Finance Management

Order Description Task 1 Part A For a business you work in, have access to or a simulated business, in consultation with your assessor, you are required to review a financial management of that business. In order to undertake budgeting, financial forecasting and reporting to allocate and manage resources to achieve the required outputs for the business unit. You will need to access the business’ financial data, relevant legislation and Australian tax office requirements and business’ business plans, profit and loss statements, cash flows and aging summaries. You must also refer to the business’ organisational financial policies and procedures and the financial management software utilised by the business. *Write a report structure: Essay with introduction, body and conclusion. Label the answers as A,B,C, D, E, F) a.) Explain the relevant legislation and Australian tac office (ATO) requirements for business reporting. Outline how the business needs to comply with ATO reporting and the frequency of these reports. (also discuss what the company pays to the govt like company tax, pay g / pay E etc…Analyse Joe’s motorbike tyres business activity statement and quarterly records) b.) Create a report for management, analysing the financial performance and financial position of the organisation using relevant ratios to assess the profitability and the financial viability of the company. Use graphic representations wherever necessary. ( Analyse Joe’s Motorbike Tyres balance sheet, interpret and analyse the report, Interpret the result as percentage) c.) Explain how bias, errors, or material misstatement is to be avoided and how to ensure that the reports are checked for accuracy prior to release. d.) What is an audit trail? How does companies maintain an audit trail to ensure diligence in financial reporting? e.) Explain the benefits of using accounting software available to business for the management of their financial operations. f.) Using the information available (Joe’s Motorbike Tyres), develop a financial budget for the business. Explain why it is important to communicate with different departments with regard to the budget. Also explain how you would communicate this budget information to other departments as well. A Contingency plan needs to be developed for any uncertain items. (please create a business plan for purchasing new things needed for the business ex: a new delivery car, or new bldg.) Task 1 Part B. Following ratios need to be used to analyse the performance of the organisation during the two-year period. You must clearly show the calculation of each ratio and interpret the result in order to analyse the financial performance and financial position of the organisation. Financial Performance: -Gross profit Margin % -Net profit MArgin % -Return on shareholder equity -Return on assests Financial Position -Working Capital Ratio -Quick asset Ratio -Cash Conversion Cycle