Report on relevant legislation and current requirements of the Australian Taxation Office

Ans. Australian tax office include different type of audits like pre-lodgement compliance reviews for larger business, transfer pricing reviews and audits for businesses with international operations, comprehensive audit or review, specific issue audits or review and reviewing compliance with registration. Lodgement and payment obligations.

According to Australian taxation office, the business has to aware all the record keeping requirements. Also require super funds and accurate tax for manage the money efficiently and also for legal purpose. All the records must be kept in investment decision like particular investment selection and why all trustees getting agree on the same decision.

Ø  Evidence of working with and supporting your team and how you have disseminated relevant details to them

Ans. Australian taxation office is responsible for all the activities that come in the category of tax. The office also maintain record for five years related to following issues as; copies of any other statements that required to lodge with us to provide to other super funds, copies of all SMSF annual returns lodged, an annual operating statements and an annual statements for financial position and accurate and accessible accounting records that also explain the transactions and financial position.

For ten years ,company also manage different type of records like Minutes of trustee meetings and decisions, Records of all changes of trustees

Trustee declarations recognising the obligations and responsibilities for any trustee, or director of a corporate trustee, appointed after 30 June 2007, Members’ written consent to be appointed as trustees, Copies of all reports given to members

Documented decisions about storage of collectables and personal-use assets

Ø  Produce a final budget(s) and financial plan which includes recommendations and contingency plans for presenting to the appropriate senior person(s) in your organisation.

There are some important points must be consider for making the contingency plans that include Communicate the details of it to everyone in the organisation, Tell people their roles and responsibilities in the contingency plan, Provide training (if necessary) for people to perform their roles, Perform training drills periodically (to test the contingency plan), Use training drills to identify and implement any necessary changes, Review the plan any time there are personnel, operational and technological changes,

Distribute amended plans throughout the company (discard the old plan)and

Make and store copies off-site that can be easily accessed if need be, Perform audits on the plan from time to time.

Financial budget: the financial budget is very helpful for the organization because it help in estimation about all the costs and expenses of the organization and also handle all the financial plans of the organization that helpful in  making is position strong in the market and also increase its profitability in the future. The financial budget preparation need following steps to consider and also manage easily as update budget assumptions, review bottlenecks, available funding, step costing, create budget package, issue budget package, obtain revenue forecast, obtain department budget, obtain capital budget requests, update the budget model, review the budget, process the budget iteration, issue the budget ad load the budget. Basically the budget helpful in determine all the aspect of the organization according to its working criteria and also manage all the problems that company is face in the past experience so new budgeting requirements also resolve the previous problems.

1.       Present and discuss your budget(s) and financial plan with the appropriate senior person(s), with the aim of clarifying, reviewing and making recommendations for improvements to financial management processes. (Minimum 900 words analysis)

Ans. the budget and financial plan must be important part of the organization because it shows all the financial activities and dealing of the organization and also handle all the incoming and outgoing money in the company and avoid any type of issues and problems. The management, budget holders and finance and support staff has to determine after the preparation of budget and financial actions that whether they are suitable for the organization or not, further there are also many other people who are helpful in discussing about the budget and financial condition of the company. These people include department specialist, industry experts, accountants, financial advisors, managers, supervisors and colleagues. These all people are very helpful in determining that whether the company need proper working or not, what issues may appear in the future in smooth running of the operations of organization and how much they give benefit to the companies. Budget and financial plan also helpful in provide complete support of actual performance because when the company working by using budgeting plans then they have to understand about their actual capacity of production and they better understand that how much budget level they have to prepare for budgeting of production and according to that budget financial plan also prepare that how much cost and expenses will be incurred on that budgeted production level. Budgeting and financial plan should be prepare on real basis because if the budget is realistic then it will give almost equal to real results. So when the company prepare near to real budget then it will improve its performance through different aspects and also determine that how much capacity company have and how much improvement company is required to managing its production level. When the budget is prepare in accurate measurements then company easily perform in real term and no any longer issues ever arise in this regard.  When the actual performance occur then the management and the senior level team observe in detail that what difference is arise between the budget and actual performance which is also known as variance analysis in which all type and rates are compare in actual and budgeting level.

When the budget is prepare then expense clarification is very important because company has to determine its all expenses and costs that it has to face during its production and working performance. Company has to set the price of its product and also cut off extra expenses that create costly effect on the product also try to remove the indirect costs of the product and try to related with the product only its direct costs and also determine the unit costs that show the impact on the profit of the organization and also update these costs at every production cycle according to requirement. Firstly prepare the random budget and then at the end prepare master budget that manage all the issues and problems related to price, realities and costs benefits. When the budget is going to prepare then the cash flow planning also incurred because it need proper utilization of money and a complete circle of money is also used for the actual production and also handle all the circulation of money according to company and its production level. Company has to record all the debit and credit of the company and also manage all the transactions according to its occurring condition.  There are also important points that variance analysis play important role because when the difference is high then company has to observe that the budget and actual production level are not match with each other.

For handling the budgeting issues and problems in financial planning, there are also some recommendations that have to discuss according to company beneficial purpose and also manage all the budgeting issues according to actual requirements. These recommendations include accurate and reliable data handling, set the price according to real terms and conditions, manage all the variances according to actual performance and take into consider while preparing the next budget, also determine all the costs and expenses according to company’s requirement and also try to minimize then for enhancing the profitability level of the products.

When the company is busy in preparing the budget then they have to identify all the opportunities and manage its all resources in most effective manner according to company’s requirements. While preparing the budget, company try to improve estimates and also utilize the opportunities to making the budget in real terms.

The nature of the budget is also accountable for the company because its budgeting system explains that what system, functions, operations and strategies company is going to utilize in making its production at budgeting level and also explain that how much company measure its production level according to new criteria. Company is very much concern about its budgeting and financial planning because these plans help the company to manage all the transactions and operations according to setting standards and when the standards are not prepare on real data then their performance lack also appear and they have to manage all the issues according to company’s own requirements. Company budget and financial plans are very important for making the production and performance of the organization at upper level and also handle all the problems in most effective manner according to criteria and level of capacity also explain. Budget and financial plan is explain the company performance and its level of production according to market requirements