Financial Management for Non Profit Organizations Assignment Sample

• Subject Name : Accounting and Finance

Team Budgets or Financial Plans

The name of the organization is Big Red Bicycle Pty Ltd. and it manufactures bicycles that are further being sold to the retailers in the market of Australia. The company is basically based in Bendigo, Victoria. The major objective of the company is to accomplish a net profit of $1000000 by carrying out its operations in an effective and efficient manner. Rise in wage expenditure and ineffective sales occur because of downturn in the economy are considered as the major risks that may affect the achievement of goal. Moreover, the company has taken into consideration to expand its manufacturing operations to overseas in order to acquire advantage of reduced expenditure. Also, the company is making efforts to diversify its product line to decrease the ineffective sales of any one product. The name of the team is senior management whose major responsibilities are concerned with formulation of budgets and policies that will help the overall organization in accomplishing the set objectives. This team plans and direct the individuals to work on various tasks. It manages overall financial operations and work in collaboration with other groups to achieve desired targets. Long term budgets are required to be implemented and monitored to ensure that the actual results are as per expectations.

Making Changes to Team Budget or Financial Plans

This spreadsheet based financial projections are prepared to evaluate the actual performance in terms of these projections. The main purpose of this master budget is to identify the areas from where the revenue is coming and also the areas where the company is spending. To check whether the planned budget is achievable or not, the budget plan is required to be clarified with the senior manager or other relevant person in the company (Carnall, 2018). This financial plan is clearly written, very much accurate and is in the concise format. The listed outcomes are achievable and also, the contingency planning is at place in the system meant for risk control procedures. The financial plan has been developed in accordance with the company’s layout requirements and can be easily understood by the team. All information, calculations and projections are found to be very much accurate. The current financial plan is easily understandable and is quite logical that will help the team members in obtaining understanding in the right way covering all the major aspects, for example, the team members are aware about the activities that have been assigned to them under the covered budget. The budget also has all the major supporting documents like spreadsheet projections for the objectives that are required to be accomplished (Zietlow et al., 2018). All the jargons and terminologies are effectively described and all the members are aware about the procedures meant for accomplishing organizational objectives and goals. General and administrative expenses are required to be adjusted in order to enhance profitability of the organization (Brunsson & Olsen, 2018). In order to determine the areas that can be adjusted to make further improvement in the team financial plan, the management must negotiate with the right person working within the organization that may include frontline manager, supervisors, etc. They may also discuss areas with the accountants, financial controllers or managers. 

Contingency Planning

The financial plan is considered as a framework that is being designed or formulated for the company as a whole to carry out operations within the organization (Dayan et al., 2017). However, if they are found to be no longer achievable or people are facing difficulty in doing their work as per the plan, then there is a need of making significant changes in them in order to ensure that the organizational goals must be achieved at the end. At this place, contingency plan is considered as an effective tool. There are various types of contingency plans like requirement for labour cost reduction, measures for reducing expenditure, identifying other options for raising finance, successive planning, determination of risk and management processes, etc. (Bokhari, 2016). There is a risk with regard to changes in the cost and price of the product due to various changes in the economy. Unexpected rise in the cost of input and in the salary of workers and employees not only raise the expenditure of labour and overall production but may also led to the rise in cash outflows. It would be considered beneficial for the organization in to store large amount of inputs and organize contractual arrangements in place. Mismanagement, theft and fraudulent activities being performed in the organization may lead to rise in cost and therefore affects the cash flows of the business enterprise. In order to protect the organization from such kind of financial losses, effective security measures are required to be implemented. Implementation of contingency plan would help the organization to restore its profitability and sustainability for a longer period of time.

Financial Management Approaches

The information embedded in the financial plan must reach and should be communicated to the team to successfully implement it (Attaran et al., 2019). The staff must have proper access to the desired systems and resources so that the staff can perform their tasks effectively and efficiently. A meeting will be called to disseminate the information so that their feedback on the same would also be generated. The staff must be well qualified and trained, protected record keeping systems are required, proper amount of funds, well managed equipment and machinery, effective electronic management system and sufficient time to meet the deadlines are required. It is considered as the major responsibility of the manager to ensure that staff must have right amount of resources on time in order to effectively manage different processes of the organization. The staff would be given training to perform their tasks for which they are responsible (Aguinis & Glavas, 2019). The staff performance must be monitored regularly in order to check whether there is lack in their performance. Also, help desk or some other experts must be provided to the staff and information sessions must be held in the organization to enable them to perform assigned financial management roles. There are different types of resources that are required for proper execution of financial plan that includes systems and resources such as financial resources, human resources, physical resources, expert advice, software and various record keeping systems.

References for Financial Management for Non Profit Organizations

Aguinis, H., & Glavas, A. (2019). On corporate social responsibility, sensemaking, and the search for meaningfulness through work. Journal of management, 45(3), 1057-1086.

Attaran, M., Attaran, S., & Kirkland, D. (2019). The need for digital workplace: increasing workforce productivity in the information age. International Journal of Enterprise Information Systems (IJEIS), 15(1), 1-23.

Bokhari, S. A. (2016). Contingency Planning. The Innovation Tools Handbook, Volume 1: Organizational and Operational Tools, Methods, and Techniques that Every Innovator Must Know, 107.

Brunsson, N., & Olsen, J. P. (2018). The Reforming organization: making sense of administrative change. Routledge.

Carnall, C. (2018). Managing change. London:Routledge.

Dayan, R., Heisig, P., & Matos, F. (2017). Knowledge management as a factor for the formulation and implementation of organization strategy. Journal of Knowledge Management.

Zietlow, J., Hankin, J. A., Seidner, A., & O'Brien, T. (2018). Financial management for non profit organizations: policies and practices. John Wiley & Sons.

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