Bsbfin601 A2

BSBFIN601
MANAGE ORGANISATIONAL
FINANCES
DARANEE TRAKANCHAN
SID: 13197
This study source was downloaded by 100000881976194 from CourseHero.com on 04-18-2024 19:23:38 GMT -05:00
GROW MANAGEMENT
CONSULTANTS
Establish budgets and allocate

funds
BUDGET PREPARATION
• It can be daunting to start the process of creating a budget, especially if you're

not familiar with some of the common accounting and budget terminology you
will encounter, so we have provided a glossary of terms covered here, located
toward the bottom of the page under the In Summary section of the page.
• It is important for organizations to create accurate and up-to- date annual
budgets in order to maintain control over their finances, and to show funders
exactly how their money is being used. How specific and complex the actual
budget document needs to be depends on how large the budget is, how many
funders you have and what their requirements are, how many different
programs or activities you're using the money for, etc. At some level, however,
your budget will need to include the following:
• Projected expenses. The amount of money you expect to spend in the coming
fiscal year, broken down into the categories you expect to spend it in - salaries,
office expenses, etc.
Fiscal year simply means "financial year," and is the calendar you use
to figure your yearly budget, and which determines when you file tax
forms, get audited, and close your books. There are many different
fiscal years you can use. Businesses often use the calendar year --
January 1 to December 31. The federal government's fiscal year runs
from October 1 to September 30. State governments -- and therefore
state agencies and many community-based and non- profit
organizations that receive state funding - usually use July 1 to June
30. Most organizations adopt a fiscal year that fits with that of their
major funders. You'll want to prepare your budget specifically to cover
your fiscal year and to have it ready before the fiscal year begins. In
many organizations, the Board of Directors needs to approve a
budget before the beginning of the fiscal year in order for the
organization to operate.
Grow Management Consultants Pty Ltd
Budget Forecast
July 20 to June 21
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total Total
Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Budget Actual
INCOME
Consulting fees 117,570 102,000 99,000 146,400 117,600 145,200 105,150 107,400 126,000 99,600 84,600 160,200 1,293,160 1,410,720
Conference 0 0 0 0 17,000 16,000 12,000 0 0 0 0 0 75,000 45,000
E-book 1,000 1,200 1,500 1,100 1,000 1,200 1,100 1,300 1,100 1,400 1,300 1,800 10,000 15,000
Executive search 8,400 9,600 14,400 12,000 14,400 10,800 10,800 10,800 13,200 14,400 13,200 12,000 132,000 144,000
NET INCOME 126,970 112,800 114,900 159,500 150,000 173,200 129,050 119,500 140,300 115,400 99,100 174,000 1,510,160 1,614,720
EXPENSES
Salaries/wages 44,100 44,100 44,100 44,100 44,100 44,100 44,100 44,100 44,100 44,100 44,100 44,100 529,200 529,200
Superannuation 5,250 5,250 5,250 5,250 5,250 5,250 5,250 5,250 5,250 5,250 5,250 5,250 63,000 63,000
Cleaning 840 840 840 840 840 840 840 840 840 840 840 840 10,080 10,080
Accounting fees 0 0 7,165 0 0 0 0 0 0 0 0 0 7,164 7,165
Advertising and marketing 1,050 0 525 735 0 840 0 0 2,100 0 0 0 5,250 5,250
Contract writer (e-book) 10,500 3,759 3,759 0 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 10,000 48,090
Computer software 0 2,730 0 0 0 2,100 0 0 0 0 0 0 4,830 4,830
Motor vehicle expenses 686 474 914 186 157 276 588 0 966 620 220 357 5,442 5,444
Utilities 0 705 0 0 0 1,550 776 0 1,100 0 0 0 4,132 4,131
Insurance 0 0 0 329 329 0 0 3,370 0 0 0 0 4,229 4,028
Office supplies 105 126 189 126 158 200 189 242 242 137 231 262 2,205 2,207
Lease/loan payments 105 126 105 105 220 53 158 0 210 157 126 210 1,575 1,575
Rent 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 45,108 45,108
Sundries 210 210 147 178 241 210 210 147 170 241 189 231 2,394 2,384
Travel and Accommodation 1,662 0 1,506 2,044 128 0 0 0 134 180 0 0 5,655 5,654
Conference venue and catering 0 0 0 0 0 0 10,000 0 0 0 0 0 5,000 10,000
Speaker fees and travel 0 0 0 0 0 0 11,000 0 0 0 0 0 10,000 11,000
Marketing (conference only) 0 0 0 0 2,500 2,500 2,500 0 0 0 0 0 5,000 7,500
Conference bags 0 0 0 0 0 0 1,200 0 0 0 0 0 1,000 1,200
Conference casual project officer 0 5,000 5,000 5,000 5,000 5,000 5,000 0 0 0 0 0 30,000 30,000
E-book 0 10,000 0 0 0 0 0 0 0 0 0 0 10,000
Desktop publishing 0 3,000 0 0 0 0 0 0 0 0 0 0 3,000 3,000
Marketing (e-book) 100 100 100 100 100 100 100 100 100 100 100 100 1,200 1,200
Repairs & maintenance 105 0 420 0 0 420 0 315 0 0 0 0 1,260 1,260
Telephone 315 305 325 336 305 315 305 325 346 252 220 220 3,570 3,569
TOTAL EXPENSES 68,787 80,484 74,104 63,088 66,846 71,272 89,734 62,207 63,076 59,395 58,794 59,088 760,295 816,875
MISAPPROPRIATION
• Solid financial management provides the foundation for three pillars of sound
fiscal governance:
• Strategizing, or identifying what needs to happen financially for the company to
achieve its short- and long-term goals. Leaders need insights into current
performance for scenario planning, for example.
• Decision-making, or helping business leaders decide the best way to execute on
plans by providing up-to-date financial reports and data on relevant KPIs
• Controlling, or ensuring each department is contributing to the vision and
operating within budget and in alignment with strategy.
• With effective financial management, all employees know where the company is
headed, and they have visibility into progress.
For instance, in order to get a conviction for misappropriation of funds in federal
court, the government must prove the following elements of the crime beyond a
reasonable doubt: You had access to the funds, but not ownership of them; You
knowingly and intentionally took the money or intended to take the money.
REPORTING REQUIREMENTS AND
FINANCIAL DELEGATIONS.
The financial manager's responsibilities include financial

planning, investing (spending money), and financing
(raising money). Maximizing the value of the firm is the
main goal of the financial manager, whose decisions often
have long-term effects.
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Establish budgets and allocate

• It can be daunting to start the process of creating a budget, especially if you're

The financial manager's responsibilities include financial

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