Managing Finance & HR for Sustainable Business Success

This report discusses the importance of budget planning and management for sustainable business success. It explores the objectives of budget planning, analyzes the revenue and spending variance for July, highlights concerns for management, and provides advice for Twin River Cafe. The report emphasizes the need for effective resource allocation, accurate structure, cash-flow prediction, and performance evaluation through budget planning. It also suggests increasing investment in quality, improving internal communication, and providing staff training and skills development to overcome budget challenges.

Managing finance & HR for
Sustainable business success.

Executive summary
Finance is basically managed by the HR in order to improve the overall business financial
performance. In the same way, current study is based upon the Sky Cafe which is planning to
allocate budget for Twin River cafe. Therefore, it describes the importance of budget such that it
helps to improve the overall structure and due to low sales and high expenses, the budget
planning is affected and as a result, the outcomes are presented in adverse way. Report will show
the management concern such that fixes expenses are incorrect forwarded and business condition
are also changes that affect the budget. Lastly, report will recommend that by improving internal
communication and increase in investment, Twin River cafe will sustain In its objectives.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
A Describing the objectives for preparing a budget....................................................................4
B Describing the report which shows the company's revenue and spending variance for July...5
C) Activity of variance should be concerns to management.......................................................6
D) Advice the River cafe.............................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The current report is based upon the Sky Cafe and it describe the objective of budget and
report analysis which includes the budget used by Sky Cafe for Twin River cafe. Study also
describe the major concern for management while developing budget. Lastly, report also provide
suggestion to Twin River Cafe in order to support their own objectives.
MAIN BODY
A Describing the objectives for preparing a budget
As Sky Cafe is independent airport cafe shop and its location is also restricted to the area
which is nearby London. It also have a majority of competitor especially or food and beverage
chain. Therefore, its main objective is to position itself an independent cafe store for the travelers
as well as citizens in order to provide them a homemade specialist by enhancing the product
sustainability. Therefore, the main objectives for planning a budget is as mention below:
Allocate the resources in effective manner: To run the business in effective way, it
requires capital and that is why, budget is allocated so that it provides proper detail of inflows
and outflows of money for a particular year (Philips, Shalaby and Marden, 2016). Thus, through
a valid objectives Sky Cafe will easily develop a budget for Twin River cafe in order to decide
where to allocate the funds for different activities. Moreover, budget also helps to fix the
responsibilities within each members so that the project is deliver in proper manner.
Provide accurate structure: Budget is useful to provide guidelines to the company
especially provide a direction in which it is supposed to go. Therefore, it provides a baseline for
effective planning and even budget also provides a significant amount of structure when
management refers to constantly (Ren and et.al., 2016). Thus, it helps the firm to take decision
accordingly.
Predict cash-flows: Actually budget is more useful for those companies who are rapidly
growing and for them it is difficult to measure cash. That is why, they use budget because it
helps them to determine the cash -flows and generate best result, for the future. In the same way,
Sky Cafe also uses the same so that it will be easy for them to allocate the budget in order to
develop further projects.
Review results and performance evaluation: The budget also helps to determine the
results and then determine how much money is required to spend the allocated task. Through
budget, Sky Cafe is easily going to operate to reach the stated objectives and further makes

corrections as well when get any unfavorable results (Arnold and Artz, 2019). Therefore, it
clearly state that with the helps of proper budget planning, company will easily complete the
make planning for their future developments such that Twin River cafe.
B Describing the report which shows the company's revenue and spending variance for July
As it is already given that Sky cafe has a allocated budget i.e. 18000 for July and it will
also generated the budget revenue up to 81000. while on the other side, planned expenses for the
month of July is £ 66180, in the same time, the net operating income for the value is 14820.
Therefore, it is essential for the manager to make sure that this budget should be well
communicated with the senior manager and upper authority and it is already describe a year ago
already. Therefore, the actual outcomes and selling are further monitored by the management
and the budget for Twin River Cafe is as mention below:
From the above, it is analyzed that if there is a reduction in the value of sales, then it
creates direct impact upon the business performance and especially in expenses. Such that for

raw material the planned budget is 43200 but actual expenses are done 42720 that means
company got benefited with the same of 480 and this is consider as a favorable. While on the
other side, the revenue is planned or the July month is 81000 but the actual revenue is 80100 that
means Sky cafe bear a loss of 900 which is counted as adverse. In addition to this, wages and
salary are also a a variable aspect which are also counted as a favorable because firm get an
advantage of 60. on the other side, as per the calculation, there are expenses which are not
expected in correct manner and as a result, the total of expenses are numbered as 65630 instead
of 66740.
On the other side, the flexed budget is also counted as adverse and it is so because the
planned budget is 14820 but actually is 14470. therefore, 350 is consider as a variance and it is
actual difference between the planned budget and actual budget. Moreover, as per the operating
income which is 13360 and it is also seems to be adverse with an amount of 1460. thus, it is all
because of low sales and high expenses.
C) Activity of variance should be concerns to management.
The budget management is very important and effective part which creates more
effectiveness for the business to river cafe. The above is table is shows a revenue and spending
variance for July. In this various variables adverse with budget because of expenses are managed
properly. In that case various concerns are their which can affect to management of cafe and its
profits margin. The budget of meal quantity is 200 adverse as well as revenues also adverse with
not making those budget in proper manner. This affects more than the management. There are
various concerns from that variances are generated which should be known to management are
as follows: Fixed expense are incorrectly forecasted: The fixed assets of company and cafe is
forecast incorrectly is the main concern of budget reflects adverse. This creates issues for
company to manage their quality and quantity of product and services which are sales by
cafe. Due to the economic climate, the landlords changed the agreement and increase the
rent cost of location where cafe is established (Harrison and Lock, 2017). Through that, it
decreases profit margin and affect the budget because that is not a part of budget. Its
results that is affect and impact on the cost of rent. This should have been considered by
managers for manage all the thinks.

 Sales of products are lower than as per expectation: there are various internal and
external factors which can be affect to budget in negative manner. Most of the time
customers are not in favour of purchasing products and services in that case this also
affect to budget because sales of cafe is lower than the budget. This also gives impact on
budget a quality of goods product is lower the customers are not purchase any product
from cafe as well as not visit at that place. Then the sales of cafe is lower and budget is
adverse. That is the concerns which should be known by manager of cafe.
 Changing business conditions: Most of the time, business conditions are suddenly
changed and company needs to hire new employees for manage work at cafe. This
creates adverse impact on budget in respective manner. In that case, new hiring have not
any knowledge of serving goods and services to customers and customer are unsatisfied
with that management (Cetindamar, Phaal and Probert, 2016). That is not in planned in
budget at beginning because that is happens suddenly at the workplace.
Those are the concerns which management need to concern at workplace for manage budget
proper and eventually. The above mentions concerns gives impact on budget adversely any time
or suddenly.
D) Advice the River cafe.
The above is analysed a various concern through which budget impacted adversely which
is not good for cafe growth. It is very important to turn adverse impact in favourable. For that
here is mentioned some actions which are help to management for remove adverse impact as
well as control those in effective manner. Those are as follows: Increase investment on quality of goods: That is the good action which is helpful for
increase sales and increase profit margin. Management have to increase investment on
quality of food product because know a days customers wants better quality of product ad
services which cafe against of their payment (Fayol, 2016). This is very helpful action for
increase sales and for increase budget margin or profit margin. Increase internal communication: The internal communication is the best action which
is need to follow and increase by management for manage their budget. This creates
negative impact on budget because employees are not share any important information
with higher management. This miss the chance to improve quality of goods and services
for management.

 Staff training and skills development: This is another action which is helpful for increase
sales and manage budget which is fixed by management for cafe. This help to increase
skills and ability of staff for manage work. Through that customers are get possible and
effective services with cafe which is the best action for management to control the
adverse impact from the budget in effective manner. This creates positive impact on cafe
and helped to managed budget.
Those are the actions which can be followed by management for increase sales and maintain
budget in proper manner. This is very helpful for managed budget of company. Those actions are
highly helpful for cafe to manage those in proper manner.
CONCLUSION
Form the above study it had been concluded that the managing finance and HR in cafe
has important for better management. This report had been formulated by main objectives for
preparing budget. The budget preparation had been very important for managed funds
effectively. The report also produce by company revenue and spendings. There has mentioned
various concerns for adverse budget which has to be concerned by manager. At the end, also
highlight the actions and advise to manager for control budget in effective manner.

REFERENCES
Books and Journals
Arnold, M. and Artz, M., 2019. The use of a single budget or separate budgets for planning and
performance evaluation. Accounting, Organizations and Society. 73. pp.50-67.
Cetindamar, D., Phaal, R. and Probert, D., 2016. Technology management: activities and tools.
Macmillan International Higher Education.
Cohen, D.A., Pandit, S., Wasley, C.E. and Zach, T., 2016. Measuring real activity management. Available
at SSRN 1792639.
Fayol, H., 2016. General and industrial management. Ravenio Books.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Philips, M., Shalaby, Y. and Marden, J. R., 2016, December. The importance of budget in
efficient utility design. In 2016 IEEE 55th Conference on Decision and Control
(CDC) (pp. 6117-6122). IEEE.
Ren, L. and et.al., 2016. Exploring customer experience with budget hotels: Dimensionality and
satisfaction. International Journal of Hospitality Management. 52. pp.13-23.