Manage Finances Assessment
Houzit Pte Ltd
You have recently been appointed as the business manager of Houzit Pty Ltd having been a store manager for the past three years. Houzit Pty Ltd is a 15 store retail chain located in Brisbane. Houzit is the leading homewares retailer, catering to the growing need for furnishing new and renovated dwellings in the greater Brisbane area.
The assortment on offer of bathroom fittings, bedroom fittings, mirrors and decorative items together with the recently added lighting fixtures has positioned Houzit as a leader in homewares retailing in Australia. Houzit has grown over the past five years from a single store to the current chain. Houzit prides itself on superior after sales service which has been a key reason for the continued growth in sales and corresponding profit increases. Today Houzit employs over 150 staff.
Houzit Pty Ltd is a proprietary limited company (ACN 34 765 234 02) registered with the Australian Securities and Investment Commission. The registered address is with Houzit's solicitors (Langs Lawyers, 535 Queen Street, Brisbane, QLD 4000) and the principle place of business is 505 Boundary Street Spring Hill Brisbane QLD 4000.
1. Analyze the case study information and complete the budget table found in Appendix 1 based on the following:
a. Establish the budget objective for the year 2015/16 by gathering prior period data
b. Review and establish critical dates and initiatives that would be implemented for the upcoming budget forecast
c. Ensure that statutory requirements for tax compliance and liabilities are adhered to
d. Make provisions of new items for inclusion in the budget
e. Tabulate calculations for profit and loss, cash flows and ageing summaries
f. Provide adjustments to the budgets as deemed necessary to reflect changes or contingencies based on the organization's requirements
g. Ensure structure and format of reports are clear and conform to organization and statutory requirements
2. Provide answers for the following questions:
a. Identify the current statutory requirements for tax compliance for Houzit Pte Ltd.
b. Explain the current compliance requirements and liabilities for Houzit Pte Ltd under the Corporations Act 2001
c. Provide a review on what is commercially available, a financial management software that you think would be most suitable software for Houzit Pte. Ltd. Justify your choice.
d. List the new or modified internal controls that could improve risk management for Houzit Pte Ltd including the maintenance of audit trails.
e. Provide a budget note summary of Houzit Pte Ltd's financial viability and what recommendations you would like to propose and implement.
f. Deliberate the consideration of the practice due diligence in financial management and the importance to stress the adherence of financial probity to the accounting department.
3. Analyze the case study information and complete the budget table found in Appendix 2 based on the following:
a. Complete an actual-to-budget variance report by using the template provided in the Appendix 2.
b. Examine the sales, profit budget, cash flow budget and debtor ageing (Appendix 2)summary to identify the following:
i. Identify variances by comparing actual results with the established budget
ii. Provide reasons why these variances may have occurred.
iii. Determine a trend of the average debtor days
iv. Analyse the impact to the cash flow of Houzit Pte Ltd
4. Provide a brief report of the financial management processes in place for the organisation to Jim Schneider the CEO of Houzit Pte. Ltd., in light of your assessment of the issues, reasons for variances and organisational performance you have identified as follows:
a. Budget analysis
b. Reporting requirements
c. Financial delegation.
Attachment:- Assessment.rar