Financial Management: A Comprehensive Analysis of Hotel Futura

Desklib provides past papers and solved assignments for students. This report covers financial management.

BSBFIM601

Contents
TASK 1........................................................................................................................................................ 3
TASK 2........................................................................................................................................................ 7
TASK 3........................................................................................................................................................ 9
TASK 4...................................................................................................................................................... 10
TASK 5...................................................................................................................................................... 11
References................................................................................................................................................ 12

TASK 1
1. What are the requirements for financial probity?
Your response needs to provide an overview what financial probity entails and what
this typically would require from you as an employee and an organisation for various
business activities like e.g. tenders, procurement etc.
As per the finance department of Australia there is requirement of probity which is helps to
public construction procurement as well as analyzing the ethical behavior which can be defined
the specific process are confirm integrity and honesty (Carr-West, 2015).
According to tender participants
 It is must to specify the reason of conflicts for becoming aware form conflicts
 It should be fairly work and honestly work.
According to procurement
 It is only conduct for public construction procurement
 It is include with confidential information.

2. Describe the concepts and principles of accounting?
a) Accounting entity concepts: - It is the main and important process of every business
to maintain their accounting records as well as helps to Cleary identifying the economic
activities. It is the main concepts of the business for arranging the assets and liabilities
for identifying the profitability as well as evaluating the economic activities of the
business (BOWMAN, 2019).
b) The Reliability Principle: - The main and important role ofreliability principlefor
collecting the financial information which must be presented the accounts books of the
business. It provides the concepts of accounting for maintain the records and statement
of the business. Its provides a accurate and correctly information about the accounts
which is helps to analysing the profits and loss of business.
c) The Going Concern Principle: -It is the main and important principle of business that
concepts helpin assumption of foreseeable future in the business. It provides the
assumption information which is helps in the future for acquiring assets and liabilities as
well as business operation.

3. Describe the principles of and provisions for effective financial systems?
 Transaction recording: -It is the main and important process of every business
forrecording theaccountinginformationwhich is related to purchase and sales.
Transaction is the essential process of every business because without transaction
of money business is nothing (Oulasvirta, 2016).
 Reconciliation Processes: - It is the essential part of the business which is helps to
ensuring about the accuracy of the financial accounts of the business. It provides a
accuracy of amount of profit and loss in the business for the financial statement in
the business
 Invoicing: - It is the essential for customers to knowing about the bills invoice no to
calculate the actual price and good which is sale out from the goods. Invoicing is the
process of business in invoice no is helps to the business for knowing the sales bills
and goods.
 Accounts payable: -To manage the proper management in business the payment
of payable and receivable amount should be clear.
 Account receivable: -It is the main part of trade debtors and
 Cash management: - It is the essential part of the every businessfor moving the
business bottom to top level business.
 Security measures: - Security is needed in every business in the accounting
systems.
 Banking procedures: - when preparing the bank statement it is necessary to
provide the bank fund as well as it is a important procedure which is dealing in the
cash.
 Revenue systems: - Revenue is the essential part of every business to knowing the
revenue cost in the business and it is main and important for owner of the business.
 Financial management systems: - It is include in financial condition of
management and business for example: - business size and nature of business.

4. Explain the following Australian, international and local legislation and conventions
that are relevant to financial management in the organisation. Where these are not
relevant to your organisation, provide a detailed example for each of these applied to
a suitable business activity.
 Australian Consumer Law (ACL): - According to the Australian consumer law which is
related to the consumer protection. In this law which is includes with consumer guarantees,
practices of sales, as well as consumer rights (Barrett 2016).
 International Commercial Terms (INCOTERMS): - It is the commercial agreement which
is used in international for accurate and setting the commercial terms.
 Warsaw Convention: - It is an international process which helps to regulating the liabilities
which is performed by the aircraft.
 Trade Agreements: - It is the essential part of the business which is helps in taxes and
trade restrictions.
 World Trade Organization determinations: -World trade organization which is deals in the
globally and follow the rule between two nations
5. Outline the requirements of the Australian Tax Office, including Goods and Services
Tax, Company Tax, Pay As You Go. Your response needs to include details for
amounts, calculating these, due dates and provisions relevant to different business
models e.g. partnership/sole trader or company.
Tax regulation: - It follows the business structure which is related to the sole trader
business and public companies under the rules and regulation of Australia. According to the
business structure should be calculate under the rules and regulation of the Australia laws. It
is main and important rules of Australia that is taxation which is collected by the federal
government as well as revenue of GST should be implemented by the federal government
of Australia (Veselovsky, 2015).
According to the government of Australia introduced the policies of taxationand as well as
provide the bifurcations of taxation policies of every business.

Income Tax: -According to the income tax act 1986 the policies of tax should be applied on
the sole trade business and public business it should be charged on every business of
Australia which is helps to increase the revenue of Australia government. According to the
government rules of Australia income tax should be charged on the profit of the every
business. In Income tax provide the relaxation on the school fess, tuition feels and any
other policies which is related to life insurance.
Good and service tax:- In Australia good and services was established in the year of 2000
for the new regulation system for business which is individual or public companies in the
Australia. Under the acts of Good and services tax it shows the multi taxes in the business
but charged on the profits. According to the sales of the business goods and services should
be charged on the profitability of the individual business and public companies.
GST Registration:- In the nonprofitorganization good and services is required as well as
registration of goods and services in every business for analysing the profit and paid a good
and services tax according to the Australian rules and regulation. If business is not register
in the goods and services it cannot charge the amount of goods and services to the
customers. If it should be charges to the customers then customer can take the action to the
business man as well as registered firm.
GST Collected and GST PAID:-If any business can register their business in the good and
services tax they must be charge around 10% on the sales of profits and should be collected
from ATO.

TASK 2
Cash Flow Statement
For the Year Ending 30/06/18
Cash at Beginning of Year 28,000.0
operation
Cash receipts from customers 582,100.0
Cash paid for
Inventory purchases (154,000.0)
General operating and administrative expenses (56,000.0)
Wage expenses (60,000.0)
Interest (10,500.0)
Income taxes (28,800.0)
Net cash flow from opertaion 272,800.0
Investing activites
Cash receipts
from
Sale of property and equipment 59,800.0
Collection of principal on loans
Sale of investment securities
Cash paid for
Purchase of property and equipment (88,800.0)
Making loans to other entities
Purchase of investment securities
Net Cash Flow from Investing Activities 29,000.0

Financing Activities
Cash paid for
Repayment of loans (54,000.0)
Dividends (22,000.0)
Net Cash Flow from Financing Activities (77,000.0)
Net Increase in Cash 224,800.0
Cash at End of Year 252800

TASK 3
You have met with the department heads of Hotel Futura and the following details have
been discussed to prepare your draft budget for 2015/16:

TASK 4
a) Collate the totals for the actual 2014/15 and the draft budget 2015/2016 in the tab
“comparison
b) Go to the tab “Draft Budget”, create a copy and move this copy to the end. Rename and
label this copy “Future Potential” and manipulate the scenario below:

TASK 5
1. Given the suggested changes in the operation for the 2015/2016 as set out in Task 2,
discuss which departments you will need to liaise with in terms of financial and HR
impacts. Which details will you need to discuss for a successful implementation of the
budget?
2. Which factors need to be considered when the hotel reaches full accommodation
capacity based on the future forecast for 2016/17?