I've attached the assignment brief and will attach the templates needed by the end of the week as that's when I'll receive them. Thank you

Name of the company/organisation: _________________
Address: _________________
BUDGET ANALYSIS
Prepared for: _____________________
Prepared by:
1. _________; ID:________
2. _________; ID:________
3. __________; ID:________
Cloud Deakin Group Number: ________
Introduction:
Manyentrepreneursstart their operation with the confidence and keenness but if the well thought isout
budget they may find it is impossible to make a successful strategy.A budget is one of the most
important tools for guiding the business, A business of any Type; whether it is Trading, Manufacturing,
Service. A budget provides necessary information for operating within your method, managing
unlikely challenges, to know the variances and making profit. A proper budget will identify available
resources, estimates expenditures or cost, and anticipates income. Business owners must continually
refer to their budget as a method of ascertain performance against various beliefs.
Financial income and expense budget can change on a day to day basis for an organisation.
Financial budget is recorded (as annexed excel template 2020) in a budget report. A budget report
can be a documented in detail.More substantial budget reports might also include the company
owner‘s letter about financial changes in the company during the said periodand forecast for the
future.
What a Budget Is:
When running an organisation it’s easy to get stuck with day to day problems and miss the greater
scenario. Successful entrepreneursallocate time to create, understand and manage budgets, and
regularly monitor their financial situation and business performance.
A budget's definition is a judgment of an enterprise's costs and revenues for an effective period,
and its available resources. A budget provides direction to the company's objectives, and provides a
baseline for ascertain how well its estimates match its reality. A budget can also set out the
company's proposals for coping with adverse environment, and explain how capital will be allocated to
deal with them.
What a Budget Does:
Budgeting indicates present available capital, provides an approximation of expenditure and
forecasts incoming revenue. By directing to the budget businesses can measure actions against
expenditure and providing that resources are available for initiatives that gives assistance to
theorganisation growth and development. It provides the entrepreneur to focus on cash flow, reducing
costs, improving profits and increasing yield on investment. Accordingly, in the given case we can
also understand the quantum of sales and services we should select to make the profit. Also the cost
we have to slash to reduce the loss.
Budgeting is the process for all business success. It helps with both organising and control of the
funds of the business. If there is no control over disbursement, planning is useless and if there is no
planning there are no targets to achieve.
A budget is a plan to:
 authorising the funds of the organisation
 making sure that the organisation can cope its present commitments
 ensures the organisation to meet its targets and make assured financial decisions; and
 confirm that the organisations has funds for future purposes.
If operation of business without a genuine budget you may discover you’re actually just running all
over in circles and not completing your long-term targets. By taking the time now to set a budget, you
will permit time in the future and provide yourself the best way of realizing the winnings you want for
your work.
Who can Read and Usethe Budget Reports:
The entrepreneur and company senior officials are the common readers of the budget report. They
use the facts internally to create financial details and forecasts that suit the restrictions of the budget
in hopes of bringing a larger annual profit. Growth and expansion are frequently the general target
with a budget report, though the incompatible can be true in hard times. For example managers in
departments with forecasted growth might hire extra staff, while others who face limits to their
operating budget might need to stop hiring or even let staff leave. Like in our excel template with the
growth we have hired 3 new sales personnel, 2 new optometrists and 1 administrative.
Budget reports are also read by externals, such as stockholders and investors. Investors and
stockholders are interested in how a business is doing financially before making any major decisions.
It's also a useful tool for assess the company's management: If the company's real-world outcomes
are consistently changing from the budget's forecasts, it provides poorly on their decision-making and
analytical skill.
In The given Expansion Project 2020:
Cash Budget-
1) The cash is negative in April 2020 due to payment of Shop fitting and Specialised Optometry
in one shot.
2) One more reason for cash negative is fall in turnover in August 2020.
3) Last quarter payments to supplier for purchases also increased at higher rate which also
leads to cash negative.
4) Depreciation (decline in value) is non cash item and hence not affect the Cash Budget.
Income Statement Budget-
1) The payment of Salary to Optometrists staff increased at higher rate which leads to Increase
in loss.
2) If salary to Optometrists staff reduced then Company can choose the sales level of Feb 2020
and Nov 2020 which result in Profit.
3) The monthly depreciation has been taken in calculation of Monthly Profit before tax and after
depreciation.
Thanks
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 TOTAL
OPENING CASH BALANCE 2,14,850 1,09,267 93,509 74,418 (29,894) (50,167) (76,669) (1,23,830) (1,55,470) (1,77,789) (2,03,468) (2,14,195) (5,39,437)
CASH INFLOWS:
Cash Sales 49,060 54,006 52,402 50,798 50,280 44,138 36,250 38,073 49,392 56,721 63,040 66,105 6,10,263
Collection from Debtors 11,315 11,375 10,746 10,245 9,875 8,889 7,586 7,274 8,973 10,624 12,060 12,930 1,21,893
TOTAL CASH AVAILABLE: 2,75,225 1,74,648 1,56,657 1,35,462 30,261 2,860 (32,833) (78,484) (97,105) (1,10,445) (1,28,368) (1,35,159) 1,92,719
CASH OUTFLOWS
Payment of Suppliers 20,868 20,345 20,693 20,243 19,634 17,983 15,983 16,192 19,138 22,527 25,033 25,803 2,44,441
Initial Setup cost 74,594 - - - - - - - - - - - 74,594
Purchase of Shop Fitting - - - 63,960 - - - - - - - - 63,960
Purchase of Specialised Optometry - - - 10,656 - - - - - - - - 10,656
Annual General Expenses - - - - - - 4,518 - - - - - 4,518
Bank Charges 87 - - 87 - - 87 - - 87 - - 348
Office Supplies 143 143 143 143 143 143 143 143 143 143 143 143 1,710
Council Rate - - - - - - - - - - - 990 990
Rent 9,615 - - 9,615 - - 9,615 - ...