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.
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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:
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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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In Syient London Limited managers are calculating cost of business activities that gives
opportunities and make profits (Chen and et. al., 2018).
Time series data – This is consider as series of data points that are shown in lists and graphs
in time order. It has temporal ordering that uses to manage the budget and forecasting in timely
order. A business firm needed to analysis the time quickly that can help to increase the business
performance. Syient London Limited can use time series data technique by setting time and cost
that help to carry operation and business duties properly.
Dealing with seasonality – This means, the success of business is depends on seasonality
which is facing by business firm in order to accept the new challenges and changes for running a
business and increasing business profitability. The manager of Syient organisation needs to deal
with season for running business and increasing organisational performance effectively.
P5 How break even analysis can be apply to organisation context
Break Even analysis – It can be consider as cost volume profit and financial tool that
uses by business concern to describe the relevancy and equability of cost and revenues at a fixd
point. This shows a income and expenses of company are at equal level and running a business
continuously. This also states at what prices customers are ready to get products and services. in
other words, break even analysis is the active term, states how products and services in relation
to organisation are profitable and equal. This can be challenge for Syient London Limited to run
a business by using break even analysis that states how a business can be run effectively. This is
beneficial for organisation that helps to get number of selling products, revenues and expenses
which incurred in organisation. Syient London Limited is using break even analysis by
maintaining relationship between variable cost and fixed cost. Managers are using to know the
break even point of sale and maintain a brand awareness (Nasution and Pramana, 2019).
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Uses of budgets, performance monitoring and control – A document that involves all
details of income and expenses of accounting period and helps to run a business effectively is
consider as a budget. It is a written document which is prepared by management who have
knowledge about principle and accounting information for the purpose of estimating amounts.
Performance monitoring and controlling are activities of organisation that needed to perform by
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organisation by formulating a budget, performing well and controlling the business activities.
This also helps to improve the organisational profits by maintaining good performance and
attracting customers. for instance, Syient London Limited that provide consultancy services in
relation to information technology and management by charging amounts that helps to run a
business and increase the profitability (Zachry III, and et. al., 2018).
Variance analysis – This is also known as gap analysis that states the different between
actual and estimated behaviour. The sum of all variance in organisation give a picture of overall
performance of their business that defines is there any need to bring any improvement or not.
Syient London Limited is using variance analysis to know the difference between actual and
estimated number that helps to bring improvements and expand business effectively.
P6 Key financial statement for organisation that contributes to the successful management
Every organisation is preparing financial document that are also called final document, help
to see the financial position of company. This is important for small business and other
businesses to prepare final document end of every accounting period that can help to estimate
the financial position and maintain a business effectively. Syient London Limited is running
small business and preparing financial statement that are as underneath:
Balance sheet – The main document of organisation is balance sheet which is prepared
quarterly and yearly by accountant. This involves a record of assets, liabilities, new profit and
loss, other items for the purpose of knowing accurate financial position of their business. This
helps to increase the organizational performance by getting accurate information.
Cash flow statement – A document who shows the liquid position of a business is possible
through cash flow statement that helps to run a business and increase the profitability. This is
considering operating, investing and financial activity which is important for running a business
and increasing productivity. It should be prepare by management so all information can be get
effectively.
Profit and loss account – Syient London Limited is focusing on income and expenses of
company then records in trial balance day by day. With the help of trial balance an income
statement is prepared by management that helps to run a business by analysing income and
expenses of company and run a business effectively.
Analytical and quantitative techniques:
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For a business firm it is required to use break even analysis and quantitate techniques that
can help to maintain the liquidity and improve the business strength. Syient London Limited is
managing a business accurately by using technique and focusing on working capital.
The element of working capital are as depicts:
Bills receivable – This is written document which is given by a person other another for
receiving a bill and paying accordingly. This helps to convert the money in less time.
Cash inventory – This element of working capital uses by businesses to convert the raw
material in to cash so a business can be manage effectively.
Inventory – Stock and raw material are inventory of organisation that are uses by
organisation to run a business and increase the profitability.
LO4
P7 Regulations and legislation that have impacted on small and social enterprises
Social enterprises – This means commercial strategy and community that uses by
organisation for the purpose of providing different types of products and services. This helps to
maximise the improvement of social being and maintain the good performance. For organisation
it is important to focus on social needs and provide the products and services accordingly. In
Syient London Limited, managers are required to focus on social welfare that helps to run a
business effectively (Miller, Levy and Swedler, 2018).
Legislation – This means important legislations and instrument which are implied by
government on organisation for the purpose of running a business and improving organisational
profits. Sayient London Limited is focusing on different lawful obligations in order to attain the
business goals and objectives. The different legislation are as defined:
 Record keeping (2006) – This legislation is related to keeping records of all information
and data that can help to run a business and increase business performance. Such as
manager of Syient London limited are keeping records of all workers and information
that are important for business which helps retain the customers. They also pays salary,
incentives, bonus to employees that motivates them effectively (Miller, Levy and
Swedler, 2018).
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 Tax and employment (1976) – This legislation is related to tax and employment where
managers are required to pay taxes on earned profits. This influences social welfare by
charity and giving job opportunities to people.
 Health and safety – This is another rules which states an organisation should follow the
health and safety rules by providing safety and good health to employees. This attracts
employees and make feel good. This also helps to retain the customers in organisation by
paying equal and insurance.
 Data Protection (1998) :- When employees are working in organisation they wants that
their all information and data should be confidential. In Syient London Limited,
managers are following this regulation and keeping all information confidential
accurately.
The potential sources of information – All information in relation to small business,
financial statement, rule and regulations are sourced from encyclopaedias, magazines, books,
newspapers, catalogue and internet.
CONCLUSION
From the above discussion it can be concluded that small businesses are needed to focus
on various activities that can help to continue and expand the business effectively. It is
independently own business which is started by less people for the purpose of providing products
and services. Financial statement are prepared by managers in order to know the financial
position. Break even analysis is tool that uses to know the profitability of organisation.
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REFERENCE
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