Act as Finance Manager

71 views 8:35 am 0 Comments March 28, 2023

 

 

  • Your role will be to act as Finance Manager.
  • Your trainer will act as Chris (CEO of the business)
  • Your trainer/assessor will allocate the role of Senior Managers and Supervisors (2 each) to the staff members.
  • You will first document the budgetary notes and distribute them to the senior managers and supervisors.
  • You will then deliver a presentation on the budgets prepared in Activity 2 of this assessment task.
  • At last, you will engage in discussion with the stakeholders (Senior Managers, Supervisors and General Manager) to address their issues.

 

Activity context:

You have successfully prepared the budget for the financial year 2021/2022. As per the company’s procedures, the budget must be approved by the stakeholders before its implementation.

So, the General Manager of Online Media Solutions Pty LTD has called a meeting with you, senior managers and the supervisors. The CEO also provided you with the information that he wants to discuss the best option for the new accounting system based on the company guidelines of selecting the accounting software (provided in the case study) in this meeting.

 

Description:

The General Manager of the organisation has asked you to prepare and deliver a presentation to provide an overview of the information contained within the budget.

Before delivering the presentation, he wants you to prepare keynotes from the budget and disseminate them to the stakeholders (Senior Manager, Supervisors and General Manager of the company).

The key points that the notes must include are as follow:

  • Major reasons for the previous profits and losses.
  • Assumptions made within the budget.
  • Notes to implement and monitor the budget expenditure on a regular basis.

 

After distributing the budget notes to the stakeholders (Senior Managers, Supervisors and General Manager), he wants you to prepare a presentation that must include the following:

  • Overview of the following budgets:
  • Sales and profit budget
  • GST cash flow budget
  • Debtor ageing summary

Note: You can use screenshots of budgets you prepared in the spreadsheets in your presentation.

  • Reporting requirements for each quarter.
  • Financial delegations of Senior managers, managers and supervisor for budget implementation.
  • Reasons for previous profit and loss for each quarter.

 

After the completion of the presentation, you will be required to address the concerns of the stakeholder’s present during the meeting.

To do so, you must answer the questions asked by the stakeholders and document your response using Template 2. 

The following questions are to be asked by the stakeholders (Senior Managers and Supervisors)

 

Questions

Senior Manager 1:

  1. What are the current statutory requirements for tax compliance?

Senior manager 2:

  1. Which is the most suitable commercially available financial-management accounting software for Online Media Solutions Pty LTD.?

Supervisor 1:

  1. What are the implications of probity in the preparation and revision of budgets?
  2. What are the critical dates and initiatives that will require or generate resources for Online Media Solutions Pty LTD. in the next financial cycle?

Supervisor 2:

  1. What other items do you think should be included in the budgets for the company?
  2. What internal controls should be implemented to improve risk management for maintaining audit trials?

Template 2: Answer to the questions asked by the stakeholders

Answer to the questions asked by the stakeholders (300-400 words)
Senior Manager 1:

1.    What are the current statutory requirements for tax compliance?

 

Statements of business activity and instalment activities, either monthly or quarterly.

Businesses must submit a business activity statement (BAS) to the Australian Tax Office (ATO) on a monthly, quarterly, or annual basis (annual GST return, if eligible).

Instalments for pay as you go (PAYG), withholding tax for PAYG, and other tax requirements are reported and paid using it.

The Australian Taxation Office (ATO) will automatically send you a BAS when it’s time to lodge if you register for an Australian Business Number (ABN) and GST. A BAS must be submitted before the deadline for all GST-registered firms. Like the BAS, an instalment activity statement (IAS) excludes GST and several other taxes. For PAYG instalment payments, non-GST registered businesses would submit an IAS.

Reporting for the Financial Year

For tax purposes, Australia’s fiscal year runs from 1 July to 30 June.

For this time, businesses must file an income tax return. You can include your business income in your personal income tax return if you run your business as a lone proprietor.

Senior manager 2:

2.      Which is the most suitable commercially available financial-management accounting software for Online Media Solutions Pty LTD.?

The management of Pearl Distributor will be able to record all business transactions correctly and promptly thanks to the financial management software. The many financial management software programmes are explored, and recommendations have been made as a result. The MYOB accounting system is an entry-level single user bookkeeping programme that is best suited for small firms. This kind of software has integrated modules available. The accounting programme offers quick and simple tax adjustments and keeps up with ATO changes.

XERO: XERO is a representation of online accounting software for companies. The software offers numerous other capabilities like billing and quotes, bank reconciliation, and keeping track of the inventory in addition to assisting in determining the company’s real-time cash flows.

Excel: Excel is a complete accounting solution for small business concerns, offering advantages such the absence of complicated accounting words, convenience in maintaining the accounting book, and lack of need for certain accounting or bookkeeping knowledge or expertise.

Supervisor 1:

3.      What are the implications of probity in the preparation and revision of budgets?

Ethics: Probity has been referred to as the proof of ethical behaviour and can be defined as confirmed and whole integrity, honesty, and uprightness in the specific budgeting process.

Responsibility: The duties involve implementing novel strategies and call for internal expertise in the process of creating and amending budgets for management’s estimating and forecasting needs.

Decency: The mechanisms for implementing probity in the budgeting process must be used sensibly and respectfully; they should not be used to sidestep rational talks.

4.      What are the critical dates and initiatives that will require or generate resources for Online Media Solutions Pty LTD. in the next financial cycle?

The important dates and projects that will need or produce funding for an online media solution. the upcoming financial cycle will: A thorough planning of the fiscal year will enable us to maximise busy and calm times and manage your finances appropriately. The accounting year always runs from January 1 to December 31.

Supervisor 2:

5.      What other items do you think should be included in the budgets for the company?

Four key numbers are included in a business budget:

• Estimated sales and income

• Estimated total expenses for generating those levels of sales and revenue

The operational profit or loss determined by the two variables above The overall sum of operational profits and losses.

6.      What internal controls should be implemented to improve risk management for maintaining audit trials?

·         Internal controls, including the following, should be adopted to enhance risk management for sustaining audit trial:

·         Fairness and balance of MD&A/operating review; disclosure requirement; appropriateness of accounting rules; financial reporting; and conversion to GAAP

·         Internal controls and risk management: knowledge of important risk areas, efficacy of controls, and fraud risk

 

·         Reviewing the performance of external auditors; external audit; appointment and compensation; scope of work; independence need; important adult finding or suggestion.

·         Internal Audit: scope of work, charter, authority, and resources; effectiveness of internal audit; replies to internal audit recommendations.

·         Maintaining and assessing efficacy, training requirements, maintaining financial records, and annual audit committee performance evaluation.

·         Reporting and communicating – Management relationships – Updates and recommendations to the full board – Report to the board and shareholders.

Regulatory, compliance, and ethical issues, including the effectiveness of the system in ensuring adherence to laws and regulations, codes of conduct and ethics, and whistleblowing

 

 

 

 

Senior manager 2:

7.    Which is the most suitable commercially available financial-management accounting software for Online Media Solutions Pty LTD.?

 

 

 

 

 

 

 

Supervisor 1:

8.    What are the implications of probity in the preparation and revision of budgets?

9.    What are the critical dates and initiatives that will require or generate resources for Online Media Solutions Pty LTD. in the next financial cycle?

 

 

 

 

 

 

 

 

 

 

 

Supervisor 2:

10. What other items do you think should be included in the budgets for the company?

11. What internal controls should be implemented to improve risk management for maintaining audit trials?