1.

1
To access the financial documents at Bounce Fitness website, one needs to access the
Performance tab. Under this tab are separate folders for each centre and the head office. On
clicking on a specific centre, the Financial tab can be clicked to read the budgets of the centre.

1.2
Brisbane

Brisbane had a substantial performance year. Net profit turned out slightly higher than
the projections.
Initial cash balance to start with was lower than what had been forecasted.
The centre needs to sell more casual attendance.
Memberships sold, however, were higher than estimates, which led to higher income
percentage over the months.
The centre saved money in advertising and payroll, which portrays efficiency.
The centre did spend more than expected on professional fee and equipment hire and
leasing.
Head office contribution remains as projected.
Overall, a satisfactory performance since all the end targets are being met without
restrictions and full contribution has been made to the head office.

Cairns

For most of the months during this financial year, Cairns started with much lower
cash balance.
This resulted in year-end negative figures.
The performance has been poor and lots of issues need to be resolved to get the centre
back on track.
Both, casual attendance and memberships sold were way lower than the projections.
Retail sales targets were also not achieved.
Advertising costs, however, were more than twice the projected figures. This needs to
be regulated and monitored. If marketing was given so much money why the
memberships were not sold.
Insurance and other related costs were also higher than estimates.
The centre surpassed most of the expenses projections equipment hire, lease,
supplies, maintenance, payroll etc.
This is a serious blow to our overall performance.
All the budgeted areas have fallen behind and overall targets have been missed by a
huge gap.
The centre will obviously not make any contributions to the head office.
It is questionable as to why the targets were not achieved at all and when the sales
were lower than expected, why were the costs still higher than set numbers.
Overall, a dissatisfying performance from the Cairns centre.

Sydney

Tremendous performance by the Sydney outlet this year.

Started with a cash balance more than 5 times the projections.

Casual attendance was way too higher than the projections. Memberships sold also
surpassed the estimates by a mountain.
Equipment sales were impressive as well.
Expenditure on advertising was lower and yet, it produces fruitful results.
It is however, important to notice that despite such higher sales figures, payroll
expenses were quite lower. This could mean exceptional operational efficiency but
could also mean a warning signal where we could be compromising service quality.
Equipment hires and leasing fee, telephone and other utility costs were also lower
than expected.
More than estimated contributions have been made to the head office (20%).
Thus, total expenditure was way lower than the target figures and hence, ending cash
balance is almost six times the projected figures.
Overall, an amazing financial performance by the centre.

Melbourne

On the spot performance.

Significant contributions to the head office were made.
Both, casual attendance and memberships sold were higher than the estimated mark.
Initial cash balance was almost as expected.
Retail sales however, were lower than estimates.
Available cash balance was slightly higher than expected and total expenditure was
almost close to projections.
Advertising costs were lower as were the team building costs.
Although equipment hire fee, maintenance and utilities cost much more than
expected, the overall results were more than satisfying. Ending cash balance is almost
12% higher than the projections.
The centre would need to explain its performance fluctuations in various areas.
Despite achieving the targets, there must be a reason as to why these figures do fall
close to projections.

Head Office

A moderate performance by the head office at a birds eye view.

Started off with much more than expected cash balance yet, ending figures are almost
as projected.
Total casual attendance was higher than expected but memberships were almost near
projections.
Retail sales also fall somewhere near the estimated mark.
Head office has received more than expected contributions from the centres put
together.
Advertising fee, credit card fee and insurances were costlier than projected.
Overall payroll spending was lower than the estimates although, sales made were
higher than expectations.
The head office definitely needs to look into that. Either the projections could have
been more accurate or the centres need to be questioned on this.
Cost of supplies, utilities, maintenance and equipment hire - all were higher than
expectations otherwise, profits could certainly have been much higher.
Overall a satisfactory performance but not outstanding.

There is a lot of analysis and questions that would need to be addressed by the centre
managers.

1.3
The centre manager of the club is responsible for his/her club and will have the autonomy to
make decisions for the particular centre. When it comes to financial decisions, the centre
manager is authorized to spend up to $500, over which the manager will need to get
permission from the general manager.
The GM is authorized to make decisions up to the amount of $5000. Any expenses beyond
this will need to be authorized by the Chief Executive Officer.
The CEO can make financial decisions on behalf of all the centres but there is a limit to the
amount of expenditure the CEO can authorize. Hence, the CEO can spend up to $10,000 for
the centres. Above this amount, any expenses will need to be authorized by the Board.

1.4
Contingency planning is very important for any business because it helps them in the time of
emergency. It helps in reducing the impact of any emergency. Contingency planning should
be a part of all the operational planning of the organization.
Bounce Fitness will have a contingency fund available for any financial emergencies so that
the organization doesnt have to suffer in the face of an emergency.
Though Bounce Fitness has a very good contingency plan, which shows the organizations
belief in preparing for the future and ensuring the business is always capable of handling
issues. However, there needs to be more focus on other aspects like natural disasters, staff
issues, loss in business, changes in economy, etc.

1.5
At Bounce Fitness, we believe in effective and continuous communication among all the
departments. When it comes to budget and financial data, it is usually difficult for those not
directly involved in the process to understand. However, it is important that the staff
understands the financial side of things. This keeps them involved and helps them in
understanding how their performance can affect the business and how the money is earned
and spent by the business. This will increase the confidence the employees have in the
management and the organization.
Budget and finance however, are technical and not everyone can understand the language and
relationship of various things associated with finance management. That is why it is important
to communicate such information to the staff in a way that it is easily understandable by them.
Therefore, instead of showing them reports, the centre manager will try to train and educate
them about budget and finance and give them an easily comprehendible picture of the system.
This can be done by organizing a meeting of the staff with someone from the financial team.

1.6

The centre managers are very important to the organization because they act as heads at the
individual centre. The performance of centre manager has a direct impact on the functioning
and success of the individual centres.
Managers therefore, also need training to perform their tasks properly and also in managing
the performance of the staff under them in order to meet organizational goals.
Managers are also responsible for designing various policies and strategies for the centre so
they need to have direct contact with the GM of the organization so that all their actions and
decisions are in line with the companys vision. This can be done through regular meetings.
It is also the responsibility of the manager to supervise, train and manage other team
members. Hence, they need training in how to manage and train those under them.
Managers at Bounce Fitness are headed by the national managers to provide them support and
training required by them.

1.7
Bounce Fitness meets most of the requirements of record keeping for ATO and GST.
However, there are certain things that can be included for better performance and efficiency
and also for keeping a track of expenses.
For example, the website doesnt give any information on BAS, which is an important part of
ATO payments. Things like PAYG and superannuation should also be included in the records.
These can be included easily:
1. BAS and Superannuation paid on a 45 day cycle (6 weeks)
2. PAYG and IAS paid on a 60 cycle (8 weeks)
The documents for cash returns can be accessed from the ATO. Then BAS will need to be
prepared once the cash returns are received.
This will help the organization in keeping a track of these expenses and payments and
discovering and resolving problems in the initial stages.

1.8
Every business has vast amount of data that needs to be updated and applied to decisions
regularly. With proper systems in place for organizing the data, the managers can have a
better idea for making decisions to meet the organizational goals.
Therefore, meetings should be organized to give proper and updated information to the
managers about the financial performance of the organization. They need to be informed of
any changes immediately so that they can begin the process of their application and
implementation.
Since an organization works in a dynamic environment where things change rapidly, it is
often not very easy, money-efficient and timesaving to call every manager from every centre

to hold a meeting every now and then, videoconferencing can be used as medium of
communication.
Following this, emails, memos and newsletters can be used to exchange information and
communication to the managers and the staff.

1.9
While the organizational plans need to be consistent, there should always be room for
improvement and therefore, it is important to for them to be flexible and open to change
without impacting the organization in a negative way. The plans need to be revised and
changes should be made with the changes in the market environment.
Bounce Fitness has an efficient and effective financial management and processes. However,
there are certain things that can still be improved. Contingency fund is an area where changes
need to be made to focus on certain ignored areas like changes in economy, natural disasters,
increase in labour costs.
Improvement can also be made in educating and training employees. They need to be
educated in the financial side of things so that they are more involved and aware about the
organisations performance.
There is also a room of improvement when it comes to budget forecasting of the business.
The Budget reports show there is a discrepancy in the forecasted figures and actual results.
For some of the centres, the results were better than what was expected but this shows lack of
accuracy in planning and forecasting. Hence, more work needs to be done in this area.

2.1
According to the Australian Taxation Office, if the product or service sold or consumed by the
employee or any related party does not include the GST already paid by the individual; the
organisation will then be liable to pay the GST on his/ her behalf to the ATO. The amount of
GST to be paid depends upon the recipients payment made by the employee or the related
party to the company for extending the fringe benefit or exempt payments.
www.ato.gov.au

2.2
ABN serves the same purpose for a business in the trading market as an address does for a
house in a city. ABN or Australian Business Number is an exclusive 11-digit code that is used
by the government to identify any business. This number is quoted by a business while
making any transactions with government, related agencies and other businesses. It makes it
easier for the parties to recognise the authenticity of the business and the related parties.
www.ato.gov.au

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