Strategic Business Management Plan

This assignment delves into the core concepts of strategic business management. It requires students to demonstrate their understanding of planning, performance evaluation, risk modeling, and decision-making frameworks within a business context. The provided resources encompass various perspectives on strategic management, encompassing books, journal articles, and case studies. Students are expected to synthesize these insights and apply them to develop a comprehensive strategic business management plan.

Running head: MANAGE FINANCES
Manage Finance
Name of the Student
Name of the University
Author Note

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Table of Contents
Table of Contents.................................................................................................................2
Task 1:.................................................................................................................................3
Answer to Question 1. ....................................................................................................3
Answer to Question 2......................................................................................................3
Answer to Question 3......................................................................................................4
Answer to Question 4......................................................................................................5
Answer to Question 5.....................................................................................................6
Answer to Question 7 ....................................................................................................7
Answer to Question 8 ....................................................................................................8
Task 2.................................................................................................................................11
Answer to Question 1....................................................................................................11
Answer to Question 2....................................................................................................12
Answer to Question 3....................................................................................................12
Answer to Question 5....................................................................................................14
References..........................................................................................................................16

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Task 1:
Answer to Question 1.
Identify the current statutory requirements forthe tax compliance and list and
calculate the tax liabilities for Houzit Pty Ltd under taxation legislation
The requirements according to the statutory regulation that is about 9% of the
wages and also the salaries of each and every quarter and tax for the payroll is 4.75% that
is in comparison to the wages and the salaries of that particular quarter. The
compensation that is being paid to the worker is 2% of the total salary that is being paid
as wages and also the salaries. The company’s annual taxes are 30% of the net profit that
is being generated by the company. (Latina, Paraskevas and Jang, 2015)
Answer to Question 2
Identify the current compliance requirements and liabilities for this organization
under the Corporations Act 2001.
For the corporation Act 2001, that in comparison with the value of the assets of
the organization, the total amount of disclosed assets and reports of the year. The basic
requirement according to the law the basic reports that are to be kept are as follows:
 General recording in the ledger for the transaction that is being carried out and
 Records of cash, debtors of the company and records of sales
 Records of wages and salaries that is being paid

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 A property registration showing transaction and other balances that is in relation
with individual item. (Cokins, 2017)
 Records of the investment that are being made and records of the inventory
 Calculation of the tax paid or tax return.
Answer to Question 3
Review commercially available financial management software to select the most
suitable software for Houzit Pty Ltd. Ensure you diagnose software options by comparing
two commercially available software titles against the capabilities of the existing
technology for the organization and against the prioritized requirements, and outline the
reasons that lead you to this recommendation.
There are two options in regard to the software from MYOB that will be perfect for
Houzit Pty Ltd advanced standard
 control and Collect all financials
 Calculate and find GST (Armstrong and Taylor, 2014).
 Management of lead and prospect
 Management of relationship of supplier
 Tracking of stocks at different areas
 Cost and pricing of the customer management
 Distribution and sales management

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 Self service of the client portal
The software that is mentioned here, it is good for the type of business that has the
option to increase or decrease the cash flow amount and in regard to GST. The software
is very important in nature, it helps to manage the clients of the company and also helps
to keep track of the clients that are currently present in the pipeline and to understand the
function or the process how the organization. Every other organization is different and
they have different working style, this software helps to manage the client’s base and
other functions of the business. It helps in calculating the tax of the organization and
thereby helping in the functioning of the organization. (Cokins, 2017.).
Run your business your way, with a clever, customized solution
 The software helps to systemize everything in a precise and systematic way
 Helps to calculate the award in the Industry
 It is designed especially for large business in Australia and New-Zealand
 It helps to make plans to meet future demand (Trish kina, 2014).
Answer to Question 4
Explain how you can apply the following principles of accounting in
developing the budgets required for this task matching principle
In every quarter the revenue is to be matched with the expenses that are in relation
to the revenue. The revenue is to be matched with the items that are being sold within the
time period of the group of accounts. In creation of the budget the accounts groups that
are being used are Assets, equity, liability etc. In preparing the budget for the current

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financial year all the information in regard to the finance are being recorded in a
systematic manner such that a budget and be made from the following information. The
information is being recorded such that it helps the stake holders of the organization. The
budget also helps any person who is in relation of the organization and thereby is in
relation of the organization. (Barthelme et al, 2014)
Answer to Question 5.
Explain and discuss the implications of probity when preparing and revising
budgets.
While preparing the budget for the organization I have to keep in mind about all
the rules and clauses of the finance and should abide by them. Apart from that it is also to
be kept in mind that the ethics should be followed. Anything that is to be done or any
decision that is to be taken should be taken keeping in mind the ethics of the organization
and they should be strictly followed. Nothing should be done which is out of the ethical
context. A strong ethics will help the organization to strengthen its pillars. The activity
which is fraudulent in nature should be avoided in order to have a clean record and to see
that the ethical code of the organization should never be broken or compromised under
any circumstances whatsoever. (Dai et al, 2014).
Answer to Question 7
List the items you would recommend for inclusion in the budgets for Houzit
Pty Ltd. Store supplies or new car or Software upgrade.
Plan for information regarding budget of the organization

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Long term cost
Staff Salary: $ 20000
Car parts: $ 45000
Tire: $ 50000
Supplies: $60000
Short Term Cost
Marketing/Advertising:
Communications: $ 30000
Professional Fees: $ 20000
Office Operations: $ 40000
Overhead Cost
Electricity Bill: $ 60000
Telephone Bill: $50000
Cost of materials
Side parts: $10000
Doors: $15000
Seat: $20000

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Finishing: $ 25000
Answer to Question 8
List the new or modified internal controls that could improve risk
management for Houzit Pty Ltd including the maintenance of audit trails.
 Recording of the discounts
 Maintaining cash register daily.
 There should be proper form of authorization
 Lines of communication should be open
 There is a business separation need
 Description of job
 Minimize the possibility of fraudulent activities (Haines, 2015)
 Information and technology which are current in nature
 Make sure the systems are carefully selected and tested and staff fully trained.

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Internal control measures in maintaining of confidentiality
The ASHA Code of ethics (2010) talks about the ethical and the confidentiality that is
maintained which relates to the information of the clients and the people. The ways
corporate governance helps in maintaining for better compliance and confidentiality to
maintain the files (Vincent et al, 2014).The Chartered Accountant is appointed to comply
with management of document and files. The following are the task in this regard:
 Separate files are maintained regarding employees and the
 All information shall be physically and electronically maintained in a statutory
registrar within a stipulated time
 All information shall be disposed of properly to the required person
 The company enters into a nondisclosure agreement with the employees so that
there is maintenance of confidentiality of all the information
 Corporate governance adheres to the proper internal control procedures, accurate
financial procedures, the financial standard, and reporting and control procedures
 A company secretary is appointed who will be responsible for recording the
meetings in the minute and will be maintaining all the records and documents,
which shall be kept and preserved throughout the business (Horn, 2012).
 The company secretary attends the meetings of the board, the annual meetings
and maintains the records. He check whether the company has complied the
procedural norms, regulations and thereby carries out all the responsibility of

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carrying out the secretarial duties as instructed by the directors of the company
(Jason et al., 2016).
Explain the key features of financial legislation relating to above transactions and
reporting requirements
Tax risk is that the companies are paying for entering a wrong amount of tax for
income and indirect tax. Tax risk management is a part of corporate governance. If there
is an internal tax control framework which is a risk assessment tools that are used by the
authorities. They will set rules and guidelines for board level, which will design and have
control framework for tax.
It has been developed for large institution and companies and tax consolidated
corporations for both national and international organization in Australia. The principles
that is used to a company for tax governance and which helps in understanding of better
tax governance, which helps in the internal control, and governance. This will help in
understanding of framework of best practices and the effectiveness of internal control of
the stakeholders (Kuntz, Cerenkov and Nabirukhina, 2013).
A good governance to risk management in financial and tax obligation in the
Country of Australia are as follows:
1. Robust day to day accounting & control mechanisms.
2. Strong internal and control mechanisms
3. Independent external and internal audit committee (Leipzig, 2015)

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4. Separation of role from the external auditor with tax advisor
5. The code of conduct and tax structures
6. Accountabilities in relation to tax decisions
7. . Adequate resorting of the tax function
8. Transparency with tax officers
9. Board & senior management have a line of sight on tax risk management.
10. Responsive to changes in the environment, law etc.
11. Tax is considered as part of the decision making process for major transactions.
Task 2
Answer to Question 1
Houzit Pty. Ltd.
Variance to Budget
Actual Results Budget-Q1 Actual-Q1 $ Variance
Sales $3,394,248 $3,371,200 $23,048
Cost of Good Sold $1,934,721 $1,955,296 -$20,575
Gross Profit $1,459,527 $1,415,904 $43,623
Gross Profit % 43% 42%
Expenses
Accounting Fees $2,500 $2,500 $0
Interest Expense $21,127 $28,150 -$7,023

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Bank Charges $400 $380 $20
Depreciation $42,500 $42,500 $0
Insurance $3,348 $3,348 -$1
Store Supplies $750 $790 -$40
Advertising $200,000 $150,000 $50,000
Cleaning $3,256 $3,325 -$69
Repairs & Maintenance $16,068 $16,150 -$82
Rent $660,127 $660,127 $0
Telephone $2,999 $3,100 -$101
Electricity Expense $5,356 $5,245 $111
Luxury Car Tax $7,491 $12,000 -$4,509
Fringe Benefits Tax $6,500 $7,000 -$500
Superannuation $37,404 $37,404 $0
Wages & Salaries $415,600 $410,500 $5,100
Payroll Tax $19,741 $19,741 $0
Workers' Compensation $8,312 $8,312 $0

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Total Expense $1,453,480 $1,410,572 $42,908
Net Profit (Before Tax) $6,047 $5,333 $714
Income Tax $1,814 $1,600 $214
Net Profit $4,233 $3,733 $500
Answer to Question 2
CASH FLOW ANALYSIS - GST 2016/17 Quarter 1 Quarter 2 Quarter 3 Quarter 4
GST Collected $1,697,124 $339,425 $407,310 $441,252 $509,137
Less: GST Paid $1,290,219 $291,773 $306,854 $326,325 $365,267
GST Payable $406,905 $47,652 $100,456 $114,927 $143,870
Answer to Question 3
SALES BUDGET
Sales % 2016/17 Quarter 1 Quarter 2 Quarter 3 Quarter 4
Budget
Total
Budget
Total Sales
100
%
$16,971,23
7
$3,394,24
8
$4,073,09
7
$4,412,52
1
$5,091,37
1
Kitchenware 30% $5,091,371
$1,018,27
4
$1,221,92
9
$1,323,75
6
$1,527,41
1
Bedroom
decorative 25% $4,242,809 $848,562
$1,018,27
4
$1,103,13
0
$1,272,84
3
Gifts 15% $2,545,685 $509,137 $610,965 $661,878 $763,706
Decorative Items 10% $1,697,124 $339,425 $407,310 $441,252 $509,137
Lighting fixtures 20% $3,394,247 $678,850 $814,619 $882,504
$1,018,27
4
PROFIT BUDGET

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PROFIT BUDGET 2016/17 Quarter 1 Quarter 2 Quarter 3 Quarter 4
Revenue- 20% 24% 26% 30%
Sales $16,971,237 $3,394,248 $4,073,097 $4,412,521 $5,091,371
Cost of Goods Sold $9,673,604 $1,934,721 $2,321,665 $2,515,137 $2,902,081
Gross Profit $7,297,632 $1,459,527
$1,751,43
2 $1,897,384 $2,189,289
Gross Profit % 43.00% 43.00% 43.00% 43.00% 43.00%
Expenses-
Accounting Fees $10,000 $2,500 $2,500 $2,500 $2,500
Interest Expense $84,508 $21,127 $21,127 $21,127 $21,127
Bank Charges $1,600 $400 $400 $400 $400
Depreciation $170,000 $42,500 $42,500 $42,500 $42,500
Insurance $13,390 $3,348 $3,348 $3,348 $3,348
Store Supplies $3,749 $750 $900 $975 $1,125
Advertising $350,000 $200,000 $50,000 $50,000 $50,000
Cleaning $16,282 $3,256 $3,908 $4,233 $4,885
Repairs & Maintenance $64,272 $16,068 $16,068 $16,068 $16,068
Rent $2,640,508 $660,127 $660,127 $660,127 $660,127
Telephone $14,997 $2,999 $3,599 $3,899 $4,499
Electricity Expense $26,780 $5,356 $6,427 $6,963 $8,034
Luxury Car Tax $7,491 $7,491
Fringe Benefits Tax $26,000 $6,500 $6,500 $6,500 $6,500
Superannuation $187,020 $37,404 $44,885 $48,625 $56,106
Wages & Salaries $2,078,000 $415,600 $498,720 $540,280 $623,400
Payroll Tax $98,705 $19,741 $23,689 $25,663 $29,611
Workers' Compensation $41,560 $8,312 $9,974 $10,806 $12,468
Total Expense $5,834,863 $1,453,480
$1,394,67
2 $1,444,014 $1,542,697
Net Profit (Before Tax) $1,462,770 $6,047 $356,760 $453,371 $646,592
Income Tax $438,831 $1,814 $107,028 $136,011 $193,978
Net Profit $1,023,939 $4,233 $249,732 $317,359 $452,614
CASH FLOW ANALYSIS
CASH FLOW ANALYSIS - GST 2016/17 Quarter 1 Quarter 2 Quarter 3 QUArter 4
GST Collected $1,697,124 $339,425 $407,310 $441,252 $509,137
Less: GST Paid $1,290,219 $291,773 $306,854 $326,325 $365,267
GST Payable $406,905 $47,652 $100,456 $114,927 $143,870

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AGED DEBTORS BUDGET
AGED DEBTORS
BUDGET TOTAL Quarter 1 Quarter 2 Quarter 3 Quarter 4
Sales
$16,971,23
7
$3,394,24
8
$4,073,09
7
$4,412,52
1
$5,091,37
1
% Debtor Sales 20% 20% 20% 20% 20%
Total Debtors $3,394,247 $678,850 $814,619 $882,504
$1,018,27
4
Current $2,851,168 $570,234 $684,280 $741,304 $855,350
30 Days $339,425 $67,885 $81,462 $88,250 $101,827
60 Days $169,712 $33,942 $40,731 $44,125 $50,914
90 Days $33,942 $6,788 $8,146 $8,825 $10,183
Answer to Question 5
Houzit Pty. Ltd.
Variance to Budget
Actual Results Budget-Q1 Actual-Q1 $ Variance % Variance F or U
Sales $3,394,248 $3,371,200 $23,048 0.68% U
Cost of Good Sold $1,934,721 $1,955,296 -$20,575 -1.06% U
Gross Profit $1,459,527 $1,415,904 $43,623 2.99% U
Gross Profit % 43% 42% 1.00% U
Expenses
Accounting Fees $2,500 $2,500 $0 0.00% F
Interest Expense $21,127 $28,150 -$7,023 -33.24% U
Bank Charges $400 $380 $20 5.00% F
Depreciation $42,500 $42,500 $0 0.00% F
Insurance $3,348 $3,348 -$1 -0.01% U
Store Supplies $750 $790 -$40 -5.36% U
Advertising $200,000 $150,000 $50,000 25.00% F
Cleaning $3,256 $3,325 -$69 -2.11% U
Repairs & Maintenance $16,068 $16,150 -$82 -0.51% U
Rent $660,127 $660,127 $0 0.00% F
Telephone $2,999 $3,100 -$101 -3.36% U
Electricity Expense $5,356 $5,245 $111 2.07% F
Luxury Car Tax $7,491 $12,000 -$4,509 -60.18% U
Fringe Benefits Tax $6,500 $7,000 -$500 -7.69% U
Superannuation $37,404 $37,404 $0 0.00% F
Wages & Salaries $415,600 $410,500 $5,100 1.23% F
Payroll Tax $19,741 $19,741 $0 0.00% F

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Workers' Compensation $8,312 $8,312 $0 0.00% F
Total Expense $1,453,480 $1,410,572 $42,908 2.95% F
Net Profit (Before Tax) $6,047 $5,333 $714 11.81% U
Income Tax $1,814 $1,600 $214 11.81% F
Net Profit $4,233 $3,733 $500 11.81% U

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