Financial Managing Application for the Business

Categories: Taxation

Introduction

I am making a budget plan and am going to recommend financial managing application for the business as a business manager. The company is named Houzit Pty Ltd, it is a retailer for home wares. It is a growing business. It has 15 stores in Brisbane area. It has 150 staff members. It is registered with ASIC. As per the review of financial structure of this company the report below has been made.

1. The statutory requirements for tax compliances are listed below:

  • 9% of wages and salaries is to be calculated as superannuation for every quarter
  • 4.75% is payroll tax of wages and salaries for every quarter
  • Worker compensation is 2% of salaries and wages for every quarter
  • For every quarter the company tax is 30% of net profit before taxes.

Current Liabilities

GST: Goods and service tax is a value added tax of 10% in most services and goods, it is imposed on most of the transactions but refunded later with certain process. Fringe benefit tax: this tax is applied to most non cash benefits that an employed provides.

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It is imposed on the employer. Payroll tax: it is a tax paid by employers to government. It is calculated as per the wages and salaries. It is different in different states in Australia. PAYG Withholding: pay as you go withholding is a way of paying ones tax in a year should one be an employee. Income tax: it’s a most important revenue
stream in Australia. Income tax is imposed in earnings.

  • Company must be registered as per the corporation Act 2001
  • Tax must be paid regularly 13% of total income.

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  • Auditing should be done.
  • Financial reporting to ASIC.

The name of software is arrow business software creators features are user experience with standard and dynamic menus dock able panels and seamless integration to Microsoft office application.

  • MYOB
  • Quick books

Both these software are impressive at what they do. But both have similar strengths and weaknesses. But after being sophisticated in the accounts of business there can be few criticisms made in one of these products as for houzit. Quick books is not supported in Apple Macs, MYOB allows multiplication inventory where as quick books fades in this character. MYOB also allows multiple entities at a time but quick book does not. Hence, after looking at all this advantages and disadvantages, I’d recommend MYOB for Houzit.

Matching principle : the business that adopt matching principle can accurately evaluate their pin point financial performance and profitability for a certain time by cancelling the difference in the accounting entry timings. Account groups : assets, liabilities, owners equity, revenue and expenses makes up all of the statement of financial position and statement of financial performance. They show us the budgets and also the profit/ loss. Time period : to make a sound economic and financial decision we need time period. A business needs a timely decision in today’s world. The accounting period is the period of time over which

The implication of probity when revising and preparing budgets is financial probity. It involves insuring that there is full accountabilities with the funds management whether or not it is transaction related or in a form of an advice. It is also important that all of it is lawfully met as far as financial responsibility is concerned.

The dates are listed below:

  • Loan of $100000 on 31 dec
  • Advertisement budged increased by $70000 over 2010/11
  • Salaries and wages rise $172500 in 2010/11

The items that are recommended for inclusion in budget sheets are listed below

  • Water bill
  • Transportation
  • Staff amenities
  • Office expenses

The modified internal controls that could improve risk management for the company are:

  • We need to follow rules and regulations
  • Also we have to apply and implement all the procedures
  • The time sheets and operating hours should be noted too

Explanation

The reason for the past profit and losses could be the problem of the financial management software. As per the given care study, the software that has been used was not able to provide sufficient analysis of the generated revenue and the expenses which has made poor estimates about future profits and decision making. The growing of the customer base has helping loyalty sales and also new references of upcoming customers. This has reduced the advertisement cost. However the new software system is to be used to catch up for the company’s progression more efficiently.

Mathematics:

CGS = 16971237 – 7297632 = 963760

REFERENCES

  1. www.wikipedia.org
    www.ato.gov.au
    www.asic.gov.au
    www.australia.gov.au
    www.moneysmart.gov.au
Cite this page

Financial Managing Application for the Business. (2016, Mar 20). Retrieved from http://studymoose.com/financial-managing-application-for-the-business-essay

Financial Managing Application for the Business

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