BSBFIM601 Financial Review Report Online Tutoring
Purpose
The purpose of this report is to compare the actual financial results of the Grow Management Consultants for the fiscal year 2018-2019 with the budgeted results.
Overall performance for the year
The actual revenue income ($1,614,720) for the year was greater than the budgeted revenue income ($1,537,000).
- Moreover, company also slightly manage to reduce its actual expenditures to $831,713 from its budgeted expenditures of $ 833,373.
- The overall actual profit was greater than the budgeted profit of the next year.
- Moreover, company will replace workshop with conference and Publishing with E-Book in its income streams in 2018-2020 so variance results will show the comparison between workshop/conference and E-Book/Publishing.
Variation between actual and budgeted income amounts
| Income Source (list all income accounts) | Budgeted amount | Actual amount earnt | Difference |
| Consulting fees | $1,320,000 | $1,410,720 | -$90,720 |
| Conference | $75,000 | $45,000 | $30,000 |
| E-Book | $10,000 | $15,000 | -$5,000 |
| Executive Search | $132,000 | $144,000 | -$12,000 |
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Variation between actual and budgeted expense amounts
| Income Source (list all expense accounts) | Budgeted amount | Actual amount earnt | Difference |
| Salaries/wages | $529,200 | $529,200 | $0 |
| Superannuation | $63,000 | $63,000 | $0 |
| Cleaning | $10,080 | $10,800 | -$720 |
| Accounting fees | $7,164 | $7,165 | -$1 |
| Advertising and marketing | $5,280 | $5,250 | $30 |
| Contract writer (e-book) | $51,849 | $48,090 | $3,759 |
| Computer software | $9,600 | $4,830 | $4,770 |
| Motor vehicle expenses | $5,448 | $5,444 | $4 |
| Utilities | $4,128 | $4,131 | -$3 |
| Insurance | $4,236 | $4,028 | $208 |
| Office supplies | $6,000 | $2,207 | $3,793 |
| Lease/loan payments | $1,584 | $1,575 | $9 |
| Rent | $45,108 | $46,608 | -$1,500 |
| Sundries | $12,000 | $2,384 | $9,616 |
| Travel and Accommodation | $5,664 | $5,654 | $10 |
| Conference venue and catering | $8,000 | $14,143 | -$6,143 |
| Speaker fees and travel | $10,000 | $11,000 | -$1,000 |
| Marketing (conference only) | $5,000 | $19,375 | -$14,375 |
| Conference bags | $1,000 | $1,200 | -$200 |
| Conference casual project officer | $30,000 | $30,000 | $0 |
| E-book | $9,996 | $6,600 | $3,396 |
| Desktop publishing | $3,000 | $3,000 | $0 |
| Marketing (e-book) | $1,200 | $1,200 | $0 |
| Repairs & maintenance | $1,260 | $1,260 | $0 |
| Telephone | $3,576 | $3,569 | $7 |
Recommended revisions to the 2020 budget
- Income streams for the conference and E-Book should be increased by 20% for 2020 because it receives positive feedback.
- Cost should be increase by 5%
Significant issues in financial statements
- The cost of sales section is not there in the profit and loss account
- No bad debts expense as company works on credit
Allowance for contingencies in next year’s budget
- However, the cost of the conference was much higher than expected, and a loss of $8250. However, because the feedback was that the conference was highly appreciated, the budgeted sums for the conference to be held in Feb 2020 for 2018 –2019 would be raised by 20 percent as stated in the declaration of benefit and loss.
Summaries the effectiveness of the financial management processes and any recommended changes to be made
- The budget policy and procedure might help Grow Management consultants to stick with its policies and procedures and it can allow managers to work or approve funds according to the plan.
- This year actual results were better than the budgeted results.
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