Types of Financial Records and Budgets - Desklib

This document provides a detailed explanation of various types of financial records, including bank deposit slips, bank statements, invoices, and more. It also covers different types of budgets, such as cash budgets, department budgets, and project budgets. The importance of budgeting and budget control for businesses is discussed, along with techniques for maximizing budget performance. The document also explains the concept of budget variance and provides procedures for reporting cycles/periods in a hospitality business. Additionally, it discusses the contents and presentation of an annual financial report. Finally, it explores how businesses can show the findings of projected budget versus actual budget.

SITXFIN003 Manage finances within a budget. Student Assessment Task
Assessment Task 1: Knowledge questions
Questions
1. Provide a description of each of the following types of financial records:
a. Bank deposit slip When transferring money into a bank, a deposit slip is
a tiny paper element that an account holder requires.
b. Bank statement A bank statement is an actual statement of money
transfers incurred during a specified time with each
account owned by a individual or company with a
bank
c. Banking summary It demonstrates all cash payments on amount deposited
and all E-ftpos invoices on E-ftpos description for the
specified timeframe.
d. Business activity
statement
The business activity statement is a deliberate
intention to the Australian tax office by authorised
business enterprises to document their tax liabilities.
e. Cheque book A chequebook is a tiny book comprising pre-printed
document with the customer's paying account records.
f. Credit card statement A credit card statement is a rundown of what customer
have used the credit card for a payment period.
g. Invoice An invoice is a time-stamped legal contract that
itemises and documents a money transfer between a
buyers and sellers.
h. Journal entry A journal entry is the practice of maintaining or
making a copy of certain activities financial or non -
© Sydney City College of Management Pty Ltd RTO: 45203 CRICOS: 03620C Date Revision date Version
Page 1 of 8File Name: SITXFIN003 Student Assessment
July 2020 July 2021 1.0

SITXFIN003 Manage finances within a budget. Student Assessment Task
financial.
i. Payroll / wages report Wage reports, also recognized as annual payment or
wage information reports, are indications that
employers submit on a monthly basis.
j. Merchant statement The merchant Processing Statement is a document that
includes a monthly overview of the sales data, sales
costs, additional payments, and a list of purchases for
the month.
k. Merchant summary Merchant Account full report calculates the final
volume of sales and shared basis produced by each
portal account linked with the Merchant Accounts.
l. Transaction report A transaction document is data sent to us which
comprises details related to a transaction.
2. Provide a description of each of the following types of budget:
a. Cash budget A cash budget is a plan or schedule of planned cash
revenues and payments over the period.
b. Cash flow budget The cash flow budget is a financial plan of all financial
transactions and all funds has risen that are supposed
to happen over a certain length of time.
c. Department budget A departmental budget is a dept-level budgetary
schedule that sets out expenditures for the latest period
or full year.
d. Event budget The event budget is actually a prediction, or
estimation, of all the revenues and expenses that will
be incurred at the event.
© Sydney City College of Management Pty Ltd RTO: 45203 CRICOS: 03620C Date Revision date Version
Page 2 of 8File Name: SITXFIN003 Student Assessment
July 2020 July 2021 1.0

SITXFIN003 Manage finances within a budget. Student Assessment Task
e. Project budget The Project Budget is a method used by project
management to measure the overall cost of the project.
f. Purchasing budget The procurement budget includes the levels of stock
that a business must purchase during any budget
cycle.
g. Sales budget Sales budget is a strategic schedule that indicates how
money can be spent to reach the planned sales.
h. Wages budget The salary budget is typically calculated by the
business, the quarterly and seasonal revenue amount
for the business, and the number of the workers.
i. Total or master budget Master budget incorporates all the smaller budgets
inside the corporation and transforms them under one
total budget.
3. Explain how the following factors may assist in preparing financial and statistical reports for
a business:
a. Cash flow Cash flow can affect financial reports if there is any
negative cash flow than income statement will show
outcome accordingly.
b. Covers It can impact the company’s return on investment as
well as balance sheet.
c. Expenditure The expenses can also affect to finance report. This is
so because if there are more number of expenses than
company will not be able to produce profit.
d. Occupancy rates The occupancy rate can affect if rate is higher than
there will be positive impact on margins.
© Sydney City College of Management Pty Ltd RTO: 45203 CRICOS: 03620C Date Revision date Version
Page 3 of 8File Name: SITXFIN003 Student Assessment
July 2020 July 2021 1.0

SITXFIN003 Manage finances within a budget. Student Assessment Task
e. Sales performance The sales performance affect to financial reports as it
is linked with sales revenues and gross profit.
f. Stock (inventory) level If company has enough level of stock than there will
be more production and there will be positive impact
on financial report.
g. Staff costs If staff cost will be higher than operational expenses
and income statement will be affected.
h. Variances The negative variance can affect overall financial
reports including income statement, balance sheet etc.
i. Wastage If there will be higher wastage of resources than
productivity will be lower and income statement will
be affected.
j. Yield The yield is sum of money which is given by company
on dividends, shares etc. This can affect to financial
statements.
k. Income Income can be helpful for leading as positive impact
on income statement.
l. Commercial account
activity
These activities may lead to put negative and positive
impact on cash budget and financial reports.
m. Commission earnings The commission earnings can contribute in increasing
net profit.
n. Daily, weekly and
monthly transaction
reporting
These transactions can be helpful to make financial
report more transparent and relevant.
o. Department/area The department performance is main element in order
© Sydney City College of Management Pty Ltd RTO: 45203 CRICOS: 03620C Date Revision date Version
Page 4 of 8File Name: SITXFIN003 Student Assessment
July 2020 July 2021 1.0

SITXFIN003 Manage finances within a budget. Student Assessment Task
performance to make positive and negative impact on financial
statements.
4. Explain the importance of a budget and budget control for a business.
Budgeting is the foundation of all corporate growth. It helps to manage and monitor the functions of the
company. It helps the company to achieve its goals and to make informed financial choices; and. It m ake
sure the organisation has resources for potential ventures.
Outcome ☐ Satisfactory ☐ Not Satisfactory
Comment
5. List two techniques a business can use for maximising budget performance.
By keeping budgeting flexible.
Engaging entire team in budget making process.
Outcome ☐ Satisfactory ☐ Not Satisfactory
Comment
6. Explain the term budget variance.
© Sydney City College of Management Pty Ltd RTO: 45203 CRICOS: 03620C Date Revision date Version
Page 5 of 8File Name: SITXFIN003 Student Assessment
July 2020 July 2021 1.0

SITXFIN003 Manage finances within a budget. Student Assessment Task
The budget variance is defined as difference between actual outcome and estimated values of income and
expenses.
Outcome ☐ Satisfactory ☐ Not Satisfactory
Comment
7. Explain the reporting that is completed for the following cycles/periods and write down a
procedure for each that is relevant to a hospitality business.
Cycle What reporting should
happen
A relevant procedure
Monthly The reporting should be done
related to monthly transactions
like bills paid, cash received
etc.
The process which is necessary
to apply is that monthly report
related to sales, purchase etc.
Quarterly The reporting must be applied is
related to quarter transactions
which has been done in a four
month time period.
Under this, process need to
carried out in accordance of
four months time span.
Annually The annual report needs to be
applied during end of an
accounting period. Under it
detailed information about
different aspects is included.
The process which needs to be
applied is related to preparation
of annual report.
© Sydney City College of Management Pty Ltd RTO: 45203 CRICOS: 03620C Date Revision date Version
Page 6 of 8File Name: SITXFIN003 Student Assessment
July 2020 July 2021 1.0

SITXFIN003 Manage finances within a budget. Student Assessment Task
8. For two different accounting software programs of your choice, write down at least one function and
one feature of each and how these can help in monitoring budgets.
Tally: It is used for making journal entries in less time and effective manner.
Quick books- This is used for making different kinds of books and ledgers.
Outcome ☐ Satisfactory ☐ Not Satisfactory
Comment
9. What information does an annual financial report contain and how should it be presented?
The annual report provides key details about the financial status of a company which can be used to
evaluate: the capacity of a business to pay its obligations when they are due. If a corporation had made a
financial decision in the previous financial year. It should present specific overview of the sector or
sectors in which the business is active. Audited report of revenue, financial condition, cash balance, and
statement notes offering details of the different line lines. Market value of the remaining stock and
distributions paid out.
Outcome ☐ Satisfactory ☐ Not Satisfactory
Comment
10. Discuss how a business will show the findings of the projected budget versus the actual budget and
how this might be presented.
A business can show the findings of the projected budget versus the actual budget by help of variance
calculation. A variance is known as difference between actual and estimated values of income and
expenses. The variance can be presented at the end of each month by accountants to managers so that
© Sydney City College of Management Pty Ltd RTO: 45203 CRICOS: 03620C Date Revision date Version
Page 7 of 8File Name: SITXFIN003 Student Assessment
July 2020 July 2021 1.0

SITXFIN003 Manage finances within a budget. Student Assessment Task
deficiency and efficiency of activities can be measured.
Outcome ☐ Satisfactory ☐ Not Satisfactory
Comment
© Sydney City College of Management Pty Ltd RTO: 45203 CRICOS: 03620C Date Revision date Version
Page 8 of 8File Name: SITXFIN003 Student Assessment
July 2020 July 2021 1.0