Beans Coffee: Financial Statement Analysis and Report - BSB50215

This report provides a detailed analysis of Beans Coffee's financial plan, focusing on its expansion strategy. The company, which operates a coffee shop and distributes coffee beans, aims to expand both its retail and wholesale businesses. The report examines projected income, expenses, asset positions, and cash flow statements. It analyzes variances, identifies potential financial problems and risks, and evaluates the company's financial health. The analysis includes considerations for GST, expansion costs, and the establishment of new coffee shops and distribution networks. The report also offers recommendations for effective budgetary control and market analysis to ensure successful expansion and financial stability. The assessment is based on a role-play scenario where the student acts as part of the accounts team, reviewing financial plans and providing insights.

Budget Plan

Introduction
• The Beans Coffee distribute its
coffee beans to other coffee shop
across Australia
• The company is thinking for
Expansion
• The budget has been made for
expansion

Budget Assumption and
Consideration
• GST rate is 10% which is constant
• Additional space for business for
expansion

• Assumption of remaining expenses
are general that occur at constant
basis.
•The budget is prepared on yearly
basis
• Assumption that the company has
sufficient fund for investment

Evaluation Process
Creating Budget:
• All income and expense are considered
Using a budget:
Guidelines for how to spend money as well
as target for enhancing the earnings.

Evaluating budget
The budget will be checked each and every
month that is required for the company to
analyze the efficiency of the budget.
Contingency Plan
•The manager is hired prior to the incident
happened
•Capital infusion requires
•Provide on-call services
•Interact will the consumers

Strategy for Financial and
Budgetary Controls
•Setting appropriate standards
•Ensuring top management support
•Participation by user in budget
preparation

Monitoring of Project Expenses
Forecasting
Variance Analysis
Performance Review

Project Details
Marketing Team
It will manage whole marketing and promotional
related activities
Research Team
Such team will analyze the market and analyze the
demand of product

Finance Team
The team will manage the funding
related activities
HR team
It will manage hiring related
activities to enhance the sales
activities
Sales Manager
It will manage whole sales related
activities

Recommendations
• Adopt effective budgeted strategy
• Analyze the market before entering
in the new market

•Adopt effective budget strategy
• control over strategies to
compete its competitor in an
effective and efficient manner.