Project Report: Manage Budget and Financial Plans Analysis

This project report provides a comprehensive analysis of financial planning, encompassing various aspects such as sales budgets, GST calculations, and cash flow management. It begins with a sales budget, outlining projected sales revenue for different products. The report then explains the Goods and Services Tax (GST) and its calculation, followed by a discussion on developing and monitoring budgets, emphasizing the involvement of relevant personnel. A key component is the importance of a cash flow budget, with a detailed cash flow projection. The report also defines key terms like budgets, profit and loss statements, contingency planning, liabilities, and balance sheets. It further explores the financial management process, relevant legislation, and regulations. The steps involved in developing and managing budgets are detailed, along with various methods of monitoring and managing them. The report concludes with a discussion on financial management records and systems, including functions of the financial record system and records for tax purposes, with a list of references.

Running Head: Manage budget and Financial Plans
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Project Report: Manage budget and Financial Plans

Manage budget and Financial Plans
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Que 1)
Sales budget:
Statement of sales budget
2015 2016
Product Unit sales
Selling
price
Sales
revenue
Budgeted
sales
Budgeted
selling
price
Budgeted
sales
revenue
Coffee 345 3 1035 379.5 2.5 948.75
Tea 100 2.5 250 95 2.5 237.5
Hot
chocolate 125 3 375 125 3 375
Cold drinks 100 2 200 100 2 200
Iced donuts 200 1 200 440 1 440
Cakes 300 2 600 300 1.8 540
Total 1170 2.25 2660 1439.5 2.13 3071
Through the above calculation, it has been found that the total sales of the company
would be $ 3071 (Weston and Brigham, 2015).
Que 2)
GST:
GST stands for goods and services tax. This tax is levied by the Australian
government over most of the goods. This tax system has been introduced by the Australian
government in 2000 in replacement of wholesales sales tax. GST is levied over the products
in the manufacturing process and then it is refunded by all the parties in a chain by the final
customers (Weaver, Weston and Weaver, 2001).
Calculation of total selling price:
Calculation of evaluating the total selling price is as follows:
Purchase 120000
Expenses 10000
Sales 145000

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GST rate 10%
Calculation of total selling price
Sales
$
14,50,000
Add: GST (10% of
purchase)
$
12,000
Total sales
$
14,62,000
(Lord, 2007)
Que 3)
Developing and monitoring the budgets:
While developing and monitoring over the budgets, it is required for the managers and
the organization to involve the relevant personnel so that a better study could be done and the
mangers could reach over a good conclusion (Ward, 2012). Following relevant personnel
may be used by the organization to manage the performance of the budget and make better
strategic plans:
Supervisors
Frontline managers
Financial controllers
Accountants
Financial managers (Weaver, Weston and Weaver, 2001)
The above personal would help the company to make a better decision.
Que 4)
Importance of cash flow budget:
Cash flow is required for every organization to manage the cash position and
obligatory position of a business. It maintains the record of the amount which is expected to
flow in and out in particular time period. Cash flow budget is a financial tool which helps a
company to analyze the cash flow in near future (Radebaugh, Gray and Black, 2006). In this

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budget, future income and expenses are predicted and company makes the strategy
accordingly.
Cash flow projection:
Statement of cash flow budget
March
Inflows $
Fees received 40320
Outflows
Wages 10200
Office expenses 1872
Equipment expenses 1664
Motor vehicles
expenses
4784
Advertising 2912
Other 3120
Total expenses 24552
Net inflow(outflow) 15768
These calculations depict that the total cash inflow would be $ 40320 and outflow
would be $ 15768 in April.
Que 5)
Budgets:
Budget is a financial plan which is prepared for predicting the future in terms of the
financial figures. Budget may include revenues, sales volume, production, material used, cash
flows, assets and liabilities etc. Budget is the total amount which is allocated for a particular
purpose.
Profit and loss statement:
Profit and loss statement is a financial statement which is prepared in an organization
after particular periods of time to analyze all the revenues and the expenditure in periods of

Manage budget and Financial Plans
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time. These statements are prepared for analyzing the profit position of a company (Kaplan
and Atkinson, 2015).
Contingency planning:
Contingency plan is the planning which is devised by the company for an outcome
which could be occurred accidently in a business. This planning is mainly devised by the
businesses or the government. It is basically associated with the risk management and
planned by the organizations to reduce the level of the sudden risk.
Liabilities:
Liabilities could be defined as a financial obligation or debt which takes place during
the life time of a business. Liabilities of an organization depict about its long term and short
term debt obligations. Liabilities could be accounts payable, deferred revenues, accrued
expenses and mortgages.
Balance sheet:
Balance sheet is a financial statement which is prepared in an organization at a
particular data in a year to analyze the financial position of a company. Balance sheet
considers the total assets, liabilities and the capital of the company and ensures the position of
the company in terms of finance.
Que 6)
Process of financial management:
Financial management process is concerned with making better decisions about the
composition and size of assets and corporate financing structure. The process structure of the
financial management is as follows:

Manage budget and Financial Plans
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(Horngren, 2009)
This depicts that the process of financial management starts from analyzing the
objectives of the company and continues till the time, the plan of the financial process got
success.
Relevant legislation and regulations:
Following are some of the regulations and the legislations to manage and maintain the
budgeting process of a company:
 legislative power to propose spending
 one vote- global vote on spending
 power of amendment
 executive powers to limit the spending below appropriations
Above are some of the legislations and the regulations which must be concerned while
preparing the budget files (Davies and Crawford, 2011). Power of amendment depict that the
management must analyze the changes into the actual and budgeted figure and must analyze
the result accordingly.

Manage budget and Financial Plans
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Que 7)
Steps of developing and managing the budgets:
Steps of developing and managing a budget are as follows:
a. strategic plan
b. Business goals
c. Revenue projection
d. Fixed cost projection
e. Variable cost projection
f. Annual goal expenses
g. Target profit margin
h. Board approval
i. Budget review
j. Dealing with budget variances
Above are the steps of developing a budget and manage it in a proper way.
Que 8)
Methods of monitoring and managing the budgets:
Followings are the methods of the budgeting:
a. Incremental budget
b. Zero based budget
c. Activity based budget
d. Traditional budget (Bromwich and Bhimani, 2005)
Que 9)
Financial management process:

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Financial management process is concerned with making better decisions about the
composition and size of assets and corporate financing structure. The financial management
records and systems are as follows:
a. Amortization prepaid expenses
b. Keeping a track over the liabilities
c. Keeping a track over the payment and the receivable transparent
d. Keeping up to date
e. Balancing the bank accounts
f. Depreciating assets according to the methods and the schedule
g. Minimizing the paperwork
h. Maintain the complete and accurate the trail.
Que 10)
Functions of the financial record system:
Following are the main system of the financial record of a company:
a. Inducement to save
b. Mobilization of savings
c. Allocation of funds
d. Serving production, investment and trade.
Financial records for tax purpose:
Following are the records which must be maintained by the organizations for the
purpose of tax:
 Payment summarize from the payers which includes the employer and the human
service department
 Dividend statements of the companies
 Summarize according to the managed investment funds

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 Tenant and rental records
 Contracts
 Bank statement
 Financial statement
 Invoice receipts

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References:
Bromwich, M. and Bhimani, A., 2005. Management accounting: Pathways to progress. Cima
publishing.
Davies, T. and Crawford, I., 2011. Business accounting and finance. Pearson.
Horngren, C.T., 2009. Cost accounting: A managerial emphasis, 13/e. Pearson Education
India.
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.
Lord, B.R., 2007. Strategic management accounting. Issues in Management Accounting, 3.
Radebaugh, L.H., Gray, S.J. and Black, E.L., 2006. International accounting and
multinational enterprises. New York, NY: John Wiley & Sons.
Ward, K., 2012. Strategic management accounting. Routledge.
Weaver, S.C., Weston, J.F. and Weaver, S., 2001. Finance and accounting for nonfinancial
managers. New York: McGraw-Hill.
Weston, J.F. and Brigham, E.F., 2015. Managerial finance. Hinsdale, IL: Dryden Press.
Zimmerman, J.L. and Yahya-Zadeh, M., 2011. Accounting for decision making and
control. Issues in Accounting Education, 26(1), pp.258-259.