BSB61218 Financial Management Report: Australian Hardware Analysis

This report provides a financial analysis of Australian Hardware Ltd., focusing on its operations in the hardware and home appliance market within Australia. It begins with an overview of the company's mission, vision, and values, emphasizing its commitment to quality products and customer satisfaction. The report then outlines the statutory requirements that Australian Hardware must adhere to, including the Privacy Act 1988, Charter of Budget Responsibility Act 2007, and Financial Management and Audit Regulations 2013. The financial performance of the business is reviewed, highlighting the need for cost reduction and increased sales. Budget revisions are suggested, with recommendations for a more realistic approach and improved cost control. The report also discusses the company's current use of Xero software and suggests MYOB as an alternative. Finally, it emphasizes the importance of due diligence in financial reporting and offers additional recommendations, such as maintaining proper control and providing employee training. The report aims to provide a comprehensive overview of the company's financial management practices and suggest areas for improvement.

FINANCIAL MANAGEMENT

INTRODUCTION
 The company which is taken for the analysing is Australian Hardware Ltd. The company
mainly deals with the hardware, garden ware and other home appliances for the residents
of Australia.
 The company is known to provide the best quality product while serving its customers. This
makes the management of the company enjoys the high revenue in the market.

INTRODUCTION

ORGANIZATIONAL MISSION, VISION AND VALUES
 Australian hardware is a company which is engaged in the business of providing tools,
hardware equipment's for businesses which are operating in Austrlia.
 The company closely follows the mission of providing the best quality of products to the
consumers. The management of the company wants to provide value for the products and
also offer the same at a lower price
 The vision of the business is to establish the business as a brand and thereby attract more
customers to the business.

STATUTORY REQUIRMENTS OF THE BUSNIESS
 The statutory requirements are important consideration which needs to be followed so that
appropriate disclosures are available to the users of the financial statements.
 The management of the company needs to adhere to legal regulations of Australia and also
the rules and regulations which are established in the company. Some of the policies which
needs to be followed are :
 Privacy Act 1988: As stated in the act,, the management of the company needs to ensure
that the information of the client are not to be disclosed in any manner to other parties.
 Charter of Budget Responsibility Act 2007: This acts effectively deals with the
responsibility of the management of the company while creating the budgets of the
business for the company.
 Financial Management and Audit Regulations 2013: The process of audit and
financial management was included in the system so that the companies and their
management conduct the business ethically without providing any kind of misstatement in
the financial statement of the company.

REVIEW THE FINANCIAL PERFORMANCE OF THE BUSINESS.
 As per the budget which is prepared by the management of the company, the objective of
the business is to enhance the sales of the business by lowering the profits of the company.
 The financial performance of the business is moderate but the same can affect be
improved by the business. Some of the major changes which is required to be brought
about in the reporting framework of the business.
 The management of the company needs to reduce the costs of the business as the sane
has a direct impact on the profitability of the business.

REVISION OF THE BUDGET
 The budgets are prepared by the management for the purpose of effectively controlling the
costs of the business and also guiding the activities of the business.
 The budget establishes targets which the employee need to meet in pursuance of goals
and objectives of the business.

RECOMMENDATIONS ON CHANGES ON BUDGET
 The changes which can be suggested to the management of the company regarding
recommendation which can be applied on a budget are:
 More realistic approach for representing the budget which is prepared by the management
of the company.
 Significant reduction in costs of the business required
 Increase in sales of the business by enhancing the sales of the business.

FINANCIAL SOFTWARE
 As per the current scenario, the management of the company utilizes Xero Software for the
purpose of reporting of financial information of the business. The management of the
company is finding certain difficulties while operating in Xero as the scale of operations of
the business has increased.
 An alternative software option which is quite famous in the market is MYOB software which
can effective help the management to take important decision relating t the software

ENSURE DUE DILLIGENCE
 Due diligence refers to special care and information which is collected so that the
information which is presented in the annual report of the business is appropriate.
 The financial statements are shown free from discrepancies which also suggest that the
management has followed due diligence while conducting audit of the business.

OTHER RECOMMENDATIONS
 Some other recommendations which can be suggested to the management of Australian
Hardware for the purpose of making improvement in the business structure are :
 Maintenance of proper control
 Proper Employee Training
