Managing Finance & HR for Sustainable Business Success

MANAGING FINANCE & HR
FOR SUSTAINABLE BUSINESS
SUCCESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
REQUIREMENTS...........................................................................................................................1
a. Objective behind preparation of the budgets by Sky Cafe.......................................................1
b. Report for variance analysis between the revenues and spendings.........................................2
c. Variances of concern for the management...............................................................................3
d. Twin Rivers for supporting their objectives............................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Sky cafe is a coffee house that sells the coffee and coffee products. The present report is
about the budgets and its importance to the business. Variance analysis is used for identifying the
difference between the actual and budgeted expenses of company. The report will identify the
variations and recommendations about possible measures for improving them.
REQUIREMENTS
a. Objective behind preparation of the budgets by Sky Cafe
The objective behind preparation of budgets s to provide idea about the future activities
that will be undertaken by the cafe. They are required for decision making having a structured
organisation, proper allocation of resources to the activities and taking appropriate measures for
removing the gap between the planned and actual incomes and expenses of cafe. There are
various objectives behind preparing a budget (Taieb and Atiya, 2015). There are different kinds
of budgets that are prepared by the cafe and every budget has a different objective. It is essential
for the management decision making. The objectives because of which the budgets are prepared
by Sky Cafe are
For planning the next step
Operating budgets are used by Cafe for guiding the business towards achieving a desired
profit objective. Purpose behind preparing a budget is to plan how company will be operating,
coordinating different activities of cafe and for providing a base for evaluating performance of
employees. It gives cafe the path on which it is to proceed so the it can its desired objectives
within reasonable time. It helps cafe in planning the next step for the business after one activity
has been evaluated by the business.
Allocation of resources
Business cannot run without availability of the sufficient funds for carrying out the
operations. Funds and are invested in equipments, purchases, labour and and cash balances for
meeting the daily requirements of business (Tayal and et.al., 2019). Budgets helps in allocating
defined amount of funds to the department or activity carried out by the cafe house.
Goals and Business coordination
Goals and targets can be delegated to the subordinate when the management itself has
the budgeted figures and objectives to reach. It enables the cafe to reach the desired levels
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