Analysis of AKS IT Services: Small Business Management Report

This report provides an in-depth analysis of small business management, using AKS IT Services as a case study. It covers key aspects such as financial planning, including cash flow forecasting, budgeting, and break-even analysis. The report examines the importance of financial statements like the balance sheet, profit and loss account, and cash flow statement for successful management. Furthermore, it explores the impact of relevant regulations and legislation on small and social enterprises, focusing on tax, employment, record keeping, and health and safety. The report also highlights the role of management in planning, resource allocation, and customer relationship management. This comprehensive analysis offers valuable insights into the challenges and strategies for effectively running a small business in a competitive environment, and is available on Desklib.

Managing and
Running a Small
Business

Executive Summary
From the report it can be summarised that small business are running by less capital and
people for providing products and services so people get influence and make buying decisions.
To understand about small business AKS IT Service company has been taken that is operation
business by providing variety of consulting services to its clients and helps to increase the
business performance in competitive business environment. this will help to increase the
understanding about small business, importance of financial statement and legislations which are
important to run business.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
Activity 1 (Covered in Brochure)....................................................................................................1
Activity 2.........................................................................................................................................1
P4 Annual itemised monthly cash flow forecast showing variable and fixed cost.....................1
P5 How break even analysis can be apply to organisation context.............................................6
P6 Key financial statement for organisation that contributes to the successful management.....8
TASK 4............................................................................................................................................8
P7 Regulations and legislation that have impacted on small and social enterprises...................8
CONCLUSION................................................................................................................................9
REFERENCE................................................................................................................................10

INTRODUCTION
In business environment there are different types of business small, medium and large that
all are managing by management in order to compete with others and increase the organisational
productivity. Small business are those business which are running by less number of employees
for the purpose of living daily life. They have expectation to increase the business activities and
expand their business out of the local areas by introducing different types of products and
services (Charlwood and Hoque, 2017). To increase the understanding about small business and
its requirement AKS IT services has been selected that is small computer consultant company
provide different service to customers by providing software that uses to discuss about salaries
and other consultant services. This report is discussion on different topics such as how social and
small business enterprise are making plans and allocating the resources, customer relationship
management process, understanding about cash flow, forecast and budget that are key financial
statement and different legislations and regulations to run a business effectively.
Activity 1 (Covered in Brochure)
Activity 2
P4 Annual itemised monthly cash flow forecast showing variable and fixed cost
Cash Flow – This means a statement which is prepared by combination of various activities
in relation to cash is consider as cash flow. This helps to states the profitability position of their
business in competitive business environment. In other words, amount of money that is being
transferred for the purpose of converting in to liquidity is cash flow. Every organisation should
prepare cash flow statement by recording and analysing their activities which can helps to
maintain the high productivity and profitability in competitive business environment. As all
knows businesses is depends on cash and its ebullient items which helps to run business by
performing each activities and increasing production effectively. The AKS IT Services also
suggest it clients to maintain proper records of transaction through a software and make cash
flow statement so all activities can be perform effectively.
Sources of funds:
For running a business funds are important that make assessable of each activities by using
funds and maintain the high performance in competitive business environment. Without funds it
become difficult for organisation arrange its activities and run business continuously. So, there
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are different sources which are uses to run business and increasing the production that are as
explained:
Own saving –This means if a person has decided to establish and run business the it should
have own saving that can be use to buy raw material and maintain good relations with suppliers.
This source helps organisation to stand independently by filling the basic needs and wants of
their business so all activities can be arrange effectively (Joshi and Singh, 2018).
Equity finance – This is another source of fiancé which uses by companies by issuing the
equity share to public, and employees who are working in organisation. This helps to arrange the
business by collecting funds effectively. AKS IT services has this option to arrange the funds
from equity resources by collecting funds and keeping the activities continue.
Loans from family and friends – Loan from family are acting as borrowed money that
needs to pay by loan taker person. This sources of fund is flexible that can be arrange by
business concern for the purpose of running business and increasing profitability. The manager
of AKS IT Services company have option to arrange the funds by taking loan from friends and
family so their business can be establish easily and maintain the profits (Liu, 2019).
Bank loan – This is another sources of fund which is uses by most of the business
organisation for running and managing the business activities. People who are getting loans from
banks they need to provide security for guarantee that can help to run small business effectively.
AKS IT company can maintain all activities and prepare cash flow by getting loans from bank
that needs to pay after a fixed period so all activities can be managed properly and maintain the
good performance (Komisar and Reigersman, 2018).
Leasing and hire purchase – This options symbolize that a business concern can arrange
the funds by giving property on lease so it can get rent time to time which can help to continue
the business and maintain all business profitability.
Balance Sheet, P&L and cash flow statement of the Syient London Limited:
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Profit and Loss Account at the year ended
3

Cash flow Statement
Cash budget for the year
4

Forecasting and budgeting
Forecasting means to analysis the needs and estimating the amount that are going to incurred
in business for the purpose of running business. Forecasting is important that should be done by
managers who have knowledge regarding budget and estimating the income and expenses that
are required in business. In AKS IT Service, manager are using forecasting and preparing
budgets by estimating income and expenses so all activities can be run effectively (Mhando,
2018).
The techniques for budgeting and forecasting are as defined:
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Calculating the moving average – This technique is uses by management of AKS It
services for getting the estimation and moving the average by running business. This helps to
increase the understanding and knowledge about budgets and helps to improve the business.
Time series data – This technique is uses to estimating and showing the data series in list
and graphs that can be easily understandable easily and increase the business performance in
competitive business environment. This also helps to carry out all operation and activities in
AKS IT company by preparing graphs and series that maintain the all actions and profits
(Monga, Pandey and Bhalla, 2015).
Dealing with seasonality – This technique states that the dependability of business is
dealing with different season. As in some season the demand of products and services increase4s
and in some period it reduces that become a challenges for organisation to deal with this. AKS It
services is suggesting to its client to use this technique so all information regarding demand of
products in season can be recognised effectively (Rosenberg, 2016).
P5 How break even analysis can be apply to organisation context
Break Even analysis – This is consider as a framework taht comprises with financial tool in
order to get the relevancy and equitability of cost. These states the position of business by
running business and maintain equal position in competitive business environment. By using
this, a business concern get information at what prices customers are ready to buy the products
and services and how it can be satisfied. In context to AKS IT Services, managers are running
their activities and prepare break even analysis that helps to maintain the equality such as no
profits and no loss situation. This also helps to states the relationship between fixed and variable
cost in organisation (Vorley and Rodgers, 2014)..
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Uses of budgets, performance monitoring and control – Budgets are important that should be
prepared by business concern by estimating income and expenses which are incurring in
organisation. This can helps to maintain the good performance and monitoring the activities
by arranging the funds. AKS IT service company is monitoring and controlling the funds
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and activities by preparing the business activities. This helps to increase the business
performance in competitive business environment.
Variance analysis – This is associated with that arises in organisation and states the
difference between actual and estimated units. It is the total of overall performance in business
that are estimated by managers which can help to increase the business activities and maintain a
high profitability. AKS IT service are using variance analysis by estimating amounts and brining
improvements in their performance effectively (Goodman, 2019).
P6 Key financial statement for organisation that contributes to the successful management
Every organisation is running their business and making it successful by contributing and
preparing different types of financial statement that are important. Small business are also
needed to prepared financial statement so they can get their business performance in competitive
environment. AKS IT Services are preparing and suggesting to use software for preparing
different financial statement that are as defined:
Balance sheet – This is the recorded statement of assets and liabilities which arises in
organisation. It is prepared with the support of all statement such as income statement, cash flow,
trial balance. AKS IT organisation is preparing balance sheet by defining assets and liabilities
that need to be pay off while running small business (Gibson, 2014).
Cash flow statement – To know the liquidity position and all activities in relation to finance
a cash flow statement is prepared by management who have special knowledge and accounting
policies to run a business and ascertaining the profitability. Such as AKS IT services is focusing
operating, investing and financial activities that helps to know cash availability.
Profit and loss account – This is another statement which is prepared by AKS IT company
to know the profits and loss situation of their business. This helps to improve the business
profitability and working capital that uses to run business (Deresky and Christopher, 2015).
TASK 4
P7 Regulations and legislation that have impacted on small and social enterprises
AKS IT services organisation is suggesting to its clients and following self some regulation that
are as explained:
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Tax and employment 1976 – According to such legislation a business concern is required
to pay the taxes to government and should provide employment opportunities to all people that
helps to contribute to make the independent and social economy (Vorley and Rodgers, 2014)..
Record Keeping 2006 – This legislations are related to records and maintain data properly
that can help to run a business and increase the organisational productivity in competitive
environment. AKS IT Services organisation is following such regulation and maintaining
business information and employees data that are uses to run small and other business
effectively.
Health and safety act 1974 – The management of organisation should make happy to their
employees as they are part of their organisation and making efforts to run the business in
competitive business environment by providing good health and safety to them. AKS IT Service
is following the health and safety regulation by satisfying employees and providing them good
health that increases business performance.
CONCLUSION
From the report it can be concluded that business are needed different types of resources that
can help to arrange the business activities. To run and expand business managers are playing
important role as they focuses on customers demand and provide products and services
accordingly. Financial statement are prepared by managers as they have special knowledge and
experience to run business and increase the profitability.
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REFERENCE
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Gibson, D., 2014. Managing risk in information systems. Jones & Bartlett Publishers.
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Hopkins, B. R., 2017. Starting and managing a nonprofit organization: A legal guide. John
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Joshi, M. G. and Singh, M., 2018. The Business of Managing Emotions: A Three-dimensional
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Mhando, P. C., 2018. Managing in the Informal Economy: The Informal Financial Sector in
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Monga, N., Pandey, D. and Bhalla, K., 2015. Managing e-commerce industry in
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Rosenberg, Z., 2016. Simulation Approach for Managing and Analyzing Dynamic Complexities
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Vorley, T. and Rodgers, P., 2014. Home is where the business is: Incidents in everyday life and
the formation of home-based businesses. International Small Business Journal. 32(4).
pp. 428-448.
(Charlwood and Hoque, 2017) (Deresky and Christopher, 2015) (Gibson, 2014)(Goodman,
2019) (Hopkins, 2017) (Jarrett, 2019) (Joshi and Singh, 2018) (Komisar and Reigersman, 2018)
(Liu, 2019) (Mhando, 2018) (Monga, Pandey and Bhalla, 2015) (Rosenberg, 2016) (Vorley and
Rodgers, 2014)
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