Review of Overall Performance and Debtor Management Project

Manage Finances
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Assessment Task-3
Review of overall performance
In the year 2016-17, the company earned profit from the conduct of conference to the
tune of $652,077. The total revenues of the company were 1,335,600 comprising revenues from
consulting fee, workshop, publications, and executive search services. The company incurred a
total cost of $683,523 in earning revenues of $1,335,600. The net profit margin is worked out to
be 48.82% which shows that the conference has been a grand success for the company.
Variation in Actual versus Budgeted Amounts: Income sources
The analysis of variations in actual performance versus the budgeted is essential to find
out the areas for improvement and plan for the future in a better way (Wyatt, 2012). The main
income sources of the company comprise consulting fee, workshop, publications, and executive
search. An analysis of budget versus actual figures as shown below:
Budget Actual Variation
INCOME
Consulting
fees
1,100,000.0
0
1,175,600.0
0 75,600.00
Workshops
48,000.0
0
36,000.0
0 (12,000.00)
Publications
5,000.0
0
2,000.0
0 (3,000.00)
Executive
search
108,000.0
0
108,000.0
0 -
Total
1,261,000.0
0
1,321,600.0
0 60,600.00
It could be observed that the variation in the consulting fee is $75,600 which indicates
that the company has been able to earn more revenues through consulting fee than budgeted.
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Further, the workshop revenues show a negative variation of $12,000. In the similar way, the
revenues from publications also show negative variation of $3,000. This indicates that the
company needs to put more focus on increasing the revenues from workshops and publications in
the next coming year. Further, the revenues from executive search are equal to what was
budgeted.
Variation in Actual Versus Budgeted Costs
The analysis of variations in the budgeted and actual figures of costs is also necessary to
find the areas for improvement and cost reduction (Shim, Siegel, and Shim, 2011). With this
view, an analysis of budgeted and actual costs of conference is presented below:
Budget Actual Variation
Salaries/wages 504,000.00 504,000.00 -
Superannuation 60,000.00 60,000.00 -
Cleaning 9,600.00 9,600.00 -
Accounting fees 6,000.00 6,823.00 (823.00)
Advertising and
marketing 500.00 5,000.00 (4,500.00)
Contract witer (e-book) 11,000.00 45,800.00
(34,800.00
)
Computer software 4,000.00 4,600.00 (600.00)
Motor vehicle expenses 5,000.00 5,183.00 (183.00)
Utilities 4,000.00 3,935.00 65.00
Insurance 4,000.00 4,028.00 (28.00)
Office supplies 1,500.00 2,100.00 (600.00)
Lease/loan payments 1,300.00 1,500.00 (200.00)
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