Finance Report for Excel Consultants: Performance, Goals, and Tax Obligations

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Part A
Finance Report template
Introduction:
Leadership consultancy is a business service that includes examination of existing
management structure in order to support the enterprise in developing leadership
qualities at employee as well as managerial level. This report consists of a company
called as Excel Consultants who are specialized in leadership consultancy and
operating for last 7 years in this business. The business concern assists multiple
entities with respect to leadership behavior for their existing members. They design
and implement customized leadership programs based on the assessment they made.
They offer their services over Australia wide. Their workshop is conducted once in
every 3 months in all the major cities including Sydney, Canberra and Melbourne.
Their intension is to replace workshops with annual conference in FY 2022-2023 as
they are not well attended and as per the feedback received from client consultancy
service is better choice for future. The sales from the E-book is not up to mark and
they are planning to generate $15000 by selling two E-books in next financial year.
They are planning to organize a bigger annual conference in 2022-2023 and have
targeted 150 people mark who attend that seminar in person.
Strategic goals and priorities:
The excel consultant is planning to organise an annual conference and expected that
such conference is attended by at least 150 people so that their revenues in the
upcoming year cab be increased. Their goal is to switch from the existing model they
are running which does not provide them adequate revenue they wanted that is replace
the workshop with annual conference. In the current financial year that is 2021-2022
they have conducted 36 workshops and they have also produced E book with respect
to leadership technique. They are expecting that if they produced two E-book in next
financial year than they can generate sufficient sales to match the expenses incurred
by way of conference cost in next year. The funds they are dependent upon to conduct
the conference is revenue they generate for sale of E-book which is $15000 and
increasing over the period of time.
2021 – 2022 Performance:
Report of Performance of Excel Consultants During the Financial Year 2020-2021
Considering Their Profit and Loss Statements, Cash Flow Statement: -
 Revenue Generated by Organisation:
The total amount of revenue generated by the business concern is $1333600
which comprises of consultancy fees of $ 1175600, workshops of $ 36000,
publication of $ 2000 and executive search of $120000 respectively.

 Whether Excel Consultant is profitable or not and whether they are profitable
according to the expectation:
During the year 2020-2021 they are Generating the profit of $ 625805 as
arrived after deducting all the operating expenses from the revenue. According
to the budgets they need to earn the profit of $ 607640, however they earn
more than that by $ 18165 which is considered to be better. The percentage
increase in their profits as compare to budgeted figures is 2.989%.
 Calculation of Profit Margins of Excel Consultants:
The formula of calculating profit margins is as under: -
Profit Margin
= Operating Income / Revenue * 100
= 625805 / 1333600 * 100
= 46.93 %
Their gross and net margin are exceptionally well as they are earning huge
margin during the financial year 2020- 2021 as calculated above.
 The three major expenses they are incurring during 2021 - 22:
1. Payment of Salary and Wages to Employees of $ 42000 every month
and annually the payment is $ 504000 (4200 * 12)
2. Payment made towards Superannuation of $ 5000 every month and
annual payment is $ 60000 (5000 * 12)
3. Payment of contract e-writer a sum of $ 10000 in July and in
remaining month other than October the payment is $ 3580 every
month. The total payment being made on annul basis is $ 45800
(10000 * 1 + 3580 * 10).
 Statement showing comparison of actual cash flow statement with budgeted
figures and highlight the difference in percentage:
Budget Actual
Chang
e %
INCOME
Consulting fees
1,100,00
0
1,175,60
0
-
75,600 -6.87
Workshops 48,000 36,000 12,000 25.00
Publications 5,000 2,000 3,000 60.00
Executive search 120,000 120,000 0 0.00
NET INCOME
1,273,00
0
1,333,60
0
-
60,600 -4.76
EXPENSES