Part 1- Introduction The report contains the...
BSBFIM601 Manage Finances Prepare Budgets Editing Services
This assignment explains about the requirements by undertaking financial forecasting, budgeting and reporting requirements for an organization. You could review different questions that examine the understanding of important financial management and legislative requirements for a case study organization.
1.Each of the questions overleaf must be addressed and where indicated additional support materials or references must be provided.
Note - Please note that where sources of information are accessed like websites or literature, these must be clearly referenced.
In this assessment, you have to analyze the effectiveness of financial management approaches by making the review of financial management software, ensuring system to record all transactions, managing risks of misappropriation of funds, complying with due diligence and maintaining an audit trial. For this, you have to follow the under mentioned steps:
1. Planning for financial management
2. Reading and reviewing the profit/loss statements, aging summaries and cash flows
3. Preparation, implementation and revision of a budget that aligns the business plan based on research and analysis of financial data and cash flow trends of the previous years by meeting all the compliance requirements.
4. Contribution towards financial bids and estimation.
5. Establishment of budget and allocation of funds according to the statutory and organizational requirements.
6. Communication with other people including:
a. Reporting on financial activity and making recommendations
b. Identifying and prioritizing significant issues
c. Ensuring managers and supervisors are clear about budgets
Q1.What are the requirements for financial probity? Your response needs to provide an overview what financial probity entails and what this typically would require from you as an employee and an organization for various business activities like e.g. tenders, procurement etc.
Q2. Describe the concepts and principles of accounting:
a. Accounting Entity Concept
b. The Reliability Principle
c. The Going Concern Principle
Q3. Describe the principles of and provisions for effective financial systems:
Under this, you have to define the overview of the common procedures and systems and what these entail:
a. Transaction recording
b. Reconciliation Processes
d. Accounts payable
e. Account receivable
f. Cash management
g. Security measures
h. Banking procedures
i. Revenue systems
j. Financial management systems
Q4.Explain the following Australian, international and local legislation and conventions that are relevant to financial management in the organization. Where these are not relevant to your organization, provide a detailed example for each of these applied to a suitable business activity.
1. Australian Consumer Law (ACL)
2. International Commercial Terms (INCOTERMS)
3. Warsaw Convention
4. Trade Agreements
5. World Trade Organization determinations
Q5.Outline the requirements of the Australian Tax Office, including Goods and Services Tax, Company Tax, Pay As You Go. Your response needs to include details for amounts, calculating these, due dates and provisions relevant to different business models e.g. partnership/sole trader or company.
In this task, students have to review the spreadsheet activity support material and calculate following boxes using the correct formulas.
1. Net Cash Flow from Operations
2. Net Cash Flow from Investing Activities
3. Net Cash Flow from Financing Activities
4. Net Increase in Cash
5. Cash at End of Year
In this task, you have to consider the following steps:
1. Go to the Activity 2 Support material in the spreadsheet. You will find an overview of the existing budget figures for a specific financial year in the “departments”tab.
2. Students can make use of the template known as “Draft budget” on the spreadsheet in order to perform the calculations using basic formulas
3. The description of your forecast includes the dollar figures and the % values in all the affected areas by below outline changes.
4. The % values should be listed for each expenses item shown in the Expenses Analysis for each department.
Q1.You have met with the department heads of Hotel XYZ and the following details have been discussed to prepare your draft budget for the given financial year.
1. Rooms Division:
a. The availability of rooms have been reduced to 90% due to some renovations
b. The forecasted occupancy rate has been described as78%.
c. On the basis of the available rooms, the revenue has been increased to 178 US Dollar
d. The COGS will decrease to 13%
e. The cost of the staff needs to be increased up to 22% by allowing the increase in superannuation and awards.
f. In order to cover the rise in electricity prices, other expenses are required to increase by 9%.
a. Due to specialty menus and new marketing campaign, the food revenue will be increased by 15%
b. The beverage revenue will increase by 8%.
c. Out of the food budget, the cost of the staff need to be adjusted up to 34%
d. Other Expenses will need to be increased to 7%.
Due to the new marketing campaign, the banquet Division gets affected directly which can be directed at the daytime seminars and corporate functions. For this, the kitchen has received specialized equipment like hold-o-mats, sous-vide equipment and multiple combi-steamers.
a. The new food revenue budget was set at $1,600,000.00 (1.6 Million) and the beverage revenue was increased by 55%.
b. The COGS will increase to 29%.
c. The staff costs have been reduced to 19%.
d. Other Expenses will need to increase by 14%.
4. Room Service:
a. The room service revenue from food needs to be increased by 15%.
b. Due to a different system to clear floors and organize delivery, the staff costs will be reduced to 34%.
5. Mini Bar:
The mini bar budget remains unchanged and increased staff costs are absorbed through different processes.
6. Bar Budget:
a. The food revenue budget has been increased by 25% with the implementation of a Tapas Menu.
b. The Beverage Revenue budget has been increased 20% with the introduction of a new cocktail bar and happy hour specials.
c. Staff costs will need to be adjusted to 32%.
d. Other Expenses need to be increased to 11%.
1. In this task, you are required to go to the spreadsheet activity 2 support materials. Arrange the total budget of the finance year and draft the budget for next financial year in the “comparison” tab.
Q1.How do the figures compare overall?
Q2. Which areas would need to be investigated?
2. Students have to review the “Draft budget” in the spreadsheet by creating and moving the copy to the end. Also, you have to rename and label the copy of “future potential” and manipulate the below mentioned scenario:
3. The renovations in the later financial year outlined the budget mentioned in the Task 2 with the number of available rooms that had been limited to 90%.
Q3.How will your budget for 2016/17 be affected once the number of available rooms will be 100% and the occupancy rate will increase to 84% and the average room rate increases to $185.00 per room and “Other Expenses” increases to 14%?
1. Given the suggested changes in the operation for the 2015/2016 as set out in Task 2, discuss which departments you will need to liaise with in terms of financial and HR impacts. Which details will you need to discuss for a successful implementation of the budget?
2. Which factors need to be considered when the hotel reaches full accommodation capacity based on the future forecast for 2016/17?
The modernization in the operation allows the director in conjunction with the F&B director has approached you in order to prepare for the implementation and purchase of new stock control system. It is directly linked to a POS so that the security provisions can be enhanced and the theft can be prevented. Students have to research a suitable system that could provide the details of the features and estimate a cost including ongoing costs for subscriptions and maintenance. Also, attach all the information you have obtained from this particular assessment.
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