Finance Report Template - Part of the Supporting Assessment Resources for Assessment Task 2 of BSBFIM601

This document is Finance Report Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBFIM601.
Australian Smart College
7 Greenfield Parade, Bankstown NSW 2200
ABN 45 607 618 244
RTO ID: 45302 CRICOS Code: 03661E
Phone: [phone]
Website: www.ascollege.nsw.edu.au
Email: [e-mail]
Australian Smart College Pty. Ltd.
BSBFIM601- Manage finances
Student’s Resources
V2_ MAY_2019 Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E
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This document is Finance Report Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBFIM601.
Growth Management Consultants
Finance Report
Introduction
The main objective of this report is to evaluate the performance of Grow Management
Consultants during the accounting period. This report will also evaluate the cash flow statement of a
business. It will focus on identifying the business goals and the software that can be used by the
company to do financial reporting process. The analysis would also be showing legal conditions which
the management of the company needs to adhere to while conducting the operations of the business.
The discussion would also be showing performance of the business in previous year as well as in current
year. The analysis would also be showing discussion regarding the strategic priorities and objectives of
the business and how the management aims to achieve the same.
2016/17 Performance
Analysis of the previous year’s (2016/17) profit and loss statement for Grow Management Consultant,
including revenue generated, cost of sales, as well as gross profit/loss margin and net profit/loss margin.
The cash flow statement of the business has been reviewed to analyse the effective cash inflow
and cash outflow. This cash flow statement helps in identifying the cash available in a business to
finance their business activity. The cash flow statement of FY 2016 and 2017 has been considered to
identify the cash flow. It is found that, the revenue of the business is more than the budgeted figure and
is found to be $175,600. This indicates that the company management has properly managed their cash
inflows from the sale of consultancy services. The company generates its income from their consultancy
operations. From, the cash flow statement it is also found that other activities are not consistent
according to the budgeted figure.
Analysis of overall business performance, as well as performance of each of the income streams for
2016/17.
The Growth Management Consultants generates it maximum of revenue from consultancy
services. From the income statement it is found that, there is an increase on the revenue. The cost of
operations also increases. It has been also found that, most of its revenue was generated from the
consultancy fees. But, the cost of operations is also more in their business activities. Therefore, It is
advised that, the management should maintain its business profits by controlling their cost of operations.
Outline the reasons for profit or loss based on your analysis of the data and research on economic
conditions and business trends.
From the income statement analysis, it has been found that the company generates maximum of
its revenue from consultancy services. The expenses of the business need to be controlled so that the
operations of the business can be managed. The profits of the business can be enhanced if the costs of
the business are controlled. The management should focus more on expanding their profits in order to
achieve growth. Certain external factors like increase of inflation rate, intense competition and other
factors have affected the revenue capacity of the business. The business must focus on meeting the
challenge from these external forces in order to maintain its revenue.
Strategic goals and priorities
Outline the goals and priorities for the upcoming financial year as documented in the Strategic Business
Plan and financial resources required to achieve these goals as per the estimated conference and e-
book costs. Include the dates by which these are to be achieved to information the budget forecasts.
The management is planning to replace their workshops with conferences in order to do effective
business operations. Conferences will help in bringing effectiveness in business operations by making
various innovations in the internal business process. The management is also focusing on introducing e-
books for generating more revenue. They also plan to implement new software for maintaining their
transaction records. These plans have been initiated to maintain the profitability position & increase the
revenue. The management of the company also aims to improve the financial management strategies of
V2_ MAY_2019 Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E
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