This finance report analyzes the budgeting practices and financial planning of Big Red Bicycle Pty Ltd, focusing on achieving a net profit before tax of $1,000,000. It identifies issues in the current budget, such as overspending on marketing and wages, and proposes solutions like reducing advertisement costs and optimizing labor allocation through advanced machinery and employee skill alignment. The report applies accounting principles like money measurement and cost concepts to monitor cash flow and fixed asset expenses. It also discusses relevant Australian Taxation Office (ATO) requirements, including payroll reporting, monthly organizational activity statements, and financial year reporting. Furthermore, the report outlines principles and techniques for managing budgets, including measuring financial performance and detecting organizational changes. It includes an assessment of the company’s financial policies, a training plan for employees, and a variance report, along with a modified contingency plan to address potential financial risks. The report emphasizes the importance of effective financial management for achieving organizational goals and objectives.
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