Excel Consultants: Financial Analysis, Performance & Budget Report

This report provides a comprehensive financial analysis of Excel Consultants, a leadership consultancy, covering their performance in 2021-2022 and budget planning for 2022-2023. It reviews revenue, profitability, and cash flow statements, comparing actual figures with budgeted expectations. The report identifies key expenses, strategic goals such as replacing workshops with an annual conference, and the financial resources required to achieve these goals. It also evaluates different financial software options, including Wave, FreshBooks, and MYOB, highlighting their advantages and disadvantages. Furthermore, the report outlines tax obligations and requirements, including GST, PAYG, payroll tax, and superannuation entitlements. It concludes with an email to managers and supervisors, discussing the budget, financial delegations, and due diligence requirements, emphasizing the importance of controlling operating expenses and meeting statutory financial obligations.

Manage Finances

Part A
Finance Report template
Introduction:
Leadership consultancy is a business service that includes examination of existing
management structure in order to support the enterprise in developing leadership
qualities at employee as well as managerial level. This report consists of a company
called as Excel Consultants who are specialized in leadership consultancy and
operating for last 7 years in this business. The business concern assists multiple
entities with respect to leadership behavior for their existing members. They design
and implement customized leadership programs based on the assessment they made.
They offer their services over Australia wide. Their workshop is conducted once in
every 3 months in all the major cities including Sydney, Canberra and Melbourne.
Their intension is to replace workshops with annual conference in FY 2022-2023 as
they are not well attended and as per the feedback received from client consultancy
service is better choice for future. The sales from the E-book is not up to mark and
they are planning to generate $15000 by selling two E-books in next financial year.
They are planning to organize a bigger annual conference in 2022-2023 and have
targeted 150 people mark who attend that seminar in person.
Strategic goals and priorities:
The excel consultant is planning to organise an annual conference and expected that
such conference is attended by at least 150 people so that their revenues in the
upcoming year cab be increased. Their goal is to switch from the existing model they
are running which does not provide them adequate revenue they wanted that is replace
the workshop with annual conference. In the current financial year that is 2021-2022
they have conducted 36 workshops and they have also produced E book with respect
to leadership technique. They are expecting that if they produced two E-book in next
financial year than they can generate sufficient sales to match the expenses incurred
by way of conference cost in next year. The funds they are dependent upon to conduct
the conference is revenue they generate for sale of E-book which is $15000 and
increasing over the period of time.
2021 – 2022 Performance:
Report of Performance of Excel Consultants During the Financial Year 2020-2021
Considering Their Profit and Loss Statements, Cash Flow Statement: -
 Revenue Generated by Organisation:
The total amount of revenue generated by the business concern is $1333600
which comprises of consultancy fees of $ 1175600, workshops of $ 36000,
publication of $ 2000 and executive search of $120000 respectively.

 Whether Excel Consultant is profitable or not and whether they are profitable
according to the expectation:
During the year 2020-2021 they are Generating the profit of $ 625805 as
arrived after deducting all the operating expenses from the revenue. According
to the budgets they need to earn the profit of $ 607640, however they earn
more than that by $ 18165 which is considered to be better. The percentage
increase in their profits as compare to budgeted figures is 2.989%.
 Calculation of Profit Margins of Excel Consultants:
The formula of calculating profit margins is as under: -
Profit Margin
= Operating Income / Revenue * 100
= 625805 / 1333600 * 100
= 46.93 %
Their gross and net margin are exceptionally well as they are earning huge
margin during the financial year 2020- 2021 as calculated above.
 The three major expenses they are incurring during 2021 - 22:
1. Payment of Salary and Wages to Employees of $ 42000 every month
and annually the payment is $ 504000 (4200 * 12)
2. Payment made towards Superannuation of $ 5000 every month and
annual payment is $ 60000 (5000 * 12)
3. Payment of contract e-writer a sum of $ 10000 in July and in
remaining month other than October the payment is $ 3580 every
month. The total payment being made on annul basis is $ 45800
(10000 * 1 + 3580 * 10).
 Statement showing comparison of actual cash flow statement with budgeted
figures and highlight the difference in percentage:
Budget Actual
Chang
e %
INCOME
Consulting fees
1,100,00
0
1,175,60
0
-
75,600 -6.87
Workshops 48,000 36,000 12,000 25.00
Publications 5,000 2,000 3,000 60.00
Executive search 120,000 120,000 0 0.00
NET INCOME
1,273,00
0
1,333,60
0
-
60,600 -4.76
EXPENSES

Salaries/wages 504,000 504,000 0 0.00
Superannuation 60,000 60,000 0 0.00
Cleaning 9,600 9,600 0 0.00
Accounting fees 6,000 6,823 -823 -13.72
Advertising and
marketing 500 5,000 -4,500
-
900.0
0
Contract writer (e-book) 11,000 45,800
-
34,800
-
316.3
6
Computer software 4,000 4,600 -600 -15.00
Motor vehicle expenses 5,000 5,183 -183 -3.66
Utilities 4,000 3,935 65 1.63
Insurance 4,000 4,028 -28 -0.70
Office supplies 1,500 2,100 -600 -40.00
Lease/loan payments 1,300 1,500 -200 -15.38
Rent 42,960 42,960 0 0.00
Sundries 2,000 2,280 -280 -14.00
Travel and
Accommodation 5,000 5,386 -386 -7.72
Repairs & maintenance 1,500 1,200 300 20.00
Telephone 3,000 3,400 -400 -13.33
0
TOTAL EXPENSES 665,360 707,795
-
42,435 -6.38
0
SURPLUS/ DEFICIT 607,640 625,805
-
18,165 -2.99
Graph and/or Pie Chart
Reporting of findings analysed above using graphs and pie chart:

607,640625,805
Deviation between Actual and Budgeted Data
Budget Actual
Financial Software
The two financial software the organization can use along with its advantage and
disadvantage as well as advantage and disadvantage of MYOB explained below: -
Wave and Fresh books are the tow accounting software’s which can be used by the
organization other than MYOB.
 Wave Accounting Software: -
Advantages: -
1. Reconciliation with bank documents can be made easily.
2. In this software handling multi-currency transaction will be made
easier.
Disadvantages: -
1. In this software sometimes bank account will not be linked properly.
2. It does not have proper provisioning rates for depreciation on the fixed
assets.
 Fresh Books Accounting Software: -
Advantages: -
1. This accounting software supports different operating systems.
2. Its pricing policy are flexible considering the needs of user.
Disadvantages: -
1. Certain features relating to accounting is missing such as budgeting
calculation, inventory management etc.
2. It does not support multi-currency financial statements.
The advantage and disadvantage of MYOB are as under: -
Advantage: -

1. It Saves the lot of time and updates with respect to tax is easily
available in this software.
2. The data will be updated in this software at a faster rate.
Disadvantage: -
1. It takes lot of time to capture the data which is input in the system.
2. The sharing of report is difficult in this system.
PART B
(Solution Attached in Excel)
PART C
Tax obligations and requirements
1. GST reporting requirements: Excel Consultants has its protocol for paying
the GST in the quarterly instalments. The company is bound to pay the tax
duty for GST when the organization net turnover is over $ 20 million. This
is the reason that the company is required to report GST quarterly (When
and how to report and pay GST, 2018).
2. PAYG withholding obligations: The PAYG is an online application software
which helps is paying off its duties and calculating it. For withholding the
PAYG obligations, the company should register itself on the platform. It
helps in paying off the tax liabilities for committing the year end – to end
liabilities (PAYG withholding obligations, 2018). For this the company have
to collect all the amount that re to be withheld to the employees, workers,
contractor and to those people who does not have their identification
business number in Australia which is known as the ABN (Australian
Business Number).
3. PAYG income tax instalment: It is a technological advancement which help
the company in paying off its income tax instalment towards the entity's
expected liabilities of tax which are due on the business concern and the
investment income (PAYG instalments, 2018).
4. Payroll tax obligations: The payroll responsibilities are self-assessed for
paying the state and the territory tax which is assesses on the basis of
salary which is payable to the employees by the employer. If the amount
of the bill of wage surpass the threshold amount. This differences will
vary between the territories and the states (Employer tax Obligations,
2018).
5. Superannuation entitlements: Employer make a payment and invest
funds for the employees in order to provide them savings at the end of the
year. An individual whose age is 18 years and more, and earning are $450
or more in a month. A superannuation is a deduction which has to be
made by the employer and employee which is made on regular basis. An

employee whom works as a full time, part time or a casual worker are
eligible for the superannuation, same rule applies to the person below 18
years. The basic requirement to be eligible for the superannuation
deduction is that the individual have to work for more than 30 hours per
week, if a person does not fall under this category than the person will not
be eligible for such deduction. A minimum of 9.5% is to be paid by the
employer in respect of the superannuation. These are deducted from the
employee’s wage and ordinary earning which includes commission,
bonus, allowances, types of paid leaves and over award payments.
Employer have to calculate SG payments with every payment cycle but
the payment can be made once in a quarter.
PART D
Write an email to the managers and supervisors of the company.
To,
The manager,
Subject: To write about the budget and financial delegation concerning about the due
diligence and financial reporting requirements.
Respected Sir/ Madam,
This email is written to you for consulting about the budget that has been
made for the year 2022 – 23. This encloses the increase in the 5 % increase in the
expenditure amount and 10 % hike in the income which is incurred by the company. It
is made to understand the objectives of the organization by planning and controlling
of the resources and the costs It help in accomplishing the goal which are given by the
company. It is crucial for you to understand the budget amounts so that it helps the
company in diminishing the costs and enhancing the profits on the budgeted amount
and investment.
The financial delegations are also an essential element for you to understand
as it gathers the necessary information for all the tasks that are to be completed. It
helps in delegating the responsibility accordingly to the respective persons
considering the function, powers, and duties of the employees. It enhances the
efficiency level of working of the employees as well as the top executives. It makes
the employees more responsible for their work which is performed by them.
The fiscal recommendation that can be given to you is that the operating
expenses should be controlled in case of the salary, e-book contracts band rent
payments. In order to increase the profitability and efficiency of the business concern.
In the next year, the entity aims and cancelling the workshop and organize the annual
conferences. But, for this the company have to adapt the strategy that the loss of the
workshops can be recovered. Also, in the next year the entity aims at launching of the

2 e-books stores for this it’s should at least aim at earning the net profit of $ 15000. If
these are not earned, then it may suffer loss.
The statutory financial requirement is very critical as if these are not fulfilled
then the company may face the legal obligations which could be due not fulfilling the
protocol laid by the government in terms of the taxations, financial reports and
documents. According to the Australian government, the financial reports are to be
lodged in the ASIC at the end of the monetary year (Financial reporting in Australia,
2022). Also the company's top executives have to make sure that the reports are audit
by the internal and the external auditors. Also, the exemption in the taxation should be
properly made.
Due diligence: The compliance due diligence is defining as the procedure of
conduction an investigation, audit or the financial analysis of the business
organization compliance with the regulatory bodies which are the both government
and non-government. The main aim here is to seek whether the business enterprise is
following the rules and regulations properly or not. Potential buyers use this
information for the purpose of identifying the risk associated with the business
organization. Compliance of due diligence will help in estimating the cost and assess
the risk associated. The obligation of the business concern will automatically shift to
the buyer of the business. Thus the require to know the legal preceding pending and
criminal charges on the business will shift to the buyer of the organization.

REFERENCES
Books and Journals
Financial reporting in Australia, 2022. [Online] Available through
<https://www.austrade.gov.au/international/invest/guide-to-investing/running-a-
business/understanding-australian-business-regulation/financial-reporting-in-
australia#:~:text=Financial%20reporting%20requirements,-The%20Australian
%20Securities&text=Companies%20operating%20in%20Australia%20are,be
%20exempt%20from%20financial%20reporting>
Financial Delegations and approval, 2021 [Online] Available through
<https://www.adelaide.edu.au/finance/delegation/>
When and how to report and pay GST, 2018. [Online] Available through
<https://www.ato.gov.au/Business/GST/Lodging-your-BAS-or-annual-GST-return/
Options-for-reporting-and-paying-GST/#:~:text=Your%20GST%20reporting%20and
%20payment,are%20voluntarily%20registered%20for%20GST.>
PAYG withholding obligations, 2018. [Online] Available through
<https://www.ato.gov.au/super/apra-regulated-funds/paying-benefits/payg-
withholding-obligations/>
PAYG instalments, 2018. [Online] Available through
<https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/PAYG-
instalments/>
Employer tax Obligations, 2018. [Online] Available through
https://www.business.qld.gov.au/running-business/employing/employee-rights/
obligations/tax