Manage Finances Within a Budget Assessment 2022

Running head: MANAGE FINANCES WITHIN A BUDGET
Manage finances within a budget
Name of the student
Name of the university
Student ID
Author note

1MANAGE FINANCES WITHIN A BUDGET
Table of Contents
Assessment 1..............................................................................................................................2
Question 1..............................................................................................................................2
Question 2..............................................................................................................................2
Question 3..............................................................................................................................3
Question 4..............................................................................................................................4
Question 5..............................................................................................................................4
Question 6..............................................................................................................................6
Question 7..............................................................................................................................6
Question 8..............................................................................................................................7
Question 9..............................................................................................................................7
Question 10............................................................................................................................7
Question 11............................................................................................................................8
Question 12............................................................................................................................8
Assessment 2..............................................................................................................................9
Part 1......................................................................................................................................9
Part 2......................................................................................................................................9
Part 3....................................................................................................................................10

2MANAGE FINANCES WITHIN A BUDGET
Appendix 2...............................................................................................................................15
Appendix 3...............................................................................................................................16
Appendix 4...............................................................................................................................17
Reference..................................................................................................................................19

3MANAGE FINANCES WITHIN A BUDGET
Assessment 1
Question 1
8 different types of financial records are –
 General account books.
 Cash book records
 Banking records
 Creditors’ records
 Debtors’ records
 Details of any contracts
 Tax invoices and other relevant tax records
 Stock records
Question 2
If the business is registered for GST it shall lodge a business activity statement
(BAS). Components of BAS are –
 Goods and services tax (GST)*
 Pay as you go (PAYG) income tax instalment*
 Pay as you go (PAYG) tax withheld.
 Fringe benefits tax (FBT) instalment.
 Luxury car tax (LCT)
 Wine equalisation tax (WET)

4MANAGE FINANCES WITHIN A BUDGET
 Fuel tax credit (Walpole and Salter 2014)
Question 3
Cash flow budgets  Determining Cash Inflows
 Determining Cash Outflows
 Overhead Expenses
 Variable Expenses
 Other Expenses
Capital expenditure
budget
 Create a financial blueprint for the company’s objectives.
To establish what the current capital investment needs are
in order to take the company to the next level.
 To examine existing cash flow statements to determine
your company’s current costs vs. revenue.
 To calculate the projected cost of capital expenditures
 Considering alternatives to purchasing
 Considering the different related items that will affect the
operating budget by the purchase of the capital
expenditure and the method of payment (Klychova,
Faskhutdinova and Sadrieva 2014)
Sales budget  Select a Period for Your Sales Budget. ...
 Collect Historical Sales Data for Your Company. ...
 Locate Sales and Industry Information. ...
 Compare Sales with Past Sales Periods. ...
 Research Current Market Trends.
 Create the Forecast

5MANAGE FINANCES WITHIN A BUDGET
 Compare Results With Your Forecast
Question 4
Definition and scope of each budget –
a. Wage budget – it is the money designated over a specific amount of time, with which
to wages are paid. It helps in taking decision on how much is to be paid to the
employees and its scope includes deciding on Social security payments pension
contributions, travel expenses, training and development costs, HR expenses, holiday
pay, sick pay and healthcare costs
b. Purchasing budget – A purchases budget contains the amount of inventory that a
company must purchase during each budget period. The amount stated in
the budget is the amount needed to ensure that there is sufficient inventory on hand to
meet customer orders for products (Zheng, Ma and Wang 2014)
c. Events budget – The event budget is a projection (forecast) of the income and
expenditure that the event will incur based on plans made and information gathered.
The preparation of a budget is an essential part of event management.
d. Project budget – A Project Budget is the total amount of authorized financial
resources allocated for the particular purpose(s) of the sponsored project for a specific
period of time. It is the primary financial document that constitutes the necessary
funds for implementing the project and producing the deliverables (Ogujiuba and
Ehigiamusoe 2014).
Question 5
Cash flow Cash flow is the net amount of cash and cash-equivalents being