This assessment requires you to determine the requirements to undertake budgeting, financial forecasting and reporting requirements for an organisation. You will also need to review the case study provided and prepare a budget (in electronic spreadsheet format) and budget notes for distribution and implementation in the organisation.
1.Read and analyse the case study information (including business plan summary and previous financial data) in Appendices 1–3 at the back of the Assessment Task, and complete the following tasks.
a.Develop a sales budget, profit budget, cash flow budget and debtor ageing summary using electronic spreadsheets (as separate worksheets) making sure each budget is divided into quarterly periods and that you use previous financial data to determine allocations for resources.
i.Ensure each budget you prepare complies with the organisational policies and procedures as provided.
Please find the attached separate worksheet in the email.
b.Develop budget notes that include:
i.identification of reasons for previous profits and losses
-Profits earlier year are $851,188 in 2010 and $1,019,499 in 2011.
-Reasons are that there is an expanding client base and the business is based on unrivalled after deals benefit.
-Effectiveness of existing money related administration approaches
-Inadequate analysis of revenue/expense to produce an informed estimate
-Lack of computer software to produce timely and detailed reports.
-Dependence on subjective information as opposed to adjusting it with quantitative information and analysis.