning performance could be analyzed through monitoring the policies timely. The evaluation technique varies through company to company and industry to industry. Basically, this evaluation technique is performed after a quarter to analyze the performance of the company. In this process, the top level management of the company analyze every factor of the organization and market, and according to that, they make the policies. After preparing the policies and plans related to finance are transferred to the middle level management of the company to execute it. Middle level management execute this plans and policies over their subordinated. And finally, subordinates perform their functioning in such as way that entire guidelines of that plans could be fulfilled so that the objectives and goals of the company could be achieved (Woellner et al, 2011).
Further, for evaluating and monitoring the performance of the company, the evaluation technique varies through company to company and industry to industry. Basically, this evaluation technique is performed after a year to analyze the performance of the company. For it, the budgets and the actual result of the company is compared and it is evaluated that was the company able to achieve its target or some barriers have been faced by the company in that particular period due to which the target could not be achieved. Through evaluating the difference, a company is required to make decisions accordingly in near future (Stebbing and Spies-Butcher, 2010).
Financial planning and monitoring, both are the crucial stages for a company. Financial plans are a study which is done over the organization’s strategy towards the financial policies. It is a constant effort which is done by the company to make policies, strategies and procedure to review the changes in the workplace of the company whereas monitoring the plan is the last step of this process where the actual and budgeted performance of the company is compared in concern of analyzing the result of the company. In this process, the budgets and the actual result of the company is compared and it is evaluated that was the company able to achieve its target or some barriers have been faced by the company in that particular period due to which the target could not be achieved. Through evaluating the difference, a company is required to make decisions accordingly in near future (Davis, 2011).
Top level management of the company performs this study. They make the plans and budgets for the next particular period of the company. After it they analyzed the difference between the actual and budgeted result. This difference of actual and budgeted result is evaluated and found the points where company has lacked to perform its functions. After evaluating these points, company makes many policies to overcome such issues and achieve the goals and objectives of the company. It has been found that the evaluating and monitoring policy of a company is quite crucial as it helps the company to manage the funds and other related things of the company.
Through monitoring and evaluating the figures of the company, company makes new plan to overcome the issues and therefore the performance of the company could be enhanced in near future. Further, it has been analyzed that evaluating is the continuous process as it helps the company to grow rapidly and perform its functions properly.
Bilateral or regional trade agreements are a part of contract which takes place when 2 or more parties come together to deal over an agreement. Bilateral agreements take place when 2 or more parties come together and out of them one party agreed to do something for another parties in a specified consideration whereas the regional agreement is related to a particular region where entire party of a region is taken into concern (Australian government, 2017).
International commercial terms are basic term for any international business. These terms are used by a company to trade with international companies. International chamber of commerce has launched these terms. These terms have been implemented to launch the international business globally (Australian government, 2017).
Competition and consumer act has been launched to offer many powers to the consumer. It has launched many rules and regulations for the company and the market for the safety of the consumer and a better competitive market. This act depict that the consumer and competitors right must be protected by other parties or the organization. Basic matter of this act is unfair market practice, product safety, mergers, price monitoring and acquisitions.
It is an international convention which offers many rules, regulations and guidelines to the air transportation business. Basically, the main motto of this convention offers for the liability in transportation case through air (Schayer, 2017). Additionally, this Warsaw convention offers a unification basis of the rules and regulations of air transportation business.
WTO is a group which has been made for international business rules and regulations. It offers guidelines to the countries and organizations who are involved with international trading. WTO’s members are obligated to follow the international rules made by this group to so international trade (WTO, 2017).
It has been analyzed through performing a study over the Australian tax office that Australia has taxation system of GST (goods and service tax) where GST is levied by the state on the sale of every item. Companies of the state are obligated to file a return to the Australian tax office periodically in regards to GST collection and payment. Additionally, the ATO depict that all the companies except the small companies of the state are required to pay 30% amount of the total profit as a tax amount. PAYG is reduced by the salary of an employee by his employer and it is deposited into the ATO (ATO, 2017). It has been found that taxes are significant for the state to manage the funds and economic condition of the state. Government of the state could only enhance the funds through collecting the amount from the public by the name of tax. It has been found that collected tax amount is the only source of the income of the government and these amounts are used by the government of the state to develop the state in terms of business, safety and many other aspects. Following are some of the areas on which government is required to have control to manage the growth of the state:
If a business wants to perform its operations and business functioning in the Australia market than company is obligated to pay many taxes to the government such as a manufacturing company which wants to set its manufacturing plant in the state is required to take licence from the state. As well as they are also required to pay excise duty on their production to the ATO. Additionally, if the items has been manufactured and sold then the license holder is required to pay the tax accordingly (Saad, 2014).
ATO has exempted many businesses to pay the tax as these companies are required to enhance their profitability and their business functioning in the state. More, they are required to fill a quarter as well as an annual report to the ATO every year. Licence holders are also obligated to pay duty before it incurred to save themselves from penalty.
The companies place enough controls over the business recording procedures. The controls are made to regularly evaluate and monitor the business transactions on timely basis. The discrepancies cost in recording the transactions of business is too high thus, it is significant to have sufficient controls over the business. The discrepancies while recording the transactions of business could be linked to wrong presentation and amount of data. The presentation is recorded incorrectly or the item has been presented incorrectly, in both of these cases, company would have to penalize. Submission of the amount to the agents or any other party is not accepted and it could be impact a high penalty over the business (Rankin, Windsor and Wahyuni, 2011).
Though, the difference in the records, books and report which has been prepared for internal use of the company is reasonable till the time it does not make an impact over the other reports. Thus, the company’s management must ensure that differences do not take place in the returns to be deposited to the ATO. For assuring it, company must take initiative accordingly.
|
Cash sales income for each month |
||||||
|
|
July |
Aug |
Sep |
Oct |
Nov |
Dec |
|
Current month sales receipts (60%) |
35,400.00 |
26,460.00 |
27,600.00 |
30,960.00 |
28,200.00 |
40,200.00 |
|
Last month (30%) |
14,190.00 |
17,700.00 |
13,230.00 |
13,800.00 |
15,480.00 |
14,100.00 |
|
Second last month (10%) |
4,210.00 |
4,730.00 |
5,900.00 |
4,410.00 |
4,600.00 |
5,160.00 |
|
Total |
53,800.00 |
48,890.00 |
46,730.00 |
49,170.00 |
48,280.00 |
59,460.00 |
|
Proactive Management Consultants Pty Ltd – Financial Data – July to December 200X |
||||||||
|
|
July |
Budget |
$ over Budget |
% of Budget |
Aug |
Budget |
$ over Budget |
% of Budget |
|
Ordinary Income/Expense |
|
|
|
|
|
|
|
|
|
Income |
|
|
|
|
|
|
|
|
|
Reimbursed Expenses |
– |
600.00 |
(600.00) |
-100% |
800.00 |
1,200.00 |
(400.00) |
-33% |
|
Sales |
59,000.00 |
61,200.00 |
(2,200.00) |
-4% |
44,100.00 |
42,000.00 |
2,100.00 |
5% |
|
Service |
– |
– |
– |
|
300.00 |
100.00 |
200.00 |
200% |
|
Total Income |
59,000.00 |
61,800.00 |
(2,800.00) |
-5% |
45,200.00 |
43,300.00 |
1,900.00 |
4% |
|
Expense |
– |
|
– |
|
– |
|
– |
|
|
Bank Service Charges |
50.00 |
50.00 |
– |
0% |
40.00 |
50.00 |
(10.00) |
-20% |
|
Books and Publications |
80.00 |
100.00 |
(20.00) |
-20% |
200.00 |
100.00 |
100.00 |
100% |
|
Dues and Subscriptions |
50.00 |
50.00 |
– |
0% |
– |
50.00 |
(50.00) |
-100% |
|
Expensed Equipment |
600.00 |
500.00 |
100.00 |
20% |
450.00 |
500.00 |
(50.00) |
-10% |
|
Advertising |
2,000.00 |
2,000.00 |
– |
0% |
2,000.00 |
2,000.00 |
– |
0% |
|
Insurance |
10,000.00 |
10,000.00 |
– |
0% |
300.00 |
1,000.00 |
(700.00) |
-70% |
|
Finance Charge |
– |
100.00 |
(100.00) |
-100% |
10.00 |
10.00 |
– |
0% |
|
Loan Interest |
4,970.00 |
5,000.00 |
(30.00) |
-1% |
3,300.00 |
3,300.00 |
– |
0% |
|
Licenses and Permits |
1,100.00 |
700.00 |
400.00 |
57% |
– |
– |
– |
#DIV/0! |
|
Motor Expense |
9,900.00 |
9,000.00 |
900.00 |
10% |
3,100.00 |
2,570.00 |
530.00 |
21% |
|
Office Supplies |
30.00 |
150.00 |
(120.00) |
-80% |
90.00 |
150.00 |
(60.00) |
-40% |
|
Payroll Expenses |
25,000.00 |
25,000.00 |
– |
0% |
25,000.00 |
25,000.00 |
– |
0% |
|
Postage and Delivery |
30.00 |
20.00 |
10.00 |
50% |
70.00 |
20.00 |
50.00 |
250% |
|
Printing and Reproduction |
770.00 |
1,000.00 |
(230.00) |
-23% |
500.00 |
350.00 |
150.00 |
43% |
|
Accounting Fees |
– |
– |
– |
#DIV/0! |
1,200.00 |
1,200.00 |
– |
0% |
|
Legal Fees |
– |
– |
– |
#DIV/0! |
500.00 |
– |
500.00 |
#DIV/0! |
|
Recruitment & Training |
– |
– |
– |
#DIV/0! |
– |
500.00 |
(500.00) |
-100% |
|
Rent |
1,200.00 |
1,200.00 |
– |
0% |
3,500.00 |
3,500.00 |
– |
0% |
|
Repairs |
250.00 |
300.00 |
(50.00) |
-17% |
– |
300.00 |
(300.00) |
-100% |
|
Software Expense |
300.00 |
300.00 |
– |
0% |
60.00 |
60.00 |
– |
0% |
|
Stamp Duty |
70.00 |
100.00 |
(30.00) |
-30% |
100.00 |
100.00 |
– |
0% |
|
Telephone |
90.00 |
100.00 |
(10.00) |
-10% |
300.00 |
100.00 |
200.00 |
200% |
|
Travel & Ent |
800.00 |
1,500.00 |
(700.00) |
-47% |
230.00 |
1,000.00 |
(770.00) |
-77% |
|
Utilities |
247.00 |
250.00 |
(3.00) |
-1% |
250.00 |
250.00 |
– |
0% |
|
Total Expense |
57,537.00 |
57,420.00 |
117.00 |
0% |
41,200.00 |
42,110.00 |
(910.00) |
-2% |
|
|
– |
|
– |
|
– |
|
– |
|
|
Net Income (EBIT) |
1,463.00 |
4,380.00 |
(2,917.00) |
-67% |
4,000.00 |
1,190.00 |
2,810.00 |
236% |
|
Opening Balance |
51,200.00 |
51,200.00 |
– |
0% |
47,463.00 |
49,260.00 |
(1,797.00) |
-4% |
|
Receipts |
53,800.00 |
55,480.00 |
(1,680.00) |
-3% |
49,990.00 |
49,250.00 |
740.00 |
2% |
|
Payments |
57,537.00 |
57,420.00 |
117.00 |
0% |
41,200.00 |
42,110.00 |
(910.00) |
-2% |
|
Closing Balance |
47,463.00 |
49,260.00 |
(1,797.00) |
-4% |
56,253.00 |
56,400.00 |
(147.00) |
0% |
|
|
Sep |
Budget |
$ over Budget |
% of Budget |
1st Quarter |
Budget |
$ over Budget |
% of Budget |
|
Ordinary Income/Expense |
|
|
|
|
|
|
|
|
|
Income |
|
|
|
|
|
|
|
|
|
Reimbursed Expenses |
1,200.00 |
2,000.00 |
(800.00) |
-40% |
2,000.00 |
3,800.00 |
(1,800.00) |
-47% |
|
Sales |
46,000.00 |
41,000.00 |
5,000.00 |
12% |
149,100.00 |
144,200.00 |
4,900.00 |
3% |
|
Service |
100.00 |
400.00 |
(300.00) |
-75% |
400.00 |
500.00 |
(100.00) |
-20% |
|
Total Income |
47,300.00 |
43,400.00 |
3,900.00 |
9% |
151,500.00 |
148,500.00 |
3,000.00 |
2% |
|
Expense |
– |
|
– |
#DIV/0! |
– |
|
– |
#DIV/0! |
|
Bank Service Charges |
50.00 |
50.00 |
– |
0% |
140.00 |
150.00 |
(10.00) |
-7% |
|
Books and Publications |
80.00 |
100.00 |
(20.00) |
-20% |
360.00 |
300.00 |
60.00 |
20% |
|
Dues and Subscriptions |
60.00 |
50.00 |
10.00 |
20% |
110.00 |
150.00 |
(40.00) |
-27% |
|
Expensed Equipment |
12,000.00 |
12,000.00 |
– |
0% |
13,050.00 |
13,000.00 |
50.00 |
0% |
|
Advertising |
500.00 |
500.00 |
– |
0% |
4,500.00 |
4,500.00 |
– |
0% |
|
Insurance |
700.00 |
1,000.00 |
(300.00) |
-30% |
11,000.00 |
12,000.00 |
(1,000.00) |
-8% |
|
Finance Charge |
10.00 |
10.00 |
– |
0% |
20.00 |
120.00 |
(100.00) |
-83% |
|
Loan Interest |
3,300.00 |
3,300.00 |
– |
0% |
11,570.00 |
11,600.00 |
(30.00) |
0% |
|
Licenses and Permits |
– |
– |
– |
#DIV/0! |
1,100.00 |
700.00 |
400.00 |
57% |
|
Motor Expense |
3,100.00 |
1,200.00 |
1,900.00 |
158% |
16,100.00 |
12,770.00 |
3,330.00 |
26% |
|
Office Supplies |
150.00 |
150.00 |
– |
0% |
270.00 |
450.00 |
(180.00) |
-40% |
|
Payroll Expenses |
25,000.00 |
25,000.00 |
– |
0% |
75,000.00 |
75,000.00 |
– |
0% |
|
Postage and Delivery |
50.00 |
20.00 |
30.00 |
150% |
150.00 |
60.00 |
90.00 |
150% |
|
Printing and Reproduction |
80.00 |
150.00 |
(70.00) |
-47% |
1,350.00 |
1,500.00 |
(150.00) |
-10% |
|
Accounting Fees |
– |
– |
– |
#DIV/0! |
1,200.00 |
1,200.00 |
– |
0% |
|
Legal Fees |
– |
1,200.00 |
(1,200.00) |
-100% |
500.00 |
1,200.00 |
(700.00) |
-58% |
|
Recruitment & Training |
– |
– |
– |
#DIV/0! |
– |
500.00 |
(500.00) |
-100% |
|
Rent |
3,500.00 |
3,500.00 |
– |
0% |
8,200.00 |
8,200.00 |
– |
0% |
|
Repairs |
– |
– |
– |
#DIV/0! |
250.00 |
600.00 |
(350.00) |
-58% |
|
Software Expense |
60.00 |
60.00 |
– |
0% |
420.00 |
420.00 |
– |
0% |
|
Stamp Duty |
100.00 |
100.00 |
– |
0% |
270.00 |
300.00 |
(30.00) |
-10% |
|
Telephone |
300.00 |
100.00 |
200.00 |
200% |
690.00 |
300.00 |
390.00 |
130% |
|
Travel & Ent |
200.00 |
100.00 |
100.00 |
100% |
1,230.00 |
2,600.00 |
(1,370.00) |
-53% |
|
Utilities |
250.00 |
– |
250.00 |
#DIV/0! |
747.00 |
500.00 |
247.00 |
49% |
|
Total Expense |
49,490.00 |
48,590.00 |
900.00 |
2% |
148,227.00 |
148,120.00 |
107.00 |
0% |
|
|
– |
|
– |
#DIV/0! |
– |
|
– |
#DIV/0! |
|
Net Income (EBIT) |
(2,190.00) |
(5,190.00) |
3,000.00 |
-58% |
3,273.00 |
380.00 |
2,893.00 |
761% |
|
Opening Balance |
56,253.00 |
56,400.00 |
(147.00) |
0% |
154,916.00 |
51,200.00 |
103,716.00 |
203% |
|
Receipts |
48,030.00 |
45,210.00 |
2,820.00 |
6% |
151,820.00 |
149,940.00 |
1,880.00 |
1% |
|
Payments |
49,490.00 |
48,590.00 |
900.00 |
2% |
148,227.00 |
148,120.00 |
107.00 |
0% |
|
Closing Balance |
54,793.00 |
53,020.00 |
1,773.00 |
3% |
158,509.00 |
53,020.00 |
105,489.00 |
199% |
|
|
Oct |
Budget |
$ over Budget |
% of Budget |
Nov |
Budget |
$ over Budget |
% of Budget |
|
Ordinary Income/Expense |
|
|
|
|
|
|
|
|
|
Income |
|
|
|
|
|
|
|
|
|
Reimbursed Expenses |
– |
– |
– |
#DIV/0! |
900.00 |
700.00 |
200.00 |
29% |
|
Sales |
51,600.00 |
49,300.00 |
2,300.00 |
5% |
47,000.00 |
41,000.00 |
6,000.00 |
15% |
|
Service |
300.00 |
– |
300.00 |
#DIV/0! |
1,000.00 |
200.00 |
800.00 |
400% |
|
Total Income |
51,900.00 |
49,300.00 |
2,600.00 |
5% |
48,900.00 |
41,900.00 |
7,000.00 |
17% |
|
Expense |
– |
|
– |
#DIV/0! |
– |
|
– |
#DIV/0! |
|
Bank Service Charges |
50.00 |
50.00 |
– |
0% |
30.00 |
50.00 |
(20.00) |
-40% |
|
Books and Publications |
30.00 |
100.00 |
(70.00) |
-70% |
80.00 |
100.00 |
(20.00) |
-20% |
|
Dues and Subscriptions |
– |
50.00 |
(50.00) |
-100% |
50.00 |
50.00 |
– |
0% |
|
Expensed Equipment |
– |
500.00 |
(500.00) |
-100% |
400.00 |
500.00 |
(100.00) |
-20% |
|
Advertising |
16,000.00 |
16,000.00 |
– |
0% |
500.00 |
500.00 |
– |
0% |
|
Insurance |
1,000.00 |
1,000.00 |
– |
0% |
1,300.00 |
1,000.00 |
300.00 |
30% |
|
Finance Charge |
30.00 |
10.00 |
20.00 |
200% |
10.00 |
10.00 |
– |
0% |
|
Loan Interest |
3,300.00 |
3,300.00 |
– |
0% |
3,300.00 |
3,300.00 |
– |
0% |
|
Licenses and Permits |
700.00 |
700.00 |
– |
0% |
20,050.00 |
20,000.00 |
50.00 |
0% |
|
Motor Expense |
3,200.00 |
2,000.00 |
1,200.00 |
60% |
2,200.00 |
2,570.00 |
(370.00) |
-14% |
|
Office Supplies |
400.00 |
150.00 |
250.00 |
167% |
140.00 |
150.00 |
(10.00) |
-7% |
|
Payroll Expenses |
25,000.00 |
25,000.00 |
– |
0% |
32,500.00 |
32,500.00 |
– |
0% |
|
Postage and Delivery |
70.00 |
20.00 |
50.00 |
250% |
10.00 |
20.00 |
(10.00) |
-50% |
|
Printing and Reproduction |
300.00 |
150.00 |
150.00 |
100% |
900.00 |
1,000.00 |
(100.00) |
-10% |
|
Accounting Fees |
– |
– |
– |
#DIV/0! |
1,200.00 |
1,200.00 |
– |
0% |
|
Legal Fees |
– |
– |
– |
#DIV/0! |
300.00 |
– |
300.00 |
#DIV/0! |
|
Recruitment & Training |
10,000.00 |
10,000.00 |
– |
0% |
500.00 |
500.00 |
– |
0% |
|
Rent |
3,500.00 |
3,500.00 |
– |
0% |
3,500.00 |
3,500.00 |
– |
0% |
|
Repairs |
500.00 |
300.00 |
200.00 |
67% |
200.00 |
300.00 |
(100.00) |
-33% |
|
Software Expense |
60.00 |
60.00 |
– |
0% |
60.00 |
60.00 |
– |
0% |
|
Stamp Duty |
– |
100.00 |
(100.00) |
-100% |
– |
100.00 |
(100.00) |
-100% |
|
Telephone |
300.00 |
100.00 |
200.00 |
200% |
200.00 |
100.00 |
100.00 |
100% |
|
Travel & Ent |
1,200.00 |
1,500.00 |
(300.00) |
-20% |
1,200.00 |
1,500.00 |
(300.00) |
-20% |
|
Utilities |
250.00 |
250.00 |
– |
0% |
250.00 |
250.00 |
– |
0% |
|
Total Expense |
65,890.00 |
64,840.00 |
1,050.00 |
2% |
68,880.00 |
69,260.00 |
(380.00) |
-1% |
|
|
– |
|
– |
#DIV/0! |
– |
|
– |
#DIV/0! |
|
Net Income (EBIT) |
(13,990.00) |
(15,540.00) |
1,550.00 |
-10% |
(19,980.00) |
(27,360.00) |
7,380.00 |
-27% |
|
Opening Balance |
54,793.00 |
53,020.00 |
1,773.00 |
3% |
38,373.00 |
35,110.00 |
3,263.00 |
9% |
|
Receipts |
49,470.00 |
46,930.00 |
2,540.00 |
5% |
50,180.00 |
44,270.00 |
5,910.00 |
13% |
|
Payments |
65,890.00 |
64,840.00 |
1,050.00 |
2% |
68,880.00 |
69,260.00 |
(380.00) |
-1% |
|
Closing Balance |
38,373.00 |
35,110.00 |
3,263.00 |
9% |
19,673.00 |
10,120.00 |
9,553.00 |
94% |
|
|
Dec |
Budget |
$ over Budget |
% of Budget |
2nd Quarter |
Budget |
$ over Budget |
% of Budget |
|
Ordinary Income/Expense |
|
|
|
|
|
|
|
|
|
Income |
|
|
|
|
|
|
|
|
|
Reimbursed Expenses |
400.00 |
500.00 |
(100.00) |
-20% |
1,300.00 |
1,200.00 |
100.00 |
8% |
|
Sales |
67,000.00 |
63,000.00 |
4,000.00 |
6% |
165,600.00 |
153,300.00 |
12,300.00 |
8% |
|
Service |
200.00 |
– |
200.00 |
#DIV/0! |
1,500.00 |
200.00 |
1,300.00 |
650% |
|
Total Income |
67,600.00 |
63,500.00 |
4,100.00 |
6% |
168,400.00 |
154,700.00 |
13,700.00 |
9% |
|
Expense |
– |
|
– |
#DIV/0! |
– |
|
– |
#DIV/0! |
|
Bank Service Charges |
10.00 |
10.00 |
– |
0% |
90.00 |
110.00 |
(20.00) |
-18% |
|
Books and Publications |
80.00 |
20.00 |
60.00 |
300% |
190.00 |
220.00 |
(30.00) |
-14% |
|
Dues and Subscriptions |
100.00 |
50.00 |
50.00 |
100% |
150.00 |
150.00 |
– |
0% |
|
Expensed Equipment |
700.00 |
500.00 |
200.00 |
40% |
1,100.00 |
1,500.00 |
(400.00) |
-27% |
|
Advertising |
500.00 |
– |
500.00 |
#DIV/0! |
17,000.00 |
16,500.00 |
500.00 |
3% |
|
Insurance |
1,200.00 |
1,000.00 |
200.00 |
20% |
3,500.00 |
3,000.00 |
500.00 |
17% |
|
Finance Charge |
10.00 |
10.00 |
– |
0% |
50.00 |
30.00 |
20.00 |
67% |
|
Loan Interest |
3,300.00 |
3,300.00 |
– |
0% |
9,900.00 |
9,900.00 |
– |
0% |
|
Licenses and Permits |
– |
– |
– |
#DIV/0! |
20,750.00 |
20,700.00 |
50.00 |
0% |
|
Motor Expense |
2,100.00 |
2,000.00 |
100.00 |
5% |
7,500.00 |
6,570.00 |
930.00 |
14% |
|
Office Supplies |
140.00 |
150.00 |
(10.00) |
-7% |
680.00 |
450.00 |
230.00 |
51% |
|
Payroll Expenses |
48,500.00 |
48,500.00 |
– |
0% |
106,000.00 |
106,000.00 |
– |
0% |
|
Postage and Delivery |
80.00 |
20.00 |
60.00 |
300% |
160.00 |
60.00 |
100.00 |
167% |
|
Printing and Reproduction |
100.00 |
150.00 |
(50.00) |
-33% |
1,300.00 |
1,300.00 |
– |
0% |
|
Accounting Fees |
– |
– |
– |
#DIV/0! |
1,200.00 |
1,200.00 |
– |
0% |
|
Legal Fees |
– |
– |
– |
#DIV/0! |
300.00 |
– |
300.00 |
#DIV/0! |
|
Recruitment & Training |
18,000.00 |
18,000.00 |
– |
0% |
28,500.00 |
28,500.00 |
– |
0% |
|
Rent |
3,200.00 |
3,500.00 |
(300.00) |
-9% |
10,200.00 |
10,500.00 |
(300.00) |
-3% |
|
Repairs |
– |
– |
– |
#DIV/0! |
700.00 |
600.00 |
100.00 |
17% |
|
Software Expense |
60.00 |
60.00 |
– |
0% |
180.00 |
180.00 |
– |
0% |
|
Stamp Duty |
100.00 |
100.00 |
– |
0% |
100.00 |
300.00 |
(200.00) |
-67% |
|
Telephone |
50.00 |
100.00 |
(50.00) |
-50% |
550.00 |
300.00 |
250.00 |
83% |
|
Travel & Ent |
200.00 |
100.00 |
100.00 |
100% |
2,600.00 |
3,100.00 |
(500.00) |
-16% |
|
Utilities |
250.00 |
– |
250.00 |
#DIV/0! |
750.00 |
500.00 |
250.00 |
50% |
|
Total Expense |
78,680.00 |
77,570.00 |
1,110.00 |
1% |
213,450.00 |
211,670.00 |
1,780.00 |
1% |
|
|
– |
|
– |
#DIV/0! |
– |
|
– |
#DIV/0! |
|
Net Income (EBIT) |
(11,080.00) |
(14,070.00) |
2,990.00 |
-21% |
(45,050.00) |
(56,970.00) |
11,920.00 |
-21% |
|
Opening Balance |
19,673.00 |
10,120.00 |
9,553.00 |
94% |
112,839.00 |
53,020.00 |
59,819.00 |
113% |
|
Receipts |
60,060.00 |
55,600.00 |
4,460.00 |
8% |
159,710.00 |
146,800.00 |
12,910.00 |
9% |
|
Payments |
78,680.00 |
77,570.00 |
1,110.00 |
1% |
213,450.00 |
211,670.00 |
1,780.00 |
1% |
|
Closing Balance |
1,053.00 |
(11,850.00) |
12,903.00 |
-109% |
59,099.00 |
(11,850.00) |
70,949.00 |
-599% |
|
Proactive Management Consultants Pty Ltd – Actual – July to December 200X |
||||||
|
|
July |
Aug |
Sep |
Oct |
Nov |
Dec |
|
Ordinary Income/Expense |
|
|
|
|
|
|
|
Income |
|
|
|
|
|
|
|
Reimbursed Expenses |
– |
800.00 |
1,200.00 |
– |
900.00 |
400.00 |
|
Sales |
59,000.00 |
44,100.00 |
46,000.00 |
51,600.00 |
47,000.00 |
67,000.00 |
|
Service |
– |
300.00 |
100.00 |
300.00 |
1,000.00 |
200.00 |
|
Total Income |
59,000.00 |
45,200.00 |
47,300.00 |
51,900.00 |
48,900.00 |
67,600.00 |
|
Expense |
|
|
|
|
|
|
|
Bank Service Charges |
50.00 |
40.00 |
50.00 |
50.00 |
30.00 |
10.00 |
|
Books and Publications |
80.00 |
200.00 |
80.00 |
30.00 |
80.00 |
80.00 |
|
Dues and Subscriptions |
50.00 |
– |
60.00 |
– |
50.00 |
100.00 |
|
Expensed Equipment |
600.00 |
450.00 |
12,000.00 |
– |
400.00 |
700.00 |
|
Advertising |
2,000.00 |
2,000.00 |
500.00 |
16,000.00 |
500.00 |
500.00 |
|
Insurance |
10,000.00 |
300.00 |
700.00 |
1,000.00 |
1,300.00 |
1,200.00 |
|
Finance Charge |
– |
10.00 |
10.00 |
30.00 |
10.00 |
10.00 |
|
Loan Interest |
4,970.00 |
3,300.00 |
3,300.00 |
3,300.00 |
3,300.00 |
3,300.00 |
|
Licenses and Permits |
1,100.00 |
– |
– |
700.00 |
20,050.00 |
– |
|
Motor Expense |
9,900.00 |
3,100.00 |
3,100.00 |
3,200.00 |
2,200.00 |
2,100.00 |
|
Office Supplies |
30.00 |
90.00 |
150.00 |
400.00 |
140.00 |
140.00 |
|
Payroll Expenses |
25,000.00 |
25,000.00 |
25,000.00 |
25,000.00 |
32,500.00 |
48,500.00 |
|
Postage and Delivery |
30.00 |
70.00 |
50.00 |
70.00 |
10.00 |
80.00 |
|
Printing and Reproduction |
770.00 |
500.00 |
80.00 |
300.00 |
900.00 |
100.00 |
|
Accounting Fees |
– |
1,200.00 |
– |
– |
1,200.00 |
– |
|
Legal Fees |
– |
500.00 |
– |
– |
300.00 |
– |
|
Recruitment & Training |
– |
– |
– |
10,000.00 |
500.00 |
18,000.00 |
|
Rent |
1,200.00 |
3,500.00 |
3,500.00 |
3,500.00 |
3,500.00 |
3,200.00 |
|
Repairs |
250.00 |
– |
– |
500.00 |
200.00 |
– |
|
Software Expense |
300.00 |
60.00 |
60.00 |
60.00 |
60.00 |
60.00 |
|
Stamp Duty |
70.00 |
100.00 |
100.00 |
– |
– |
100.00 |
|
Telephone |
90.00 |
300.00 |
300.00 |
300.00 |
200.00 |
50.00 |
|
Travel & Ent |
800.00 |
230.00 |
200.00 |
1,200.00 |
1,200.00 |
200.00 |
|
Utilities |
247.00 |
250.00 |
250.00 |
250.00 |
250.00 |
250.00 |
|
Total Expense |
57,537.00 |
41,200.00 |
49,490.00 |
65,890.00 |
68,880.00 |
78,680.00 |
|
|
|
|
|
|
|
|
|
Net Income (EBIT) |
1,463.00 |
4,000.00 |
(2,190.00) |
(13,990.00) |
(19,980.00) |
(11,080.00) |
|
Opening Balance |
51,200.00 |
47,463.00 |
56,253.00 |
54,793.00 |
38,373.00 |
19,673.00 |
|
Receipts |
53,800.00 |
49,990.00 |
48,030.00 |
49,470.00 |
50,180.00 |
60,060.00 |
|
Payments |
57,537.00 |
41,200.00 |
49,490.00 |
65,890.00 |
68,880.00 |
78,680.00 |
|
Closing Balance |
47,463.00 |
56,253.00 |
54,793.00 |
38,373.00 |
19,673.00 |
1,053.00 |
Through the above calculations, it has been found that the July’s income is 5% less than the budgeted income whereas in august, total income has been exceed by 4%from the budgeted amount. More, the next month’s income has also been exceeded. Variances have been found in expenses as well. It has been found that there is almost every factor where the variances have taken place. For overcoming it, following are some suggestions to the company:
|
Proactive Management Consultants Pty Ltd – New Budget – July to December 200X |
||||||
|
|
July |
Aug |
Sep |
Oct |
Nov |
Dec |
|
Ordinary Income/Expense |
|
|
|
|
|
|
|
Income |
|
|
|
|
|
|
|
Reimbursed Expenses |
600.00 |
1,200.00 |
2,000.00 |
– |
700.00 |
500.00 |
|
Sales |
61,200.00 |
42,000.00 |
57,400.00 |
69,020.00 |
29,285.71 |
45,000.00 |
|
Service |
– |
100.00 |
400.00 |
– |
200.00 |
– |
|
Total Income |
61,800.00 |
43,300.00 |
59,800.00 |
69,020.00 |
30,185.71 |
45,500.00 |
|
Expense |
|
|
|
|
|
|
|
Bank Service Charges |
50.00 |
50.00 |
50.00 |
50.00 |
50.00 |
10.00 |
|
Books and Publications |
100.00 |
100.00 |
100.00 |
100.00 |
100.00 |
20.00 |
|
Dues and Subscriptions |
50.00 |
50.00 |
50.00 |
50.00 |
50.00 |
50.00 |
|
Expensed Equipment |
500.00 |
500.00 |
12,000.00 |
500.00 |
500.00 |
500.00 |
|
Advertising |
2,000.00 |
2,000.00 |
500.00 |
16,000.00 |
500.00 |
– |
|
Insurance |
10,000.00 |
1,000.00 |
1,000.00 |
1,000.00 |
1,000.00 |
1,000.00 |
|
Finance Charge |
100.00 |
10.00 |
10.00 |
10.00 |
10.00 |
10.00 |
|
Loan Interest |
5,000.00 |
3,300.00 |
3,300.00 |
3,300.00 |
3,300.00 |
3,300.00 |
|
Licenses and Permits |
700.00 |
– |
– |
700.00 |
– |
– |
|
Motor Expense |
9,000.00 |
2,570.00 |
1,200.00 |
2,000.00 |
2,570.00 |
2,000.00 |
|
Office Supplies |
150.00 |
150.00 |
150.00 |
150.00 |
150.00 |
150.00 |
|
Payroll Expenses |
25,000.00 |
25,000.00 |
32,500.00 |
42,250.00 |
25,000.00 |
25,000.00 |
|
Postage and Delivery |
20.00 |
20.00 |
20.00 |
20.00 |
20.00 |
20.00 |
|
Printing and Reproduction |
1,000.00 |
350.00 |
150.00 |
150.00 |
1,000.00 |
150.00 |
|
Accounting Fees |
– |
1,200.00 |
– |
– |
1,200.00 |
– |
|
Legal Fees |
– |
– |
1,200.00 |
– |
– |
– |
|
Recruitment & Training |
– |
10,500.00 |
– |
– |
500.00 |
18,000.00 |
|
Rent |
1,200.00 |
1,200.00 |
3,500.00 |
3,500.00 |
3,500.00 |
3,500.00 |
|
Repairs |
300.00 |
300.00 |
– |
300.00 |
300.00 |
– |
|
Software Expense |
300.00 |
60.00 |
60.00 |
60.00 |
60.00 |
60.00 |
|
Stamp Duty |
100.00 |
100.00 |
100.00 |
100.00 |
100.00 |
100.00 |
|
Telephone |
100.00 |
100.00 |
100.00 |
100.00 |
100.00 |
100.00 |
|
Travel & Ent |
1,500.00 |
1,000.00 |
100.00 |
1,500.00 |
1,500.00 |
100.00 |
|
Utilities |
250.00 |
250.00 |
– |
250.00 |
250.00 |
– |
|
Total Expense |
57,420.00 |
49,810.00 |
56,090.00 |
72,090.00 |
41,760.00 |
54,070.00 |
|
|
|
|
|
|
|
|
|
Net Income (EBIT) |
4,380.00 |
(6,510.00) |
3,710.00 |
(3,070.00) |
(11,574.29) |
(8,570.00) |
|
Opening Balance |
51,200.00 |
49,260.00 |
48,700.00 |
55,904.00 |
49,516.00 |
39,377.43 |
|
Receipts |
55,480.00 |
49,250.00 |
63,294.00 |
65,702.00 |
31,621.43 |
39,714.29 |
|
Payments |
57,420.00 |
49,810.00 |
56,090.00 |
72,090.00 |
41,760.00 |
54,070.00 |
|
Closing Balance |
49,260.00 |
48,700.00 |
55,904.00 |
49,516.00 |
39,377.43 |
25,021.71 |
|
Actual Vs Budgeted |
||||||
|
|
July |
Aug |
Sep |
Oct |
Nov |
Dec |
|
Sales |
|
|
|
|
|
|
|
Actual |
59,000.00 |
44,100.00 |
46,000.00 |
51,600.00 |
47,000.00 |
67,000.00 |
|
Budgeted (revised) |
61,200.00 |
42,000.00 |
57,400.00 |
69,020.00 |
29,285.71 |
45,000.00 |
|
Deviation |
(2,200.00) |
2,100.00 |
(11,400.00) |
(17,420.00) |
17,714.29 |
22,000.00 |
|
|
|
|
|
|
|
|
|
Expenditure |
|
|
|
|
|
|
|
Actual |
57,537.00 |
41,200.00 |
49,490.00 |
65,890.00 |
68,880.00 |
78,680.00 |
|
Budgeted (revised) |
57,420.00 |
49,810.00 |
56,090.00 |
72,090.00 |
41,760.00 |
54,070.00 |
|
Deviation |
117.00 |
(8,610.00) |
(6,600.00) |
(6,200.00) |
27,120.00 |
24,610.00 |
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