Managing and Running a Small Business

This report provides insights on managing and running a small business, including resource allocation, customer relationship management, cash flow forecast, budgeting, break even analysis, and key legislations impacting small and social enterprises. The report focuses on the case of Tax Com Accountants, a consulting firm in Oldham, England, UK.

Managing and
Running a Small
Business

Table of Contents
Table of Contents.............................................................................................................................3
Executive Summary.........................................................................................................................5
INTRODUCTION...........................................................................................................................1
Activity 1 (Covered in brochure).....................................................................................................2
Activity 2.........................................................................................................................................4
Task 3...............................................................................................................................................4
P4 Annual cash flow forecast , budget and break even analysis.................................................4
P5 Break even analysis can be applied to organisational situation.............................................8
P6 Financial statement for an organisation that contribute successful management...................9
Task 4.............................................................................................................................................10
P7 Key legislations and regulations that have impacts on small and social enterprises............10
CONCLUSION..............................................................................................................................11
REFERENCE................................................................................................................................12

Executive Summary
Small businesses are those business which are required small amount and resources to
establish the enterprises in order to earning the income. Such organisations are needs to focuses
on different needs and wants of potential customers which can be fill by small and social
business. Social organisations are running for the purpose of social benefits. People can be
satisfied by getting better quality of products and services. This report will help to increase the
understanding regarding managing and allocating resources. The Tax Com Accountant is chosen
organisation which increases business performance and productivity.

INTRODUCTION
Managing and running the small business means a person should have qualities and abilities
to understand the task and perform accordingly so goals can be attained effectively. Small and
social enterprises are those organisation which are running at local and regional level in order to
provide the products and services to customers (Johantri, 2020). A business person should
analysis the market and get wants of their potential customer so their selling activities can be
increases smoothly. To know and increasing knowledge about business The TaxCom
accountants has been selected that is accounting firm in Oldham England, UK. This is consulting
firm that is providing consultant to small and other business to uses of accounts so their business
can be grow effectively. Such report covers small and social enterprise plans by allocating
resources, customer relationship management process for social and small business, analyse cash
flow forecast, budget and break even analysis. Apart from this, implications of regulations that
helps to run business.
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Activity 1 (Covered in brochure)
2

3

Activity 2
Task 3
P4 Annual cash flow forecast , budget and break even analysis
Cash flow - The amount of money which is required to be transferred in to business for
converting in liquidity is mentioned as cash flow. This is important for management to maintain
the liquidity by considering operating, investing and financing activities that helps to operate the
business effectively. In Tax Com Accounts, a cash flow statement is prepared by management
which helps to increase the business performance by maintaining profits appropriately.
Budget – This is a term which is uses by organisation by estimating the amount and
comparing with actual budget that can help to increase the activities. The management of Tax
Com Accounts are providing consultant to their clients to prepare budget every year by involving
income and expenses that are going to arises in organization (Augustsson and et. al., 2019).
Sources of fund:
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Own savings – A business whether start up and small can be operate by using own
saving which they have that helps to operate the business activities and increase the performance.
by using own savings Tax Com Accountants can establish its business sand manage the
activities.
Crowd funding – This is consider as small size bank that make available finance to
small business in small amounts so they can manage the business and run it properly Tax Com
Accountants has option to arrange the funds from getting the finance increase the brand image.
Leasing and Hire purchase – A business concern can arrange the funds by giving their
properly on lease and rent so a fixed amount can be received every months that helps to operate
the business and increase profitability. Tax Com Accountant an use this resources in order to
arranging the funds and managing small business activities.
Balance Sheet, P&L and cash flow statement of the Tax Com Accounts:
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Profit and Loss Account at the year ended
Cash flow Statement
Cash budget for the year
6

Forecasting and budgeting
This refers as continuous process and activity which is using in forecasting and budgeting
in order to generate the profits. Forecasting is uses to define what action needs to be taken in
future so all activities can be perform effectively. On the other side, budgeting is uses to prepare
the statement that shows gap between estimation and actual amounts. This helps to run the
business and increase productivity. Techniques in relation to budgeting and forecasting are uses
by Tax Com Accountants such as:
Calculating the moving average – This is technique which can be uses by tax Com
Accounts to know the views of person by establishing a business and estimating expenses that
helps to make right decisions. Data and financial information are shown through graphs and
statics (Lenz, 2019).
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Time series data – When business is running and establishing by business person then time
series technique is uses by manage the business happenings. The chosen organisation is using
time series data for making decision quickly and perform all duties officiously. All action and
financial data can be organised so a profits statement can be prepared (Daily, 2019).
Dealing with seasonality – According to this technique, organisation are facing some
challenges as changing in season that has affected their business. All companies needs to deal
with season and organise all functions which helps to maintain the good performance (Ünal,
Urbinati, Chiaroni and Manzini, 2019).
P5 Break even analysis can be applied to organisational situation
Break Even analysis – The other name of break even analysis is cost volume profits that
depicts the relevancy and equality of cost and revenues that arises in corporation. Different
income and expenses are required to conduct the analysis, organise activity, performing action
and maintaining the business performance so all activities can be not against each other. This
helps to save the organisation from going in loss so it maintain all activities at a fixed point that
shows no profit not loss. Tax Com Accounts organisation is using break even analysis which
helps to defined how a profits and loss can be maintained. This helps organisation get number of
selling products and services, is they cross the target and not so analysis can be define a exact
position in market.
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Uses of budgets, performance monitoring and control – This refers as management of
business industry should have proper knowledge and skills that can be use to prepare the budget,
monitor performance and control the activities if they are excess. This helps to increase the
knowledge about accounting information and practices so business can be grow. In regards of
Tax Com Accountants, it is suggested to clients to prepare budget by monitoring and controlling
the information which increases growth of business and make profits.
Variance analysis – The gap between two accounting term one is estimated and one is
actual is consider as variance analysis. By using variance analysis Tax Com consultant can get a
picture of their business as a whole that bring changes and improve the performance.
P6 Financial statement for an organisation that contribute successful management
Financial statement is a document of organisation which is prepared by management and
people who have special knowledge of accounts and tax information that helps to generate the
profits and make plans accordingly. Tax Com Account is small organisation is getting success in
their business by preparing financial statement that are determined below:
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Balance sheet – This is the total of assets and liabilities that are required to pay off by
selling the assets. Tax Com Accountant is using balance sheet by considering assets and
liabilities that increases business performance (Kaur, 2019).
Cash flow statement – This statement is preparing by Tax Com Accounts in order to
know the cash liquidity and increasing the business performance.
Profit and loss account – This statement is putting the figure of income and expenses that
are occurred in organisation and affected the business. Tax Com Accountant is increasing brand
image by preparing profits and loss account that helps to increase the performance.
The element of working capital are as depicts:
Bills receivable – A unpaid invoice which is required to pay by creditors as it make aqn
agreement to purchase products and make payment at fixed time.
Cash inventory – The element of working capital in Tax Com Accountant is using to
convert the raw material in to cash that helps to organise the activities.
Inventory – By selling the inventory an organisation can get instant cash which helps to
operate the business and manage the good performance (Wiegmann, 2019).
Task 4
P7 Key legislations and regulations that have impacts on small and social enterprises
Legislations are important for organisation that must be follow to run the business which
helps to complete task and perform all activities effectively. In regards of Tax Com Accountants
rules and government legislation are followed by management that are as defined:
 Record keeping (2006) – This legislation states that business should keep records all
information that are important to run the business and increase profitability (Rottig,
Muscarella and de Oliveira, 2019). Tax Com Accountants is following the record keeping
information of employees and their salary, incentives etc. make happy to customers that
retain them to work properly.
 Tax and employment (1976) – Tax payment and employment is needs to pay by
organisation that can help to increase the business performance. Tax Com Accountant is
following this legislation and suggesting to its client to pay taxes and get deducted is
occurring that mange the happenings.
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 Data Protection (1998) :- As per this legislation, management should keep confident
information of their employees who are working so they can work continuously and
manage the activities. They accept the challenges and targets by protecting their data and
managing the information that helps to increase profitability (Psychogios and Prouska,
2019).
CONCLUSION
From the above discussion it can be concluded that a business a business can be managed
and organised by management. Sources of fund are own saving, hire purchase, crowd funding
etc. that uses to arrange the funds. Planning resources and financial statement are important for
business which state the financial position and make profits. Break even analysis is a cost
volume analysis that uses to maintain the activities at fixed point.
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REFERENCE
Books and journal
Psychogios, A. and Prouska, R., 2019. Managing People in Small and Medium Enterprises in
Turbulent Contexts. Routledge.
Rottig, D., Muscarella, S. and de Oliveira, R. T., 2019. Managing formal institutional challenges
when entering Cuba. International Journal of Emerging Markets.
Wiegmann, P. M., 2019. Conclusions: Managing Innovation and Standards Within the Company
and Beyond. In Managing Innovation and Standards (pp. 139-167). Palgrave Pivot,
Cham.
Daily, F. W., 2019. Tax Savvy for Small Business: A Complete Tax Strategy Guide. Nolo.
Kaur, G., 2019. Development of Business Intelligence Outlier and financial crime analytics
system for predicting and managing fraud in financial payment services.
Ünal, E., Urbinati, A., Chiaroni, D. and Manzini, R., 2019. Value Creation in Circular Business
Models: The case of a US small medium enterprise in the building sector. Resources,
Conservation and Recycling. 146. pp.291-307.
Lenz, R., 2019. Managing Distributed Ledgers: Blockchain and Beyond. Available at SSRN
3360655.
Augustsson, N. P., and et. al., 2019. Managing digital infrastructures: negotiating control and
drift in service provisioning. International Journal of Business Information
Systems. 30(1). pp.51-78.\
Bonus, C.B.C., 2019. Financial Accounting and Reporting-I.
Weetman, P., 2019. Financial and management accounting. Pearson UK.
Nguyen, D. D. and Tran, M. D., 2019. The Impact of Cash Flow Statement of Listed Firms on
the Decision of Investors.
Church, J. D., 2019. Inflation expectations and inflation realities: a comparison of the Treasury
Breakeven Inflation curve and the Consumer Price Index before, during, and after the
Great Recession. Monthly Lab. Rev.. 142. p.1.
Johantri, B., 2020. BREAK EVENT POINT ANALYSIS OF STANDARD INPUT COST OF
PUBLIC SERVICE AGENCY’S COMPUTER ASSISTED TEST ACTIVITIES (CASE
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STUDY IN POLYTECHNIC OF XXX YEAR 2019). Journal of Applied Business
Administration. 4(1). pp.50-57.
(Johantri, 2020) (Church, 2019) (Nguyen and Tran, 2019) (Weetman, 2019) (Bonus, 2019)
(Augustsson and et. al., 2019) (Lenz, 2019) (Ünal, Urbinati, Chiaroni and Manzini, 2019)
(Daily, 2019) (Kaur, 2019) (Wiegmann, 2019) (Rottig, Muscarella and de Oliveira, 2019)
(Psychogios and Prouska, 2019)
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