1.

1
To access the financial documents, one would be required to visit the precision
group website and access the Bounce Fitness Tab. Login with the provided
details. Select the performance tab and this will lead to the list of various
centres. As each centre is clicked, its finance and budgeting data can be easily
accessed.

1.2
Depending upon the size of the club, demographics and competition of various
cities across Australia, different clubs have produced different monetary results
this year. It is very important for the managers to identify and analyse the
causes behind varied performance and how to change our strategies and
operations in order to achieve finer and consistent results. For better or for
worse, unpredictability is a business worst enemy and one thing all the senior
managers dont want to see. Underlying is a brief overview of how different
centres have performed:
Brisbane

Less than expected performance

Sufficient but not according to the projections
Limited contribution to the head office
Year end profit scale not up to the desired mark of 10% growth
Advertising costs higher than forecasted
Needs to sell retail products more
Should spend more time on designing new packages and promotions
Staff should recommend more fitness related products to our members

Cairns
Poor performance
Success rate in financial terms was very low
Either the budgeting was inaccurate or performance was highly
incongruent
Heavy losses have been exhibited
Obviously, no contribution to the overall company budget
Would instead need cash flow from the head office

 Cash balance was not in accordance with the projected figures

Expenses and utilities costs need to be investigated

Melbourne

Commendable performance
Sufficient results as forecasted
Accurate forecasting and predictions
Heaps of casual attendees
Needs to develop a new marketing and promotions strategy to attract
more casual or weekly members
Telecommunications cost was higher than expected, that has to be
looked into
Equipment hiring and leasing costs were way higher than projected, it
must be explained
Although overall financial targets were met, variances do exist in certain
areas, they should be addressed to the head office
Sufficient contributions can be forwarded to the head office and to the
contingency fund

Sydney
Initial cash at the commencement was much higher than projected, could
be because of last years performance or high cash reserves
Very strong business demand in this area
Superior performance and strict operational management is visible
Profits were high, new member signups were high but operating costs
were way lower than expected. This must be addressed to the head
office
Cost of payroll, utilities and equipment hire were below the estimated
mark and thus, have to be understood as to whether they affected our
service quality
Hefty contributions to the company can be made
Large cash reserve available to start the next financial year
Head Office

 Main revenue centre for the company

Majority of the net profits are received from this centre each year
Cash influx and most expenses were as projected which shows
efficiency and command
Initial cash balance was very high, as a result, ending cash reserve looks
very appealing
Like Sydney, performance was excellent, more members were enrolled
than expected but payroll costs are lower than what were forecasted
This is a major issue which is directly linked to our service delivery and
total customer satisfaction
This must be investigated and addressed. If the projections are not
healthy enough, they must be corrected and if to increase profit margins,
service quality is being compromised, it should be known and rectified.

1.3
Centre manager is the head of operations of a club
He has the authority to make decisions pertaining to clubs everyday
operations
Thus, he would require to authorise expenditures related to centres
everyday upkeep and customer requirements
Each centre manager has the authority to approve of a $50 expense for
goods and smaller products and up to $500 of budgeted amount on
major decisions such as equipment leasing or installation of a new
machine
Anything that requires more than $500 in funds should be presented to
the National Operations head or the GM.
GM has the authority to approve of any expenses up to $5000 any given
day
If there is a requirement of more than $5000, it must be presented to the
CEO for scrutiny and authorisation
The CEO of Bounce Fitness can approve up to $10,000 in one
transaction
If a major project or design plan requires any more than that, the plan
and purpose must be presented to the board for its approval

1.4

Each organisation is required to hold a contingency fund. This can be in the

form of cash reserves, high-demand assets or even shares and bonds. This fund
is always ready for the times when crisis takes over without notice. When a
company carries out operations in different cities, employing hundreds of
people and has one of its legs in the market among various competitors and
legislative bodies it is hard to predict what kind of complication may arrive.
This fund is specifically designed and maintained for such times.
The amount of the fund should be revised at least twice each year depending on
the size of operation and various market variables like interest rates, currency
exchange rates, inflation and market share of the company. This shows why
each centre should make it a duty of theirs to contribute regularly to this fund.
The board and the chief financial officer should regularly discuss it and assess
the possible risks that may trigger the activation of this fund. It should also be
kept in mind that if it may so happen that this fund has to be deployed, how
will it be re-installed; meaning, refilling the used amount.

1.5
Centres must spend sometime communicating their and companys financial
performance to the employees. If financial information shows the management
how well they have performed, it should do the same for the employees.
Although employees are not very keen on the financial reports and numbers as
they are complex and take more than just a simple look to understand what is
going on and what to make of it; they will feel more responsible if only they
could relate themselves directly to the centres and companys financial
performance.
Thus, it is important for a centres manager and its financial controller to
prepare an easy to comprehend report, a presentation and a brochure for all the
staff members and take time to walk them through this. Once the employees are
able to see their efforts in numbers, they will realise where they are and where
they want to be as a team and as a company. It also fosters in them a wider
understanding of the operations of the company and educated them more if
they want to take on the next role within the company tomorrow.

For this it is important to communicate financial forest to them in a simple and

building blocks manner. They must realise the importance of it and should find
it interesting to understand and spend time for. Various forms of
communication can be used regularly to communicate minor changes or pieces
of information like e-mails, newsletters, and print media for internal usage or
memorandums.

1.6
Manager is just another employee within the organisation. Although he has
much more to do and look after than a front line staff member but he stands the
same ground as any other employee under or above him. Managing is a process
of learning and discovering. It is a level where you look after your job and that
of others as well. Not only you have to get your tasks done to the best level,
you must ensure the same for the rest of your team. It is a challenge more than
it is a privilege.
Managers therefore, need regular knowledge support, learning facilities, skills
enhancement techniques and tools and resources to achieve their personal and
organisational goals. It is the job of senior management to facilitate these
requirements for them. They must provide them with all the support and help
they need to take care of wider aspects of the operations and at the same time,
prepare them for their next role within the company. Finance and budgeting is
an area where no one becomes a master overnight. People have to study hard,
learn and practice for years to be able to make decisions on their own and take
the full responsibility of those decisions.
Finance manager and senior management should hold regular meetings and
sessions with the managers to communicate with them on how it works and
how decisions are made. Through e-mails, and manuals, they must be pushed to
learn at all times. It is a process where efforts, time and patience is demanded
from and by both sides and all must adhere to this fact and help each other
move forward.

1.7

There is no information from or in regards to the taxation office on the Bounce

Fitness Website. This also excludes GST. These ATO parts include BAS, PAYG
Superannuation and IAS. They can be regulated as follows:
1. BAS and Super can be paid on a 60-day cycle
2. PAYG and IAS can be included on a 90-day cycle
This will help the head office to test this model and discover any flaws at an
early stage and then coordinate it to the best-suited demands. All the forms and
paperwork will be delivered by the ATO and will be forwarded to the finance
department by the GM.

1.8
Data is useless if not processed into useful information. Vast amounts of data is
collected by each centre daily and then delivered to the head office. It is the job
of the head offices finance department to analyse and apply this data in a
manner that can help manager to make better decisions and make choices to
attract more revenue.
Meetings should be held regularly to discuss financial performance, strategies
that dont work so well, modifications that should be introduced and how to
transfer those strategies, which work best from one centre to the other.
Teleconferencing is the best way to go as it saves enormous amounts of time,
money and efforts.
Regular e-mails, newsletter exchange and other forms of communications at a
frequent rate should be very helpful as well. all the managers should also stay
in regular contact with their finance managers and that of the head office.

1.9
Plans change as the market and its conditions change. These days, they change
every hour and thus plans outdate very quickly. It is therefore important to have
extremely flexible plans to change them frequently and mould them according
to the desired results.

Plan has to be altered frequently and efficiently to meet the market demands
quickly and to the best possible level. If not done in this manner, competitors
will leave no space by the time one realises what actually has to be done.
Bounce Fitness group has a strong financial board and fosters a robust planning
but there is always a room for improvement. They can still improvise on their
contingency fund, its planning, amount allocation and risk assessment for all
the centres across Australia. Next up, education and development of employees
and related contractors and suppliers. Keeping them informed and educated
will help achieve results faster and with more accuracy and performance levels.
Finally, forecasting the budget. Forecasting is extremely crucial to any
organisation and directs the efforts and operations throughout the year. It is a
guide to live by all round the year. Thus, it has to be accurate and sensible at all
times.

2.1
Organization will have to pay the GST to the Australian Taxation Office if the
product or the item sold or consumed has not already got the GST included.
This GST is charged according to the recipients payment paid by the employee
to the organization for extending that fringe or exempt benefit.

2.2
ABN defines the Australian Business Number, which is a distinctive 11-digit
code. It greases the transactions between businesses and all the levels of
government. It is an essential requirement to operate within Australian goods
and services exchange system.

3.0

Head of Account
Assets
Liabilities
Capital / Equity
Income
Expense

Classification Code
A
L
C
I
E

Head of Account
Cash in Hand
Commission Income
Utilities
Vehicles
Account Receivable / Debtors
Account Payables/ Creditors
Capital
Sales
Cash at Bank
Purchases of Goods
Advertising
Goodwill
Rent
Income Tax
Furniture
Advanced Received from Customers
Advance Paid to Suppliers
Drawings by Owner of business

Classification Code
A
I
E
A
I
E
A
I
C
E
E
A
E
L
A
A
L
C