1.

1
Follow the steps below to access the financial documents:

Access the Precision group webpage.

Access the Bounce Fitness Option.
Login with the details provided.
Information on the budget and the financial plans is under Performance
tab. Under the performance tab, there are different folders for each
centre and head office.
On selection of one of these centres, the Financial tab can be clicked to
access the budgets of the centres.

1.2
This was an interesting year to experience as it provided us with
numerous opportunities to learn and fix our mistakes. Without any major
unfortunate event, this year has shown mixed performance across the
country. Depending upon economic condition, demographics and
strategies and operations of the individual centres, they have shown a
variable but traceable performance. It is now important for our finance
department to analyse and explain the story that is being told by the
numbers.
Now that the financial performance of each of our clubs is out, it is
important for our managers to analyse and study their performance
throughout this past year. The decisions they made and the steps they
took are now carving a final picture, parts of which might not seem very
attractive. These behaviours will have to be explained to the board and
options for further investments will be discussed as well. Below is an
overview of how different centres have performed across Australia:
Brisbane
Below desired level performance
Projections are not in line with the performance
Negligible contributions can be expected from here as no profits have
been scored overall

 Clearly, operations and projections were murky as they have not been
touched at all
Advertising costs higher than forecasted
More focus should be imparted to the retail section as they bring in good
profits for least labour cost
Budget should be used to design and launch new products and
memberships of the club
Staff should be trained, developed and encouraged for upselling retail
products
Cairns

Meagre routine performance

Extremely low financial success
Manager should be looking into the half-yearly performance as well
Budgeting and finances should be used to locate major issues
Performance was not at all congruent to the projections or may be
projections were not viable enough
This centre has exhibited heavy loses and will continue to do so in the
next fiscal year if cash is not injected immediately
Cannot make any contributions to the head office this year and same can
be said for next year if strong measures are not in place within a month
Immediate cash flow would be required by this centre to continue
operating in the next financial year
Cash balance is the primary investigation target. It has not been
anywhere near the budgeted figures or the forecasted figures
Expenses and utilities costs were higher than that had been expected.
This needs to be looked into by the management and the head office as
well

Melbourne
Praiseworthy show overall by Melbourne
Results were almost perfect as had been forecasted
Forecasting, as is dubious for other centres, must be investigated for this
one as well
Centres operations were strictly controlled which is a lesson to other
centres for sure
Casual attendance has always been Melbournes pride and this year was
no different

 Brand new marketing and advertising campaign is recommended for this

store
Operational costs were higher in certain areas than what had been
forecasted. This, if was a result of increased demand, is absolutely
acceptable but that does not seem to be the case and hence, must be
investigated thoroughly
Financial targets were smashed however certain variances must be
looked into by the manager and the GM
Handsome contributions can be extended to the head office this year
Sydney

Hefty cash reserves

Strong cash injection at the start
Robust business demand as usual
Commendable performance
Strong finances
Efficient operations visible
Higher profits than last year
Increase in new member sign-ups
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
Substantial contributions can be extended to the company
Large cash reserve available to start the next financial year
Head Office
Primary revenue centre of the company since the founding years
This is probably because of the loyalty,, customer commitment and
market capture rate which in turn, is because of being in the home town
The biggest fraction of our revenues annually are received from this
centre alone
Both efficiency and control in the daily operations is quite visible as the
numbers are looking very good and almost in line with what had been
projected
Cash reserves have been high because of last years performance and as
a result, Cairns is maintaining its cash reserves
This centre can undoubtedly contribute a major sum to our contingency
fund

 Performance overall, was commendable but payroll and operational

costs were lower even when revenues were higher than expected. It must
be looked into and it must be ensured by the managers that service
quality and customer satisfaction was not compromised to achieve
financial targets
This should be a foremost concern which is directly connected to our
service delivery and total customer satisfaction

There are four key reasons and it is important that good managers
recognize the differences, because the action required is may be
completely different in each case. The four reasons are:

Faulty Arithmetic in the Budget Figures

Errors in the Arithmetic of the Actual Results
Reality is Wrong
Differences between Budget Assumptions and Actual Outcome

It is important for our long-term market survival that we rectify our errors
as soon as we can. Multinational giants and other local competitors will
not give us enough space to stand if we continue to make mistakes that
should not have happened in the first place. Many organisations have
poor financial performance every now and then but wrong budgeting (if it
was), is something to be eradicated immediately. Operational efficiency is
great at some centres and poor at others but nowhere it has been
consistent with the projections, which is a worrisome issue. These issues
will be discussed and planned for in the next budget review meeting,
which takes place before the start of next fiscal year.

1.3
There are two ends of the spectrum in regards to managing people:
Direct control - with strong micro-management
Autonomy for employees - to do what they deem effective as long
as it contributes to performance.
Both ways are valid ways to lead people towards organizational
performance. However, one method requires heavy involvement from the

manager, while the other allows a manager more time to do what is

effective in their responsibilities. At Bounce Fitness, we believe in a mix
of both depending on the personal attributes of the manager.
Each clubs individual manager will always have the autonomy to make
decisions for and on behalf of the club and its employees and operations.
When it comes to expenditure and financial part, it becomes a narrow line
and we have certain guidelines to prevent confusions. The table below
shows the spending power vested in hands across our hierarchy:
Position
Club Manager
GM
CEO
Board

Limit
$500
$5,000
$10,000
N/A

Reports to
GM
CEO
Board
N/A

1.4
At Bounce Fitness, we define contingency planning as, A forward
planning process, in a state of uncertainty, in which scenarios and
objectives are agreed, managerial and technical actions defined, and
potential response systems put in place in order to prevent, or better
respond to, an emergency or critical situation. When involved in
Contingency Planning, our managers should remember that Contingency
Planning is:
A dynamic process, focused on preparation and flexibility
Integrated into on-going operational planning activities
Provides useful input to managers, programming staff and
emergency officers
An integral part of all agencies preparedness activities
Addresses only scenarios which are likely to impact humanitarian
operations
Early warning is a process of information gathering and policy analysis
to allow the prediction of developing crises and action either to prevent
them or contain their effects. The stages in early warning analysis are:

Observe
Collate
Analyze
Disseminate
React

Prerequisites for rapid and effective emergency response are:

o Planning
o Availability of standby resources (financial, human and
material)
o A mechanism for rapid decision making
o Taking contingency actions
All four constitute preparedness and are interdependent - one without the
others will not allow for effective response. A contingency fund is a
reserve fund set aside to handle unexpected spending pressures outside of
the usual operating budget. Contingency funds are also referred to as
emergency funds, since the unexpected spending pressure commonly
comes in the form of emergencies like disasters, health problems, etc.

1.5
Finance is a complex and dense department and those who dont have to
do anything with it finally end up not communicating with it at all. At
Bounce fitness, we believe in a different approach. Our philosophy is that
everyone in a company does better when they understand how financial
success is measured and how they make an impact on the company's
performance. Our term for that understanding is "Financial Intelligence"
Greater financial intelligence, we've learned, helps our people feel more
involved, connected, and committed. Employees understand better what
they are a part of, what the organization is trying to achieve, and how
they affect results. Trust increases, turnover decreases, and financial
outcomes improve.
We are a highly motivated team, focused on ensuring that every
engagement meets the needs of your organization and your employees,
managers, and leaders. We are passionate about business literacy, as each
one of us believes in the core value of financial literacy that everyone

in an organization should understand how financial success is measured

and how they make an impact.
Thus, it is important for us and for our employees to be aware of what
numbers say, why we use numbers everywhere and what role do they
play as being the backbone of our business. We require that our finance
departments hold regular sessions, meetings and informal catch-ups to
deliver basic financial knowledge to our employees. They must take the
employees through the budgeting targets, forecasting and our periodic
performance. When each employee knows what we are supposed to do as
a team, they will realize what their individual contributions mean at the
end of the year.

1.6
We believe that management is not a science but a craft. So the training to
become a manager cannot be set up the same way as training physics.
Management is not a craft exerted by an individual but a craft for which
more than one person is required. Managers in Bounce fitness have three
key roles:
Manager as Designer
The first task of organization design concerns designing the governing
ideas of purpose, vision, and core values by which people will live. The
second design task involves the policies, strategies, and structures that
translate guiding ideas into business decisions.
Manager as Teacher
Manager as teacher does not mean manager as authoritarian expert whose
job it is to teach people the correct view of reality. Rather, it is about
helping everyone in the organization, oneself included, to gain more
insightful views of current reality. This is in line with a view of managers
as coaches, guides, or facilitators.
Manager as Steward
Unlike the roles of designer and teacher, it is almost solely a matter of

attitude. It begins with the natural feeling that one wants to serve, to serve
first. That person is sharply different from one who is manager first,
perhaps because of the need to assuage an unusual power drive or to
acquire material possessions. Managers' sense of stewardship operates on
two levels: stewardship for the people and stewardship for the larger
purpose or mission that underlies the enterprise. The first type arises from
a keen appreciation of the impact one's leadership can have on others.
The second type of stewardship arises from a manager's sense of personal
purpose and commitment to the organization's larger mission.
To train our managers across all these vital platforms, we have senior
management in place. It is the job of our regional and national managers,
directors and operational heads; to train and support our managers and
supervisors. They can deploy a range of methods to achieve this when
required:
1.
2.
3.
4.
5.

Mentoring
Buddy-up
Regular communication
Training sessions
Annual meetings

1.7
BAS is included in the ATO payments however; any information of this sort is
not explicitly available through the bounce Fitness Online Location. PAYG,
Superannuation and IAS. They have to be included and can be regulated as
following:
1. BAS and Superannuation paid on a 45 day cycle (6 weeks)
2. PAYG and IAS paid on a 60 cycle (8 weeks)
This cyclic process will be really helpful to find the initial hitches in the
process and the national finance department can then fix them up as they move
ahead in the next financial year. It is important to test and try financial
decisions with least possible waste before letting them sway freely.
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
Our organization is set up to achieve certain objectives. The founders of
the organization have gathered together both human and material
resources as inputs to be processed in order to produce some outputs.
Such outputs are usually subjected to some forms of evaluation to check
if they meet expected standards. To enable an organization to achieve the
set goals maximally, there is a great need for the manager of the system to
plan. Failure to plan is planning to fail. Planning is the process of
identifying the organizations goals, ascertaining resources available,
prioritizing the goals, identifying alternative strategies for achieving the
goals, choosing the best strategies and preparing programs and activities
that will lead to goal achievement.
Data is numerical measures of phenomena and they are used in the
process of scientific decision-making. Data are of common occurrence in
all disciplines and fields of practice. The planning and management of
any nations educational system depends greatly on the quality of data
collection, analysis and storage. Data collection is the process of
gathering quantitative and qualitative information about the system. Data
analysis is a process of collation, presentation and interpretation of the
information contained in the data to aid decision-making. There are
mathematical techniques that are usually adopted in aiding data analysis.
The collection, analysis and storage of data on the educational system
becomes very important to the managers for the following reasons:
1. The managers have a responsibility to plan ahead for the system.
Data is a very vital tool for planning. For us to plan adequately for
the future we need the data on what the past was and what the
present is like.
2. For the day-to-day decision-making, the managers need data to
guide their decisions.
3. Data collection, analysis and storage is very important to the
managers in the assessment of the growth and progress of our
company and our systems.

4. Data collection, analysis and storage enable the managers to

identify areas of staff training and retraining needs.
5. Data collection, analysis and storage is very important in the
company because it aids accountability to the system and is
inevitably, a legal requirement.

1.9
A business plan isthe road map we need to follow in order to reach our
goals and achieve our objectives. The following are the reason we need a
plan to run our operations:

Control future risks

Prepare for future uncertainty
Control business environment
Control business growth
Avoid sales crises
Avoid liquidity crises
Ensure people development

Also, planning ahead saves our operations from the following:

Poor management systems

No overall vision
Lack of market planning
Cash flow issues
Low return on investment
Not understanding your competition
No established performance measures
Inadequate financial planning
Leads to probable business failure

Financial planning affects how and on what terms we will be able to

attract the funding we need to establish, maintain, and expand our
business. Financial planning determines the human and physical

resources you will be able to acquire to operate our business. It will be a

major factor in whether we will be able to make our hard work profitable.
The balance sheet and the income statement are essential to our business,
but they are only the starting point for successful financial management.
The next step is called ratio analysis. Ratio analysis enables us to spot
trends in a business and to compare its performance and condition with
the average performance of similar businesses in the same industry.
However, no plan is perfect. Plans have to be changed frequently as the
conditions in the market change or there are internal factors involved.
Although bounce Fitness has a strong finance department, which takes
care of our Finances, Budgets, Forecasting and our Financial Operations
throughout the year yet, it is important to have accurate and viable
budgets. They must focus more on forecasting and budgeting so that
results are better achievable and the business is able to harbor stability.

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.

Source: 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

Classification Code
A

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

I
E
A
I
E
A
I
C
E
E
A
E
L
A
A
L
C