1.

1
Accessing the Bounce Fitness financial documents is possible through
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

Insufficient performance
Limited contribution to the head office
10% growth not achieved
Advertising costs higher than forecasted
More retail goods to be sold
Launch new packages and promotions
Upselling and promotions should be encouraged

Cairns

Humble performance
Low financial success
Variances are high and incongruous
Heavy losses have been exhibited in financial terms
No contribution to the head office
Need of cash flow from the head office
Cash balance was not in line with the projected figures
Expenses and utilities costs need to be investigated

Melbourne

Admirable performance
Almost balanced results
Accurate forecasting and predictions
Lots of casual attendees
New marketing and promotions strategy to attract more casuals
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
Satisfactory contributions can be forwarded to the head office and to the
contingency fund
Sydney
Cost of payroll, utilities and equipment hire were below the estimated
mark. Variance should be investigated.
Substantial contributions to the company
Large cash reserve available to start the next financial year
Initial cash at the commencement was much higher than projected,
Resilient business demand in this area
Superior performance and strict operational management is evident
Profits were high, new member signups were high but operating costs
were way lower than expected.
Head Office
Chief revenue centre for the company
Mainstream profits have been received from this centre
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
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 power to make decisions at most levels
He will be the one 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
A contingency budget allows us to react more quickly to any unforeseen events
that impact our business. The contingency budget is set based on future risks
and we should ensure that we have a mechanism by which to authorize and
monitor the use of the funds. The contingency fund should be held separately to
our main budget. If something happens a risk materializes, we then ask for
approval from the board and our CEO to spend the money from the
contingency fund. Its not there, as a line in our day-to-day budget spreadsheet,
and thus it takes planning and effort to design and implement it. The
Contingency Fund is established to:
Address an unanticipated, significant revenue shortfall in the
main budget

 Provide temporary funding for an unanticipated, nonrecurring,

significant expenditure that cannot be absorbed within the main
budget
Provide temporary funding for an unanticipated, significant
increase in our operations or maintenance that cannot be absorbed
within the main operating budget
This fund is always ready for the times when crisis takes over without notice.
This fund is specifically designed and maintained for such times. A
contingency fund is simply a reserve fund we set aside to handle unexpected
debts that are outside the range of the usual operating budget. This model of
maintaining reserve money as protection against possible loss in the event of an
emergency situation can be utilized in a number of situations. A few things to
keep in mind:
Nature of contingency fund The contingency fund should be liquid and
should be such that it can be converted into money without any loss of value.
Contingency fund should be in saving accounts, liquid mutual funds or fixed
deposits (sweep-in fixed deposits) linked to saving accounts
Self-Discipline on contingency fund Centers should be disciplined to not use
the contingency fund for normal expenses. Also the contingency fund should be
restored back after the contingency fund has been used for some emergency
need(s)
Avoid long-term investments as contingency fund One of the important
criteria of contingency fund is accessing the money without loss in value of the
money. Long term investment, stocks, mutual funds, etc., should not be used as
contingency fund, as during emergency long-term investments might loose in
value when converted into money.
Regular review of contingency fund We should review our contingency fund
regularly to modify it in accordance with the financial status of the company,
projects undertaken and the market situation.
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. Whether
contingency funds are used for emergencies or for major expenditures, our rule
to follow is that whenever funds are withdrawn from contingency accounts
every effort should be made to rebuild the fund as quickly as possible. Thus it

becomes imperative for the centers across the country to realize the need of this
fund and contribute towards it as and when possible through their profits.

1.5
We believe that the employees who feel part of the bigger picture and are
pulling in the same direction as we are, will not only have a positive impact on
the bottom line, but also give our company a competitive advantage. Therefore,
centres must spend sometime communicating their own and companys
financial performance to the employees. Each clubs manager will manage all
communications to our employees for the finance, corporate development,
legal, and public policy teams, including news and updates about our financial
performance, litigation, acquisitions, investments, policy issues, and charitable
activities. Employees will feel more responsible if only they could relate
themselves directly to the companys financial performance.
We believe communication within an organization will consistently work
toward the overall benefit of each employee and of the organization in general.
We see the results of this in improvements in productivity, the quality of
products/services, morale and ultimately, profitability. Our goal then is to build
and maintain a communications system that allows information to flow freely
throughout the organization. The first prerequisite as mentioned above is an
unerring commitment on the part of management to both establish and foster
the plan. This participation by senior management is mandatory so that
management can demonstrate a willingness to be an integral and responsive
part of the organization.
Ultimately, a plan succeeds on a day-to-day basis so its implementation
becomes an ongoing process. There isnt a right way to communicate; there are
only successful and unsuccessful ways. Further, what is successful today may
not be so tomorrow for reasons ranging from changes in the personnel of an
organization to changes in the competitive environment to neglect of the plan
to factors totally external to the organization and its employees.
Thus it is vital for the center manager and the finance controller to
communicate the performance, issues and decisions to all the team members at
regular intervals.

1.6

The idea behind having a manager is that we facilitate everyone working

toward common goals. A manager should strive hard to reach all objectives of
an organization. Objectives can range from promoting current employees to
changing the way that a function of your business operates. It is the managers
job to help evaluate all of the different objectives and keep them in balance. It
is of extreme importance to be efficient in all daily dealings. That is, that our
managers need to be able to accomplish tasks within a reasonable amount of
time. On the other hand, it is equally important for them to be effective in their
work. Being effective means that their output is correct the first time.
Our managers are expected to fit in these ten roles at any given time:
Figurehead: The manager is seen as a symbol of status and
authority.
Leader: Duties are at the heart of the manager-subordinate
relationship and include structuring and motivating subordinates,
overseeing our progress, promoting and encouraging their
development, and balancing effectiveness.
Liaison: Describes the information and communication obligations
of our managers.
Monitor: Duties include assessing internal operations, the centers
success and the problems and opportunities, which may arise. All
the information gained in this capacity must be stored and
maintained.
Disseminator: Highlights factual or value based external views into
the organization and to subordinates. This requires both filtering and
delegation skills.
Spokesman: Serves in a PR capacity by informing and lobbying
others to keep key stakeholders updated about the operations of the
organization.
Entrepreneur: Roles encourage managers to create improvement
projects and work to delegate, empower and supervise teams in the
development process.
Disturbance handler: A generalist role that takes charge when an
organization is unexpectedly upset or transformed and requires
calming and support.
Resource Allocator: Describes the responsibility of allocating and
overseeing financial, material and personnel resources.
Negotiator: Is a specific task, which is integral for the spokesman,
figurehead and resource allocator roles.
Being of such value demands continuous support, learning and resource

development for our managers and we are always working hard to make them
their best. It is our senior managers and CEOs responsibility to nurture and
develop our managers with superior problem solving skills, providing them
assistance when required, mentoring and coaching them and helping them build
wider networks and relationships. We believe that developing people is less
expensive than firing them. By understanding their demands, behavior and
career prospects we can align an employee's motivations with the company's
mission, including our managers.

1.7
Setting a short payment cycle initially will help the finance department to
figure out the flaws and loopholes in the process at a stage where it is still
manageable and looses are minor. Thus the below planned cycle should be
sufficient enough to start with. All the required documents and paperwork will
be supplied by the ATO to the manager who will then forward it to the finance
manager.
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

1.8
Data not only helps us to formulate strategies, but it also becomes a guide to
determine how businesses should best utilize their resources. The quality and
quantity of data that we collect as a business over the years, and how we decide
to use it, will strongly influence our market position and sustainability.
Collecting and analyzing data also assists us in:

Basic Research and Development

Identifying problem areas in our operations
Identifying program and laying the rules
Developing and evaluating programs, rules, and standards
Evaluating new technologies

 Allocating budgets to various projects and demands

It is the responsibility of each operating department to collect and gather data
according to the set guidelines and in correct form on the computer. This
enables the center manager to access it readily and analyze it according to our
business demands and decisions pending. He is then dutiful to prepare timed
reports that can be delivered to the head office. Thus, the head office is able to
track our performance on a daily basis, which gives us more time to think and
make decisions than it would otherwise. This helps us in knowing our position
day after day throughout the year.
Online meetings, newsletters, e-mails, teleconferencing are available these days
to foster speedy and effective communication. These resources must be
deployed to eliminate high meeting costs and save time. Managers can discuss
the information and make informed decisions based on the figures and help
each other out on major issues.

1.9
Plan has to be altered frequently and efficiently to meet the market demands
quickly and to the best possible level. There always exists a real and direct
opportunity to create positive change in our business by making their budgeting
and planning more effective. The following are the way through which we can
make our budgeting and finance more efficient and productive:
1. Align the budget with company strategy
2. Increase the accuracy of forecasting, planning and budgeting
3. Improve company agility with effective budgeting, planning and review
4. Provide better insight to company-wide performance
5. Improve the quality of the budget process
Also, incorporating the following ideas, we can improve further, on the quality
of our budgeting process. A quality process is the one that:

Aligns the budget to an actionable strategy

Promotes accuracy
Increases organizational agility
Deepens operational insight for everyone involved and for the
company as a whole

Further, it is advisable that contingency fund allocation, planning and refilling

aspect should be considered, payroll should be looked into and certain aspects
of budgets should be communicated to staff members regularly.

2.1
If the GST is not already incorporated in the price of the goods or services sold,
then it is the duty of the organization to pay the GST to the Taxation Office or

ATO. 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 characteristic 11-digit
code. It eases the transactions between businesses and all the levels of
government departments pertaining to that particular business. It is an essential
requirement to operate within Australian goods and services exchange system.
A business possessing this code also enables the dealers and suppliers to be
sure of the genuine existence of the organisation and that it is on the records of
the Australian Federal Government.

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