Financial Report: Analysis of Cash Flow, Profit & Budgeting

This report, titled "Manage Finances," analyzes the financial performance of a business, focusing on cash flow statements, profit and loss statements, and budgeting. The analysis includes a review of the company's revenue and expenses, highlighting variances between budgeted and actual figures. It examines cash flow trends, alternative software options like Xero, Sage, and Quickbooks for financial reporting, and the preparation and distribution of budgets. The report also covers meeting discussions with directors regarding GST liability and financial management policies, emphasizing strategies for enhancing revenue and controlling costs. The student, through this report, demonstrates an understanding of financial analysis, budgeting, and software implementation in a business context. The report further explores the company's goals and objectives, including plans to replace workshops with e-books and introduce a conference to boost revenue.

Running head: MANAGE FINANCES
Manage Finances
Name of the Student:
Name of the University:
Author’s Note

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Table of Contents
No table of contents entries found.

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Assessment 2
Part A
Review of the Cash flow Statement
The cash flow statement of the business appropriately shows different revenue and
expenses which is generated by the management of the company during the period. As per the
cash flow statement which is prepared by the management of the company for the year 2014-15,
the management of the company has generated appropriate revenue which is even more than the
budgeted figures in 2014-15. The management has generated more income in terms of
consultation fees which is shown to be $ 1,175,600 which is more than the budgeted figure for
the services which was estimated to be $ 1,100,000. This shows that the management of the
company has provided more of consultation services during the period. Similarly, in 2015-16, the
management of the company has generated appropriate revenue from consultation fees which is
shown to be appropriate. All the other income generating activities has not me the budgeted
figures which was estimated by the management of the company. This shows that there is a
variance between actual performance and budgeted estimates. Due to the variances in revenue
generation in other activities of the business, the management of the company has not been able
to generate appropriate revenue for 2014-15 as well as 2015-16.
In addition to this, the total expenses of the business are also shown to have increased
significantly during the period which is which is a matter of concern for the business. The total
expenses of the business which was budgeted has been exceeded which is a matter of concern for
the management of the company. The main reasons for the variances might be due to increase in
the expenses or the lack of appropriate performance pf the business in terms of other activities of

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the business. In addition to this, there might be external factors which may be affecting the
operations of the business. The management also needs to control the expenses of the business in
order to achieve the budgeted targets of the business.
As per the policy of the management, the business is currently using MYOB software for
the purpose of reporting the financial information of the business in an appropriate manner. The
financial information needs to be reported appropriately in order to take major decisions
regarding the operations of the business.
Analysis of Profit and Loss Statement
The profit and loss statement of the business shows the items of profit and loss of the
business and the same represents appropriate financial situation for the business. The
management of the company is able to generate maximum revenue from consultation services
which needs to be considered by the management of the company. In an overall estimate the
performance of the business has been appropriate in terms of generation of revenue and meeting
the costs of the business. The income statement of the business shows that the management of
the company generates maximum revenue from consultation services which can be further
increased in coming years.
Goals and Objectives of the Business.
The management of the company aims to conduct a conference in the business for the
purpose of replacing the workshops of the businesses. The main reason which is identified by the
management of the company for such a proposal is to introduce e-books which has generated
more revenue for the business. The management of the company plans to enhance the revenues
which is generated by the business. In addition to this, the management of the company is

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planning to replace the current software which is to be used for the purpose of reporting of the
business.
Cash flow Trends
The management of the company has been effectively formulating strategies for
improving the profitability of the business. The cash flow trends show that the management of
the company is generating appropriate revenue and thereby also having appropriate cash inflows
in the business. The overall cash position of the business is shown to be positive which shows
that the management of the company has appropriate funds for meeting the current obligations of
the business.
Alternative Software Options
The alternative software option which is available to the management for MYOB are
listed below with advantages and disadvantages associated with the same.
XERO
The alternative option which is available to the management of the company in lieu of
MYOB software is Xero software which is quite popular in businesses nowadays. The
advantages of Xero are listed below in details:
 The application of Xero automatically converts currency values of transactions with
different countries into currency values of home country which simplifies the
computation process.
 The Xero software is very easy to access and is a user-friendly software which makes it a
popular choice for the business.

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The disadvantages of using Xero software ae listed below in details:
 The software is very slow when there are numerous transactions in the business which
makes it unfavourable for huge companies.
 The software is also very costly in nature which affect the costs aspect of the business.
Sage
Sage is an alternative option which is available to the management of the company
regarding appropriate software. The advantages of using sage software in the business are listed
below:
 The software is appropriately a cost-effective software which can be applied by the
management of the company during the period.
 The software follows sustainable approach and follows a paperless approach to generate
reports of the business.
The disadvantage of using such a software are listed below:
 The installation of the software is quite challenging for the business and therefore the
software cannot be considered to be user friendly.
 The software can be used in limited situations and is not applicable to all businesses.
Quickbooks
This is another software which is available to the management of the company for
effective reporting of the operations of the business. The advantages of using quickbooks are
listed below:

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 The software is very efficient and easy to access which allows the users to improve the
reporting framework of the business.
 The software can generate significant accounting records for the business which is
another core advantage of busing the software.
The disadvantage of using the software are listed below:
 The software lacks of industry and business-specific features which makes it difficult for
businesses to implement the same in the working environment.
 The software lacks of direct professional support which makes the use of software a
difficult aspect for the business.
Preparation of Budgets
The budgets would be prepared by the management of the company based on the
estimates which is available for the management of the company after referring to financial
results of previous years. The management of the company anticipates an increase of 10% in the
sales of the business which would help the management of the company for enhancing the profits
which is generated by the business. The budgets would be prepared considering the after
providing consideration of the new plans of replacing the workshops with e-books business
which would generate a sale of $ 10,000 and also introduce a conference which can also enhance
the sale of the business making the business more profitable.
Distribution of the Budget
The budget would be distributed by the top-level management of Grow Management
Consultants. The management of the company would be forwarding an official mail to

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communicate regarding the budgets and different aspects of performance which the management
of the company anticipates from the employees of the business.
Part B
Meeting with The Directors
The meeting which is conducted with the directors of the business would be discussing
different aspects of reporting for the business. The management of the company needs to discuss
the GST liability which the management of the company would be incurring on the goods which
are sold by the business. The management of the company would also be reviewing the financial
management policies of the business and how the management of the company needs to take
appropriate steps for maintaining the efficiency of the business.
The financial management policies of the business needs to appropriately manage the
operations of the business so that desired results can be obtained by the management of the
company.
Discussion Regarding the Budget
The budget of the business is prepared by the management of the company and the same
is based on the estimates which is available for the management of the company after referring to
financial results of previous years. The budget introduces the new revenue generation sources
which are E-books and Conference revenue which would help the management of the company
to enhance the revenue of the business. The management of the company anticipates an increase
of 10% in the sales of the business which would help the management of the company for
enhancing the profits which is generated by the business. In addition to this, a 5% increase in
cost of sales of the business is also anticipated by the management of the company.