BSBFIM601 Finance Report: Growth Management Consultants Analysis

This finance report template provides a detailed analysis of Grow Management Consultants' financial performance. It includes an introduction outlining the report's objectives, followed by a performance analysis of the 2016/17 financial year, examining revenue, costs, and profitability. The report delves into the company's cash flow statement, identifying trends and assessing the business's financial position. Strategic goals and priorities for the upcoming financial year are outlined, along with required financial resources. The report also analyzes various financial software options, including MYOB, Sage, Xero, and Quickbooks, evaluating their advantages and disadvantages. Additionally, it addresses compliance requirements, such as GST liability and PAYG tax installments, providing a comprehensive overview of the company's financial management.

This document is Finance Report Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBFIM601.
Growth Management Consultants
Finance Report
Introduction
The primary reason for this analysis is to review the performance of Grow Management Consultants
during the period and also review the cash flow statement for the business. The analysis would also be
identifying the strategic goals of the business. Furthermore, the analysis would also be showing financial
reporting software which can be used by the business for the purpose of reporting.
2016/17 Performance
Analysis of the previous year’s (2016/17) profit and loss statement for Grow Management Consultant,
including revenue generated, cost of sales, as well as gross profit/loss margin and net profit/loss margin.
The cash flow statement for the business depicts the available cash which the business for the purpose
of financing the operations of the business. In order to effectively identify the cash inflows and outflows of
the business, a review of the cash flow statement for the year 2016/17 is being considered. The revenue
which is generated by the business is shown to be $ 1,175,600 which is more than the budgeted figure.
This reflects that the management has appropriately generated cash inflows from sales which are made
from consultancy services. In terms of generating income, the business depends on its consultancy
operations so that appropriate revenue can be generated. The review of the cash flow statement shows
that other activities of the business are not consistent with the budget which is established.
Analysis of overall business performance, as well as performance of each of the income streams for
2016/17.
The business of Grow management consultants generates appropriate revenue from providing
consultancy and other kinds of services. The income statement shows that the revenue of the business
is on the rise but so is the cost of operations which impacts the profits which is made by the business.
The income statement further shows that maximum portion of the revenue of the business is generated
from consultancy fees. The management of the company needs to focus on maintaining profits and
therefore the emphasis would be on reducing the costs of the business.
Outline the reasons for profit or loss based on your analysis of the data and research on economic
conditions and business trends.
The analysis of the income statement reveals that the business generates maximum revenue from
consultancy services. The management of the company need to put in effort for expanding the profits of
the business so that the business is able to achieve growth. Some external factors such as inflation rate,
level of competition in the market and several other factors also have a serious impact on the revenue
generation capacity of the business.
Strategic goals and priorities
Outline the goals and priorities for the upcoming financial year as documented in the Strategic Business
Plan and financial resources required to achieve these goals as per the estimated conference and e-
book costs. Include the dates by which these are to be achieved to information the budget forecasts.
The management of the company is planning to replace the workshops in the business with conference
so that more effectiveness can be brought about in the operations of the business. Conferences would
bring about efficiency in the operations of the business and also innovate the internal business
processes. One other item which the business intends to introduce is e-books so that more sales
revenue can be generated. The management of the company also plans to change the reporting
framework by introducing new software for maintaining financial records. The ultimate aim of the
business is enhance the revenue from operations and thereby achieve growth.
Cash flow statements analysis
Provide your analysis of cash flow trends as per the cash flow statements.
© J&S Learningwork 2018

This document is Finance Report Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBFIM601.
The cash flow statement for the business shows positive results in terms of revenue which is generated
and the amount of cash inflow which the business is able to generate. The cash from operations shows a
positive result which is a favourable sign for the business. In an overall estimation, it can be said that the
cash flow statement is appropriately prepared showing the financial positioning of the business.
Financial Software
Provide your review and analysis of at least three other financial software that the business could use,
including the advantages and disadvantages of each, as well as the advantages and disadvantages of
MYOB.
The business of Grow management consultants currently uses the accounting software MYOB for
recording financial information for the business.
Advantage
 Makes the accounting process much more efficient.
Disadvantage
 It is a bit complex to handle for everyone
The alternative software options which are available to the business include the follow with the
advantages and disadvantages:
Sages
This is one of the alternative options available as a replacement for MYOB software and the same is
efficient for handling the reporting process.
Advantage
 It is a very cost effective option and the business can easily finance the same.
Disadvantage
 The software is not user friendly and has a complex installation process.
XERO
This is one of the popular software which can be chosen by the management of the company for
implementation.
Advantage
 The use of Xero automatically converts currency values of transactions with different countries
and therefore the same is suitable for international transactions.
Disadvantage
 The software has a very slow response when the transaction volume is large and the nature of
the business is large.
Quickbooks
Another option which is available to the management of Grow Management Consultants is Quickbooks
which are also efficient.
Advantage
 The software is very efficient and easy to access and therefore the same can be regarded as
user friendly.
Disadvantage
 The software is relatively new and does not include industry specifics and cannot be
implemented in all kinds of businesses.
Compliance Requirements
The senior officials are required to have a conference to discuss the GST liability which the management
of the company would be incurring on the goods which are sold by the business. In addition to this, the
tax estimated instalments which the management needs to pay under PAYG scheme also needs to be
ascertained and the same needs to be appropriately be reported within the period.
© J&S Learningwork 2018