Comprehensive Report: Managing and Running a Small Business Analysis

This report provides a comprehensive analysis of managing and running a small business, focusing on key aspects such as financial planning, cash flow management, budgeting, and break-even analysis. The report utilizes the case study of Tax Com Accountants, an accounting firm, to illustrate practical applications of business management principles. It covers the preparation of financial statements, including balance sheets, profit and loss accounts, and cash flow statements, along with the significance of working capital elements. The report also delves into forecasting and budgeting techniques, including moving averages and time series data, and explores the impact of relevant legislation and regulations on small and social enterprises, such as record keeping and data protection. The report concludes with a discussion on the importance of variance analysis and performance monitoring in ensuring the success of a small business.

Managing and
Running a Small
Business

Table of Contents
Table of Contents.............................................................................................................................3
Executive Summary.........................................................................................................................5
INTRODUCTION...........................................................................................................................1
Activity 1 (Covered in brochure).....................................................................................................2
Activity 2.........................................................................................................................................4
Task 3...............................................................................................................................................4
P4 Annual cash flow forecast , budget and break even analysis.................................................4
P5 Break even analysis can be applied to organisational situation.............................................8
P6 Financial statement for an organisation that contribute successful management...................9
Task 4.............................................................................................................................................10
P7 Key legislations and regulations that have impacts on small and social enterprises............10
CONCLUSION..............................................................................................................................11
REFERENCE................................................................................................................................12

Executive Summary
Small businesses are those business which are required small amount and resources to
establish the enterprises in order to earning the income. Such organisations are needs to focuses
on different needs and wants of potential customers which can be fill by small and social
business. Social organisations are running for the purpose of social benefits. People can be
satisfied by getting better quality of products and services. This report will help to increase the
understanding regarding managing and allocating resources. The Tax Com Accountant is chosen
organisation which increases business performance and productivity.

INTRODUCTION
Managing and running the small business means a person should have qualities and abilities
to understand the task and perform accordingly so goals can be attained effectively. Small and
social enterprises are those organisation which are running at local and regional level in order to
provide the products and services to customers (Johantri, 2020). A business person should
analysis the market and get wants of their potential customer so their selling activities can be
increases smoothly. To know and increasing knowledge about business The TaxCom
accountants has been selected that is accounting firm in Oldham England, UK. This is consulting
firm that is providing consultant to small and other business to uses of accounts so their business
can be grow effectively. Such report covers small and social enterprise plans by allocating
resources, customer relationship management process for social and small business, analyse cash
flow forecast, budget and break even analysis. Apart from this, implications of regulations that
helps to run business.
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Activity 1 (Covered in brochure)
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Activity 2
Task 3
P4 Annual cash flow forecast , budget and break even analysis
Cash flow - The amount of money which is required to be transferred in to business for
converting in liquidity is mentioned as cash flow. This is important for management to maintain
the liquidity by considering operating, investing and financing activities that helps to operate the
business effectively. In Tax Com Accounts, a cash flow statement is prepared by management
which helps to increase the business performance by maintaining profits appropriately.
Budget – This is a term which is uses by organisation by estimating the amount and
comparing with actual budget that can help to increase the activities. The management of Tax
Com Accounts are providing consultant to their clients to prepare budget every year by involving
income and expenses that are going to arises in organization (Augustsson and et. al., 2019).
Sources of fund:
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Own savings – A business whether start up and small can be operate by using own
saving which they have that helps to operate the business activities and increase the performance.
by using own savings Tax Com Accountants can establish its business sand manage the
activities.
Crowd funding – This is consider as small size bank that make available finance to
small business in small amounts so they can manage the business and run it properly Tax Com
Accountants has option to arrange the funds from getting the finance increase the brand image.
Leasing and Hire purchase – A business concern can arrange the funds by giving their
properly on lease and rent so a fixed amount can be received every months that helps to operate
the business and increase profitability. Tax Com Accountant an use this resources in order to
arranging the funds and managing small business activities.
Balance Sheet, P&L and cash flow statement of the Tax Com Accounts:
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Profit and Loss Account at the year ended
Cash flow Statement
Cash budget for the year
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Forecasting and budgeting
This refers as continuous process and activity which is using in forecasting and budgeting
in order to generate the profits. Forecasting is uses to define what action needs to be taken in
future so all activities can be perform effectively. On the other side, budgeting is uses to prepare
the statement that shows gap between estimation and actual amounts. This helps to run the
business and increase productivity. Techniques in relation to budgeting and forecasting are uses
by Tax Com Accountants such as:
Calculating the moving average – This is technique which can be uses by tax Com
Accounts to know the views of person by establishing a business and estimating expenses that
helps to make right decisions. Data and financial information are shown through graphs and
statics (Lenz, 2019).
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Time series data – When business is running and establishing by business person then time
series technique is uses by manage the business happenings. The chosen organisation is using
time series data for making decision quickly and perform all duties officiously. All action and
financial data can be organised so a profits statement can be prepared (Daily, 2019).
Dealing with seasonality – According to this technique, organisation are facing some
challenges as changing in season that has affected their business. All companies needs to deal
with season and organise all functions which helps to maintain the good performance (Ünal,
Urbinati, Chiaroni and Manzini, 2019).
P5 Break even analysis can be applied to organisational situation
Break Even analysis – The other name of break even analysis is cost volume profits that
depicts the relevancy and equality of cost and revenues that arises in corporation. Different
income and expenses are required to conduct the analysis, organise activity, performing action
and maintaining the business performance so all activities can be not against each other. This
helps to save the organisation from going in loss so it maintain all activities at a fixed point that
shows no profit not loss. Tax Com Accounts organisation is using break even analysis which
helps to defined how a profits and loss can be maintained. This helps organisation get number of
selling products and services, is they cross the target and not so analysis can be define a exact
position in market.
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