Unit 29 Small Business Report: Syient London Limited Financials

This report provides an analysis of Syient London Limited, a small business, focusing on key aspects of financial management and operations. The report includes an executive summary, table of contents, and an introduction to the business. It covers cash flow forecasting, break-even analysis, and the importance of financial statements like the balance sheet and profit and loss account. The report also explores sources of funding, including own savings, equity finance, loans, and leasing options. Furthermore, it examines the impact of regulations and legislation on small and social enterprises, emphasizing the significance of social welfare. The report highlights the use of budgeting, performance monitoring, and variance analysis for effective business management. It also delves into analytical and quantitative techniques such as bills receivable, cash inventory and inventory management. The report concludes with a discussion on the importance of break-even analysis and key financial statements for successful management. The report emphasizes the application of these concepts to Syient London Limited, providing insights into its financial planning, resource allocation, and overall business strategy.

Unit 29 Managing and
Running a Small
Business

Executive Summary
From the report it can be summarised that small business are running by less capital and
people for providing products and services so people get influence and make buying decisions.
The aim of small business is to increaser their revenues by attracting large number of potential
customers and selling them products. The success of business depends on financial resources,
activities, customers and best quality of products and services that helps to make profits. This
report is all about Syient London Limited that is consultant firm providing services in
information technology and management services. This will help to increase the understanding
about break even analysis, sources of funds, cash flow statement , forecasting and legislation that
are important to run a business.

Table of Contents
Executive Summary.........................................................................................................................2
Table of Contents.............................................................................................................................3
INTRODUCTION...........................................................................................................................1
Activity1 (Covered in brochure)......................................................................................................1
Activity 2.........................................................................................................................................1
P4 Annual itemised monthly cash flow forecast showing variable and fixed cost.....................1
P5 How break even analysis can be apply to organisation context.............................................6
P6 Key financial statement for organisation that contributes to the successful management.....8
LO4..................................................................................................................................................9
P7 Regulations and legislation that have impacted on small and social enterprises...................9
CONCLUSION..............................................................................................................................10
REFERENCE................................................................................................................................11

INTRODUCTION
Managing and running small business is the activity which is performed by people in order
to run their business and increase the organisational profitability. A small business is consider as
privately own corporation, partnership, sole proprietorship where less than 500 people are
working. This is important for organisation to understand needs and wants of people for the
purpose of delivering that kind of products and services (Sunny, 2019). The aim of small
business is to run their business effectively and maximize the revenues. For this project selected
organisation is Syient London Limited which is management consultant in Hounslow, England.
It is providing consultant services to customers in relation to manager that how activities and
employees should be managed and how it can be controlled so productivity can be maintained
effectively. This report covers how small business and social organisation plans and allocate
resources, customer relationship management process, Development of cash flow forecast. A
part from this, legislations and regulations are also involved in this report.
Activity1 (Covered in brochure)
1

2

3

Activity 2
P4 Annual itemised monthly cash flow forecast showing variable and fixed cost
The total amount of money which is being transferred into and out of a business in the
form of liquidity is cash flow. The other term of cash flow depicts a business is require cash and
its equalling items that helps to run a business. It provides a liquidity to business so all activities
and functions can be run effectively. To operate a business and paying the liabilities there needs
to focus on sources of funds that are as defined:
Sources of funds:
To run a business and performing all activities business concern is required to arrange the
funds which can help to maintain all performance and increase the business profitability. Syient
London Limited is running its small business by arranging the funds from different sources such
as:
Own saving – If business concern who have decided to operate its business then it should
have own saving that can help to stand independently. This can help to fill the basic needs and
wants of business at the time of performing and providing products and services.
4

Equity finance – This refers as collection of fund which is required by issuing the equity
share in public and employees that help to arrange the funds. Syient London Limited suggest and
assist their clients to arrange funds from equity finance that can help to manage the activities and
keep the continue (Brun, Cheng and Alcudia, 2018).
Loans from family and friends – This is another source of fund that states a person who
is going to run a business whether small and large have option to take loans from family and
friend that give a benefits of low interest payment. This can help to increase the profitability
because no pressure to pay in fixed time and rate of interest. Syient London Limited is can
arranges funds from its family and friend that can help to run a business and increase the
organisational activities.
Bank loan – Most of the business organisation are taking loans from bank at a fixed rate
of interest and period. While getting a loan there is need to provide security and safety co
customers as they will pay loan amount at fixed period of time. Syient London Limited can run
its small business sand expand by getting loan that can help to maintain a business.
Leasing and hire purchase – This means to give lease and hire property to bank and
other people that can help to run a business. The manager of Syient London have option to lease
and hire property that helps to run a business continuously.
Balance Sheet, P&L and cash flow statement of the Syient London Limited:
5

Profit and Loss Account at the year ended
6

Cash flow Statement
Cash budget for the year
7

Forecasting and budgeting
This means whenever organisation is going to run a business then it needs to forecast and
estimating the budget that can helps to run a business and increase the performance. Budgeting
is the another activity that is uses by manager who have special knowledge and to make a
business by estimating the cost that occur in business and control the activities accordingly. This
can help to run a business by getting accurate calculations. The techniques for budgeting and
forecasting are as defined:
Calculating the moving average – In organisation, this is another method uses by
company to find out the views of all person by estimating the expenses and cost by showing data.
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