Grow Management Consulting Financial Report

This financial performance report analyzes the financial health of Grow Management Consulting for the fiscal year 2018-2019. The report examines the company's income streams, including consulting fees, workshops, ebooks, and executive search services. A detailed profit and loss statement is presented, revealing a net profit of $664,197 against a gross income of $1,335,600. Key performance indicators like gross profit margin (1.98) and net profit margin (0.98) are calculated and discussed. The report identifies salaries and wages as the highest expense, and analyzes the performance of each income stream, highlighting underperformance in workshops and ebooks. The impact of economic conditions and business trends on the company's profitability is assessed. The report concludes with an operational plan for the next financial year, focusing on replacing workshops with an annual conference and expanding ebook offerings. Finally, the report addresses statutory requirements for tax and superannuation compliance.

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Financial Performance Report
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Overview
Report purpose- The purpose of this report is to identify the areas of profit and loss of the
company. Followed by this, financial analysis, operational review are been done through
analyzing the financial report analysis of the company. The profit margins of the companies have
been worked out to find out the actual reason where the progress needs to be done and how the
company can move ahead to the business. The business trend and the economic condition how
influenced the profit and loss of the company.
Review
We can review the annual report of the company so to identify the financial improvement of the
company during the year. For the said analysis the financial report has been reviewed and
analysis has been in terms of profit and loss statements to identify the clear picture of the
company based on each item.
This report is about the business and financial data study of the on Grow management
consultants. The research will be made on Grow management consultants which are a
consultancy business that mostly focuses on the leadership for 5 years. Grow management
adhere to provide their services Australia wide.
The financial report will have a study about the main operations of the business, the revenue
generated of the company. Followed by this, financial analysis, operational review are been done
through analyzing the financial report. The ratios of the companies have been worked out to find
out the actual reason where the progress needs to be done and how the company can move ahead
to the business.
Investment plans for the future growths have also been an area where this report will focus on.
The investment and fund-raising management of the company have to be done as per the total
assets available to the company.
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Revenue generated
The revenue generated of the company is recorded as 1,335,600, Net profit margin, this
illustrates that after the gross profit of the company has been identified then the company will
then identify or clarifies what other costs attracts to the development of the product or services,
all these costs then will be indirectly related to the product sales or services delivered. Further to
this, the company should be noticed how the indirect costs can go down and how the cost can be
efficiently put up a front and increase the net profit of the company. In having a variance to the
subject there can be variance in the strategy but the indirect costs can always be a factor which
can be reduced in higher than any directly related costs. During the year net profit margin has
been recorded as 0.98.
Gross profit of the company has been identified then the company will then identify or clarifies
what other costs attracts to the development of the product or services, all these costs then will be
directly related to the product sales or services deliver. Further to this, the company should be
noticed how the direct costs can go down and how the cost can be efficiently put up a front and
increase the gross profit of the company. In having a variance to the subject there can be
variance in the strategy but the direct costs can always be a factor which can be basic in the
services of any of the company and relevant for possessing the gross income of the company.
Gross profit of the company is recorded as $1,335,60.
As per the above table, it can be reviewed that the gross income of the company has been
recorded $1,335,600 as it shows during the year and the net profit as $664,197. The reasons for
such a result are in the consulting fees $1,175,600. Followed by the loss in the year 2019 of
Workshops Income, gross income as $38,000 by and in comparison of ebook calculation
recorded the actual income in the year 2018 of $ 2000. Also, the operating income i.e. exchange
gains and other incomes have been showing a loss in the income of Workshops, E-book, during
the year 2019.
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.
Profit & Loss Statement for Grow Management Consulting FY 2018 - 2019
PROFIT & LOSS 2018 - 2019
Income
Consulting fees $1,175,600
Workshops $38,000
E-book $2,000
Executive Search Service $120,000
Gross Income $1,335,600
Expenses
Accounting fees $6,823
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Advertising & marketing $5,000
Computer Software $4,600
Insurance $7,500
Lease/loan payments $1,500
Motor vehicle expenses $2,500
Office Cleaning $5,500
Office supplies $2,100
Rent $43,000
Repairs & maintenance $1,200
Salaries/wages (including PAYG) $504,000
Superannuation $47,880
Telephone $3,400
Utilities $2,400
Travel and accommodation (for workshops) $24,000
Contract writer e-book (for publication) $10,000
Total Expenses $671,403
NET PROFIT (Net Income) $664,197
Assumptions:
All figures are GST inclusive.
Gross profit margin
Gross profit/ sales =1.98
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Net profit margin
Net profit/ sales = 0.98
.
Gross profit margin
Gross profit of the company has been identified then the company will then identify or clarifies
what other costs attracts to the development of the product or services, all these costs then will be
directly related to the product sales or services deliver. Further to this, the company should be
noticed how the direct costs can go down and how the cost can be efficiently put up a front and
increase the gross profit of the company. In having a variance to the subject there can be
variance in the strategy but the direct costs can always be a factor which can be basic in the
services of any of the company and relevant for possessing the gross income of the company.
Net profit margin,
Net profit margin, this illustrates that after the gross profit of the company has been identified
then the company will then identify or clarifies what other costs attracts to the development of
the product or services, all these costs then will be indirectly related to the product sales or
services deliver. Further to this, the company should be noticed how the indirect costs can go
down and how the cost can be efficiently put up a front and increase the net profit of the
company. In having a variance to the subject there can be variance in the strategy but the indirect
costs can always be a factor which can be reduced in higher than any directly related costs.
During the year net profit margin has been recorded as0.98. There has been a fall in profit due to
the less gross income in the profit during the years.
Workshops and publication
The company intends to replace the workshops with the annual conference in the next financial
year as the workshops are not well attained and client feedback indicate a personalized, company
focused approach in the form of consulting services is the service of choice. The actual cash flow
measure as 38,000 whereas the budgeted cash flow estimated as 75,000. The workshop and
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publication suffer a loss in financial performance. The contract e-book for publication recorded
as reasonable cost, the sales are reasonable but there needs to be a wider selection of books.
Highest cost to the business
the highest cost of the business recorded the expenses for the salaries and wages at $504,000. In
the financial report, this cost is very high in comparison to other expenses.
Overall business highlights including
Consulting
Consulting fees gross income recorded as $1,175,600. The estimation set for the consulting fees
income as 1210000 but the expectation of the company slightly falls as the reported income is
only 1175600.
Workshop
The income is recorded $38000, the actual cash flow measure as 38,000 whereas the budgeted
cash flow estimated as 75,000. The company intends to replace the workshops with the annual
conference in the next financial year as the workshops are not well attained and client feedback
indicate a personalized, company focused approach in the form of consulting services is the
service of choice.
Ebook
The e-book has had reasonable sales earlier there needs to be a wider selection of books, as well
as more marketing plan is to generate $ 10,000 worth of sales for the eBook during the next
financial year and increasing over time. But the budgeted estimation for the cash flow for ebook
as 10000 but the management achieved the actual cash flow of 2000.
Executive search services
The budgeted estimation and actual cash flow difference in executive search services are similar
to the expected cash flow generated from this service. This is the service performed according to
the estimation.
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The five reasons for the profit and loss of the business according to the economic conditions
and the trends of business, the profit and loss:
As per the business, trend fluctuates
1) The operational changes, the weak performance of Australians economies in the past
months bring the changes and workshop suffers the loss.
2) It can be reviewed that the gross income of the company has been recorded $1,335,600 as
it shows during the year and the net profit as $664,197.
3) The reasons for such a result are in the consulting fees $1,175,600. Followed by the loss
in the year 2019 of Workshops Income, gross income as $38,000 by and in comparison of
ebook calculation recorded the actual income in the year 2018 of $ 2000.
4) Also, the operating income i.e. exchange gains and other incomes have been showing a
loss in the income of Workshops, E-book, during the year 2019.
5) The trends of business work accordingly and the budgeted cash flow equal to the actual
in case of executive services.
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Organization goals analysis
The operational plan
The operational plan for the company is to run an annual conference in 2019. The annual
conference cost have been estimated
Resource required
The resource required for the financials to improve in workshops, to accomplish including
interviews, surveys, observation brainstorming and job shadowing. To maintain the professional
and objective tone. The combination of external and internal resources required, used for the
publication of e-books.
Profit margin goal
The net profit determines the profit margin and the profit margin for the company is 0.98. The
profit margin goal should be improved by the company the gross sales are operating under the
margins. It can be ideal. The goal of the profit generation should be higher. The gross profit
margin of the company illustrates how much the revenue of the company has been effectively
lower than the expenses. There is the component in determining the gross profit a be stable if the
amount can be replaced by the volume of the product/services and then increase in the
workshops income or stabilize the income from the workshops, e-books, consulting fees and
executive search services, if these figures are been put into the picture then the figures for the
company can up and then can be extracted to best potential.
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The statutory requirement for compliance and tax
GST Obligation for growing management consultants to claim tax invoices begins when the
company made more than $82.50 taxable sale and in the financial report, it shows that company
made more than that so the company give its GST registered customers, the tax invoice to claim
its GST in the purchase price.
Superannuation obligation
Super guarantee at recently 9.5% of an employees time earning. The company’s superannuation
for 2018 -19 is $ 47880. The SG obligation are met as early as the payment accepted by the
ATO has changed the approach for the superannuation guarantee to the employee. The
complaints are the shift from practical approach to stricter and more hostile approach.
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