Report on opportunity to demonstrate your knowledge of the entire unit.

The attached 2014 budgeted cash flow figures from DL Services are to be used for this activity. Use the data in the income statement to complete the actual figures for DL Services for 2014. Examine the cash flows and analyze if this is sustainable for the business. Calculate the variances. Document any outstanding variances and identify possible explanations for these variances. What improvements would you make to help control these costs in 2015?

 Income Statement 2014 

Is the cash source in 2014 sustainable? Explain your reasons.

In actual terms, the cash source is enough to manage all the expenses of the company. Because in 2014, proceed from sale asset, and suitable amount of loan is obtain by the company to manage its all expenses and they have enough cash to manage their all expenses. Although its expenses are high in the actual measurement of 2014 but company has huge amount of loan to manage its all expenses and also manage all the resources in effective manner.

What correct measures would you implement for 2015?

After the actual measurement of 2014, in 2015 the company has to manage its all expenses because it’s all expenses are increase according to its budgeted expenses and company has to bear high ratio of expense but due to loan amount that company has obtain for managing its all expenses, all the issue of the company may resolve and company has enough cash to cover its financial issues. but in 2015, company has to maintain its expenses and try to enhance its sales and incomes that company receive from different resources and also

Maintain a sufficient level of cash to manage its all resources by using effective amount of cash and also manage its debtors because when the company only rely on loan then its proper source of income may effected so company has to many its revenue sources and try to enhance its level of profit and source of income to earn proper cash amount to manage its all expenses and also for future transactions.

Who could you speak to within the organization to clarify the budget and financial plans? Who might you need to negotiate with?

To clarify the budget and financial plans of the company, there are three main people to whom the organization may discuss it’s all the budgetary plans and financial issues. These are management, budget holders and finance and support staff. These people take all the responsibility of managing the budget and financial issue of the organization and also identify effective solutions to manage all the problems. These people handle all the issues related to financial activities and its operations because company has to manage all the issues according to its requirement and when the company timely handle all the issues related to finance and budgets then no any critical situation never occur in the transaction of the company . So finance and support staff consider all the previous and current record of the financial activities and also manage all the problems that arise in the current information that timely identified and resolve according to resource of the company and settle all the disputes.

What would be the key steps involved in implementing these corrective actions? Who would you communicate this to?

When the complete data is collected then there are multiple calculation occur for the budgetary set up for the next years. These include ageing summaries, profit and loss statements, ledgers and financial statements, budgeting forecast, electronic spreadsheet, profit statements and cost/benefits analysis. These documentations help to determine the profitability of productivity in both directions and also determine different ratios for managing the position of the company that include return on equity, earnings stability and earnings growth. Specific nature and methods also adopted by the company.

Different findings may obtain by doing these measurements. There are some people that discuss the findings include colleagues, supervisors, managers, financial advisors, accountants, industry experts and departmental specialists. So accurate actions must be taken for taking corrective actions because it helpful in establish a smooth process of financial and budgetary processes and also determine that how these measurements can be handle in most effective manner according to company requirement and its market position.

What resources and systems would you use and how could you access these?

To manage the financial management processes there are following resources and systems used that include specialist advice or support, record keeping system, human, physical and financial resource and hardware and software. Specialist advice include mentors, finance seminars, book keepers and accountants to all that areas which need more attention and focus. Record keeping system  in the business need efficient and accurate system to using the correct processes, pay taxes on timely manner, suppliers , pay employees and collect revenues. Paper based record keeping include different journals of transactions and divide into multiple sections like inventory, banks reconciliation, wages and superannuation, payments and receipts. Electronic record keeping is a comprehensive way to manage all accounts through ne program and using accrual accounting at the time of sale and receive payment. Computer base programs develop different elements like inventory report, employees pay record, financial statements, aged debtor reports, invoices and orders.

Human resource includes personnel’s that have skill sets for the business and they develop strategies to achieve the business objectives. These resources include intangibles, training standards for key roles, rate of staff loss and amount of staff in each role. Physical resources include information technology, marketing facilities and production facilities for the business. financial resources include creditors, capital invested in the business, shareholder’s capital, bank overdraft, loans and cash balances. Hardware resource include computers and necessary accessories that manage the financial management software. Different software that utilize  include process and control automation program, reporting program, budgeting, planning and forecasting, end to end spend management program and a universal ledger.

What data would you analyze to see if your changes were effective? Where would you get this data? Mention key personnel and reports you could use.

Different type of data is going to utilize for managing the information for the financial management processes and it helpful in maintain the effectiveness f the processes  and different type of record is include as wages/salaries books, taxation records, quotations, petty cash receipts, job costing, invoices, insurance reports, income and expenditures, files of paid purchase and services invoice, employee timesheets, credit card receipts, contracts , cash flow data and bank account records. Different personnel’s are helpful in utilizing the data according to company requirement include colleagues, supervisors, managers, financial advisors, accountants, industry experts and departmental specialists.

What contingencies should be considered for 2015?

For 2015, following contingency plan must be prepared to handle the issues in upcoming years are; succession planning, strategies for reducing costs, wastage , stock and consumable, seeking further funding, risk identification, assessment and management processes, restructuring of organization to reduce labor costs, rental, hire purchase or alternative means of procurement of required material, equipment and stock, recycling and reusing, increasing sales or production, finding cheaper or lower quality raw material and consumable , diversification of outcomes and contracting out or outsourcing human resources and other functions or tasks.