Crown Institute of Business and Technology Pty Ltd ABN 86 116 018 412 National Provider No: 91371

CRICOS Provider Code: 02870D

North Sydney Campus: 116 Pacific Highway North Sydney NSW 2060 P 02 9955 0488 F 02 9955 3888
Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 P 02 8959 6340 F 02 9955 3888
Sydney CBD Campus: Level 11, 307 Pitt St Sydney NSW 2000 P 02 8034 6431
Canberra Campus: Suite 1, Level 4, 40 Cameron Avenue, Belconnen, ACT 2617 P 02 6253 5184

BSBFIM601 Manage finances

Assessment Task 2

Grow Management Consultants

Financial performance report

The goal of this study is to determine the company's profit and loss areas. After that, the financial
analysis and operational review are done by looking at the financial report. The ratios of the
companies have been calculated in order to determine the true cause for the need for progress and
how the company may move forward in the business.

This study will also focus on future investment strategies for the future growths. The company's
investment and fund-raising management must be done in accordance with the company's overall
assets.

Review

We can look at the company's annual report to see how the company's finances have improved over
the course of the year. As a result of the improvement, the company's core strength has improved, as
well as the resource stability of the company's resources. The financial report was studied and the
profit and loss statements were analyzed in order to have a clear image of the company based on
each item.
Comparing Grow Management Consultants Pty Ltd performance

2017 - 2018 -
PROFIT & LOSS 2018 2019
$1,175,60
Consulting Fees 0 $1,410,720
Conference $36,000 $45,000
E-book $2,000 $15,000
Executive Search Service $108,000 $144,000
Gross profit/net sales $1,321,600 $1,614,720
Total expenses $707,795 816875
NET PROFIT (Net Income) $613,805 $797,845

Overall performance

As per the above table, it can be reviewed that the gross income of the company has increased by
$293,120 and net profit (net income) has also increased $184,040 by 2018-2019.

Income variations
Calculation of variation in actual versus budgeted amounts for each income source.

The revenue generated by the company in 2017-2018 is recorded as $1,175,600 while $1,410,720
In 2018-2019. After determining the company's gross profit, the company will then determine or clarify
what additional costs are involved in the development of the product or service, and all of these costs

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 Crown Institute of Business and Technology Pty Ltd ABN 86 116 018 412 National Provider No: 91371 CRICOS Provider Code: 02870D
North Sydney Campus: 116 Pacific Highway North Sydney NSW 2060 P 02 9955 0488 F 02 9955 3888
Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 P 02 8959 6340 F 02 9955 3888
Sydney CBD Campus: Level 11, 307 Pitt St Sydney NSW 2000 P 02 8034 6431
Canberra Campus: Suite 1, Level 4, 40 Cameron Avenue, Belconnen, ACT 2617 P 02 6253 5184

will be indirectly tied to the product sales or services provided. In addition, the company should be
aware of how it can reduce its indirect costs, as well as how it can efficiently put up a front and boost
its net profit. There can be a variance in the strategy if the subject is different, but the indirect costs
can always be a factor that can be lowered more than the direct costs. The net profit margin was 0.52
in 2017-2018 and 0.56 in 2018-2019, respectively.

Cost variations
Calculation of variation in actual versus budgeted costs.

After determining the company's gross profit, the company will then determine or clarify what
additional costs are involved in the development of the product or service, and all of these costs will
be directly tied to the product sales or services provided. In addition, the corporation should be aware
of how direct expenses can be reduced and how costs can be efficiently outsourced to raise the
company's gross profit. There can be a variance in the strategy if the subject is different, but direct
costs can always be a factor that is important for having the company's gross income and can be a
factor that is essential in any company's services. Gross profit of the company is recorded as
$1,321,600 in 2017-2018 and $1,614,720 in 2018-2019.

Discrepancies
Identify the discrepancies between agreed budget allocations for the conference and the actual
figures

The income source

categories of Grow
management consulting
according to their
budgeted, actual and the
variation of the total income
forecasted for FY 2017-2018.
The income source
categories of Grow
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 Crown Institute of Business and Technology Pty Ltd ABN 86 116 018 412 National Provider No: 91371 CRICOS Provider Code: 02870D
North Sydney Campus: 116 Pacific Highway North Sydney NSW 2060 P 02 9955 0488 F 02 9955 3888
Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 P 02 8959 6340 F 02 9955 3888
Sydney CBD Campus: Level 11, 307 Pitt St Sydney NSW 2000 P 02 8034 6431
Canberra Campus: Suite 1, Level 4, 40 Cameron Avenue, Belconnen, ACT 2617 P 02 6253 5184

management consulting
according to their
budgeted, actual and the
variation of the total income
forecasted for FY 2017-2018.
For FY 2018-2019, the income source categories of Grow management consulting based on their
budgeted, actual, and variance of total income predicted.

Grow Management Consultants Pty

Ltd
Cash Flow Statement

July 18 to June 19
Percentag
  Budget Actual
Difference e
INCOME        
121000 141072
Consulting fees
0 0 -200720 -14%
Conference 75000 45000 30000 67%
E-book 10000 15000 -5000 -33%
Executive search 144000 144000 0 0%
143900 161472
NET INCOME
0 0 -175720 -11%

© RTO Works 2019–BSBFIM601 Assessor Guide – v3.0 Page 3 of 5

 Crown Institute of Business and Technology Pty Ltd ABN 86 116 018 412 National Provider No: 91371 CRICOS Provider Code: 02870D
North Sydney Campus: 116 Pacific Highway North Sydney NSW 2060 P 02 9955 0488 F 02 9955 3888
Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 P 02 8959 6340 F 02 9955 3888
Sydney CBD Campus: Level 11, 307 Pitt St Sydney NSW 2000 P 02 8034 6431
Canberra Campus: Suite 1, Level 4, 40 Cameron Avenue, Belconnen, ACT 2617 P 02 6253 5184

Chart Title
1800000
1600000
1400000
1200000
1000000
800000
600000
400000
200000
0
Consulting Conference E-book Executive NET INCOME
fees search

Budget Actual

As per above chart and table, it can be reviewed that the Budget Conference and actual conference
has $30,000 discrepancy as recorded Budget is $75000 versus the actual conference which is
$45000.

Recommended revisions
Revisions to the 2020 conference budget.

Grow Management Consultants Pty Ltd

Cash Flow Statement

July 18 to June 19

Percentag
  Budget Actual
Difference e
INCOME        
121000 141072
Consulting fees
0 0 -200720 -14%
Conference 75000 45000 30000 67%
E-book 10000 15000 -5000 -33%
Executive search 144000 144000 0 0%
143900 161472
NET INCOME
0 0 -175720 -11%

Revised

  Budget Actual Difference Percentage

INCOME        
Consulting fees 1210000 1,015,000 195,000 19%
Conference 75000 35,000 40,000 114%
E-book 10000 10,500 -500 -5%

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 Crown Institute of Business and Technology Pty Ltd ABN 86 116 018 412 National Provider No: 91371 CRICOS Provider Code: 02870D
North Sydney Campus: 116 Pacific Highway North Sydney NSW 2060 P 02 9955 0488 F 02 9955 3888
Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 P 02 8959 6340 F 02 9955 3888
Sydney CBD Campus: Level 11, 307 Pitt St Sydney NSW 2000 P 02 8034 6431
Canberra Campus: Suite 1, Level 4, 40 Cameron Avenue, Belconnen, ACT 2617 P 02 6253 5184

Executive search 144000 140,000 4000 3%

NET INCOME 1439000 1,200,500 238,500 20%

Chart Title
1600000
1400000
1200000
1000000
800000
600000
400000
200000
0
-200000 M
E es nc
e ok rc
h E
fe e bo a M
CO ng er E - se CO
IN lti nf iv
e IN
ns
u Co ut
T
c NE
Co Ex
e

Budget Actual Difference Percentage

As per above revised chart and table, it can be reviewed that the Budget Conference and actual
conference has $40,000 discrepancy as recorded Budget is $75000 versus the actual conference
which is $35,000.

Conference fee
Proposed conference fee for the 2019 conference assuming attendance of 70 people and to make a
profit of at least 20%. Show your working:

Below is the table that shows the proposed conference fee of $75,000 assuming that 70 people attend
the conference. Actual conference fee though is recorded as $35,000 that gives 114% difference
between the budget and the actual conference fee. Considering the other budgets, net income has
now increased by 20%.

  Budget Actual Difference Percentage

INCOME        
Consulting fees 1210000 1,015,000 195,000 19%
Conference 75000 35,000 40,000 114%
E-book 10000 10,500 -500 -5%
Executive search 144000 140,000 4000 3%
NET INCOME 1439000 1,200,500 238,500 20%

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