Assessment 1

1. Identify and describe financial probity requirements for businesses.

“Probity” is based on honesty especially in the monetary terms and the legal requirements. This can include purchasing, payments contracts and engaging with the customers. The financial probity principles are: 

• Responsibility: clarification of the manner in which there is the performance of the obligations.  How choices were made, how cash was spent. 
• Transparency – clarifying the choices that that were made for clarification of the choices that are made and be sure that the explanations are moral. 
• Impartiality–All procedures must be straightforward, reasonable and free from predisposition
  

2. Identify four examples of what would be consider fraudulent behaviour in regard to company finances.

As a deliberated trickiness the fraud can be characterized. Crime is being conducted by the Fake conduct comprises that includes detainment. They include: 

• Insider managing and market misuse 
• Tax evasion 
• Pay off
• Fake and unfair exchanging, and 
• General crime in the administration of an organization

3. Identify the requirements for audited accounts and the purpose of an audit report.

Requirements for audited accounts: Financial reporting and auditing requirements are regulates by the ASIC regulates. These requirements are complained with the active monitoring of entities that contribute to the integrity of the market. 

The purpose of Audit Report: the purpose is to provide the examination of the financial statement that leads to the increase in credibility of the financial statement.  

4. Describe the principle of cash accounting as well as one advantage and one disadvantage of cash accounting.

Cash Accounting is a bookkeeping technique in which the recording of the instalment receipt is done. Incomes and costs are recorded at the end of the day. Money bookkeeping is additionally called money premise bookkeeping. Cash Accounting is one of two types of bookkeeping. The other is gathering bookkeeping, where income and costs are recorded when they are brought about. 

Advantage: 

Maintenance is easy: it is tough to maintain a system of accounting. When the cash is received then the revenue can be recorded.  

Disadvantage: It is not very accurate.

5. Explain the four main taxation and superannuation obligations for a business. Briefly discuss each obligation.

Exhibition and position of the organization is estimated by the Accrual Accounting. By coordinating the incomes the monetary occasions are perceived. Money inflow and outflow is permitted by this technique.

Advantage: 

Provides an accurate picture of overall cash flow: over a period of time many business transactions occur. Accrual accounting reflects that income and expenses generated in one month can carry over into the next month or even longer.

Disadvantage: 

Might lack the staff needed to manage this method: Larger companies have staff – even an entire department

6. Explain the requirements for registered foreign companies regarding preparing and lodging financial reports.

The integral part of the business is management of the tax and obligation. According to the type of the work, the Business tax obligations and entitlements will vary.

Main taxation and superannuation obligations are:

1. Australian Business Number:

Management of taxes and business obligations can be done by ABN. For identification of the number, 11 digit registration number is used. It is an 11 digit registration number used to identify businesses.

1. Goods and Services Tax

Goods and Service Tax is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.

1. Business Activity Statement

This form is submitted to the Australian Taxation Office by the registered business entitles to report their tax obligations that include GST.

7. Identify the current company tax rate for both smaller and larger businesses.
   

The basic requirement for lodging financial report under corporation act is:

1. Financial report:

The notes of financial statements Director’s declaration about the statement

1. Director’s Report:

A company registered scheme or disclosing entity that must prepare a director’s report for each financial year 2011.

1. Remuneration Report:

Segment 300A of the Enterprises Demonstration requires certain data to be unveiled about the compensation of key the board work force.

8. Explain the process by which a business reports GST to the Australian Tax Office.

Business action proclamation (BAS) is to be presented by The Australian Assessment Office (ATO) month to month, quarterly or every year

It is utilized to report and pay products and enterprises charge (GST), pay as you go (PAYG) portions, PAYG retaining assessment and other expense commitments.

If the business is registered for an Australian business number (ABN) and GST, BAS will be continuously sent by the ATO when the time has come to stop. 

9. Identify the penalty rate to be applied if a supplier does not provide an ABN?

Australian business number needs to be quoted if a business or organisation supplies goods or services. ABN is mostly quoted on their invoice, and it is needed to keep this invoice in records of the business. 

If they don't quote their ABN, organization must withhold 47% (from 1 July 2017) from their payment 

The total payment to the supplier is $75 or less, excluding any goods and services tax (GST).

10. A non-profit organization needs to register for GST after it has a turnover of more than how much?

Current GST is needed to be calculated if not registered for GST, for identifying if it is required to be registered for GST purposes, ie when either of these turnovers are $150,000 or more. Generally, you must register for GST within 21 days if either GST turnover meets or exceeds the GST turnover threshold of $150,000.

   

11. Explain the difference in Pay As You Go withholding obligations for employees and contractors.

For keeping a portion of payment that is made to the employees and other business, PAYG withholding is legal requirement is needed.

A contractor, generally do not withhold amounts from payments that make to them 

If this is the first time you're hired a worker, complete the checklist Hiring workers for the first time before continuing.

For knowing whether the person is a contractor or employee, check working arrangements.

Assessment 2

1. Prepare a finance report

Review the case study scenario above, as well as the information provided in Profit and Loss 2017/18 and Cash Flow Statement 2017/18 Using this information, identify areas of the business that have generated a profit and those that have generated a loss.

Conduct research to establish why those areas have made a profit or loss. Your research should include a review of the financial data provided to you and economic conditions and business trends that may have resulted in the profit or loss.

Your report should include the following:

• Overview of the purpose of the report.
• Analysis of the previous year’s (2017 – 2018) 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.
• Analysis of overall business performance, as well as performance of each of the income streams for 2017 – 2018.
• Outline of reasons for profit or loss based on your analysis of the data and research on economic conditions and business trends.
• Analysis of the organisation’s goals and priorities for the upcoming financial year as documented in the Strategic Business Plan and financial resources required to achieve these goals, as well as key dates.
• An analysis of cash flow trends as per the cash flow statements.
• Review and analysis of at least three other financial software products that the business could use, including the advantages and disadvantages of each, as well as the advantages and disadvantages of MYOB that is currently used.

Use the Finance Report Template to guide your work.

Growth Management Consultants

Finance Report

Introduction

The audit of organization’s strategy is included. The business strategy, cash statement is depended on the survey.

2017/18 Performance 

It is explained by the general investigation of the P&L statement and Cash flows that there was a positive result for the business. It is seen that the business accomplished a real excess of $ 613, 805 which is really higher than the planned overflow of $595,640, from the explanation of benefit and misfortune. The all out costs planned was $ 665360. 

The Gross benefit is $1335600 that is shown by the P&L account and the absolute costs are just $ 683523. So, the general net benefit is (Gross benefit – complete costs) = 1335600-683523 = $ 652077.

2016/17. 

As can be seen from the revenue stream for 2017-18; Pay from the counselling charges has been the most in June 2017 and least in September 2017. 

For the workshop, the real pay from the income is $36000 and the P&L account shows a pay of $38000. 

Strategic goals and priorities

Goals & Priorities for 2018-2019

• Recommendations about financial assets needed to accomplish these objectives
  

Following the marketable strategy of the association, the objectives are:

• Grow the organization from 2 representatives in Year 1, to more than 10 by Year 5.
  

• Increase income to more than $3 million by Year 3. 
• Increase customer base by 450% in three years. Keep up work costing that keeps edges above 70%.
  

It implies that by next period, the objectives are:

• Grow the organization from 2 workers in Year 1, to more than 4 by Year 1.
  

• Increase income to more than $1 million.
  

• Increase customer base by 150%. Keep up work costing that keeps edges above 70%.
  

The suggestion for accomplishing the operational objectives is increment the income by designating assets in regions such like advertising and HR.

• Key dates
  

Quarter	Period	Due date
1	1 July to 30 September	28 October
2	1 October to 31 December	28 January
3	1 January to 31 March	28 April
4	1 April to 30 June	28 July

Cash flow statements analysis

2. Develop budget forecasts

Develop budget forecasts, ensuring that the analysis of the previous year’s data and future plans as indicated in the business plan is taken into account in determining projected income and expenditure.

Use the Budget Forecast Template to guide your work.

Ensure that your budget includes the estimated income and costs for the conference and e-book to be implemented in 2019 in the document Costs and Income

Assume a 5% increase in all general costs, as well as a 10% increase in income for consulting and executive recruitment service. Input costs and income for the conference and e-book as set out in the Costs and Income data.

Estimated cost and income for conference and e-book to be implemented in 2018:

Type	Cost
Venue and catering	$5000
Speaker fees and travel	$10000
Marketing	$5000
Conference bags	$1000
Staff time	$30000
Total	$51000

Assuming a 5% increase in the cost and income for conference would be-

Type	Cost	Assumed cost
Venue and catering	$5000	$5250
Speaker fees and travel	$10000	$10500
Marketing	$5000	$5250
Conference bags	$1000	$1050
Staff time	$30000	$31500
Total	$51000	$53550

Estimated E-Book cost 

Type	Cost
Contract writer	$10000
Desktop publishing	$3000
Marketing	$1200
Total	$14200

Assuming a 5% increase

Type	Cost	Assumed Cost
Contract writer	$10000	$10500
Desktop publishing	$3000	$3150
Marketing	$1200	$1260
Total	$14200	$14910

3. Develop a financial compliance and tax liabilities report.

You are required to write a report on the company’s key financial compliance requirements and its current tax liabilities.

To ensure that the company’s financial risks in relation to the misappropriation of funds and recording of transactions are managed adequately, you are required to outline reporting requirements and financial delegations as outlined in the company’s Finance Policy and Procedures.

Research and report on the business’ key financial compliance requirements and liabilities for tax.

The report should explain:

• GST reporting requirements (the company is required to report quarterly)
• PAYG withholding obligations
• PAYG income tax instalment
• Payroll tax obligations (state government)
• Superannuation entitlements and requirement to comply with legislation regarding frequency of payment, choice of fund and reporting to staff.

Your financial compliance and tax liabilities report should be between one and two pages long.

Financial compliance and tax liabilities report 

Purpose 

The aim is to clarify the requirements of financial compliance and the tax liabilities of the organization. 

Financial compliance 

Methodology and approval is set by the finance approval for favoring the financial exchange like CEO/Finance Manager. As per the money strategy, expenses are up to $100. A method to issuance is given by the utilization of business credit card. For the development of the specialists, $500 is the greatest cutoff. It is indicated by the new provider strategy, in which there is evaluation of all the new provider, personal investigation in incorporated. 

Tax liabilities 

With all the tax regulations/liabilities, the organization and staff should comply. The tax rate is 30%. 

GST reporting requirements 

GST turnover of grow management is more than $75000. 

Payroll tax obligations

These are the thresholds for payroll in each state in Australia:

State	Threshold per month ($)	Threshold per annum ($)	Rate ($)
ACT	166,666.66	2,000,000	6.85
NSW	72,192 (31 days months)	850,000	5.45
NT	125,000	1,500,000	5.50
QLD	108,333	1,300,000	4.75 or 4.95
SA	125,000	1,500,000	0-4.95

4. Send an email to the Principal Consultant (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachments. Ask them to read the documents in preparation for discussing them at the upcoming meeting.

Attach the following to the email:

• Your financial report
• Your budget forecasts
• Your financial compliance and tax liabilities report

To: Principal Consultant

From: Milanpreet Singh   

Subject: Attachment of the reports

Dear Principal Consultant 

The mail is to inform that I have attached the report to the mail. Kindly go through the report once and share the views. 

• Financial Report
• Budget Report
• Financial compliance and tax liabilities report.

Thank you,

Best Regards,

5. Prepare for meeting

The Principal Consultant has approved your budget for the upcoming financial year, 2018

– 2019. You are now required to meet with the Senior Managers to communicate the budgets you have developed.

Print off a copy of the following to take with you to the meeting:

• The budget that you have developed.
• The Financial Policy and Procedures. You will be required to explain key reporting requirements to the Managers attending the meeting, as well as financial delegations. Review this document and highlight the relevant passages.
• Your report on key financial compliance requirements and liabilities for tax

At the meeting, you will need to:

• Discuss the budget you have developed and the rationale for the budget figures.
• Discuss the amounts allocated to activity, including the conference and the e-book.
• Explain that there will be no more workshops conducted.
• Provide an outline of the financial policy and procedure. to ensure that roles and responsibilities are understood and risks of misappropriation of funds/incorrect recording of financial transactions is minimised.
• Explain the company’s key financial compliance requirements and tax liabilities.

Meeting Details

Date: 10th November, 2021

Time: 1:00 pm

Venue: Meeting Room Grow Management consultants

Participants: CEO, Principal consultant, financial manager and management team

Principle cost conducted the meeting. The aim was to discuss the spending that have been created. Sum distribution to action is to discuss. 

6. Conduct meeting

Conduct the meeting as set out in the requirements above, making sure that you provide the team with all the required documentation.

During the meeting, demonstrate effective communication skills including:

• Speaking clearly and concisely
• Using non-verbal communication to assist with understanding
• Asking questions to identify required information
• Responding to questions as required
• Using active listening techniques to confirm understanding

Date: 11th November, 2021

Time: 4 pm

Venue: Meeting Room Grow Management consultants

Participants: CEO, Principal consultant, financial manager and management team

The budget you have developed and the rationale for the budget figures.

Discuss the amounts allocated to activity, including the conference and the e-book.

Conference	6250	6250	6250	6250	6250	6250	6250	6250	6250	6250	6250	6250	75,000
E-book	400	100	2,500	600	250	350	2,000	700	150	1,500	200	1,250	10,000

Assessment 3

1. Write a financial performance report.

Analyse the information provided in the following files:

• Profit and Loss 2017/18
• Profit and Loss 2018/19
• Cash Flow Statement 2017/18
• Cash Flow Statement 2018/19

Based on your analysis, develop a short report for the Principal Consultant that includes

• Review of overall performance and gross/net profit margins.
• Calculation of variation in actual versus budgeted amounts for each income source.
• Calculation of variation in actual versus budgeted costs.
• Identify the discrepancies between agreed budget allocations for the conference and the actual figures
• Recommended revisions to the 2020 conference budget to deal with contingencies.
• Proposed conference fee for 2019 conference assuming attendance of 70 people and to make a profit of at least 20%. Show your calculations.

Use the Financial Performance Report Template to guide your work.

Financial performance reports

Overall Performance

Gathering of the association is the advantage that the pay is higher than it is arranged. If gathering figures are seen, it has not satisfied the rule that we have set. 

Income variation

From Cash flows Statement

Income	Total Budget	Actual Budget	Variance	Favourable/Unfavourable
consulting fees	1,210,000	1410720	17%	F
conference	75,000	45,000	-14%	UF
E-book	10,000	15,000	50%	F
Executive search	144,000	144,000	0%
Net Income	1,439,000	1,614,720	12%	F

COST VARIATION

EXPENSES
Salaries/wages	504,000	529,200	5%	U
Superannuation	63,000	63,000	0%	0 variance
Cleaning	10,080	10,080	0%	0 variance
Accounting fees	6,300	7,165	14%	U
Advertising and marketing	5,250	5,250	0%	0 variance
Contract writer (e-book)	11,550	48,090	316%	U
Computer software	4,200	4,830	15%	U
Motor vehicle expenses	4,200	5,444	30%	U
Utilities	4,200	4,131	-2%	F
Insurance	4,200	4,028	-4%	F
Office supplies	1,575	2,207	40%	U
Lease/loan payments	1,365	1,575	15%	U
Rent	45,108	45,108	0%	0 variance
Sundries	2,100	2,384	14%	U
Travel and Accommodation	5,250	5,654	8%	U
Conference venue and catering	5,000	10,000	100%	U
Speaker fees and travel	10,000	11,000	10%	U
Marketing (conference only)	5,000	7,500	50%	U
Conference bags	1,000	1,200	20%	U
Conference casual project officer	30,000	30,000	0%	0 variance
E-book	10,000	10,000	0%	0 variance
Desktop publishing	3,000	3,000	0%	0 variance
Marketing (e-book)	1,200	1,200	0%	0 variance
Repairs & maintenance	1,575	1,260	-20%	F
Telephone	3,150	3,569	13%	U
TOTAL EXPENSES	742,303	816,875	10%	U
Surplus	696,697	797,845	15%	F

• Disparities 

Compensation and cost is unforseen which is shown by the pay and cost variances. As indicated by the distinction in pay, it will in general be clearly seen that party cost is foreboding and what makes a difference is - 40% which isn't useful for an affiliation. Thusly, the association needs to manage this expense by expanding 20% in social event cost.

• Recommended Revision

It is shown that 20% return on get-together cost which is needed for affiliation progress. 

Conference fees

Meeting on 2018/19= 45000.            

Each paid 750

= 45000/750

=60

Total no. of people that attend the meeting 60 peoples

Profit on 2018/19 = 797845

Increased by 20% (20% of 797845) = 159569

New profit =797845+159569 = 957,414

Each payment increased by 20% in returns

Profit                                               Each Cost

797845                                             750

957414                                             ?

= 957414*750/ 797845.   = 900

Hence, each people need to pay 900 to make 20% of profit.

Anticipated numbers: 70 people. Price of conference to be $856

To gain 20% of profit, then price of conference should be at least $800.

2. Send an email to the Principal Consultant (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment. Attach your financial performance report to the email:

To: Principal Consultants

From: 

Subject: Financial Performance Report

Respected Sir,

The mail is to instruct that I have prepared the financial execution report. Kindly go through the report once. I will be glad to get the feedback. 

Best Regards,

Assessment 4

1. Write a debtor management report

Review the Aged Debtor Report, noting that the company’s usual terms are payment 10 days from invoice.

Using the Internet, research best practice debtor management and make notes on your findings.

Your report should be approximately 1 page.

Provide a report for your CEO based on your analysis that includes:

• A summary: an interpretation of the information in the aged debtor report.
• Good practice debtor management
• Develop at least 5 recommendations that could be adopted by the company in response to your analysis. This will also be based on the debtor management research you conducted.

Company X

Aged Debtors Report

Report: Aged Debtors Analysis

Client Range: All

Client	120+ Days	90 Days	60 Days	30 Days	Current	Total
Client 1		$4,356.00
Client 2	$2,714.00
Client 3			$3,781.00
Totals	$2,714.00	$4,356.00	$3,781.00	$0.00	$0.00	$0.00

• Summary

Chief practices is the important instrument for improvisation of the pay method related to the changes that are made. Permitting terms to all of the clients is an instrument that has phenomenal advantages of keeping up pay in a given period, yet defenseless collection the board delivers low efficiency and antagonistically impacts the association. 

It is basic to consider the need to keep a decent generally game plan among bargains and the charging system.

• Debtor management needs to be practiced. 

Debtor Management

The aim is to minimise the time that is taken between issuing an invoice and collection of payment. 

It involves four main decisions: 

• Credit should be provided to customers or not
• Who should be given the credit?
• What is the maximum amount of credit that should be given?
• Credit period that is to be given to the customers. 

Recommendations

The aim is to make the credit available to the good customers who are paying on time their accounts as this will help in maximization of the sale. Before giving credit to the customer do the following things:

• Credit application form – get the signature of the customer, once they have read and understood the terms and conditions of the credit.
• For conducting the credit check, get the customer approval.
• Conduct and analyse the credit check
• Check the trade credit reference. 

 

2. Send an email to the CEO (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment and seek approval to implement best practice debtor management processes.

Attach your debtor management report to the email:

To: CEO

From: 

Subject: Attachment Debtor Management Report

Respected CEO,

 The mail is written to inform that the changes in debtor management report is completed and is attached to the mail.

Collection heads are the key for improvisation in pay procedure.

Kindly go through the revised debtor management report. 

Best Regards,