BSBFIM501 Manage Budgets and Financial Plans

BSBFIM501 MANAGE
BUDGETS AND
FINANCIAL PLANS

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
ASSESSMENT TASK 1.................................................................................................................1
ASSESSMENT TASK 2.................................................................................................................4
PART A...........................................................................................................................................4
PART B...........................................................................................................................................7
Risk Assessment:-............................................................................................................................7
PART C...........................................................................................................................................1
TASK 3............................................................................................................................................2
PART A...........................................................................................................................................2
Marketing budget report..............................................................................................................2
PART B...........................................................................................................................................6
PART C...........................................................................................................................................7
REFERENCES................................................................................................................................9

ASSESSMENT TASK 1
1. Double entry accounting is based on the concept that for every debit there is an equal amount
of credit in any transaction of the business. It refers to the system that is used in the preparation
of the books of accounts. All the transactions that are undertaken by the company shall be
affecting two or more accounts which shall be represented by the double entry system.
2. The accounting entity convention is based on the principle of separate legal entity that is
followed in accounting of any company. It means that the owners and entity itself are two
separate persons and so none is liable for the transactions that are undertaken by the other. The
company can hold the assets in its own name and are to meet the liabilities that are arising.
3. The accrual principle of accounting means that recording of the incomes and the expenses of
the business shall be done when they occur and has no relation with the time when the cash flows
in or out of the company. It ensures in determining the accurate financial results of the company.
4. The accounting equation of the company can be represented as total of assets are equal to the
sum of total liabilities and shareholder's equity. This implies the total of both the debit side and
the credit side always matches ensuring that all the double entry transactions are appropriately
recorded. The assets are the resources of the company that are applied to use so that the
operational efficiency can be generated in the company. On the contrary the liabilities of the
company are the obligations that are to be met timely and efficiently in the business.
5. Income tax assessment act, 1997 is the statute in Australia governing the imposition and
calculation of the amount of tax liability of the administration.
Fringe Benefits Tax Assessment Act 1986 is the act which shall be governing the taxable value
of the fringe benefits that are provided to the employees over and above the wages. It establishes
rules pertaining to the assessment and its collection (Murphy, 2019).
Superannuation Act 1976 specifies the provisions that are related to the Occupational
Superannuation scheme in a business.
A New Tax System (Goods and Services Tax) Act 1999 is an administrative framework for
taxing the supply of goods and services.
6. Any business who is engaged in supply of goods and services exceeding a particular turnover
limit.
Person who is registered under the Excise, VAT and service tax

Agents of the supplier
Income service distributor
E-commerce operator or aggregator
7. A business activity statement shall be containing the details that are associated with the tax-
ability of the business and the taxes that are due to be paid within the year. They are to be
submitted to ATO and if not done so before the due date then shall be imposing penalty on the
business (Sadiq and et.al., 2018).
8. The financial records of the businesses in Australia must be maintained for a period of 5 years.
All the receipts, vouchers, tax invoices, activity statements etc. needs to be preserved for the next
five financial years.
9. Four types of records that the business needs to maintain for the tax purposes are:-
 Receipts of suppliers
 Expense payment records
 Wages payment record
 other documentary evidence that supports the income, deduction or the credit that is taken
in respect of it.
10. As per the Corporations Act, 2001 the annual audit requirements are to be fulfilled by:-
 An entity apart from the small proprietary company which is either disclosed entity or is
under registered scheme (De Castro and Kober, 2018).
 Medium size charities having annual income of more than $250000
 Large proprietorship business
11. A budget is a measurement tool that is used by business to forecast the level of activity in
future. Based on that the planning and controlling is undertaken so that the desired organizational
objectives of the business could be attained. It ensures the optimum allocation of the scarce
resources in the business.
12. A budget can be developed using the four simple steps which are firstly the business needs to
identify the goals, post that the past data should be reviewed to know the position of the
company. Further the costs needs to be analysed for the future activities and based on that the
budget shall be created.
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