Financial Report: Business Structure, KPI, Project Plan, and Risk

This finance report begins with an introduction to financial management, emphasizing its importance in organizational operations. It then delves into different business structures in Australia, including sole trader, company, and partnership, outlining their characteristics and implications. The report also examines key performance indicators (KPIs), both financial and non-financial, and their role in measuring organizational success, providing examples such as income statements and customer relationships. A project plan is presented, detailing communication, training, and IT aspects across four weeks. The report analyzes a case scenario, highlighting the need for improved technical skills and communication within an organization. It suggests implementing budget variance KPIs and offers guidance on budget preparation, including gathering relevant information and identifying trends. Finally, it underscores the role of KPIs in internal control systems and their contribution to skill development and uncertainty management. References to relevant literature are also included.

FINANCE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 6 ...........................................................................................................................................2
CONCLUSION................................................................................................................................4

INTRODUCTION
Finance is one of the important aspect in respect of organisation subject to operating and
managing the department of the entity (Porter and et. al., 2011). This is report defines the
meaning of financial management. There is presentation prepared subject to basic spreadsheets
for budgeting, accounting concepts and financial statements and introduction to budgeting
defined in this context.
TASK 1
Part A
There are basically three type of commercial types are found in Australia such as:
11 Sole trader: In this type of commercial structure only one person holds the control and
ownership of the business. Owner of the business only remain responsible for repayment
of all the debts and the liabilities of the organisation (Reason, 2016). If owner fails to
repay the debts and the liabilities then assets and liabilities of the business can be used to
pay the debts and the liabilities of the organisation.11 Company: this is considered as a large structure of the organisation in respect of
operating and managing the functions at large level. Scope of the company structure
found big in comparison to sole trader and partnership structure. One of the best
advantages of the this structure is that the ownership and control is found separately.
various type of accounting concepts, legislation and concepts are levied upon compay
which are required to follow by the company.
If company is unable to pay the debts and the liabilities of then owner's personal
assets and properties could not be used to repayment of loans and the liabilities. Existence
assumption of accounting separate the role of ownership of owner from the company.11 Partnership: this is one of the type of business structure which contains more than one
interest of people and entities. In simple words when two or more person gathered
together to attain single goals and generating profit are considered as partnership business
structure. Partnership act 1958 levied upon this structure in Australia (Vernimmenand
and et. al., 2014). There is a specific amount of person are decided subject to form the
partnership business structure such as up to 20 members. There may be two type of
partnership structure can be found such as government partnership firms and private
partnership firms.
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Part B
Key performance indicators are considered as a measurement tools or values which assist
managers and accountants to make the structure of the organisation (Shattock, 2010). There are
various type of measurement tools are used as a KPI's such as SMART targets, it is defined such
as
 What are the Specific objectives of the organisation
 Whether the Measurement progress are subject to organisational goals
 Are the goals are Attainable or realistic
 Whether the aims and objectives are Relevant or not
 Is the Time-line is defined in respect of achieving the aims and objectives
Examples of financial and non financial KPI
Financial
There are large number of financial key performance indicators which provides the
information regarding the financial performance of organisation. They also provide the
information regarding changes which are happen in sales growth. Such three major indicators are
mentioned below:
 Income statement: It provides the information regarding expenses and income which is
incurred by organisation during financial year.
 Profit and loss account: This depicts the information regarding profit and loss which is
incurred by organisation.
Non financial
There are too may non financial indicators which are used by the organisation to
understand about their performances which are mentioned below:
 customer relationship
 employees
 operations
 quality
Part C
Project plan
Communication First week Second week Third week Fourth week
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skills
Training and
development
Introduction Brief discussion Practical
overview
Evaluation
process
IT training and
technical
knowledge
Introduction to IT
software
Overview of
problems and
issues in
theoretical form.
practical
overview of
financial problem
Evaluation
process
Presenting skills Soft skills Presentation skills Final reporting
and practical
overview
Analysation of
process
Part D
Minimising the risk and the internal control affecting factors are required to rectify.
Internal control helps the organisation to record the transactions and events in effective manner.
It is require to follow the guidelines given by Australian tax office (Australian taxation office,
2017).
TASK 6
a) As per the analysis the case scenario it is seen that Bill need to pay attention upon developed
skills of the organisation. The main affecting reason of low profitability and deficiency is the
advanced technical structure subject to planning and budgeting (Sen, 2010). Only managing
department and the senior authority only understand the dimensions of the of reporting structure
of the organisation. Current year forecast is also one of the major aspect which reduce the
credibility and the effectiveness of budgetary and reporting control. There is a lack of budgeting
and reporting structure found in operation and management control (Culp, 2011).
Communication is also one of the affecting factors which become barrier to circulate the
informations from one place to another.
It is required to set up a protocol or a system of getting information and frame the
information in single formate. This is the essential part for better control. Accountants need to
install an effective management accounting reporting system to reduce the burden of
management and finance managers. Bill also need to provide professional development training
to employees so that they can be easily communicate their problems with higher level
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management and authorities. Improved communication skills will give better results in the form
of better completion with the help of clear informations.
b) Key performance indicators are considered as a plus points or boosting factors subject to lead
the organisation and industries to next level (Wuttke and et. al., 2013). KPI's are formed in the
form of critically evaluating and the formation of task. Budget variance KPI is one of the
important factor which will help bill to make budgets and forecasting the future situation. On the
basis of previous records bill would be eligible to make the final accounts and the projected
budgets for the tear 2014.
c) Bill need to keep certain things and factors while preparing budgets such as
 Getting the relevant information related to sales, cash inflows, account receivables and
the records of cash sales.
 Collecting the source of documents to summarise the financial information and the
accounting records.
 Identify the changing trends and the adjustments subject to making budgets
 Make an effective and ethical structure of the organisation so that all the information
could be consolidated in single format.
 Prepare a separate accounts and maintain a separate books of accounting such as sales
book or account receivable book.
d) with the help of above accepted format of business organisation will become eligible to
achieve the competitive advantage (Yelkikalan and Köse, 2012). Forecasting of future
events and situations would help the managers to identify the main affecting factors
which impact the performance and profitability of the company (Vernimmenand and et.
al., 2014). It is required to prepare the financial statements in reset of preparing the
financial statements and the budgets.
Contribution of KPI under internal control system
 Development of better understanding which helps in selection of best approaches
 Helps in management of uncertainty and encouragement of actions which helps in
increment of knowledge
 Helps in development of skills of individual and team.
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CONCLUSION
This assignment is based upon power point presentation in which the meaning of
financial management and the accounts defined briefly. There is a peer reflection upon financial
accounting and concepts defined in this context. There is a septate analytical report and data are
summarised in this context. Various type of budgetary information, financial statements such as
balance sheet, income statement and cash flow statemented are elaborated in respect of Ajax
building company.
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REFERENCES
Books and Journals:
Porter, D. and et. al., 2011. Managing public finance and procurement in fragile and conflicted
settings. International Public Management Journal. 14(4). pp.369-394.
Reason, J., 2016. Managing the risks of organizational accidents. Routledge.
Vernimmen, P. and et. al., 2014. Corporate finance: theory and practice. John Wiley & Sons.
Wuttke, D. A. and et. al., 2013. Managing the innovation adoption of supply chain finance—
Empirical evidence from six European case studies. Journal of Business Logistics.
34(2). pp.148-166.
Yelkikalan, N. and Köse, C., 2012. The effects of the financial crisis on corporate social
responsibility. International Journal of Business and Social Science. 3(3).
Culp, C. L., 2011. Structured Finance and Insurance: The ART of Managing Capital and
Risk (Vol. 339). John Wiley & Sons.
Sen, S., 2010. Managing finance in emerging economies: The case of India.
Shattock, M., 2010. Managing successful universities. McGraw-Hill Education (UK).
Vernimmen, P. and et.al., 2014. Corporate finance: theory and practice. John Wiley & Sons.
Online
Australian taxation office, 2017. [Online]. Available through:
<https://www.ato.gov.au/General/Aboriginal-and-Torres-Strait-Islander-people/Tax-for-
individuals/Your-income-and-deductions/Types-of-income/>.
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