Analysis of Financial Performance and Business Recommendations for Desklib

Accounting

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK A...........................................................................................................................................3
1. Prepare a monthly control report depicting the Flexed budget, Actual budget and their
variances......................................................................................................................................3
2. By using the above prepared control report, interpret the financial performance of Amana
Ltd for the accounting year 2020................................................................................................4
3. Provide necessary improvements in the business area to Mr. Amana....................................6
TASK B ..........................................................................................................................................6
Analyse the position of the business and provide recommendation to Mr. Amana on whether
the business should start their own online shop or consider selling on Amazon........................6
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
A budget refers to an estimate which is performed for the incomes and expenses of the
business for a future period and is regulated after a regular period of times. Budgets are
formulated for the management of the business and these aid the decision making of the
business. Budgets can be used by individuals, companies, government or other organisations
who deals in spending of monetary funds for its operations (Massicotte and Henri, 2021).
Budgets are created for a future time period and the actual values that have occurred in the
business are then compared and variances are administered to take corrective measures in the
business. This report highlights how the business of Mr. Amana calculates these variances that
have occurred by comparing the actual values with the standard ones. A detailed analysis of
these variances is done in the following report following the recommendations. In the second
part of the report, a description is provided for Amana, if he should set up his own business site
or sell its products on Amazon.
TASK A
1. Prepare a monthly control report depicting the Flexed budget, Actual budget and their
variances.
Monthly Control report refers to the technique in budgeting which introduces information
which are related to the different expenses in the business and also includes the changes in
expenses that may occur. This report helps the businessperson to keep a check on its spending
pattern which can become a bug hinder for the organisation. Likewise, this report allows the
board to analyse maintenance related office expenses and also attempt in order to track down the
methods of minimizing the expenses from one month to other.
Flexed Budget differs with modification in the measuring of real financial gain remedy. In its
most unambiguous constitution, the flexion disbursement of funds idea will utilise taxation of
income for peculiar costs, rather than the regular rigid figure (Martin, 2020).
Original Budget is created by reckoning the past information, revenues and spending. On the
ground of which the plan is braced and the reimbursements are computed. It also assists in
approximation the net net income of the business
A budget deviation is a cyclic measurement utilised by system, organization, or group of person
to measure the opposition within regular and existent figures for a particular accountancy