Advanced Diploma: Financial Management Project - Australian Hardware

This project assesses the financial management of Australian Hardware, focusing on key areas such as financial performance, cash flow, and budget revisions. The analysis examines the company's profit and loss statements, highlighting discrepancies like the unexpected cash drawer amount and the significant increase in worker expenditures and water consumption. The project also reviews the net income from operating activities, comparing the anticipated and actual figures, and discusses the increment in collected goods and service tax. Furthermore, it explores the company's current use of XERO software and recommends improvements in customer service, environmental responsibility, operational costs, and quality standards. The project provides a comprehensive overview of the company's financial status and offers insights for future financial planning and management.

FINANCIAL
MANAGEMENT
AUSTRALIAN HARDWARE

About Organisation
• Australian hardware chain
• Excellent services
• Engagement of community
• Accountability towards environment

Vision
• No selling cheap hammers
• Improve customer services
• Commitment to uncompromising value
• Honesty or integrity

Mission
• Excellent hardware
• Excellent home wares
• Excellent garden supply
• Best building material
• Committed to customer services

Statutory requirement of business
• Activities should be made in ethical manner
• Activities should state strategic objectives
• The activities should be performed as per latest business plan

Main requirements of opening
business in Australia
• Fair trading law
• Australian standards
• Codes of practice
• Australian consumer law
• Privacy Act 1998

Overall Financial performance
• Unexpected cash drawer amount
• Low results of current earnings
• No issues in payroll
• No issues in total cash in hand

Profit and loss statement
• Some amounts such as $700 were found and not specified in other fees. And
there was great and significant increase in value of Wages and expenditures of
workers.
• It was $ 400 and ended up being expenditure of $6000. Water consumption
also increased without any motive
• Need to know reason of increment

Cash flow
• The net income from cash flow from operating activities was anticipated at
$ 232,768 and was $ 153,940.00. The increment in collected good and
service tax was also well-known.
• Net Cash Flow from Operating Activities was projected at $ 236,018.00
and was $ 145,212.68. Cash at end of period was expected at $
737,823.00 and it was $ 647,017.68 that reflected final value of $
25,212.68 in increment for period

Budget Revision
• Salaries and wages
• Use of cash drawer
• Reduction in Water as well as other sources
• Improvement in materials

Financial software
• In the present time, the company is using XERO
software.
• It is useful in multiple tasks.
• It is used in the Small and medium enterprises

Recommendations
• Improvement in services of customers
• Responsibility towards environment
• Operational cost
• Quality standards