BSBFIM601 - Manage Finances: Assessment for Sydney Metro College

This assignment solution addresses the core aspects of financial management within a business context. It includes the creation and analysis of various budgets, such as sales, profit, GST, cash flow, and aged debtor budgets, providing a comprehensive overview of financial planning and control. The assignment delves into the importance of budgeting for effective planning and goal achievement, while also highlighting the significance of internal controls and financial management practices. It presents a profit budget, showcasing the business's ability to generate profits, and emphasizes the need for adjustments in cash and debtor management. Furthermore, it explores different taxes applicable to the business and the implementation of accounting software. The assignment also encompasses variance reports, debtors analysis, and performance analysis to identify areas needing improvement. The student provides recommendations for cost reduction and improved financial management practices, offering valuable insights for the business's financial health. References to relevant academic sources are also included to support the analysis and recommendations.

Running head: MANAGE FINANCES
Manage Finances
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Task 1...........................................................................................................................2
Part 1.........................................................................................................................2
Budget Notes............................................................................................................5
Part 2.........................................................................................................................5
Assessment 2...............................................................................................................6
Variance Report........................................................................................................6
Debtors Analysis.......................................................................................................6
Analysis of variances in Different Budgets...............................................................7
Performance Analysis...............................................................................................7
Recommendation......................................................................................................7
Reference.....................................................................................................................8

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Task 1
Part 1
Sales Budget
Profit Budget

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GST Cash Flow Budget
Aged Debtor Budget

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Budget Notes
The budget which is created by the management of the company is for the
purpose of acquiring assistance for appropriate planning. The financial estimate
which is shown in the budget is based on the targets and goals which are already
established by the senior officials. The above tables shows profit budget which is
mainly the presentation of profits which the business is able to generate for the
period considering all income sources and expenses of the business (Karadag
2015). The net profit of the business is shown to be $ 2,677,166 which is significant
and the same shows that the business has put in efforts for enhancing the same.
Some of the financial management practices for the business need to be
changed such as cash management strategies and policies relating to debtor
management. The internal control functions for the business also needs to be
improved.
The main assumption which is considered is that all units which is produced
by the company would be sold off during the period thus there would be no closing
stock for the business. Further a percentage is considered for credit sales which the
manager estimates during the period.
One of the principles which is followed by the business for implementing and
monitoring activities is proper budgeting techniques and progress reports.
Part 2
The different taxes which are applicable to the business of Houzit are listed
below:
 Goods and Service Tax
 Income Tax
 Surcharge
The senior officials of Houzit need to comply with the rules and regulations which
are set in Corporation Act 2001 and other regulations which is specifically applicable
to the company.
The managers of Houzit is planning to make changes in the reporting process
for the company and considering the nature and volume of transactions, MYOB
accounting software would be the best option for the company. Alternatively, there is
also Sage software which can also meet the requirements of the company. Both the
software can maintain records effectively and process the same in a quick manner
as well.
The revenue and expenses for a business needs to be matched in a financial
statements considering the principle stated in matching principles of the business.
An account group records appropriately help in preparation of records and also plays
an integral part in preparation of budget for a business (Wolmarans and Meintjes
2015). The time period is the factor which reflects the deadline which the
management of the company needs to prepare with in a timeframe.
The principle of probity states that a level of honesty and decency needs to be
maintained while preparing the financial budget for the business (Clinton and
Whisnant 2019). This principle is followed so that the integrity of the reporting
process is appropriately maintained.

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The timeline in which the project needs to be completed and also the quarterly
period dates when the performance is monitored are considered to be critical dates
for the business.
The main step which the management of the company would be undertaking
for appropriately maintaining efficiency is through making changes in the internal
control process of the business and implement better financial management
practices.
Assessment 2
Variance Report
Debtors Analysis
Analysis of variances in Different Budgets
The variances which can be identified from the financial reports and the
budgets which are prepared reveal that there are some gaps in performance

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(Spender 2014). The variances which can be identified needs to be improved by the
management so that the overall performance of the business can be improved in the
long run. The gross margin and net margin for the entity is shown to be unfavorable
considering the high costs which is related to the business (Burns 2016).
Performance Analysis
The performance for the business needs to improve in terms of costs which is
associated with the business so that the profits of the business can enhance. The
business of Houzit is engaged in retail industry and therefore the level of competition
in the industry is high. The management of the company needs to focus on
enhancing the sales of the business so that the profits of the business can be
enhanced (McKelvey and Lassen 2013). The company also needs to adhere to
financial management practices of the business which includes debtor management
practices of the business.
Recommendation
The recommendations which can be suggested to the managers of Houzit are
listed below:
 The costs of the business needs to be improved which can be done by
reducing the expenses which is associated with the business.
 Further, financial management practices for the business also need to be
improved considering the current level of operations for the business.
Reference
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Clinton, L. and Whisnant, R., 2019. Business model innovations for sustainability.
In Managing Sustainable Business (pp. 463-503). Springer, Dordrecht.

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Karadag, H., 2015. Financial management challenges in small and medium-sized
enterprises: A strategic management approach. EMAJ: Emerging Markets
Journal, 5(1), pp.26-40.
McKelvey, M. and Lassen, A.H., 2013. Managing knowledge intensive
entrepreneurship. Edward Elgar Publishing.
Spender, J.C., 2014. Business strategy: Managing uncertainty, opportunity, and
enterprise. Oxford University Press.
Wolmarans, H.P. and Meintjes, Q., 2015. Financial management practices in
successful Small and Medium Enterprises (SMEs). The southern African journal of
entrepreneurship and small business management, 7(1), pp.88-116.