Assessment Task 2 Part A: Financial Management planning project
Complete the following activities:
1. Prepare a financial performance report
 Review the scenario information above, as well as Profit and Loss and
Cash Flow Statements provided to you.
 Using this information, identify areas of the business that have generated a
profit and those that have generated a loss.
 Prior to preparing your financial performance report, conduct research to
establish why those areas have made a profit or loss. Your research should
include a review of the financial data provided to you and economic
conditions and business trends that may have resulted in the profit or loss.
You will be required to report on your findings in the financial
performance report as outlined below.
 You should also conduct research on financial software systems as per the
scenario information. Make notes for use in your report.
 Prepare a financial performance report for the Principal Consultants using
the template provided by your assessor that includes an:
 Overview of the purpose of the report.
 Analysis of the previous year’s (2015 – 2016) profit and loss statement for
Grow Management Consultant, including revenue generated, cost of sales,
as well as gross profit/loss margin and net profit/loss margin.
 Analysis of overall business performance, as well as performance of each
of the income streams for 2015 – 2016.
 Outline of reasons for profit or loss based on your analysis of the data and
research on economic conditions and business trends.
 Analysis of the organisation’s goals and priorities for the upcoming
financial year as documented in the Strategic Business Plan and financial
resources required to achieve these goals, as well as key dates.
 An analysis of cash flow trends as per the cash flow statements.
 Review and analysis of at least three other financial software that the
business could use, including the advantages and disadvantages of each, as
well as the advantages and disadvantages of MYOB that is currently used.

Assessment Task 2 Part B: Meet with management team
Develop report on key financial compliance requirements and liabilities for tax in preparation
for meeting
Research and report on the business’ key financial compliance requirements and liabilities for
tax.
Develop a short report to provide to the management team at the meeting. The handout
should explain:
Research and report on the business’ key financial compliance requirements and
liabilities for tax.

Assessment Task 3: Budget review project
Review of overall performance and gross/net profit margins
Financial information

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

Calculation of variation in actual versus budgeted costs, focusing particularly on
conference costs.

Recommended revisions to the budget for conference costs for 2017 – 2018

Solution

Analysis of the previous year’s ( 2016-2017) profit and loss statement
Overall there was a good performance of income streams but an incurred loss.
 The net profit was $797,125 and the expenses were $817,595.
 The Gross profit/net sales was $1,614,720
 The income from workshops was $45,000 and it was projected $75,000 therefore,
40% of income from workshops was loss.
 The income from publications $15,000 and it was budgeted only $10,000, therefore,
$5,000 profit earned.
There seems to be discrepancies between actual and budget for publications and
workshops. This could be due to the workshops not being well attended with clients
preferring the consulting services. Analysis shows that more e-books are required and
better marketing is required. However, the costs for the workshops and publication of the
e-books were high. The e-book was developed at a loss- this was due to the writer costs.
The workshop costs were also too high.
Strategic goals and priorities
To be well le, high performing, profitable and accountable
 Ensure that all financial operations, performance indicators and results support the
strategic policies
 Identify new and expand existing sources of revenue.
 Achieve profits of at least 10% per annum………………please follow the link below to purchase all the answers at $20