BSBFIM601 Finance Report: Performance of Grow Management Consultants

This finance report, prepared for the BSBFIM601 unit at Australian Smart College, evaluates the financial performance of Grow Management Consultants. The report analyzes the company's performance in 2016/17, including revenue, cost of sales, and profit margins, and examines its cash flow statement. It outlines the company's strategic goals and priorities for the upcoming financial year, including plans to introduce conferences and e-books. The report also provides an analysis of cash flow trends and reviews various financial software options, such as MYOB, XERO, and QuickBooks, evaluating their advantages and disadvantages. Additionally, it highlights key financial compliance requirements and discusses potential revisions to the 2019 conference budget. The report emphasizes the importance of cost control and strategic planning for achieving financial success, offering a comprehensive overview of the company's financial standing and future prospects.

This document is Finance Report Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBFIM601.
Australian Smart College
7 Greenfield Parade, Bankstown NSW 2200
ABN 45 607 618 244
RTO ID: 45302 CRICOS Code: 03661E
Phone: [phone]
Website: www.ascollege.nsw.edu.au
Email: [e-mail]
Australian Smart College Pty. Ltd.
BSBFIM601- Manage finances
Student’s Resources
V2_ MAY_2019 Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E
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This document is Finance Report Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBFIM601.
Growth Management Consultants
Finance Report
Introduction
The main objective of this report is to evaluate the performance of Grow Management
Consultants during the accounting period. This report will also evaluate the cash flow statement of a
business. It will focus on identifying the business goals and the software that can be used by the
company to do financial reporting process. The analysis would also be showing legal conditions which
the management of the company needs to adhere to while conducting the operations of the business.
The discussion would also be showing performance of the business in previous year as well as in current
year. The analysis would also be showing discussion regarding the strategic priorities and objectives of
the business and how the management aims to achieve the same.
2016/17 Performance
Analysis of the previous year’s (2016/17) profit and loss statement for Grow Management Consultant,
including revenue generated, cost of sales, as well as gross profit/loss margin and net profit/loss margin.
The cash flow statement of the business has been reviewed to analyse the effective cash inflow
and cash outflow. This cash flow statement helps in identifying the cash available in a business to
finance their business activity. The cash flow statement of FY 2016 and 2017 has been considered to
identify the cash flow. It is found that, the revenue of the business is more than the budgeted figure and
is found to be $175,600. This indicates that the company management has properly managed their cash
inflows from the sale of consultancy services. The company generates its income from their consultancy
operations. From, the cash flow statement it is also found that other activities are not consistent
according to the budgeted figure.
Analysis of overall business performance, as well as performance of each of the income streams for
2016/17.
The Growth Management Consultants generates it maximum of revenue from consultancy
services. From the income statement it is found that, there is an increase on the revenue. The cost of
operations also increases. It has been also found that, most of its revenue was generated from the
consultancy fees. But, the cost of operations is also more in their business activities. Therefore, It is
advised that, the management should maintain its business profits by controlling their cost of operations.
Outline the reasons for profit or loss based on your analysis of the data and research on economic
conditions and business trends.
From the income statement analysis, it has been found that the company generates maximum of
its revenue from consultancy services. The expenses of the business need to be controlled so that the
operations of the business can be managed. The profits of the business can be enhanced if the costs of
the business are controlled. The management should focus more on expanding their profits in order to
achieve growth. Certain external factors like increase of inflation rate, intense competition and other
factors have affected the revenue capacity of the business. The business must focus on meeting the
challenge from these external forces in order to maintain its revenue.
Strategic goals and priorities
Outline the goals and priorities for the upcoming financial year as documented in the Strategic Business
Plan and financial resources required to achieve these goals as per the estimated conference and e-
book costs. Include the dates by which these are to be achieved to information the budget forecasts.
The management is planning to replace their workshops with conferences in order to do effective
business operations. Conferences will help in bringing effectiveness in business operations by making
various innovations in the internal business process. The management is also focusing on introducing e-
books for generating more revenue. They also plan to implement new software for maintaining their
transaction records. These plans have been initiated to maintain the profitability position & increase the
revenue. The management of the company also aims to improve the financial management strategies of
V2_ MAY_2019 Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E
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This document is Finance Report Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBFIM601.
the business so that efficiency can be brought about in the activities of the business. Hence, improving
the business performance is the strategic priority of the business.
Cash flow statements analysis
Provide your analysis of cash flow trends as per the cash flow statements.
The cash flow statement is prepared by the management of the company to demonstrate the
cash position of the business and also take liquidity decisions regarding the company. The cash flow
statement for the business indicates that the revenue from the cash inflow of the business operations
shows a positive result. The cash inflows represents the earnings of the business while the cash outflows
shows the expenses for the business during the period. The cash flow shows a positive result. The cash
flow statement is prepared appropriately to show the financial position of the business.
Financial Software
Provide your review and analysis of at least three other financial software that the business could use,
including the advantages and disadvantages of each, as well as the advantages and disadvantages of
MYOB.
The company is currently using MYOB software for recording their financial statements.
Advantages:
MYOB software helps in efficiently recording the accounting process.
Disadvantage:
This software is complex to handle in the organisation.
The business also uses alternative software for accounting their transactions. Some of the
advantages and disadvantages are:
1. Sages- This software can be efficiently use to handle the financial reporting process.
Advantages:
This is a cost effective software and the company can easily finance this software.
Disadvantages:
It is complex to install this software and is not user friendly.
2. XERO- This is the popular software for implementing the accounting process.
Advantages:
 This software automatically converts the currency values with the currency value of different
countries. This is suitable for doing international transactions.
Disadvantage-
 This software has response very slowly when the volume of transactions is large and the nature
of the business transactions is large.
3. QuickBooks- This is another software that can be used by the management to efficiently do the
accounting process.
Advantages:
 This software is easy to access and is also user friendly. This is a very efficient software.
Disadvantages:
 This is a new kind of software. A business cannot depend on this software to properly deliver the
result. This kind of software cannot be used by all types of business.
Compliance Requirements
Some of the key financial compliance requirements for tax are mentioned below:
V2_ MAY_2019 Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E
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This document is Finance Report Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBFIM601.
It is compulsory for the senior managements and senior executives to do a conference on
discussing on how the management will be reducing their Goods and Service Tax liability. It will discuss
on how a company will be incurring on the goods that has been sold by the business. The tax
instalments that has to be played under PAYG scheme also needs to be properly estimated by the
management in the conferences and they must also discuss on how to appropriately report this
instalments in their accounting process.
V2_ MAY_2019 Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E
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