Manage Budgets and Financial Plans

Manage Budgets and Financial Plans

Individual Assessment

A report on financial plans

Table of Contents

Introduction １

Authorisation １

Part One ２

Part Two ２

Part Three ２

Part Four ３

Part Five ３

Part Six ３

Part Seven ３

References ５

Introduction

An organisation has to report the financial activity of its business in response to (internal) client requests and to meet (external) statutory requirements (accountability, tax declaration) In this report we will cover a range of financial information, the cash control and the financial reporting.

Authorisation

This report has been commissioned in the process of the Diploma of Management under an individual report called "Report on financial plans" for the unit coded BSBFIM501A and named "Manage Budgets and Financial Plans".

Part One

The organisation plans for the needs of the Barossa and provide the community, business, industry and visitors with high quality services and facilities that contribute to an attractive environment and lifestyle. The annual report is in the attached files. The balance sheet is a summary of the financial balances of the organisation. It provides a snapshot of the organisation's financial condition. The income statement indicates how the revenue of the organisation is transformed into the net income. Reading the income statement, shareholders, managers are able to know if the organisation made or loss money during the last period reported in it. Income statement and balance sheet should help investors and creditors determine the past financial performance, predict future performance, and assess the capability of generating future cash flows through report of the income and expenses.

Part Two

The council has a formal annual budget policy. A copy of it is in the attached files. The Financial Services under the order of its manager is in charge of the implementation of this policy, which provide a framework for council and Management in relation to the preparation, consideration and adoption of the annual budget.

A timeline showing the stages and process for budgeting within the organisation is in the attached files.

Budget/financial plans may include:

- cash flow projections

- long-term budgets/plans

- operational plans

- short-term budgets/plans

- spreadsheet-based financial projections

targets or key performance indicators for production, productivity, wastage, sales, income and expenditure.

Relevant personnel may include:

- financial managers, accountants or financial controllers,

- supervisors, other department managers.

Part Three

Responsibility accounting is based on the assumption that every cost incurred must be the responsibility of one person somewhere in the company. A profit center manager is held accountable for both revenues, and costs (expenses), and therefore, profits. For Peter Drucker (influential writer, management consultant, and self-described "social ecologist) originally coined the term profit center around 1945. He later recanted, calling it "One of the biggest mistakes I have made." He later asserted that there are only cost centers within a business,