Prepare for the task by completing the following steps to forecast the future financial resource needs:
(choose any one of the below listed financial systems (1-5) or refer to the website listed at the end of Q1 & choose your own financial system. Copy the information listed below or from the website)
The current financial system used by name of your organisation is name of your chosen financial system
Name of your organisation uses the name of your chosen financial system financial management system to process information through strategic and tactical management to develop actual operating procedures. These include,
(paraphrase below points & write it as 2-3 paragraphs)
Activity dashboard - A centralized location within the software where users can come to get a broad overview of all financial activity. Often, dashboards will include easily digestible graphs of data, yearly, monthly, or daily breakdowns of income and expenses, year-over-year comparisons etc.
Invoicing - Managing receivables. Often made up of both invoice management—controlling things such as invoice workflow and tracking—and invoice processing—actually processing the invoices when they come in.
Expense tracking - Track, process, pay and record all expenses incurred in the course of business.
Profit tracking - Keep tabs on income and determine what products or services are bringing in the majority of profit. Can also help assess return on investment for purchases you may be considering.
Cost analysis - Usually comes hand-in-hand with profit tracking. This feature takes a close look at where you're spending money, analyzing procurement etc.
Investment tracking - Sometimes tied into asset tracking, this feature keeps track of ROI and investment performance. Also helps you determine what new investments you may need to make.
Projections - Looks at past performance and external market factors to build a forecast of potential revenue and expenses.
Real-time data - Helps create reports, consolidate financial data into one place, maintain compliance and easily present information related to the financial status of your company.
Accounting integration - Removes the need for a separate accounting system to record things such as general ledger entries, accounts receivable and accounts payable.
https://www.softwareadvice.com/au/erp/financial-management-system-comparison/
Question needs to be answered in 2 parts
Part 1 :
The following reports are prepared by Name of your organization.
Balance Sheet
This is a document that reports on a company’s assets, liabilities and owners’ equity at a given point in time. It is a summary of the financial balances of the organisation and provides a snapshot of the company’s financial condition. The most common balance sheet usually lists the assets first and typically in the order of liquidity. Then the liabilities are listed, and the difference between the assets and the liabilities is known as equity of the net worth or capital of the company
Income Statement
This document reports on a company’s income, expenses and profits over a period of time and is sometimes referred to as a profit and loss statement. The statement reveals how a company’s revenue (money received from the sale of products and services before expenses are taken out) is transformed into the net income (the result after all revenues and expenses are accounted for). It displays write-offs such as depreciation and amortisation of assets as well as taxation obligation. Over this statement shows whether the company made or lost money during the period being reported
Statement of Changes in Equity
These document reports of the changes in equity of the company during the prescribed period. It breaks down changes in an owners interest in the company and the application of retained profit or surplus from one accounting period to the next. It commonly includes line items such as profit or losses from operations; dividends paid, issue or redemption of shares, revaluation reserve and other items charged or credited to comprehensive income
Cash Flow Statement
This document shows how changes in balance sheet accounts and income affect cash and cash equivalents and break down the figures to operating investing and financial activities. It includes cash that flows from operations, financing and investment and reflects what is known as liquidity
Cash flow is the measure of money flowing in and out of your business at any given time. In an organisation, there are 2 ways that cash flows – Inflows and Outflows. In an ideal business cycle, you should always have more inflow than outflow.
Cash inflows are any receipts of cash to a business and can include:
Cash outflows are any cash outgoings and can include:
Benchmarking
The practice of comparing business processes and performance metrics to industry bests and best practices from other companies. Dimensions typically measured are quality, time and cost. ... In project management benchmarking can also support the selection, planning and delivery of projects.
Gain an independent perspective about how well you perform compared to other companies. Drill down into performance gaps to identify areas for improvement. Develop a standardized set of processes and metrics. Enable a mindset and culture of continuous improvement.
There are two primary types of benchmarking:
Internal benchmarking: comparison of practices and performance between teams, individuals or groups within an organization.
External benchmarking: comparison of organizational performance to industry peers or across industries.
Trend Analysis
It is a technique used in technical analysis that attempts to predict the future stock price movements based on recently observed trend data. Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future Trend analysis can improve your business by helping you identify areas with your organisation that are doing well, as well as areas that are not doing well. In this way it provides valuable evidence to help inform better decision making around your longer-term strategy as well as ways to futureproof your business
Budget Variance
It is the difference between the budgeted or baseline amount of expense or revenue, and the actual amount. The budget variance is favorable when the actual revenue is higher than the budget or when the actual expense is less than the budget. Variance analysis helps in managing the annual budgets by monitoring the budgeted figures and comparing it with the actual revenue/cost.
Budgets and Forecasts
Budgeting quantifies the expectation of revenues that a business wants to achieve for a future period, whereas financial forecasting estimates the amount of revenue or income that will be achieved in a future period. Budgeting and forecasting is important to your business success because you set targets for income and expenditure and then you can hold yourself accountable to those targets as the year progresses
Profit and Loss Reports
A profit and loss report, also known as an income statement, shows the profitability of your business over a specific period. It can cover any period of time, but is most commonly produced monthly, quarterly, or annually. A profit and loss report is a useful tool for monitoring business activity. For business owners, it highlights where their business is succeeding and where it is struggling. Investors will use profit and loss reports to gauge the financial health of a potential investment, or to see what kind of return they are getting on an existing investment.
Receipts & Expenditures
These statements summarises a company's revenues and expenses over the entire reporting period. The company need to generate revenue to stay in business. They use revenues to pay expenses, interest payments on debt, and taxes owed to the government.
Part 2 :
Business Budget 2020-21 for (Name of your organisation)
Copy paste your Excel Business Budget 2020-21.
Note : Paste your excel sheet as a picture (use paste special) in order to get all the information correctly onto your word document.
Analysis of Proposed Budget (2020-21) for (name of Your Organization)
(create your own analysis based on your business budget 2020-21. Below information is for your reference only and will need to be modified)
(paraphrase your answer based on information provided)
Strong financial management is the responsibility of every employee at (name of your organization). The level of responsibility will vary depending on the department and employee’s position at (name of your organization). The delegated authority document clarifies who has the responsibility to make decisions, commit expenditure and sign legal undertakings, so there is no confusion about responsibility. The delegated authority document usually explains who has the authority to carry out duties, such as:
The format of the delegated authority document at (name of your organization) defines the lowest level of authority. Managers will automatically have at least the same financial authority as their team members and may have more if this is stated in the document. It outlines deputizing arrangements to cover when key staff are absent. It prevents anyone from authorizing a transaction from which they will personally benefit. It prevents staff authorizing payments to their managers. It sets out limits and conditions for the authority. It will specify a maximum limit for authorization or define the category of expenditure which can be authorized for each staff or role. The table below provides the delegated authority document for (name of your organization).
Choose designated persons for your company & use the same designations for all areas of authority in the table below.
A - Chief Executive officer (CEO) or Managing Director (MD) or President or Chairman
B - Finance Director or Financial Controller or Finance Manager
C - Line Manager or Department Manager or Supervisor
AREA OF AUTHORITY |
LIMITS APPLIED (change limits based on your organisation) |
DESIGNATED PERSONS (list designated persons based on your organisation) |
Legal documents |
A |
|
Leases on property & equipment |
Up to $50,000 Above $50,000 |
B A |
Bank account |
Up to $10,000 Above $10,000 |
B A |
Staff advances / loans |
Maximum $3,000 |
A + B |
Staff expenses |
As defined by the budget |
C |
Order for goods & services |
Up to $5,000 $5,000 - $10,000 Above $10,000 |
C C + B C + B + A |
Petty Cash |
Up to $500 $500 - $1000 |
C C + B |
Safe keys |
B |
|
Employment contracts |
A |
Reporting Periods (choose any one for each of the listed statements)
Taxation Payment Timings (choose any one from below)
https://fmdprostarter.org/delegation-of-authority/
Note : Paste your excel sheet as a picture (use paste special) in order to get all the information correctly onto your word document.
The budgets of (Name of your organisation) for 2020-21 have been compared with the actuals for 2019-20 & a detailed analysis is listed below.
Analyse the current asset performance and capacity by performing the following steps:
Note : Paste your excel sheet as a picture (use paste special) in order to get all the information correctly onto your word document.
An analysis of the balance sheet for (Name of your organisation) for the financial period July2019 – June 2020 revealed or showed or divulged (choose any one) the following information:
AASB 1001 “Accounting Policies” (copy paste)
To prescribe the concepts that guide the selection, application, and disclosure of accounting policies and to require specific disclosures to be made in relation to the accounting policies adopted in the preparation and presentation of the financial report
Statements of Accounting Standards
SAC 1 - Definition of the Reporting Entity (copy paste)
The purpose of this Statement is to define and explain the concept of a reporting entity and to establish a benchmark for the minimum required quality of financial reporting for such an entity. This statement outlines the circumstances in which an entity or economic entity should be identified as a recording entity. It also outlines the criterion for determining, for financial reporting purposes, the boundaries of a reporting entity.
SAC 2 - Objective of General Purpose Financial Reporting (copy paste)
The purpose of this Statement is to establish the objective of general purpose financial reporting by reporting entities in the private and public sectors. The Statement identifies the users of general purpose financial reports, the common information needs of such users and the broad types of information, consistent with those needs, that general purpose financial reports should provide.
SAC 3 - Qualitative Characteristics of Financial Information (copy paste)
Statement of Accounting Concepts SAC 2 "Objective of General Purpose Financial Reporting" identifies the objective of general purpose financial reporting as the disclosure of information useful to users for making and evaluating decisions about the allocation of scarce resources. When general purpose financial reports meet this objective they will also be the means by which preparers of such reports discharge their accountability to those users. The purpose of this Statement is to identify those attributes that financial information should possess if it is to serve the specified objective.
SAC 4 - Definition and Recognition of the Elements of Financial Statements (copy paste)
This Statement establishes definitions of the elements of financial statements and specifies criteria for their recognition that are consistent with the objective of general purpose financial reporting set out in SAC 2. These definitions and recognition criteria are also consistent with the qualitative characteristics set out in Statement of Accounting Concepts SAC 3 "Qualitative Characteristics of Financial Information".
Corporations Act 2001 (paraphrase)
The Corporations Act 2001) is an Act of the Commonwealth of Australia which sets out the laws dealing with business entities in Australia at federal and interstate level. It deals primarily with companies but also with other entities, such as partnerships and managed investment schemes. The Act is the primary basis of Australian corporations law. The Corporations Act is the principal legislation regulating companies in Australia. It regulates matters such as the formation and operation of companies (in conjunction with a constitution that may be adopted by a company), duties of officers, takeovers and fundraising.
GST - Goods And Services Tax (paraphrase)
The goods and services tax (GST) in Australia is a value added tax of 10% on most goods and services sales, with some exemptions (such as for certain food, healthcare and housing items and concessions (including qualifying long term accommodation which is taxed at an effective rate of 5.5%. GST is levied on most transactions in the production process but is in many cases refunded to all parties in the chain of production other than the final consumer.
Income Tax Reporting (paraphrase)
In Australia, the financial year for tax purposes runs from 1 July to 30 June. Businesses are required to lodge an income tax return for this period. The full company tax rate is 30% and the lower company tax rate is 27.5%.
Note : Paste your excel sheet as a picture (use paste special) in order to get all the information correctly onto your word document.
The performance of (name of your organisation) for the year 2019-20 has been carefully analysed & it revealed or showed or divulged (choose any one) the following details.
Note : Paste your excel sheet as a picture (use paste special) in order to get all the information correctly onto your word document.
Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Accounting and Finance Assignment Help
1,212,718Orders
4.9/5Rating
5,063Experts
Turnitin Report
$10.00Proofreading and Editing
$9.00Per PageConsultation with Expert
$35.00Per HourLive Session 1-on-1
$40.00Per 30 min.Quality Check
$25.00Total
FreeGet
500 Words Free
on your assignment today
Get
500 Words Free
on your assignment today
Request Callback
Doing your Assignment with our resources is simple, take Expert assistance to ensure HD Grades. Here you Go....
🚨Don't Leave Empty-Handed!🚨
Snag a Sweet 70% OFF on Your Assignments! 📚💡
Grab it while it's hot!🔥
Claim Your DiscountHurry, Offer Expires Soon 🚀🚀