Cost Report and Cash Flow Projection for Event Management

This report provides a detailed financial analysis focusing on cost reports and cash flow projections, particularly in the context of planning a launch party aimed at attracting 100 clients. The cost report meticulously evaluates various expenses such as entertainment, venue hire, decoration, stationery, transportation, and staffing, highlighting both favorable and unfavorable variances between budgeted and actual costs. The cash flow projection presents a month-by-month assessment of expected cash inflows and outflows, enabling the identification of potential financial shortages or surpluses. It emphasizes the importance of accurate forecasting for effective financial management and decision-making, ensuring the company can proactively address any financial constraints and maintain operational stability. This comprehensive analysis is crucial for event organizers and financial managers seeking to optimize budgeting and enhance profitability.

Finance Report

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Cost report..............................................................................................................................................3
Cash flow projection................................................................................................................................5
REFERENCES..............................................................................................................................................10

INTRODUCTION
The transmission of financial information, such as accounting records, to accountants, such
as capital providers, is referred to as financial reporting. Corporations are commonly thought of
as producing income reports when it comes to financial accounting. A balance sheet, operating
income, summary of employee's ownership, and statement of financial position are all part of a
larger use accounting records, but financial statements is more than that (Ashafoke, Dabor and
Ilaboya, 2021). Financial reporting encompasses all financial communication from the company
to outside parties, encompassing news articles, investor meetings, organizational stakeholders
and analyses, auditor’s findings, as well as the company's financial notes. Financial reporting
refers to anything that may be used to communicate financial facts to the general public. This
report discusses the cost report and the cash flow report. The firm is throwing a launch party with
the goal of attracting 100 clients. As a result, cost and cash flow estimations should be done in
such a manner that they aid in both recruiting consumers and managing the financial cash.
MAIN BODY
Cost report
A cost report is a critical function that managers utilises to evaluate the operations in a
company; it displays the agency's production quantity and cost data. Calculate the cost of each
unit of manufacturing. Make a timetable for cost reconciling. The cost content is based on the
service, including institution features, utilisation data, cost and charges by cost centre (total and
for Medicare), Health care settlements information, and company's financial information.
Particulars Cost per unit Original Flexed Actual Variances
Units 100 20 80
Selling price 25 20000
Revenues 20000
Variable costs
:
Entertainment 2.50 250 30 280 (300)
Venue hire 4 400 40 440 (400)
Decoration 1.50 150 30 120 300

Stationary 5 500 200 300 2000
Transport 2 200 100 300 (1000)
Contribution 17 1700 340 1360 340
Fixed
Staffing 20 2000 400 1600 4000
Profit 17040
All possible expenses are evaluated according to the above cost report when evaluating the
event's performance. Costs must be kept in check. There were a total of 100 people at the launch
party, with 80 of them showing up (Björklund, 2021).
A customer (or another party) is informed about the size of a building project's projected or
actual cost through cost reports. This can be represented as an actual figure or as a percentage
difference from the project budget. A cost consultant generally prepares and updates cost
information on a regular basis to maintain the customer aware and assist management and the
planning committee in controlling costs. Cost reports often change over the course of a project,
becoming more detailed and accurate as more knowledge more about concept comes accessible,
and then real pricing are supplied by auditors appointed, construction companies, and vendors, as
well as actual fees charged. A cost report will often include a projection of the expenses expected
to be incurred for the duration of the task, in so far as they can be predicted and calculated, as
well as safety adjustments for the potential of unexpected expenses, if they are understood at the
time of the analysis. Ratios are frequently used to describe alternatives to meet certain hazards.
The percentages used are highest in the initiating phase, whenever there are the most potential
hazards, but they'll be lowered when more information well about project becomes known and
certain hazards have gone or been resolved (Peyravan, 2020).
It's critical to understand which expenditures would be included in cost reports. The
customer, for instance, may have expenditures that, while directly connected to the program, it
would want to manage for them self. Land purchase expenses, specialized materials and

equipment, furnishings, building contracts other than the primary contract, and so on are
examples of this.
Usually cost experts will create their unique style for cost reports when there isn't a single,
standardized kind of cost written report or if the customer has particular structuring needs.
Planning for an event gives event organizers a set of guidelines to operate inside. There is
always a limit to how much money may be invested on a single event. Considering that figure, it
only helps to keep record of special occasion expenditures to obtain the total cash rose does not
beyond the allocated amount. The major goals of event assessment are to establish if the event
accomplished its specified achievable objectives. -To see if the activity satisfies all of the
attendees' objectives. -It's essential to keep record of comments in order to guide current
organization’s success (Gamayuni, 2020).
Decoration, venue hiring, entertainment, stationery, transportation, and personnel are all
possible expenditures. Personnel costs are fixed for the firm, and all other costs are fixed. A cost
report is generated by a firm in order to determine its competitiveness. All of the expenses per
unit are computed in the aforementioned cost report, and the budgeting is created
correspondingly. There are both positively and negatively or unfavorable variations in this cost
report. Positive deviations indicate that the real profit is more than expected, whereas negatives
variations indicate that the actual profits are lower than expected.
To preserve the firm's growth, the company must seek to maintain all variances positive.
The company's entertaining cost has a negative variance, which implies the real cost is 280 and
the intended cost is 250. The firm spends extra money to keep the entertaining aspect of the
event going. Variations that are undesirable are referred to as unfavorable variances. The cost of
renting a venue is likewise a variable cost with negative variations. Decoration and stationary, on
the other hand, have positive variations. This indicates that the firm did well in these two areas.
The real revenue is higher than the anticipated profit. According to the aforementioned expense
analysis, the firm is spending more money on entertainment and venue rental. By implementing
the necessary modifications, the business may cut costs. In order to enhance profit, the firm
should also concentrate on transport costs (Butar and Murniati, 2021).

Cash flow projection
The cash flow projection depicts a month-by-month assessment of the funds normally
receive and expend for a program over a given time period. The net cash flow of a business is the
differential between some of the money in and out each month. Users can compute (predict) how
often cash will be accessible at the conclusion of a term when they include the cash position at
the beginning of the project in the spreadsheet. The balances for each quarter are given at the
foot of the standings as a total loss or gain. These data will emphasize any anticipated financial
shortages, allowing the development and financial users to communicate on recovery process.
The goal of a cash flow projection is to have a company an approximation of input and
output money over a specific period of time. In order to better identify the states that an increase
for each area, the projection, which focuses on estimated cash flow, is typically split down into
separate pieces. Companies will make a cash flow estimate for the next few months. A time
period will be selected (typically the following quarter) whereby a prediction of under further
will be displayed in the projection. The cash flow projection is used to projection a profitability
of a business over a given timeframe. The majority of these estimates are based on historical
data, cash flow, and projections (Ooi, Mayes, Dhaliwal and Shane, 2020).
Pre-
Startup
EST
Jan-
2021
Feb-
2021
Mar-
2021
Apr-
2021
May-
2021
Jun-
2021
Cash on Hand
(beginning of
month)
15,000 15,000 16,000 20,000 25,000 21000 10000
CASH
RECEIPTS
Cash Sales 10,000 10000 15000 7000 9000 2100 22500
Collections fm
CR accounts Nil nil nil Nil nil Nil nil
Loan/ other
cash inj. Nil nil nil Nil nil Nil nil
TOTAL CASH
RECEIPTS 10,000 10000 15000 7000 9000 2100 22500
Total Cash
Available
(before cash
out)
15,000 15,000 16,000 20,000 25,000 21000 10000

CASH PAID
OUT
Purchases
(merchandise) 20,000 22,000 24,200 26,620 29,282 32,210 35,431
Purchases
(specify) 15,000 16,500 18,150 19,965 21,962 24,158 26,573
Purchases
(specify) 5,000 5,500 6,050 6,655 7,321 8,053 8,858
Gross wages
(exact
withdrawal)
1,500 1,650 1,815 1,997 2,196 2,416 2,657
Payroll
expenses (taxes,
etc.)
2,100 2,310 2,541 2,795 3,075 3,382 3,720
Outside services 900 990 1,089 1,198 1,318 1,449 1,594
Supplies (office
& oper.) 1,000 1,100 1,210 1,331 1,464 1,611 1,772
Repairs &
maintenance 1,500 1,650 1,815 1,997 2,196 2,416 2,657
Advertising 2,000 2,200 2,420 2,662 2,928 3,221 3,543
Car, delivery &
travel 500 550 605 666 732 805 886
Accounting &
legal 700 770 847 932 1,025 1,127 1,240
Rent 800 880 968 1,065 1,171 1,288 1,417
Telephone 1,000 1,100 1,210 1,331 1,464 1,611 1,772
Utilities 1,500 1,650 1,815 1,997 2,196 2,416 2,657
Insurance 1,500 1,650 1,815 1,997 2,196 2,416 2,657
Taxes (real
estate, etc.) 9,000 9,900 10,890 11,979 13,177 14,495 15,944
Interest 1,200 1,320 1,452 1,597 1,757 1,933 2,126
Other expenses
(specify) 1,500 1,650 1,815 1,997 2,196 2,416 2,657
Other (specify) 1,600 1,760 1,936 2,130 2,343 2,577 2,834
Other (specify) 2,100 2,310 2,541 2,795 3,075 3,382 3,720
Miscellaneous 2,500 2,750 3,025 3,328 3,660 4,026 4,429
SUBTOTAL 72,900 80,190 88,209 97,030 106,733 117,40
6 129,147

Cash reigns supreme. It is the heartbeat of any company. A company's ability to pay workers,
purchase merchandise, or make finance payments is hampered by a lack of cash flow. However,
cash flow may not always be predictable or regular. A cash flow projection, which is a technique
that firms in an industry may use to anticipate income, costs, and bank deposits across time, is
one effective tool for projecting cash flow. A cash flow prediction helps a company operator to
predict a financial constraint until it occurs, allowing the company to make required adjustments
to maintain the firm going properly (Kędzior, Cyganska and Syrrakos, 2020). Projection could
also provide leadership prior notice of a potential financial gap, giving them time to put in place
mitigating strategies to avoid running out of cash. Cash flow analysis allows a business to see
different possibilities and assess their economic implications. Comprehension impending
expenditures and making comparisons them to trade receivables but also future projections sales
is essential to delivering cash flow." It's critical to monitor the position of financing in and out of
your organisation on a periodic basis to ensure the economic position of company and what it
will be across several days.
There are several fundamental things to take when thinking about the most effective ways
to arrange event's cash flow. To guarantee sufficient spending depending on profitability, follow
this advice when beginning the procedure and dedicating yourself to an agreement.
Prepare paperwork in advance: This involves writing the event's first budget and establishing a
cash-flow projection. These records should communicate with one another to ensure smooth cash
movement in and out. It's also crucial to set a precise timeline for the entire event in order to
improve control and knowledge of the needs (OGOUN and EPHIBAYERIN, 2020).
Pre-funding: They must create a cash-flow projection, an event timetable, and an overall budget
in terms of understanding the quantities of water funds necessary to make the event a success.
The first funds are crucial for supporting activities like as venue deposits, website construction,
and other marketing that must be paid before any cash is received. Nevertheless, this stage can be
difficult since both organizations and clients must successfully reduce early cash outlays in order
to decrease financial problems.
Predicting money flows has a number of advantages. There are several positives to generating a
cash flow projection, as well as the opportunity to:

• It is possible to forecast cash shortages and surpluses.
• Over time, compare and contrast corporate expenditures and income.
• Estimate the effect of a company's modifications (e.g., hiring an employee)
• Emphasizing ability to make regular payments to borrowers.
• Check to determine if any adjustments are necessary (e.g., cutting expenses)
• Cash flow forecasting isn't suitable for all businesses. The projected cash flow report can be
costly and time consuming if done properly (Svoboda, Poskočilová and Bohušová, 2020).

REFERENCES
Books and Journal
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Control Systems for Financial Reporting Quality at Local Governments in
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Kędzior, M., Cyganska, M. and Syrrakos, D., 2020. Determinants of voluntary international
financial reporting standards adoption in Poland. Engineering Economics. 31(2). pp.155-
168.
OGOUN, S. and EPHIBAYERIN, F.A., 2020. Accounting Ethics and Quality of Financial
Reporting. International Scholars Journal of Arts and Social Science Research. 3(1).
pp.60-75.
Svoboda, P., Poskočilová, B. and Bohušová, H., 2020. Financial reporting quality: the case of
Czech and German listed companies. International Journal of Monetary Economics and
Finance. 13(3). pp.235-243.