Brendan and Margaret Elliott have purchased a caf business, called Caf Paradiso, because of its great location
Question:
Brendan and Margaret Elliott have purchased a caf business, called Caf Paradiso, because of its great location in the Shopping Centre with the highest number of passing shoppers which is supported by a large and growing local population. There are a limited number of cafs within the centre and with both Brendan's and Margaret's experience with having successfully operated and owned a number of cafes in Australia and overseas they will be able to increase their market share from 35% to 40% in 12 months. The purchase price of the business is $170,000.
The cafes that are operated by Brendan and Margaret Elliott use manual systems for managing its finances. The Chief Executive Officer at a networking function had a conversation with the market leader in the sector. They advised that they updated their system to an Enterprise Resource Planning System (ERP). They have also said that adopting the new Enterprise Resource Planning System (ERP)has made the company more competitive.
The organisation wants to make sure that they choose the Financial management system that suits the organisation's financial business requirements (refer to financial plan) and goals, so that there is effective financial administration. To do so, the CEO of the organisation have given you the task to establish financial system requirements.
The organisational goals regarding the new system to be implemented are as follows:
The financial-management system should:
- streamline invoicing and bill collection
- eliminate accounting errors
- minimise record-keeping redundancy
- ensure compliance with tax and accounting regulations
- help personnel to quantify budget planning
- and offering flexibility and expandability to accommodate change and growth.
In this part of assessment task, you are required to establish financial system requirements that comply with organisational and regulatory requirements.
To establish financial system requirements, you will first need to analyse existing financial plan and organisational goals. After detailed analysis you will need to identify and document the following in the template provided:
- Financial system requirements considering the financial plan and organisational goals including:
- Accounting and Financials
- Budgeting
- Bank Reconciliation
- Cash Flow Management
- Payroll
- ERP to Bank Interfaces and Reconciliation
- Human Capital Management
- Payroll Integration
- Employee Performance Management
- Reporting and procedural requirements:
- Consideration of legislation and codes of practice relating to:
- financial record keeping
- trust accounting
- taxation
- auditing
- Security mechanism for internal financial audit controls in system specifications to:
- safeguard its assets;
- ensure financial information is accurate and reliable;
- Risks to financial viability
- Calculate financial rations
- Cost contingency strategies to manage risk:
- need for insurance, including:
- public liability
- property
- personal indemnity
- personal accident
- sickness assets.
- need for insurance, including:
- Consideration of legislation and codes of practice relating to:
- Accounting and Financials