SITXFIN003: Manage Finances within a Budget - Cashflow Statements - Accounting and Finance Assignment Help

Assignment Task:

QUESTION 1
Provide an outline of what a master budget is and what it contains.
-The master budget is a detailed documentation relating to financial planning. 
-Typically, it contains all the lower-level expenditures 
in the operating system and the system
QUESTION 2
Identify the four basic financial reports and outline their purpose and content.
1.sales report - The purpose of sales budget is to achieve the objectives of the sales department. It also acts as a planning tool.

2.cashflow statements - The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses.

3.profit and loss statements - A profit and loss (P&L) statement summarizes the revenues, costs and expenses incurred during a specific period of time. A P&L statement provides information about whether a company can generate profit by increasing revenue, reducing costs, or both.

4.balance sheet - it provides a snapshot of assets and liabilities — and therefore net worth — at a single point in time.

QUESTION 3
Provide a brief summary of the purpose of each of the following budgets:

• Cash/Cash flow budget- cashflow budgeting means estimate of all types of expenditure and all cash receipts during certain time frame. It can be monthly, 6 months or quarterly. Purpose of this budget is to know the company cash position at any time.
• Departmental budget- this budget system is financial plan that lays spending for upcoming 6 months or year. It helps to work smoothly because budget is already estimated for future.
• Event budget- event budget is projection of income and expenditure. company plan an event regarding different topics. preparation of budget is important part of event management.
• Project budget- project budget is made by a company for certain future projects. management will estimate and control the budgets to achieve the goals of the project.
• Purchasing budget- purchasing budgets are made to purchase particular products for business as per their need. The amount state in the budget means business can purchase that much goods.
• Sales budget- sales budget provide the estimate of the volume of goods and services that they can sell in future
• Wage budget - Money assigned over a specified period of time to pay wages with.

QUESTION 4
Identify the purpose of the following financial records:

• Bank deposit documentation-it helps to know that which bank account number to which the funds should be credited.
• Bank statements – it provides a means of reconciling to check register.
• Banking summaries- it shows the up-to-date position of finances in the business represented by cash in the bank, credit cards, loans and petty cash.
• Business Activity Statements-to register business entities to report their tax obligations including GST, PAYGW, FBT etc.
• Cheque books- to access the money in our account.
• Credit card transaction statements- lists everything you need to know about your credit card account.
• Journal entries-it shows the specific accounts affected by the transaction.
• Labour and wages reports-helps to find out the number of workers and their detail and how much they are being paid.
• Merchant statements- provides details of all processed customer transactions and the fees paid for the payment processing.
• Merchant summaries- it provides the total number of transactions and total amounts processed for each Gateway Account associated with your Merchant Accounts and for each type of credit card within each Gateway Account.
• Transaction reports-it help to prevent instances of money laundering.

QUESTION 5
What are the requirements for a tax invoice in Australia?
- Suppliers, your business, identity; name, address and ABN 
-Must say "Invoice Fee" 
-Invoice No. 
-Transaction Date 
-Quick summary of what is available, or number of items, including the amount sold 
-Preiss of sale or sum charged 
-Component GST, where necessary. Where applicable: 'GST includes total price' 
-Date of payment / Payment terms 
-Payment method, including bank account details, eft

QUESTION 6
Research three common accounting software applications that small businesses use and summarise their functions and features.
>MYOB- it provides tax, accounting and other business services software
>QuickBooks- it accepts business payments, manage and pay bills, and payroll functions.
>Reckon One- it includes unlimited invoices and payments, the ability to enter and pay bills and up to hundred automatic bank transactions reconciled a month.

QUESTION 7
Describe three techniques commonly used for making estimates of expense budgets.
1. Order of magnitude estimate: The purpose of this type of cost estimate is to get an idea of direct and cumulative spending rather than spelling out expenditure based on project activities and deliverables.
2.Budget estimate: The purpose of this type of estimate is to generate a preliminary itemised list of expenses based on the project's major components.
3.Definitive estimate: Include a comprehensive list of project activities and deliverables with brief descriptions for both rationale and clarity.

QUESTION 8
Identify and outline the steps in the accounting cycle.
-Step 1: Determine Transactions. ... 
Step 2: Record in a Journal Transactions. ... 
Step 3: To post. ... 
Step 4: Unadjusted Balance of Trials. ... 
Step 5: Working Paper. ... 
Step 6: Adjusting entries to Journal. ... 
Step 7: Statement of Financial Statements. ... 
Phase 8: The Books Closes

QUESTION 9
Give three examples of negative changes in the internal organisational environment which may have to be taken into account when reviewing budgets with a view to making necessary changes.
1.financial resources.
2.physical resources.
3.Human resources.

QUESTION 10
Budget formats can vary between organisations and accounting programs: list two ways a negative situation can be indicated in figures on a budget.
1. The amount by which actual net income was less than the budgeted net income,
2.The amount by which current revenues were less than the previous year's revenues.

QUESTION 11
Discuss the role of a budget and financial reports for a business.
- budget helps the company owner to focus on cash flow, reduce costs, boost profitability and raise returns on investment a financial report helps to Provide different essential financial details to assist investors, creditors and analysts in evaluating financial results of a business.

QUESTION 12
Discuss how changes in legislation can impact on a budget. Give three examples of legislation changes in the last decade that have had an impact on the hospitality industry and the profitability margins.
-legislation can disrupt a company's marketing, production or financial plans in a major way.
Examples: taxation, pensions, banking and insurance.

QUESTION 13
Discuss how a hospitality business might manage and recover their profit margin in a downturn in the economy.
1.reveal your strategic intentions,
2.compete on quality,
3.create strategic partnerships,
4.develop additional revenue sources 

QUESTION 14
Identify five internal sources of information that may be used as a basis for preparing a budget and forecasting income and expenditure.
- HR requirements – human resources department will need to pay more money on advertisement when the company need new staff members like full time part time or casual. that can impact the business budgets. 
-There are so many new projects in any organization this type of project cost the money that can impact budget of business.
-There are so many events inside the company. company have to organize it with staff members and other clients this may cause money and affect the business.
Depending on demands the price of suppliers may change so this can impact the budgets of business.

QUESTION 15
Identify five external sources of information that may be used as a basis for preparing a budget and forecasting income and expenditure.
-We have to go through the rules and regulations set by nation or the governments. that’s why sometimes we have to give services or good as per regulation. so, this will seriously impact the budget of any organization. 
If the competitors become more successful than our business our budget will affect more.
Change in global economy can impact the budgets of organization.

QUESTION 16
Identify and briefly summarise the four stages of a budget cycle.
1.preparing and submitting-first of all the budget transaction should be prepared and submitted to be approved.
2.approval-after the budget is prepared and submitted it should be checked properly and be approved.
3.execution-The process involves compliance with both legal and administrative requirements.
4.audit and evaluation – it is the final stage of the budget cycle when there is an assessment of whether public resources have been used appropriately and effectively.
QUESTION 17
a)    Define the following options and approaches to budgeting:

• Incremental budgeting- An incremental budget is a budget prepared using the budget or actual results of a previous period as a basis with incremental sums applied for the current budget period
• Zero-based budgeting- it Is a budgeting process by which all expenditures for each new cycle have to be justified. The zero-based budgeting process begins from a "zero base," and every role within an entity is evaluated according to its needs and costs.

b)    Why are ‘rolling budgets’ useful in the hospitality industry?
-Because, the rolling budget involves the incremental extension of the existing budget model. By doing so, a business always has a budget that extends one year into the future.
 

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