1.

1
On the Precision group webpage, access the Bounce Fitness Option. Login with
the details, the information on the budget and the financial plans of each center
can be found at the Bounce Fitness website under the Performance tab. Under
the performance tab, there are different folders for each center and head office.
On selection of one of these centers, the Financial tab can be clicked to access
the budgets of the centers.

1.2
Different fitness clubs across the country have exhibited quite variant financial
performance this year. Some had a brilliant performance while others did not
do so well. Issues for underperformance cover a wide variety of reasons from
poor cash flow management to the reduction in amount of new members. Here
is a brief analysis of the budgets and financial performance of various centers:
Brisbane
The Brisbane center has not been able to gather substantial profit but has not
done poorly either. Its contributions to the head office will be limited
depending on the forecast and budget for the oncoming year. It has clearly not
been able to increase its net income after tax by 10% as evidently projected in
their Business Plan.
On the mark results all over prove that their policies and strategic framework
has worked well and operations have been effective and efficient. Advertising
apparently has been haphazardly managed and does not coincide with the
forecasted figures. Exceeding the budget is not an issue if there is a reason and
a purpose however, such high and low rides as against forecasted figures
should be well investigated and avoided in future.
Selling merchandise can be easy and is a cash cow for Bounce Fitness. It brings
in less revenue but is sold in large quantities to make up for the profit margin.
Brisbane should focus more on selling their merchandise, invest a bit on redesigning their merchandise if required and also focus on attracting casual
attendees. Special packages, offers or weekly prices should be used to do so.

Cairns
Bounce fitness in Cairns is certainly underperforming. Since the data from
previous years is not at hand, it cannot be commented whether the issue is with
budgeting or with the performance. Considering this year only, its performance
is far away from the forecasted figures. Ending cash balance is not in
accordance with what it was supposed to be. Cash balance after expenditures
show a clear heavy loss. This could be because of very low starting cash
balance and advertising costs higher than projected. This center can apparently
make no contributions to the head office and would need cash boost from the
head office instead, to start the next financial year.
Melbourne
Melbourne center has performed to the expected mark. Accuracy in forecasting
is quite visible as there are no wide variances from the projected figures.
Casual attendance was higher than expected which shows that there is a
potential in that segment. More advertising and suitable packages will enable
this center to tap into that resource and let more cash in over the next financial
year.
The only issue is the expenditure in certain areas such as telecommunication
costs, which were quite high as compared to the forecasted numbers. A lot
more than expected money was spent on leasing or hiring equipment. As long
as the targets have been achieved and the variances have a valid reason, these
can be tamed to produce finer results in the near future.
Sydney
Initial startup cash was much higher than budgeted. This could be because of
great performance the year before. Sydney has shown strong business demands
and sufficiently satisfactory performance. Although revenues were higher than
projected, operating costs were lower than expected. This is a matter that must
be investigated.
If the size of the revenue was more than projected why were operations cost
lower. Cost of payroll, equipment hire and utilities were much lower than
expected. Positive or otherwise, variances represent incongruence in planning
and actions. However, these lower costs might also represent great individual
productivity, efficient operations and strict control on expenditures. This, in

turn, could have been affecting the service quality though. The centers
manager is responsible to find the reasons and causes of these variances.
Head Office
This center is their major revenue earner. Most profits, at least this fiscal year,
have been earned by this center. The cash inflow and most of the expenses were
in line with the budgeted figures, throughout the year. Initial cash balance was
much higher than what had been projected, this resulted in higher cash balance
at the end of the year. This remarks that most profits were not due to extreme
performance, at least of this year. Payroll expenses were less than expected.
Although it made high profits what caused lower payroll expenses must be
looked into. Utilities and equipment hire costs were more than what had been
predicted. This could be because of more demand or it could have a different
reason altogether.

1.3
Center manager is the autonomous head of the center and the chief decision
maker. However, when that center is considered a part of a larger group, which
it actually is; thus, the decisions pertaining to the company are to be authorized
by his senior the national GM of operations. If the decisions, changes or new
plans include a funding from outside regular budget, the GM and the national
finance head, both will have to be chased for approval.
Thus, it will be the GM with whom he will have to negotiate any major
changes in budget or funding specific plans. They are permitted to spend up to
$50 in small expenditures and are also able to spend up to $500 of budgeted
funds for expenditures like equipment lease or utilities. Any expenditure above
these costs will need to be approved by the general manager.
The GM of Australian operations has been vested with the authority to approve
any funding of up to $5000. Anything that requires more finance will have to
be approved by the CEO of the group. CEO has to adhere to a limit as well
which has been set at $10,000. The board comes into direct involvement if
there is a plan, which needs finance of more than that. Any major change, plan
or decision requiring monetary injection of more than $10,000 will have to be
presented to the board members and their approval will be sought.

1.4
Contingency plan is not only about internal mishaps it also is directly related to
external factors such as economy and inflation. Although Bounce Fitness
bolsters a robust contingency plan, there are certain things they can include in
their planning and design their respective solutions if the day may come.
Contingency funding can be put to sudden test for various reasons cost
increase, interest rates increment, currency value fluctuation. There should also
be a plan to refill the contingency fund, if used. That is why it is important for
all the centers to contribute to the HO so as to create another fund or increase
the size of the existing one if necessary.
Unions revision of pay rates on a regular basis, governments regulation to
increase wages or sudden reduction in productivity due to a variety of reasons
can activate the contingency funding to one or all of the centers.

1.5
Most of the employees are not interested in financial details of the company for
two reasons one, they find it difficult to understand the way in which
financial data and jargons are represented; two, when they see figures in
millions of dollars, they feel dissatisfied thinking about the amount of money
made by the owners and possibly, top level managers assuming that all this
money is going in their pockets.
However, financial data has one other purpose to show the quantity of the
performance. This is exactly how and why it should be communicated to the
team members. Obviously, most staff members do not need to go into EBITDA
and Liquid Assets sort of details but they can always find their individual
performance interesting. The idea is to provide them this complex information
in a form where they can relates their job and role to the figures.
This is the duty of either finance head of the center or the manager. They must
prepare a simple and effective presentation and twice a year explain what the
targets were, what the achievements have been and what are the expectations
from the next finance period. Breaking down company finance information into
small figures pertaining to individual employees will take them where they

want to be for example, if the staff is told that this year our Net profit was
supposed to be 72% of the Gross Profit and the actual was 68%, they know
they didnt do up to the mark but this doesnt explain them anything. On the
other hand if they are told that if they could only get 22 more new members or
reduce the electricity usage for 10 minutes a day, they would have achieved it;
they would realize it better as they know where to channel their efforts.
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
Becoming a manger is not the end rather it is just another beginning. One is not
appointed a manager when he has mastered everything; he is chosen to manage
when he has the attitude and capacity to learn how to do it. Once he has learnt
everything, it is time for him to move to the next level. Thus, managing is a
learning process as well, just like working at any other level. One faces new
problems, challenges and responsibilities every day.
Whatever roles they play, managers need constant support, knowledge, tools,
training and development to make them efficient and more effective. They not
only have to manage the task at their hand but also the team. For anything and
everything done by the team, their manager is held responsible and has full
accountability. At times they have to act as friends, at times they have to be the
teams caretakers and at other times they have to do their job as well.
It is the job of senior managers to look after the needs, demands and
requirements of junior or sub-level managers. They must provide them with
knowledge and tools to handle the pressure and cruise out of difficult
situations. Finance and budgeting requires knowledge, skills, planning and
experience to handle it individually and efficiently. It is a place where
continuous training and learning is required. To save training costs, it is
sometimes useful to assign the manager as a buddy to a senior manager for
sometime. Mentoring is a great way to train as it takes you straight to the
problem, not the classroom.
Regular sessions with senior managers, online courses, training material,
meetings with finance manager etc. are a few things that can be arranged if the
manager has the aptitude and willingness. However, finance and budgeting is

not something one masters overnight. It will need time and patience from both
sides and efforts as well.

1.7
Bounce Fitness webpage does not indicate any requirements for the Taxation
Office and/or the GST. These ATO payments include BAS. PAYG,
Superannuation and IAS. They have to be included and can be regulated as
following:
1. BAS and Superannuation paid on a 30 day/monthly cycle
2. PAYG and IAS paid on a 90 day/quarterly cycle
Since there are numerous centers across Australia it would be beneficial to
commence paying BAS monthly. If there are any flaws doing so, they will
emerge at the very beginning and it would be beneficial to keep a track of
expenses like tis every month.
The ATO will be delivering forms and required paperwork for the cash returns.
Once these cash returns have been received from the manager, BAS needs to be
prepared by the finance department. Before BAS can be dispatched, it will have
to be authorized by the national GM.

1.8
Finance department deals less in money and more in numbers and paperwork.
Thus, the quality of data collected and ability to analyze it in a manner most
suitable and profitable to the nature of the business, are two factors that make
any finance department either the heart or the appendix of a human body.
Bounce fitness observes a strong finance structure where earnings and
expenditure data is accumulated daily and sent to the head office. This ensures
daily performance tracking of the overall business. Meetings are held quarterly
of all the managers and finance heads in Cairns. Apart from that regular team
interactions and conferences are held within the centers and among the centers.
Collection and mapping of data at such time frame is a tedious but rewarding
process. Each day, it can be assessed, how deviated the business is from its
goals and if the deviation is large or too negative, what can be done today to
overcome the peril rather than doing it once a month only.

1.9
A perfect plan is every businessmans el dorado. There are perfect plans but
they last only for moments and then they require just another minor change. As
the dynamics of time, market, banks and companies change, so does the plan
and its contents.
Plan is not changed because it is poor and a better one is required. It was
always good, it just has to adapt to the new market regulations and these
change every minute. Bounce fitness can be a bit sharper about certain aspects
in their financial plans, like:
1. Contingency Planning more focus on payrolls, expected wage
changes, inflation, economy etc. they also need to plan their next step
once the existing contingency fund has been exhausted.
2. Staff Education and Development training should be directed towards
managers as well. They should be nourished and developed for what
they are expected to do and achieve. Finance information
communication to the staff. Managers should be trained to do that or
external party should be contracted to conduct that twice a year.
3. Budget Forecasting the budget forecast of different centers showed
huge difference in the results of the different centers. Though this can be
attributed to different locations, there is a lot each center can learn from
the success as well as the failure of a particular center.

2.1

If the product or the item sold or consumed has not already got the GST
included, the organization will have to pay the GST to the Australian Taxation
Office. 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. This code is like a virtual address provided to any Australian owned
business operating within Australia and/or overseas. It lubricates the
transactions between businesses and all the levels of government. It is an
essential requirement to operate within Australian goods and services exchange
system. It also signifies that the business is genuine and is under government
record system for any legal issues or disputes that may occur.

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