Financial Analysis and Strategic Business Plan Report

This report analyzes the financial performance of Grow Management Consultants, covering cash flow statements, budget variances, and aged debtor reports. The report begins with an introduction to financial management and its various aspects. It then presents an assessment of the company's financial performance, including a review of past cash flow statements, variance analysis, and developing forecasts. The report also includes an analysis of the aged debtor report, identifying issues and providing recommendations for improvement, such as maintaining proper customer data, offering discounts for early payments, charging interest on late payments, prioritizing credit management, and creating a bill dispute resolution process. The report concludes with a summary of findings and recommendations, providing insights into the company's financial health and strategic planning.

MANAGING FINANCE

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................1
ASSESSMENT 2.............................................................................................................................1
Financial management planning project......................................................................................1
Developing forecast.....................................................................................................................5
Communicating results with staff................................................................................................7
ASSESSMENT 3.............................................................................................................................7
Review of overall performance...................................................................................................7
Calculation of variances in cash flow statement and income statement of 2016-17...................7
Recommendations revisions to budget for conference costs 2017-18.......................................12
Proposed conference fees to make profit of at least 20 %.........................................................15
ASSESSMENT 4...........................................................................................................................17
Explanation of information in aged debtor report.....................................................................17
Analysis of issues with organization's aged debtor processes...................................................18
Developing five recommendations for company.......................................................................19
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Finance is considered as management of money and inclusion of multiple activities such as borrowing, saving, lending,
forecasting, investing and saving money. In simple words, this term directly describes about study and system of money, investments
along with various other financial instruments. There are various people who prefer for dividing finance in three categories such as
corporate, public and personal finance. The areas are emerging with social finance as behavioral finance will seek to determine
cognitive, social and emotional reason with context of financial decisions (Bui and De Villiers, 2017). The present report will discuss
about cash flow statement, cost and income, financial policy along with procedure and strategic business plan. In the similar aspect,
there will be appropriate summary of cash flow and profit and loss statement along with Aged Debtor summary.
ASSESSMENT 2
Financial management planning project
Financial performance report:
To: General manager
Grow management Consulting
From: Junior accountant
Date: 20 December, 2018
Subject: Performance review and forecasted analysis
Sir,
As per analysing the past performance of the organisation in 2015, 2016 and 2017. Thus, in reviewing the outcomes of 2015-
2016 cash flow statement on which firm is retaining the revenue generated through consulting fees, workshop, publication and
executive search. Thus, throughout this operating period of organisation on which they have become able to have increase and
expanded revenue through operations. There have been various expenses which have been incurred during that period on which firm
has generated effective surplus in the cash flows. The fluctuation in the surplus of the cash flows have been determined which are
1

required to be controlled by the business in the upcoming period. operating costs such as advertisement as well as various relevant
expense are required to be controlled by the business. It requires that they must be influences of alternatives which will be helpful to
the firm in terms of reducing the costs.
To mitigate such obstacles which are relevant with the higher costs and expenses incurred in the business on which there
must be effective analysis over the data base through effective techniques. Installation of various software and techniques which will
be helpful in terms of analysing the outcomes. It requires the professionals of Grow management consultancy must implicate
software like, MYOB, ERP, SAP etc. which will be effective in detecting the issues as well as brings the accurate outcomes through
the operations. Moreover, there have been various benefits and loopholes of this software which are required to be anlsyed such as:
Software Advantages Disadvantages
MYOB  Professionals can access it anytime and
anywhere
 It requires less time to input data
 Unsafe cloud computing.
 Chances of data breach
ERP  It will bring accurate information
which will be reliable in analysing the
performance
 This software installation will be cost
effective.
 Complicated customisation process.
 Quite complex
SAP  It brings flexibility in testing the data
base.
 There will be transparency in the
outcomes.
 It requires higher cost for installation
 It is complex as only expert and known
will run this software accurately
2

The impacts of such software and the data analysis techniques will result in effective financial control in the organisation.
The professionals will have better and relevant information which benefits them in strategic planning and decision-making process.
Due to impacts of that there will be raise in the level of accuracy in presenting the reliable outcomes.
In relation with analysing the outcomes of the financial management planning of the organisation on which there have been
preparation of various statements on which analysing the data base (Hiebl, 2018). Therefore, it is required that, the managerial and
accounting professionals are required to make appropriate ascertainment of financial requirements (Domingues and et.al., 2017).
Cash Flow Statement 2015/16
As per reviewing the past performance of the organization in the year 2015-16 on which their cash flow statement has stated
the surplus in each month (Booth, 2018). Thus, in respect with such actual outcomes which have been compared with the budgeted
statements have presented that, there will be adequate rise in the operational gains and making proper ascertainment of the data base
(Cowton, 2018).
Total Total
Budget Actual Variance
Income
Consulting fees 1100000 1175600 75600
Workshops 48000 36000 -12000
Publications 5000 2000 -3000
Executive search 108000 120000 12000
Net income 12161000 1333600 -10827400
Expenses 0 0 0
Salaries/ wages 504000 504000 0
3

Superannuation 60000 60000 0
Cleaning 9600 9600 0
Accounting fees 6000 6823 823
Advertising and marketing 500 5000 4500
Contract writer (e-book) 11000 45800 34800
Computer software 4000 4600 600
Motor vehicle expenses 5000 5183 183
Utilities 4000 3935 -65
Insurance 4000 4028 28
Office supplies 1500 2100 600
Lease/loan payments 1300 1500 200
Rent 42960 42960 0
Sundries 2000 2280 280
Travel and Accommodation 5000 5386 386
Repairs & maintenance 1500 1200 -300
Telephone [phone]
TOTAL EXPENSES 665360 707795 42435
SURPLUS/ DEFICIT 595640 625805 30165
Interpretation: On the basis of above listed variance analysis on which there have been comparison made between the actual
and budgeted cash flow of the organization. As the budgeted data base on which professionals have expected to have revenue of
12161000 from all the sources while the actual outcomes for such income is 1333600. Therefore, the variance between the actual and
budget income for the period have been determined as -10827400. Moreover, it can be said that there is need to make plans for
increasing the revenue of business mainly in workshops and publications. On the other side, as per considering the expenses of the
organization in the respective period on which the budgeted estimation over the overall costs of the industry will be 665360 while the
4

actual outcomes had been determined by the organization as 707795. Thus, the variance has been determined outcome of such
analysis is 42435. In this case, it can be said that there are requirements of reducing the costs of organization. The main focus is
payable on increasing the revenue as well as making proper control over the expenses incurred in each period.
Developing forecast
Budgeted:
July
Aug
ust
Septem
ber
Octob
er
Novem
ber
Decem
ber
Janua
ry
Februa
ry
Mar
ch
Apri
l May June
INCOME
Consulting fees
1468
50
1615
35 177689
19545
7 215003 236503
26015
4 286169
3147
86
3462
65
3808
91
41898
0
Conference 1200 0 0 15000 18000 0 19000 20800 0 1000 0 0
E-book 0 0 1000 0 800 1600 1500 1000 1000 0 1500 1600
Executive search
1100
0
1210
0 13310 14641 16105 17716 19487 21436
2357
9
2593
7
2853
1 31384
NET INCOME
1590
50
1736
35 191999
22509
8 249908 255819
30014
1 329405
3393
65
3732
02
4109
22
45196
4
EXPENSES
Salaries/wages
4410
0
4410
0 44100 44100 44100 44100 44100 44100
4410
0
4410
0
4410
0 44100
Superannuation 5250 5250 5250 5250 5250 5250 5250 5250 5250 5250 5250 5250
Cleaning 840 840 840 840 840 840 840 840 840 840 840 840
Accounting fees 0 0 7164 0 0 0 0 0 0 0 0 0
Advertising and
marketing 1050 0 525 735 0 840 0 0 2100 0 0 0
Contract writer (e-book)
1050
0 3759 3759 0 3759 3759 3759 3759 3759 3759 3759 3759
Computer software 0 2730 0 0 0 2100 0 0 0 0 0 0
Motor vehicle expenses 686 474 914 186 156 276 588 0 966 620 221 357
5

Utilities 0 706 0 0 0 1550 776 0 1100 0 0 0
Insurance 0 0 0 345 345 0 0 3539 0 0 0 0
Office supplies 105 126 189 126 158 200 189 242 242 137 231 263
Lease/loan payments 105 126 105 105 221 53 158 0 210 158 126 210
Rent 3759 3759 3759 3759 3759 3759 3759 3759 3759 3759 3759 3759
Sundries 210 210 147 179 242 210 210 147 179 242 189 231
Travel and
accommodation 1662 0 1507 2044 128 0 0 0 134 180 0 0
Conference venue and
catering 0 0 0 0 0 0 10000 0 0 0 0 0
Speaker fees and travel 0 0 0 0 0 0 11000 0 0 0 0 0
Marketing (conference
only) 0 0 0 0 2500 2500 2500 0 0 0 0 0
Conference bags 0 0 0 0 0 0 1200 0 0 0 0 0
Conference casual
project officer 0 5000 5000 5000 5000 5000 5000 0 0 0 0 0
E-book 0
1000
0 0 0 0 0 0 0 0 0 0 0
Desktop publishing 0 3000 0 0 0 0 0 0 0 0 0 0
Marketing (e-book) 100 100 100 100 100 100 100 100 100 100 100 100
Repairs & maintenance 105 0 420 0 0 420 0 315 0 0 0 0
Telephone [phone] 304.5 315 304.5 325.5
346.
5 252 220.5 220.5
TOTAL EXPENSES
6878
7
8048
4 74104 63105 66862 71271 89733 62376
6308
5
5939
5
5879
5 59089
SURPLUS/ DEFICIT
9026
3
9315
1 117895
16199
3 183046 184548
21040
8 267029
2762
80
3138
07
3521
27
39287
5
Interpretation: On the basis of above budgeted cash flow statement it can be said that, there have been increment of the income
with the same proportion of 10% in consulting fees while the other income has been raised by the professionals on the basis of various
6

analysis. On the other side, in relation with estimating the costs implicated in the analysis on which there have been estimation of costs
which will be increased as per assumption that it will raise for 5% in the upcoming period. However, as per analyzing the data base on
which it brings that there will be raise in gains of business as the cashflow is reflecting positive outcomes in each month.
Communicating results with staff
As per analyzing the outcomes based on the above analyzed financial statement won which it can be said that there have been
raise in the level of expenses made by company in the previous year. Thus, it must be said that the production process is required to be
improved by Grow management consultancy. Therefore, there must be increment in the revenue stream of the business. Along with
this, alternatives are required to reduce the costs implied on activities such as advertising salaries are to be controlled by the firm
which will result in better profitability for the upcoming period.
ASSESSMENT 3
Review of overall performance
The overall performance of Grow Management Consultants can be analysed that net profit gross profit was 1614720 in 2016-
17 and expenditures were accounted to 817595. By deducting gross profit from total expenditures, net profit was 797125.
Organisation wants to increase conference fees so that 20 % of profit may be incremented in effectual manner assuming that 70 people
will attend the same.
Calculation of variances in cash flow statement and income statement of 2016-17
Variance Analysis of Grow Management Consultants
Cash flow
statement 2016-
17 Jul Aug Sep Oct
No
v
De
c Jan Feb Mar Apr May Jun Budget Actual Variance
7

INCOME
Consulting fees
117
570
102
000
990
00
146
400
117
600
145
200
105
150
1074
00
12600
0 99600 84600 160200 1210000 1410720 200720
Conference 0 0 0 0
170
00
160
00
120
00 0 0 0 0 0 75000 45000 -30000
E-book
100
0
120
0
150
0
110
0
100
0
120
0
110
0 1300 1100 1400 1300 1800 10000 15000 5000
Executive search
840
0
960
0
144
00
120
00
144
00
108
00
108
00
1080
0 13200 14400 13200 12000 144000 144000 0
NET INCOME
126
970
112
800
114
900
159
500
150
000
173
200
129
050
1195
00
14030
0 115400 99100 174000 1439000 1614720 175720
0 0
EXPENSES 0 0
Salaries/wages
441
00
441
00
441
00
441
00
441
00
441
00
441
00
4410
0 44100 44100 44100 44100 504000 529200 25200
Superannuation
525
0
525
0
525
0
525
0
525
0
525
0
525
0 5250 5250 5250 5250 5250 63000 63000 0
8

Cleaning 840 840 840 840 840 840 840 840 840 840 840 840 10080 10080 0
Accounting fees 0 0
716
5 0 0 0 0 0 0 0 0 0 6300 7165 865
Advertising and
marketing
105
0 0 525 735 0 840 0 0 2100 0 0 0 525 5250 4725
Contract writer (e-
book)
105
00
375
9
375
9 0
375
9
375
9
375
9 3759 3759 3759 3759 3759 11550 48090 36540
Computer
software 0
273
0 0 0 0
210
0 0 0 0 0 0 0 4200 4830 630
Motor vehicle
expenses 686 474 914 186 157 276 588 0 996 620 220 357 4200 5474 1274
Utilities 0 705 0 0 0
155
0 776 0 1100 0 0 0 4200 4131 -69
Insurance 0 0 0 329 329 0 0 3370 0 0 0 0 4200 4028 -172
Office supplies 105 126 189 126 158 200 189 242 242 137 231 262 1575 2207 632
Lease/loan
payments 105 126 105 105 220 53 158 0 210 157 126 210 1365 1575 210
9

Rent
375
9
375
9
375
9
375
9
375
9
375
9
375
9 3759 3759 3759 3759 3759 45108 45108 0
Sundries 210 210 147 178 241 210 210 147 170 241 189 231 2100 2384 284
Travel and
accommodation
166
2 0
150
6
204
4 128 0 0 0 134 180 0 0 5250 5654 404
Conference venue
and catering 0 0 0 0 0 0
100
00 0 0 0 0 0 5000 10000 5000
Speaker fees and
travel 0 0 0 0 0 0
110
00 0 0 0 0 0 10000 11000 1000
Marketing
(conference only) 0 0 0 0
250
0
250
0
250
0 0 0 0 0 0 5000 7500 2500
Conference bags 0 0 0 0 0 0
120
0 0 0 0 0 0 1000 1200 200
Conference casual
project officer 0
500
0
500
0
500
0
500
0
500
0
500
0 0 0 0 0 30000 30000 0
E-book 0
100
00 0 0 0 0 0 0 0 0 0 0 10000 10000 0
10