Financial Accounting Report: Cash Management and Analysis

This report delves into financial accounting, focusing on cash flow management, internal controls, and decision analysis within a business context. It begins with an executive summary highlighting the importance of financial accounting for enhancing business performance and maintaining transaction records. The introduction sets the stage for analyzing cash flow improvements, including quick invoicing, managing partial payments, and reviewing receivables. The report examines internal control principles, particularly for cash receipts, emphasizing segregation of duties, record-keeping, and documentation. It also analyzes techniques to improve cash collection and reduce manipulation. The report identifies stakeholders, discusses ethical issues in cash management, and explores implications for improving cash balance through forecasting, cash cycles, and money market banking. The analysis draws on case studies and real-world examples to provide practical insights for financial professionals. The report concludes by summarizing key findings and recommendations for effective cash management.

Financial Accounting

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Decision analysis.............................................................................................................................1
Identifying ways to make the adequate improvements in the cash flow of Hotel..................1
Internal control over cash receipts...................................................................................................2
Determining the internal control principle for leaning tower of metropolis in controlling the
cash receipts............................................................................................................................2
Analysing the techniques to improve the cash collection from ticket seller and reducing the
manipulation...........................................................................................................................3
Maintaining a cash balance..............................................................................................................3
Identifying the stakeholders...................................................................................................3
Involvement of ethical issues.................................................................................................4
Implication of the course of action to improve such situation...............................................4
Financial Analysis............................................................................................................................5
1. Defining the cash in the financial statements.....................................................................5
2. Decrease and increase in the total numbers of cash in the period......................................5
3. Differences in the balance of cash in balance sheet and in cash flow statement................6
4. Analysing the internal control used by JB Hi-Fi Ltd.........................................................6
5. Identifying the internal Audit department of JB Hi-Fi Ltd as well as it major functions. .7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
BIBLIOGRAPHY..........................................................................................................................10

EXECUTIVE SUMMARY
Financial accounting is helpful for enhancing the business performance and efficiency as well as
keeping the records of all the transactions for many years. In the present report there has been
discussion based on the adequate analysis over the operations of various businesses and the
stallholders were suggested to make appropriate changes in the duties. In terms with enhancing
the operational ability of the business there are various ways and techniques which will help the
managerial or accounting professionals in terms of managing the cash flows. The implication of
strategies will only help for a while but to have a long term improvements, it is essential to have
regular inspection and execution of the financial accounts. This is the initial level of operation
and will be very helpful for improving the cash transactions in the entity. In order to execute the
internal management of the firm there is need to have adequate examination of the total receipts
made by entity as well as bank statement of the venture.

INTRODUCTION
To manage the transactional activities in a firm there has been various kinds of
techniques as well as methods that will help the professionals in maintaining the financial health
of the business. In the present report there will be discussion over various cases and the
operational activities held in such premises. The report contains all the necessary details that will
be helpful for the business in terms of managing the cash receipts, cash balance and the
transactional entries in the computer devises. There will be suggestion and advices to the
professionals to have the fair business operations as well as making the disclosure will help them
in adequate decision making.
Decision analysis
Identifying ways to make the adequate improvements in the cash flow of Hotel
In terms with enhancing the operational ability of the business there are various ways and
techniques which will help the managerial or accounting professionals in terms of managing the
cash flows. The implication of strategies will only help for a while but to have a long term
improvements, it is essential to have regular inspection and execution of the financial accounts.
However, in reference to the articles there is need to analyse and track the transactions held in
the period. The professionals need to track the time of making payment to the suppliers,
distributors of workers as well as time of collecting cash form the consumers of the firm. Thus, if
the inflows and outflows were managed in effective manner than there will be fruitful revenue
generation of the firm. Moreover, there can be various ways to make the adequate improvements
in the operations of the business such as:
Quick Invoicing:
This is the initial level of operation and will be very helpful for improving the cash
transactions in the entity. It helps the business in terms of having the proper execution over the
transactional activities held in the premises (van Rensburg, Coetzee and Schmulian, 2014). After
making any deal or transaction it is essential that the managers must make proper records in the
form of preparing the bills, invoices etc. This action will help them in terms off analysing the
costs and the revenue earned by them.
Managing the partial payments:
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A part from wasting time of invoices payment the firm need to start the partial payment
techniques. It will be help in terms of receiving the money from distributors of home deliveries.
Thus, in these regards they will not pay the whole amount at lump sump of payment will be
made by them. The whole will be payable after the completion of duties (5 Ways to Improve
Your Cash Flow Quickly, 2016).
Review over receivables:
The professionals in Hotel need to have proper information relevant with the creditor of
receivables of a period. There is need to have regular contact with them as to make call, emailing
and texting them to pay their dues (Gumb and et.al., 2017).
Due payments:
The professionals are ned to make the payments of the bills and invoices only when it is
due. If the business is not good at the financial basis then they must avoid making prepaid
payment to the any bills.
Internal control over cash receipts
Determining the internal control principle for leaning tower of metropolis in controlling the cash
receipts
In order to execute the internal management of the firm there is need to have adequate
examination of the total receipts made by entity as well as bank statement of the venture. Hence,
in accordance with the case of Metropolis it can be said that there will be fruitful disclosure of
the accounts of business which in turn helpful for them to make the adequate increment in the
business operations. Therefore, there are several principles of the internal control such as:
Establishment of adequate responsibilities: In accordance with the business activities
of Leaning Tower of Metropolis there is need to assign the duties to the qualified and honest
employee who will make the proper record of the transaction and prevent the firm form
manipulation of any fund (Ismail and Sori, 2017).
Segregation of duties: There will be distribution of the responsibilities and jobs to be
performed by the professional in the business. There is need to assign the duties such as ticket
making, cash collection form consumers as well as checking the tickets. However, it makes the
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easier that one person is having one single duty and he will make his all efforts in it which will
be fruitful as to have better records from all the employees.
Record keeping: It relates with making the record of transaction by all the employees in
their separate record diary, books of computer system. Therefore, it will become easy as the
auditor will have record of all the separate books and make the proper analysis of such records.
Documentation Procedures: It can be said that all the activities need to have proper
documentation. Here in this case they make printout of the tickets which are to be facilitated to
the consumers. Therefore, without throwing the half of the ticket in the bin box they must store
them in a box and make the daily analysis.
Physical, Mechanical and electronic controls: The records are to be keep in the
computer devices. So here the need to have the updated devices as well as the proper training to
the worker who is operating such tasks (Internal Control and Cash, 2017).
Analysing the techniques to improve the cash collection from ticket seller and reducing the
manipulation
There is need to have small changes in the operations and the activities done by the ticket
seller and the lift attendant. Firstly, they must have the proper records of the transaction with
proper details such as time of making the tickets as well as with proper details such as price and
category of tickets (Jennergren, 2017). It must contains proper information which is need to be
match with the computer data. Secondly, in accordance with the lift attended without throwing
the half of the ticket in bins they must collected them in a box. Therefore, it will help in
enhancing the operations of the business as well as the manipulation of money and relevant acts
will be lower down.
Maintaining a cash balance
Identifying the stakeholders
In accordance with the case it can be said that there are various stakeholders to Krispies
Co. Ltd. The bank who has facilitated the loan to this firm is the main stakeholder and have
rights to know all the transnational details. The employees who are working in the organisation
as well as the accountants who are making the audit of the firm's accounts. Brian Sheen is the
consumer and he is also the stakeholder to the firm (Raviv and et.al., 2017). Therefore, it can be
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said all the persons who are denoted as the stakeholder to a firm who have any transactional
aspects and any relation with the organisations.
Involvement of ethical issues
To manage the cash balance in the firm is the main necessities of the business which will
be fruitful in executing the operational activities as well as managing the funds for the survival.
However, in this case the bank told Krispies to keep the balance$750000 in the bank's account
while they were having $50000 of balance. Therefore, here the accountant asked the regular
customer of this organisation Brian Sheen to grant some monetary benefits to this company such
as $35000 which will have transactional date of 30th march, one day before the audit and the
money will be received at 1st April just after the auditing on 31st march. Hence, it will be fruitful
for not having losses as bank only need the records which will be $85000 as the accountant will
show such transaction as trade creditor in the financials.
Implication of the course of action to improve such situation
To improve the cash balance in the premises there is need to have proper management of
the accounts, proper records of transaction as well as regular inspections of the statement. Hence,
in accordance with this case there will be various method that will help professionals in terms of
managing the cash balance (Abor, 2017). Therefore, it will beneficial in terms of having the
proper amount of funds that they will have the loan and borrowing advantages from the banks as
well as can have the proper record of the adequate transactions such as:
Forecasting cash balance: In accordance with this case it can be said that the managerial
professionals must have the forecasted cash flow that will help them in analysing the expense to
be done and the amount of funds they will require meeting such transactions. It will be done
through making the adequate records of the transactions with the help of determining the cash
proportion ratio and cash turnover such as:
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Cash Cycle: It is essential to make the adequate records of the transaction such as
making the effective working capital managements and managing the cash cycle of the business.
Therefore, the motive is to keep the record of all the ash transactions for the regular basis as well
as have the continuous observation of the transactions such as:
Money market banking: In order to over come with the financial crisis of the business
must have investment in the money market. Therefore, it can be said that these are the banks
which help in facilitating the adequate cash and funds for the firm with the help of investment
made by public, consumers and various individuals (Cabello and Lobillo, 2017). Hence, with the
help of such transactional aspects the business will have adequate amount of funds that will be
helpful for the daily operations.
Petty cash system: These are the tiny booklets that will be managed and maintained by
the various units in the firm (How to Develop Daily Cash Report, 2013). Therefore, these are
very beneficial tools for the business in making the audit of the accounts and record of
transactional activities. However, with the help of such requirements.
Financial Analysis
1. Defining the cash in the financial statements
There has been disclosure of the financial statement of the JB Hi-Fi Ltd for the year 2013
which has the cash balance in the balance sheet as 67 million same as in the cash flow statement.
However, cash flow statement is very helpful as it keeps record s of all the transactions which are
relevant with the cash and cash equivalent transactions.
2. Decrease and increase in the total numbers of cash in the period
In accordance with the cash balance of the period it can be said that there has been
adequate growth in the funds of the firm therefore in 2012 the cash balance was 40 million while
in 2013 it has increased to 67 million. It can be analysed that the firm has made adequate inflows
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in the current period as compare with the previous period which is beneficial in making the
adequate rise in the balance of cash flow statement.
3. Differences in the balance of cash in balance sheet and in cash flow statement
There has been differences in the cash balance at the cash flow statement while cash
balance in the balance sheet. Therefore, in the cash of JB Hi-Fi Ltd., there will be variations in
such balances. It is because of the record of transactions in such statement. In balance sheet the
records are based on considering the final cash balance while in the cash flow statement there are
overall transactions such as inflows and outflow, operating and financial operations in the
business (Eades and et.al., 2017). However, in consideration with the JB Hi-Fi Limited it can be
said that there is no such changes in the balances of the cash balance. In the year 2012 the cash
balance was 39710 which is approx 40 million is presented same in the cash flow statement and
in the balance sheet. In the year 2013 the cash balance was 67368 which is 67 million.
4. Analysing the internal control used by JB Hi-Fi Ltd
In accordance with the firm's internal control system there is need to make adequate
changes in the operations of the business. There is requirement of having proper execution over
the all the operation held in the premises in various units. It helps in making the adequate internal
auditing of the accounts which will be fruitful as it brings efficiency in the tasks and duties
performed by the professionals in the premises. In terms with JB Hi-Fi Ltd the corporate
government and the internal stakeholders of the firm were aims at making the adequate sales and
favourable operational activities in the daily tasks of the organisation. All the employees and the
professional from each departments are committed to make the efforts in their duties with
honesty and with consideration of organisational growth.
Therefore, the policies and procedure made by the firm which is in consideration with the
ethical consideration of Corporate governance Council Principles and Recommendations.
Therefore, it will be helpful for the firm in terms of presenting the disclosure of the accounts and
with such ethical approval, the informations are reliable. It helps in gaining the appropriate funds
from the stakeholders as they will have trust over the data set presented by the firm with full
considerations of all the laws, acts and regulations over it.
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5. Identifying the internal Audit department of JB Hi-Fi Ltd as well as it major functions
In considerations with the internal stakeholders of JB Hi-Fi Ltd it can be said that, there
are various boards members and the committee member who helps in making the adequate
analysis over the financial disclosure of the business (Annual report, 2013). The main objective
is to make the efficient decision that will help in having the proper improvement in the
operations of the work (van Rensburg, Coetzee and Schmulian, 2014).
There is aim to present the all the transactional details to the users of such data set like,
government in consideration with taxes levied during the period, banks and financial institutions
in terms of loan and borrowings made by the firm during the period. The main users of such
accounts are the investors who analyse the profitability of the firm in terms of having the fruitful
return over their invested money.
CONCLUSION
On the basis of above study it can bes aid that financial accounting plays main role in
managing the cash flows, receipts, auditing and all the financial aspects of the business. The
reports have helps in suggesting various techniques and methods to make the adequate changes
in such operations. There was analysis over the internal environment of JB Hi-Fi Ltd and the
auditing committee of the organisation. However, with the help of such analysis the business will
be beneficial and can have improvements in the operations of the firm.
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REFERENCES
Books and Journals
Abor, J.Y., 2017. Working Capital Management. In Entrepreneurial Finance for MSMEs (pp.
225-255). Springer International Publishing.
Cabello, J. G. and Lobillo, F. J., 2017. Sound branch cash management for less: A low-cost
forecasting algorithm under uncertain demand. Omega. 70. pp.118-134.
Eades, K. M., and et.al., 2017. JC Penney Company. Darden Business Publishing Cases. pp.1-
15.
Gumb, B. and et.al., 2017. The impact of accounting standards on hedging
decisions. Accounting, Auditing & Accountability Journal, (just-accepted). pp.00-00.
Ismail, N. and Sori, Z. M., 2017. A closer look at accounting for Islamic financial institutions.
In SHS Web of Conferences (Vol. 34). EDP Sciences.
Jennergren, L. P., 2017. A Note on the Linear and Annuity Class of Depreciation Methods (No.
2017: 1). Stockholm School of Economics.
Raviv, A. and et.al., 2017. Bed Bath & Beyond: The Capital Structure Decision. Kellogg School
of Management Cases. pp.1-14.
van Rensburg, C. J., Coetzee, S. A. and Schmulian, A., 2014. South African financial reporting
students' reading comprehension of the IASB Conceptual Framework. Journal of
Accounting Education. 32(4). pp.1-15.
PDF
Internal Control and Cash. 2017. [PDF]. Available through
:<http://www.csun.edu/~nrd36607/files/chap07.htm>.
Annual report. 2013. [PDF]. Available through
:<http://www.annualreports.com/HostedData/AnnualReportArchive/J/ASX_JBH_2013.pd
f>.
Online
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5 Ways to Improve Your Cash Flow Quickly. 2016. [Online]. Available through
:<https://www.thebalance.com/improve-your-cash-flow-2948035>.
How to Develop Daily Cash Report. 2013. [Online]. Available through
:<https://strategiccfo.com/how-to-develop-daily-cash-report/>.
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BIBLIOGRAPHY
http://financials.morningstar.com/balance-sheet/bs.html?t=JBH&region=aus&culture=en-US
http://financials.morningstar.com/cash-flow/cf.html?t=JBH&region=aus&culture=en-US
https://strategiccfo.com/how-to-develop-daily-cash-report/
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