Budgets And Financial Management In Higher Education

Contingency Planning

Discuss about the Budgets And Financial Management In Higher Education.

According to the managing director of the company, it has been forecasted that the overall sale for this year will be lowered by approximately 20%, which has substantial indication that the company will not be able to meet its liabilities therefore the company must develop a contingency plan to deal with the situation. In the contingency planning the management will look after the lowering that cost which are not contributing in the profit or sales. Further, the management must make proper advertising or marketing campaign to support the recession period. In addition to that, the management will look after in various ways to lower the cost of production (Zietlowet al.,2018).

It is the duty of the team manager to evaluate and bring the best performance of the employees. In the given case, team leader of team A is being assign to deliver the targeted sales.   For that, the team leader wants to notify the various component of the budgeted statement to all the Team members. In the discussion, the importance of the various components of the budget is being analysed and the relevance of the cost allocation of all the expenses are considered for the better understanding of the objectives. From the budged statement, the team members will ascertain ‘what to do’, and ‘how to do’. If all the team members are aware of the objectives of the organisation then they will actually perform well (McKinney, 2015).

In this portion of the study, the relevance of the petty cash book or memorandum cashbook will be discussed. In big organisation it is not possible to account miscellanies minor expenses or incomes therefore the responsibility of such accounting is transfers to an employee of the company by remitting small cash for a particular period. The petty cash book of the company will be maintain the petty cash book in a spread sheet which will be created by Bill Goodale  in according with the accounting procedure of Big Red Bicycles Policies (Finkleret al., 2016).

 According to which the staff are not eligible to the following:

• Any late payments or penalties
• Tax deductible employee expense
• Those expenses which is not business related

Further the book keeper must conduct the following:

• One team member is required to maintain the petty cash book if the authorised person is in leave
• Petty cash book needs to be secure locked and safe.
• Receipt must be reconciled at the close of each day.
• Ammon’s over $800 must be banked.

In this portion of the study, the evaluation of the congruency of the budgeted statement in comparison to the actual statement will be followed. In actual the sales were down by 20% as expected by the managing director. In addition to that, the company has already make a contingent plan to response the deficiency of the market. In the contingency planning, the company has acquired various team meetings and the contingency plan is the result of that. As per the contingency planning, it is decided by the team members that the following are to be initiated:

• In the planning it has been derived that the company; full time workers and the sales team is creating disturbance in the working procedure.
• Further, the company is not encouraging the fact of over timing as in the slowdown period what is the need of the overtime consumption.
• Further, in the budget it can be seen the fixed cost are very high of the company which are not favourable variants they are to be taken care of.

Petty Cash Book

A cash flow is a stamen of the flow of cash, in deliver information regarding the sources that have used the cash, and the cash generation sources. further the sources are categorized in three terminologies Operating activities, investing activities, finance activities.

1. Average debtors days:  (362500/2900000)*365=46 days
2. Average creditors days: (80000/1000000)*365=29 days
3. Average stock turnover : 380000/(100000+300000/2)=1.6

In this portion, an analytical view is being provided to improve the financial management process and the improving of the cash flow. For the planning process various data are required to understand the need of the organisation, those are

• Statement of financial performance: In this, the significant indicators are identified such as the flow of cash, its acquisition and utilisation and many more.
• Scenario information: scenario information means the importance of evaluating the needs to understand the current situation. Moreover, make planning strategy as per this.
• Ageing debtor’s budget: this is also key player in financial planning as a long money is invested in it (Barr & McClellan, 2018).

Q1: (1280000+100000)/25 units= 91200

=91200-500-285= 90415

From the above analysis, it is observed that in the proposed project the management needs to sell 4560 units of bicycles at the rate of 500 per cycle if the company wants to earn pertex $1000000. Further, it can be recommend that the company must add some margin of safety for the better success of the project (Scarborough, 2016).

From the above data an analysis is conducted as for said to the effect to the viability of the project. The data are analysis de procure the grievances and the deficiencies of the company as well as the understanding the scops that can be improved to felicitated the growth of the concern

1. According to the GST record are to be kept for 5 years.

In the given case the major deficiencies that are identified thatthe debtors collection period is very high the company must reduce the collection period in any manner, in addition to that the residual problems can be solved by creating a preformat of work that are to be exercised in the relevant time period. The commission can be increased from 2% to 2.5%.

The monitoring process will be carried on the basis of the observing the collection process that the company is conducting and what are the probable chances that the company is proposing to develop a greater collection strategy that will reduce the average collection period. The tolls and techniques that are applicable

• Collection prioritization and strategy.
• Monitoring unpaid debt
• Collection from management system.

1. Accounting Principal:

An accounting principal is idea and methodology that are used to prepare the accounts.

The principals are made to make the accounts uniform over all the accounting circle. GAAP is an example of the accounting principal which is used in accounting.

1. Cash Flow:

A cash flow is the statement of floating cash. This means that the allocation and generation of cash from the activities that are performed by the organization.

1. Ledgers and financial statements:

Ledgers are the individual and segregated financial instruments that describe a particular financial activity. Whereas the financial statements are the consolidated information of various ledger accounts that denoted the financial position of an organization.

1. Profit & loss statement:

An profit and loss statement is the financi9al instrument that describe the incomes and all the expenses of an entity and who much profit/ loss they are earning from the various activities.

References:

Barr, M.J. and McClellan, G.S., 2018. Budgets and financial management in higher education. John Wiley & Sons.

Finkler, S.A., Smith, D.L., Calabrese, T.D. and Purtell, R.M., 2016. Financial management for public, health, and not-for-profit organizations. CQ Press.

McKinney, J.B., 2015. Effective financial management in public and nonprofit agencies. ABC-CLIO.

Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management. Pearson.

Zietlow, J., Hankin, J.A., Seidner, A. and O’Brien, T., 2018. Financial management for nonprofit organizations: Policies and practices. John Wiley & Sons.

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order