BSBFIN501 Manage Budgets And Financial Plans

Que 1)

Sales budget:

Through the above calculation, it has been found that the total sales of the company would be $ 3071 (Weston and Brigham, 2015).

Que 2)

GST:

GST stands for goods and services tax. This tax is levied by the Australian government over most of the goods. This tax system has been introduced by the Australian government in 2000 in replacement of wholesales sales tax. GST is levied over the products in the manufacturing process and then it is refunded by all the parties in a chain by the final customers (Weaver, Weston and Weaver, 2001).

Calculation of total selling price:

Calculation of evaluating the total selling price is as follows:

(Lord, 2007)

Que 3)

Developing and monitoring the budgets:

While developing and monitoring over the budgets, it is required for the managers and the organization to involve the relevant personnel so that a better study could be done and the mangers could reach over a good conclusion (Ward, 2012). Following relevant personnel may be used by the organization to manage the performance of the budget and make better strategic plans:

Supervisors

Frontline managers

Financial controllers

Accountants

Financial managers (Weaver, Weston and Weaver, 2001)

The above personal would help the company to make a better decision.

Que 4)

Importance of cash flow budget:

Cash flow is required for every organization to manage the cash position and obligatory position of a business. It maintains the record of the amount which is expected to flow in and out in particular time period. Cash flow budget is a financial tool which helps a company to analyze the cash flow in near future (Radebaugh, Gray and Black, 2006). In this budget, future income and expenses are predicted and company makes the strategy accordingly.

Cash flow projection:

These calculations depict that the total cash inflow would be $ 40320 and outflow would be $ 15768 in April.

Que 5)

Budgets:

Budget is a financial plan which is prepared for predicting the future in terms of the financial figures. Budget may include revenues, sales volume, production, material used, cash flows, assets and liabilities etc. Budget is the total amount which is allocated for a particular purpose.

Profit and loss statement:

Profit and loss statement is a financial statement which is prepared in an organization after particular periods of time to analyze all the revenues and the expenditure in periods of time. These statements are prepared for analyzing the profit position of a company (Kaplan and Atkinson, 2015).

Contingency planning:

Contingency plan is the planning which is devised by the company for an outcome which could be occurred accidently in a business. This planning is mainly devised by the businesses or the government. It is basically associated with the risk management and planned by the organizations to reduce the level of the sudden risk.

Liabilities:

Liabilities could be defined as a financial obligation or debt which takes place during the life time of a business. Liabilities of an organization depict about its long term and short term debt obligations. Liabilities could be accounts payable, deferred revenues, accrued expenses and mortgages.

Balance sheet:

Balance sheet is a financial statement which is prepared in an organization at a particular data in a year to analyze the financial position of a company. Balance sheet considers the total assets, liabilities and the capital of the company and ensures the position of the company in terms of finance.

Que 6)

Process of financial management:

Financial management process is concerned with making better decisions about the composition and size of assets and corporate financing structure. The process structure of the financial management is as follows:

(Horngren, 2009)

This depicts that the process of financial management starts from analyzing the objectives of the company and continues till the time, the plan of the financial process got success.

Relevant legislation and regulations:

Following are some of the regulations and the legislations to manage and maintain the budgeting process of a company:

• legislative power to propose spending
• one vote- global vote on spending
• power of amendment
• executive powers to limit the spending below appropriations

Above are some of the legislations and the regulations which must be concerned while preparing the budget files (Davies and Crawford, 2011). Power of amendment depict that the management must analyze the changes into the actual and budgeted figure and must analyze the result accordingly.

Que 7)

Steps of developing and managing the budgets:

Steps of developing and managing a budget are as follows:

1. strategic plan
2. Business goals
3. Revenue projection
4. Fixed cost projection
5. Variable cost projection
6. Annual goal expenses
7. Target profit margin
8. Board approval
9. Budget review
10. Dealing with budget variances

Above are the steps of developing a budget and manage it in a proper way.

Que 8)

Methods of monitoring and managing the budgets:

Followings are the methods of the budgeting:

1. Incremental budget
2. Zero based budget
3. Activity based budget
4. Traditional budget (Bromwich and Bhimani, 2005)

Que 9)

Financial management process:

Financial management process is concerned with making better decisions about the composition and size of assets and corporate financing structure. The financial management records and systems are as follows:

1. Amortization prepaid expenses
2. Keeping a track over the liabilities
3. Keeping a track over the payment and the receivable transparent
4. Keeping up to date
5. Balancing the bank accounts
6. Depreciating assets according to the methods and the schedule
7. Minimizing the paperwork
8. Maintain the complete and accurate the trail.

Que 10)

Functions of the financial record system:

Following are the main system of the financial record of a company:

1. Inducement to save
2. Mobilization of savings
3. Allocation of funds
4. Serving production, investment and trade.

Financial records for tax purpose:

Following are the records which must be maintained by the organizations for the purpose of tax:

• Payment summarize from the payers which includes the employer and the human service department
• Dividend statements of the companies
• Summarize according to the managed investment funds
• Tenant and rental records
• Contracts
• Bank statement
• Financial statement
• Invoice receipts

References:

Bromwich, M. and Bhimani, A., 2005. Management accounting: Pathways to progress. Cima publishing.

Davies, T. and Crawford, I., 2011. Business accounting and finance. Pearson.

Horngren, C.T., 2009. Cost accounting: A managerial emphasis, 13/e. Pearson Education India.

Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.

Lord, B.R., 2007. Strategic management accounting. Issues in Management Accounting, 3.

Radebaugh, L.H., Gray, S.J. and Black, E.L., 2006. International accounting and multinational enterprises. New York, NY: John Wiley & Sons.

Ward, K., 2012. Strategic management accounting. Routledge.

Weaver, S.C., Weston, J.F. and Weaver, S., 2001. Finance and accounting for nonfinancial managers. New York: McGraw-Hill.

Weston, J.F. and Brigham, E.F., 2015. Managerial finance. Hinsdale, IL: Dryden Press.

Zimmerman, J.L. and Yahya-Zadeh, M., 2011. Accounting for decision making and control. Issues in Accounting Education, 26(1), pp.258-259.