Automotive Management: Financial Management Homework - University

This document presents a comprehensive solution to an automotive management assignment, addressing key aspects of financial management within the automotive industry. The assignment delves into the importance of accurate and timely information for assessing a business's financial health, including income, expenses, cash flow, and assets. It explores the roles and responsibilities of financial managers in developing strategies, making investment decisions, and generating financial reports. The solution further contrasts computerized and manual accounting systems, highlighting the advantages and disadvantages of each, and emphasizing the suitability of computerized systems for larger businesses with complex records and manual systems for smaller businesses with fewer accounting requirements. Additionally, the assignment covers the Goods and Services Tax (GST) in Australia, providing an overview of its application, registration requirements, and relevant legislation.

Running head: AUTOMOTIVE MANAGEMENT
Automotive Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Answer to Question 1.................................................................................................................2
Answer to Question 2.................................................................................................................2
Answer to Question 3.................................................................................................................2
References..................................................................................................................................2

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Answer to Question 1
An organization requires having accurate and timely information to determine the
condition of the business or current ability of the company to generate profits. It helps to
identify the problems related to the business and assists in making long-term or sudden
decisions.
The information that is required to manage the finances of the organization is related
to income and expenses, costs, records of tax, Cash flow, assets and overheads. The
information allows an organization to monitor and control the activities and plan accordingly
(McKinney 2015). An organization needs the primary data related to its investment, finance
and dividend policy decisions in making its major financial decisions.
Financial managers generally have the responsibility to manage the financial
condition of an organization. They tend to develop strategies and investment activities and
produce financial reports so that to better plan for the organization’s long-term objectives.
Answer to Question 2
Computerized systems generally operate through using different software like MYOB
and Excel and consider as ideal for large businesses that are used to have complex records.
The companies choose a software program to meet their tax and legal requirements (Falola,
Osibanjo and Ojo 2014). The computer-based system provides a secured electronic back up
of the documents and stores safely their copies so that to get back the records easily in case of
fire or theft. Further, Cloud backup provides business to manage its records online. The
computer-based system automates the amounts and provides reporting.
Manual systems of an organization tend to maintain physical receipts and write all
their journal entries by hand. The manual systems are suitable for smaller businesses, which
generally have fewer accounting requirements, and especially to those businesses, which do

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not operate within the GST expenses. The records maintained manually are kept in the books
of the ledger in a physical form. The entries are manually corrected and do not require any
complicated audit trials (Cheng, Mitra and Song 2017). The figures and data recorded
manually also have the risk of data loss.
Answer to Question 3
According to GST ATO, Goods and services tax is a widely based tax of 10% on
most goods or services or any other items that are sold or consumed in Australia (Ato.gov.au
2020). GST is a value-added tax on goods and services with some exemptions (like for
healthcare) and concessions.
A business must register under GST through either online or by phone or registered
agent if the company has a GST turnover of $75,000 or expects to reach the threshold in the
first operation’s year. It is implemented if the non-profit organization has a GST turnover of
$150,000 every year or more or desires to claim fuel tax credits.
A New Tax System Act 1999 that is related to the Goods and Services Tax instructs
the appliance of the GST to supply goods or services or any transactions in context to the real
property, compulsions or rights.

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References
Ato.gov.au 2020. GST. online Ato.gov.au. Available at:
https://www.ato.gov.au/Business/GST/ Accessed 27 Jan. 2020.
Cheng, L., Mitra, S. and Song, H., 2017. Organized labor and audit fees. Accounting
Horizons, 31(4), pp.93-108.
Falola, H.O., Osibanjo, A.O. and Ojo, I.S., 2014. Effectiveness of training and development
on employees' performance and organisation competitiveness in the nigerian banking
industry. Bulletin of the Transilvania University of braşov, 7(1), p.161.
McKinney, J.B., 2015. Effective financial management in public and nonprofit agencies.
ABC-CLIO.