Organisational Finance: Reporting, Auditing & Financial Management

This report provides an overview of key aspects of organisational finance, including practices for recognizing and reviewing profit and losses, the concept of financial probity, examples of fraudulent behavior, and the purposes of accounting software for managing finances. It also covers budgeting factors, taxation and superannuation obligations, and the Acts governing financial reporting and auditing. The report outlines GST reporting requirements, defines PAYG withholding and installments, and offers recommendations for organizational improvement based on financial analysis. Additionally, it discusses the preparation of financial management reports, emphasizing monitoring financial positions, ensuring timely customer payments, meeting tax deadlines, maintaining updated accounting records, and controlling overhead costs. The report concludes by highlighting the importance of budgeting and financial reporting for successful operation in a competitive market.

MANAGE
ORGANISATIONAL
FINANCE

Table of Contents
INTRODUCTION.................................................................................................................................................. 3
MAIN BODY........................................................................................................................................................ 3
LIST THREE PRACTISES WHICH CAN BE USED TO RECOGNISE AND REVIEW PROFITS AND LOSSES FROM A PROFIT AND LOSS STATEMENT.3
DEFINE THE CONCEPT OF FINANCIAL PROBITY AND ITS IMPORTANCE TO A BUSINESS...................................................................3
LIST FOUR EXAMPLES OF WHAT WOULD BE CONSIDERED FRAUDULENT BEHAVIOUR IN REGARD TO COMPANY FUNDS I.E., NOT MEETING
FINANCIAL PROBITY REQUIREMENTS.................................................................................................................................3
LIST FIVE PURPOSES OF ACCOUNTING SOFTWARE THAT CAN BE USED FOR MANAGING FINANCE....................................................4
LIST THREE FACTORS OF A BUDGET..................................................................................................................................4
STATE FOUR MAIN TAXATION AND SUPERANNUATION OBLIGATIONS FOR A INDUSTRY. CONCISELY DISCUSS EACH OBLIGATION............4
ASCERTAIN THE ACT THAT FEATURES REQUIREMENTS FOR FINANCE BASED REPORTING, AUDITING AND EXPLAIN THE RELATED NEEDS
FOR BUSINESSES FOR PREPARING AND LODGING FINANCIAL REPORTS UNDER SUCH ACTS............................................................4
OUTLINE THE REPORTING REQUIREMENTS THAT ARE HELPFUL IN CASE OF GOODS AND SERVICES TAX (GST)...................................5
DEFINE PAYG WITHHOLDING AND PAYG INSTALMENTS......................................................................................................5
REVIEW THE REPORT AND STATE ANY 5 RECOMMENDATIONS THAT CAN BE ADAPTED BY ANY ORGANISATION IN RESPONSE TO YOUR
ANALYSIS.................................................................................................................................................................... 5
ASSESMENT TASK 2:............................................................................................................................................ 7
PREPARATION OF FINANCIAL MANAGEMENT......................................................................................................................7
THERE ARE MANY STEPS REQUIRED IN PREPARING A FINANCIAL MANAGEMENT RELATED REPORT SUCH AS:....................................7
ESTABLISH BUDGETS AND ALLOCATE FUNDS ACCORDINGLY...................................................................................................7
CONCLUSION...................................................................................................................................................... 8
REFERENCES....................................................................................................................................................................9

INTRODUCTION
The report prepared below explains practices that can be put in use for recognising and
reviewing profit and losses (Guthrie AM and et.al., 2021). It also explains uses of acts such as GST
and PAYG. It also takes in account components of a budget as well. It helps to find out related
issues in a running business and what can be frauds that counter the working and running of a
company. It is useful in finding out concept of financial probity. It states purposes of accounting
software that would help to manage finance and fund related operations.
MAIN BODY
List three practises which can be used to recognise and review profits and losses from a profit
and loss statement.
 Cost of goods sold
 Net income
 Source of income
Define the concept of financial probity and its importance to a business.
Probity is the proof of ethical behaviour in a specific practice. Financial probity states,
strict following of code of ethics that are based on absolute honesty, especially in monetary areas
or commercial matters and which are beyond legal requirements (Chen, Yao and Zhou, 2021).
Probity requirements:
 Handle tender members equally and fairly.
 Implement public sector moral and values.
 Sustain confidentiality information and important data of tender participants.
List four examples of what would be considered fraudulent behaviour in regard to company
funds i.e., not meeting financial probity requirements.
1. Timecard fraud and Ghost employee schemes.
2. Frauds related to commission.
3. Credit card and expenditure reporting scam.
4. Fake vendor frauds.

List five purposes of accounting software that can be used for managing finance.
1. Book keeping
2. Budgeting and forecasting
3. Inventory management
4. Expense management
5. Payroll
List three factors of a budget.
 Variable costs
 Fixed costs
 Cash flow
State four main taxation and superannuation obligations for a industry. Concisely discuss each
obligation.
Superannuation Guarantee: It is said to be the foundation of mandatory superannuation system. It
helps to lift living standards of people after retirement and reflect a positive effect on
related economy (Mahesh, Vijayapala and Dasanayaka, 2018).
 Fringe Benefits Tax (FBT): It is a type of tax that is being paid by employers on benefits
to an employee over their paid salaries or wages.
 Goods and Services Tax (GST): It is sort of tax at a rate of 10% applicable in most goods,
services and other things that are being consumed or sold. If the related business is
registered for GST it is necessary for a company to collect extra amount from customers.
 Pay As You Go (PAYG): When employee of a company is paid, it is necessary to hold a
certain quantity of tax from their payslip. It is a process of holding tax on behalf of staff
persons.
Ascertain the Act that features requirements for finance based reporting, auditing and explain
the related needs for businesses for preparing and lodging financial reports under such
Acts.
Section 292 of corporation Act 2021 demands the following entities to develop finance
related statements and reports:
 Public firms
 Small proprietary organisations that are controlled by foreign entities.

 All enumerated and managed investment schemes.
 Small firms that shareowners direct to facilitate a financial statement.
Outline the reporting requirements that are helpful in case of goods and services tax (GST).
It can be explained as a multi- stage, designed oriented tax that is implemented on every
value addition, replacing multiple indirect nature taxes that involves excise duty, service-related
taxes, VAT etc. Goods and services are involved under a single domestic indirect taxable law
(Mittal, 2020). There are many records that must be kept and recorded under such report that is
inclusion of bills of supply, credit and debit reports etc.
Define PAYG withholding and PAYG instalments.
Pay as you go withholding obligations for non-profitable companies are similar as in case
of businesses. Enterprises that are exempted from income taxes are not exempted from PAYG
withholding obligations (Migdadi, Zaid, Yousif and Almestarihi, 2018). If any company has
employees, it Is necessary to withhold quantity from their pay and send the withheld amount
with the help of PAYG withholding system.
Under PAYG instalment it can be explained as a system that is helpful for making payment in
instalments during the income year towards a organisation or a respectives person’s expected
liability on invested income.
Review the report and state any 5 recommendations that can be adapted by any organisation in
response to your analysis.
According to table it can be recorded that there are 3 customers in business, it is
necessary to make best use of company’s protocol for carrying out debt collection using
a percentage that is proportional to the period of original debt (Provan and Pryor, 2019).
In relation with organisation debt collection protocol, the following criteria would be
helpful:
 If the debt is not paid for a time period of 60 to 90 days, an excess of 6% interest
would be applied.
 With debt amounting for the period between 90 to 120 days additional interest
rate of 8% would be implemented.

 When the debt is not paid for a period that is more than 120 days, an additional
amount of 10% would be charged with a increase of 2% after every 30 unpaid
days.
With the help of such criteria’s the following table can be prepared keeping debt
of every client in mind:
Customer 120 +
days
90 days 60 days Additional
fees
Total
Customer 1 $0 $4,356.00 $0 8% $4.704,48
Customer 2 $ 2,714.00 $0 $0 10% $2.985,40
Customer 3 $0 $0 $3,781.00 6% $4.007,86
Total 2,714.00 4,356.00 3,781.00 $11.697,74
Building action plan: If the plan for settlement that was being negotiated with debtor is not being
applied correctly and if there was no promise for a new date set for payment, additional
drastic actions must be taken quickly (Singh, 2019).
 Credit evaluation: When the business acquires a new client, the credit of customer must
be checked and carried out.
 Delay in Controlling: The business is expected to monitor permanent control of clients,
with the help of spreadsheet that signifies: the amount not yet due, the total liability, the
amount due on past basis. It must be analysed and updated on a weekly basis as well.
 Monitoring debtors on a constant basis: The fall in scale of losses that are related to
default includes monitoring the development of forecasting and receipts a set of planned
action that must be applied when there is a delay observed.
 Assign a settlement plan: If customer is not able to cover debts at once, try negotiating a
new settlement plan for covering debt, including the application of instalment and interest
of liability.

ASSESMENT TASK 2:
Preparation of financial management.
It can be explained as organising funds properly, putting money to uses, spending lesser
amount as compared to earned funds. It helps to understand risk that are involved in the process
and journey of running a business and related operations in long run and on a large scale. It helps
to maximise benefits that are related to employees and employers. It helps to prepare budgets
that would help in smooth running and expansion of industry as well (Bezes and Jeannot, 2018).
There are many steps required in preparing a financial management related report such as:
 Monitoring of financial position
 Ensuring that customers are making payments on time
 Meet tax deadlines on time
 Keep updated accounting records.
 Become more efficient and effective in controlling overhead costs.
Establish budgets and allocate funds accordingly.
Actual Budget
Total revenue $1.614.720 $1.413.800
Net profit $797.845 $649.972
Net profit margin
Net profit margin = Net
profit/Total revenue*100
49.41% 45.97%
Overall performance of business is recorded as positive according to financial report thus actual
revenue is higher than the budgeted revenue.
Net profit margin = Net profit/ total revenue*100
Gross profit margin accounted as 55.8%
Net profit margin recorded as 49.41%.

CONCLUSION
From the above prepared report, it can be concluded that preparation of budgets and
finance related reports are necessary to carry out activities in a market. it thus also gives
ideas as how to help in functioning of a company in competitive market. It provides a idea
of acts such as GST and PAYG. It also helps to understand planning of budgets and what are
its related factors.

REFERENCES
Books and Journals
Bezes, P. and Jeannot, G., 2018. Autonomy and managerial reforms in Europe: Let or make
public managers manage?. Public administration. 96(1). pp.3-22.
Chen, H., Yao, Y. and Zhou, H., 2021. How does knowledge coupling affect exploratory and
exploitative innovation? The chained mediation role of organisational memory and
knowledge creation. Technology Analysis & Strategic Management 33(6). pp.713-727.
Guthrie AM, J., Linnenluecke, M.K., Martin‐Sardesai, A., Shen, Y. and Smith, T., 2021. On the
resilience of Australian public universities: why our institutions may fail unless vice‐
chancellors rethink broken commercial business models. Accounting & Finance.
Mahesh, D.D., Vijayapala, S. and Dasanayaka, S.W.S.B., 2018, May. Factors affecting the
intention to adopt big data technology: A study based on financial services industry of
Sri Lanka. In 2018 Moratuwa Engineering Research Conference (MERCon) (pp. 420-
425). IEEE.
Migdadi, M.M., Zaid, M.K.S.A., Yousif, M. and Almestarihi, R.D., 2018. An empirical
examination of collaborative knowledge management practices and organisational
performance: the mediating roles of supply chain integration and knowledge
quality. International Journal of Business Excellence. 14(2). pp.180-211.
Mittal, P., 2020. Big data and analytics: a data management perspective in public
administration. International Journal of Big Data Management. 1(2). pp.152-165.
Provan, D.J. and Pryor, P., 2019. The emergence of the occupational health and safety profession
in Australia. Safety science. 117. pp.428-436.
Singh, R., 2019, November. Organisational embeddedness as a moderator on the organisational
support, trust and workplace deviance relationships. In Evidence-based HRM: a Global
Forum for Empirical Scholarship. Emerald Publishing Limited.