Leadership in Business: Team Budget, Financial Plan, and Contingency Plan

Running head: LEADERSHIP IN BUSINESS
LEADERSHIP IN BUSINESS
Name of the student:
Name of the university:
Author Note:

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Table of Contents
Task – 1......................................................................................................................................2
1. Team budget or financial plan.........................................................................................2
2. Making Changes to team budget and Financial plans.....................................................3
A.............................................................................................................................................3
3. Contingency Plan............................................................................................................5
4. Financial Management Approaches................................................................................5
Task - 2.......................................................................................................................................7
1. Monitor and Control Finance..........................................................................................7
2. Review variance..............................................................................................................9
3. Review and Evaluate Process........................................................................................10
Task – 3....................................................................................................................................14

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Task – 1
1. Team budget or financial plan
A.
The chosen assignment is based on the Big Red Cycle (BRB) is a bicycle
manufacturer based in Bendigo, Victoria. The company produces bicycles which are sold to
the retailers in the Australian market. As a managing director of the company, there are
certain activities related to the performance of the company and further it is needed to report
the CEO of the organization. The managing director of the company is wholly responsible for
the financial performance of the company and needed to provide report to the CEO based on
the performance. There are also responsibility including the maintenance of the effective
team, monitoring all the necessary actions, ongoing plans and many more. The other
responsibility includes implementing Target or KPI for production, productivity, wastage,
sales, income and expenditure. The accountability towards the long term plan on the budget
of the company. As per the adjustment of the budget it is required to meet the target of 1
Million sale before tax (Burns, 2016).
B.
The team which is taken in to account is the financial department which includes the
preparation of the financial reports of the company from the day to day activities of the
business. The responsibilities of the team is to gather and record the day to day operation or
transaction in the business and accordingly it is the responsibility of the employees to
perform their duties based on the provided norms and strategies. Then it is needed to collect
the relevant information of the business and the responsibilities of the upper level
management is to prepare the financial report or statement of the company. After the

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preparation of the financial statement, the overall financial performance of the company is
then analyzed.
C.
The budget of the company helps to allocate the resources of the company to different
departments and further manage the cash flow of the business in an effective manner. The
preparation of the financial budget includes the balance sheet, cash flow budget and income
statement of the business. The evaluation of the income is further based on the quarterly,
monthly and half yearly basis which further depends on the sustainability of the organization.
The financial budget of the firm is a powerful tool to accomplish the long term objective of
the organization.
After preparing the budget of the financial plan it is significant for the business to
implement and monitor the performance of the budget. The key tools which must be
implemented by the company are the cash flow projection, long term budget plan, operational
plan and many more. The various sections which are included in the preparation of the budget
are the cash budget, budgeted balance sheet and capital expenditure. In the preparation of the
budget, the company must concentrate to enhance the sales which will automatically increase
the production of the company. At the same time it is the responsibility of the company to
take care of the cost of goods sold. The significant role of the firm is to manipulate the cost
and sales of the business so that the company show profit.
2. Making Changes to team budget and Financial plans
FY Q1 Q2 Q3 Q4
REVENUE
Commissions(2% sales) 60000 15000 15000 15000 15000
Direct wages Fixed 2000000 50000 50000 50000 50000
Sales 3000000 750000 750000 750000 750000
Cost of goods sold 400000 100000 100000 100000 100000
Gross profit 2340000 585000 585000 585000 585000

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Expenses
General & Administrative
Expenses
Accounting fees 20000 5000 5000 5000 5000
Legal fees 5000 1250 1250 1250 1250
Bank charges 600 150 150 150 150
Office suppliers 5000 1250 1250 1250 1250
Postage and printing 400 100 100 100 100
Dues and subscription 500 125 125 125 125
Telephone [phone] 2500 2500
Repairs and maintenance 50000 12500 12500 12500 12500
Payroll tax 25000 6250 6250 6250 6250
Marketing Expenses
Advertising 2000000 50000 50000 50000 50000
Employment Expenses
Superannuation 45000 11250 11250 11250 11250
Wages and salaries
Staff amenities 20000 5000 5000 5000 5000
Occupancy Costs
Electricity 40000 10000 10000 10000 10000
Insurance 100000 25000 25000 25000 25000
Rates 100000 25000 25000 25000 25000
Rent
Water 30000 7500 7500 7500 7500
Waste removal 50000 12500 12500 12500 12500
Total Expenses 1401500 350375 350375 350375 350375
Net profit(before interest &
tax)
TO BE
CONTIN
UE
Income tax expense(25%
Net)
Net profit after tax
A.
The main purpose of the entire team is to meet the goal of 1 Million dollar profit
before tax. In this case it is needed change the rent of the organization. The objective can be
accomplished as sudden changes in various things while executing which will further help to
accomplish the targets. It is also accurate as the figures are changed accordingly based on the

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consideration of the required goals. All the team members are included where the adjustments
in the rent is needed in order to enhance the team budget. This adjustments need to make to
meet the target of 1 Million dollar profit. Detailed conversation in this case are required to
reduce the necessary cost at the time renting system.
B.
The team budget or the financial plan of the company is only achievable if the
estimation which is made is perfect based on the current and past performance of the
company. It also depends on the mission and vision of the company and accordingly the
upper level management takes decision by considering the internal and external. The
sustainability of the environment must be checked in order to certain the competition in the
market. The comprehensive and accuracy in preparation of the budget is based on the certain
parameters which may cause impact in the business in the coming future.
C.
The areas where there are certain improvements needed in order to enhance the
prospect of the business such as the variable expenses of the company. The effective tools
and strategies must be adopted in order to manipulate the variable expenses of the firm while
estimating the budget of the company based on the budget (Burns & Dewhurst, 2016).
D.
In case of any loopholes in the budget it is needed to make the required clarification to
encounter such kind of loopholes in the system. The clarification is made by the key
authorities of the business such as the CEO, Senior Accountant, Head of the Human
Resource, Managing Director and Production Manager. The head of the all the departments
residing in the upper level management of the company takes care of the all the clarification