Financial Management Report: Statutory Requirements and Budget Changes

This report provides a financial management analysis of Australia Hardware, a company specializing in hardware products. It begins with an introduction to the company, its goals, and its history, including its establishment in 1921 by Percy Home Good, with a focus on providing quality products at affordable prices. The report then addresses statutory requirements, emphasizing their importance for legal compliance and effective business operations. A review and judgment of financial statements are included, pinpointing employment expenses as a key area for improvement and recommending adherence to expense recording timelines. Budget revision is examined, with a recommendation for flexible budgeting to provide a clearer view of actual operations. The report also covers the use of financial software, specifically XERO, and underscores the importance of due diligence in financial statement preparation. Additional recommendations include complying with flexible budgets and all statutory requirements. The report identifies potential issues associated with these recommendations and suggests the departments and time frames involved in implementing the changes.

FINANCIAL MANAGEMENT

INTRODUCTION
 Australia Hardware is a company that is engaged in providing the best quality of hardware products;
home wares garden supplies and building material.
 The aim of the company is to provide the best quality of hardware products at the most cost structure.
The company has opened its first store in the year 1921.
 The organisation is involved in Australia with its business practices. Percy Home Good is a founder of
the company. The aim of the organisation is to deliver the quality products at the most affordable price
structure. Company hold 60 full time employees.

STATUTORY REQUIREMENT
For a business there are a list of different started a requirement which the business has
to follow.
These entire requirements are essential to be followed for the effective working of the
business.
The easiest statutory guidelines help the business in ensuring that all the different legal
and other regulations are being followed and complied by the company.

REVIEW AND MAKING JUDGEMENT
OVER FINANCIAL STATEMENTS
Performance Area Performance Objectives Any significant issue Compliance Requirement
Financial Performance
overall
the performance of objective
relating to the financial performance
is to increase the financial capability
of the company. This is pertaining to
the fact that in case the financial
stability and performance of the
company will not be good then this
will affect the working efficiency of
the company. Thus it is very
essential for the effective working of
the company that the financial
stability is being maintained and the
profitability is being increased by
the time.
The key issue being identified
within the financial performance of
the company is that the total
employment expenses are very high
of the company pal stop this can be
reduced in order to increase the
profitability of the company to a
great extent.
The key compliance
requirement for this issue is that
the companies must record all
the expenses at the time when
they have been occurred and not
at the time when the settlement
of these expenses of the income
has been taken please.

BUDGET REVISION
For the successful budget is very essential for the company to time to time review the budget.
This is pertaining to the fact that with help of the timely revision of the budget the company can come
to know about the different changes taking place within the financial and other market.
Hence it is very essential for the company to effectively revise the budget.
With the help of the revision of the budget it was evaluated that teeth embassies of the company are
constant which is not at all possible.

RECOMMENDED CHANGE IN BUDGET
Recommended
Changes
Objective of Change How it can contribute to
financial management
People Involved
3. use of flexible
budget
The objective for recommending the
flexible budget is that the fixed
budget does not provide a clear
view of the actual working. The
reason behind this fact is that in
reality it is not possible that for
every month the purchase and sales
of the product remains the same. it
is very important to apply the
flexible budget.
this will contribute effectively
within the financial
management of the Australian
hardware because it will
provide clear view of the actual
financial position of the
company.
The people
involved within
this type of
change will
particularly
involve the
finance
department only.

FINANCIAL SOFTWARE
Currently technology is developing fast and it is very essential for Australian hardware
that effectively adapt to all the recent technology cal changes and software.
Currently the company is using number of software but XERO is used to do all the
financial procedures of the company.

ENSURE DUE DILIGENCE
 For the effective and successful working of the company it is very essential that the company must
ensure due diligence.
 The due diligence is been defined as the auditing and reviewing the performance of the company with
respect to the guidance provided.
 This ensures that all the financial statements are being prepared in an effective manner.
 This is particularly because of the reason that if the ethical and moral values are not included within the
financial statement preparations then this will not provide better and effective criteria to the company.

OTHER RECOMMENDATIONS
Recommended Changes Objective Significant Issues People Involved
/Time frame
1.effectvily comply with
flexible budgets
Objective of complying with flexible budget is
that the use of flexible budget will provide more
effective and clear pictures relating to the
working of the company.
Significant issue within the use of
flexible budget can be that the use of
flexible budget can be very confusing
and this will cause delay in making the
budget.
The people involved in
this change will be the
finance department
people.
2.compliance with all the
statutory requirement
The objective behind the complying with the
statutory requirement is that it is very essential
for Australian hardware is to undertake all the
latest regulations in order to attract the
consumers for increasing the business of the
company.
The significant issue within the
complying with statutory requirement is
that there are many frequent changes
within the legal aspects relating to the
company. Hence it is very essential that
the company is very active in analysing
these changes and in implementing those
changes in effective and efficient manner.
The key people
involved within the
effective compliance
with the statutory
requirement is the
legal department of the
company