This document is Finance Report Template.

It is part of the supporting assessment resources for Assessment Task 2 of BSBFIN601.

Growth Management Consultants

Finance Report

Introduction
This report will show finacial conditions such as areas of the business that have made a profit and those
that have lost money. The report also examines the causes of these problems. Besides, to conducting
the Strategic Business Plan, the organisation’s goals and priorities, cash flow trends, financial software
will be discussed in the paper. From this report, I can look at the value of the assets that a business
currently holds and give decision-making, planning and forecasting.

2017/18 Performance
The previous year’s (2017 – 2018) profit and loss statement:
Gross profit / net sales $1,321,600
Expenses $707,795
Net profit $613,805
Income in details
Consulting fees $1,175,600
Workshops $36,000
Publications $2,000
Executive Search Service $108,000
The company’s income origins from four streams including consulting fees, workshops,
publications and executive search service. In these four streams, consulting fees account for up to 88,9%
in the company’s total income in the period from 7/2017 to 6/2018. Acocording to Consultancy.com.au, in
2017, the firm, which focuses on the movements of the global management consulting industry,
conducted a survey with their Australian clients. The results revealed that an overwhelming majority
(62%) expected to increase their consulting spend over the next year and a half. In 2017, Australia's
management consulting market surpassed US$5 billion, representing 7.1% growth. Several indicators
have pointed to continued significant market growth in the consulting industry over the last year. The
Australian Bureau of Statistics released data earlier this year indicating that the professional services
sector is on track to become one of Australia's largest industry groups. The growth indicated that
Australia was transitioning to a white-collar economy, and the professional services sector has grown by
30 percent since the beginning of the decade to become Australia's fourth largest employment segment.
Furthermore, as Asian-based companies expand, Australia serves as a stepping stone, and the
consulting industry serves as a premium advisory. On the other hand, executive search service,
workshops and publications account for 8.2%; 2.7% and 0.2% in the company’s total income,
resspectively. That the workshops about professional development were only conducted about every 3
months in 3 cities including Sydney, Brisbane and Melbourne may lead to poor attendence. Bisides, only
one e-book on leadership techniques sold since October 2017 without effecitive marketing methods
could be the reasons for publications’ low income.

Strategic goals and priorities

Business goals:
 Consultancy fees: increase at least 10% annually
 Conference: hold annually from February 2019
 Publications:
o Generate $10,000 worth of sales for the e-book and 10% increase yearly.
o Second e-book to be written by December 31, 2019.
 Executive Search Service: generate at least $120,000 in 2018/19, and increase at least 10%
annually
Strategies:
 Being well-led, high-performing, profitable, and accountable
This document is Finance Report Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBFIN601.

o Ensure that all financial operations, performance indicators, and outcomes are
consistent with the strategic policies.
o Identify new and expand existing revenue sources. Aim for annual profits of at least
10%.
 Create services to meet the needs and aspirations of customers.
o Expand the services offered to include change management and diversity.
o Plan and organize an annual conference beginning in 2019.
o Increase the number of e-books available, beginning with the Organizational Change e-
book, which will be released in 2019.
 Continue to cultivate deeper customer relationships.
o Customer-centered practice centered on meeting their total needs for high-quality
services
o Boost our employees' skills in order to better serve our customers.
o Encourage innovation in order to better meet the needs of customers.
 Attract, engage, and develop the best employees possible.
o Keeping the focus on a customer-centric, high-performance workforce and culture.
o Strengthening our people's skills in order to better meet the needs of our customers
o Increasing our workforce's diversity by hiring more consultants and empowering
innovation and responsiveness to change.
Financial resources
 Conference costs: $51,000
 E-book costs: $14,200

Cash flow statements analysis

Cash inflow
160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Consulting fees Workshops Publications

Executive search NET INCOME
The chart shows total income in 4 streams including consulting fees, workshops, publications
and executive search, and net income from 7/2017 to 6/2018. As seen in chart, workshops, publicaions
and executive research account for a small number in total income every month and all year. On the
other hand, consulting fees account for the most weight of the company's income. Its increase or
decrease directly affects the company’s income, its line and net income’s line go up and down almost
equally. In this period, consulting fees increased by $35,525 (from $97,975 (7/2017) to $133,500
(6/2018)). So, it plays a main role in rising the company’s cash inflow from $104,975 at the first month of
the period to $143,700 at the last month. Remarkably, though workshops don’t contribute much in the
This document is Finance Report Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBFIN601.

company’s total income, their income in 5/2018 ($12,000) is twice as much as it in 8/2017 ($6,000).
Besides, executive search service has a slight increase at the end of the period. On the contrary,
publications contribute the least and the income figures almost decline over the period.

Cash outflow
600,000

500,000

400,000

300,000

200,000

100,000

0
Salaries/wages Superannuation Contract writer Rent Others
As shown in the table, wages/salaries account for the main proportion of the company's
expenses (71.2%). Moreover, according to the cash flow statement, salaries/wages, superannuation and
rent isn’t changed in the period, respectively, 42,000; 5,000; 3,580 for each month. Budget and actual
expenses for each items are nearly the same. However, cost for advertising and marketing is $5,000 in
reality, while it is estimated $500. Similarity, actual expense for contract write is more 4 times than
estimated cost.

Financial Software

Financial
Advantages
softwares
- BankLink bank feeds are included in the
MYOB package, which simplifies bank
reconciliation. In any case, MYOB
emphasizes the quality of BankLink bank
feeds as a key point of differentiation.
BankLink uses proprietary techniques to
detect and eliminate errors in bank feeds,
such as omitted or duplicated
MYOB
transactions.
- MYOB guarantees the quality of the
feed: if you are dissatisfied, you can
reclaim 30 days of your subscription.
- By including "and/or" rules, MYOB has
increased the complexity of its bank rules.
Accountants can bulk code and recode
transactions in the transactions screen.
- PSG pre-approved full cloud ERP
System
Highnix
- With two types of license plans
- With security and data backup
- Works with Windows, Linux, and MacOs
SmartCursor Because this accounting software is a
multi-currency and multi-entity integrated
s
platform, all currency gains and losses are
Disadvantages
- This product is firmly positioned at the
micro end of the small business market
and for businesses with simple business
models. Because there are no user roles
that control access to sensitive information
such as payroll or employee bank account
information, it is not designed to handle
multiple users.
- It also lacks important features such as
supplier purchase orders, stocked
inventory, job tracking, and class
categories (which are used to track
expenses and revenue by project), as well
as multi-currency support.
Some accounting software are high-
maintenance
It's very easy to integrate with other
SmartCursor applications, but it may have
some issues when paired with software
This document is Finance Report Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBFIN601.

automatically tracked in your dashboard. that isn't from the brand.

It will also be capable of handling the
accounting of multiple entities, allowing for
cross-billing, receipts, and fund transfers.
Sage's Business Cloud Accounting It should be noted that Sage's software
Sage system enables business owners to lacks payroll features, which can be a deal
Business forecast their cash flow using a detailed breaker for founders looking for well-
dashboard. Using Sage, you can identify rounded accounting software.
Cloud where you could save and spend money
Accounting and make wise business decisions. You'll
also be able to send and track invoices,
making it much easier to track payments.