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BSBFIN501 Manage Budget and Financial Plan Assignment Sample

Giuseppe has a number of corporate customers that wish to order pizza every Friday for their staff. They have asked to pay by invoice at the end of the month.

This was thought to be good for business as these customers placed large orders for lunchtime when the shop generally was not very busy. However, not all of these customers pay their accounts on time. Below is a summary of the money that is owed to Giuseppe.

Giuseppe’s Ageing Debtors Report

1. Identify and describe the significant issues that are evidenced in the Ageing Debtors report above.
2. What is the total amount outstanding to Giuseppe?

3. a. Develop a Debt Collection Procedure for debt recovery used by the company, for aged debts. Please address the following:

- Current Month;
- Over 30 days;
- Over 60 days;
- Over 90 days.

b. Using the Debt Collection Procedure, what should Giuseppe do about the debt owed by Harry’s Timber Yard?

4. Explain with reasons whether you would or would not continue to give credit to customers for purchases.

5. Determine a trend of the average debtor days and the impact to the cash flow for Giuseppe for assignment Help

6. Who are the major internal and external stakeholders Giuseppe would need to communicate with when preparing the budget?

7. What interest do they have in the development of the budgets for the company?

8. What processes and resources could you put in place to monitor and control costs across the work team?


1 - The above Ageing Debtors report of the Giuseppe pizza shop shows an overall receivable of $830 in a maximum due period of over 90 days. The main concerning issue arises while looking at the receivable amount of $355 from Harry's Timber yards which is a regular customer of the Pizza shop. The debt from this customer may be categorized as bad debt if there is no recent contact. The same issues are also seen from the debt data of the corporate Jenn's junkyard though the amount is not much and the customer is not making regular orders. If the customer still has credit then it is less concerning ( O'Brien et al. 2019). The rest two customers are regularly making orders and clearing their due then there is no problem and they can be counted as less concerning accounts. So it can be stated that the outstandings of the client Harry's Timber as overdue and in the case of Jenny’s Junk Yard it may be considered as doubtful debt if there is no news from the client.

Q.2. So It is clear from the report that the total amount outstanding to Giuseppe is $830.


Debt Collection Procedure:

The company should have a perfect debt collection strategy that will help to stabilize the cash flow and to receive the money from the client without irritating them. The strategy includes reviewing the invoice, billing process, hiring an accountant, and understanding the client payment process. In B2B the situation always arises where the client doesn't pay their bill in time because the client may have a certain number of other bills to pay within a certain period, in this situation they may forget to pay their bill in time (Onar et al. 2018). So the hiring of a debt collection agency only arises to deal with clients who have passed the due date of 90 days or a certain number of days and when the customer is resistant to pay the bill or unresponsive. while providing B2B services businesses often deliver the service before they get the payment. This model is effective when there is a bulk order but it becomes too risky when the client doesn't pay the bill on time, which will create a gap in the cash flow of the company. As a result, there will be a shortage of cash to cover the expenses. Below mentioned the strategies followed by the company to recover the aged debt.

- Regular review of the invoices: sometimes it happens that the client doesn't pay the bill, maybe because the bill doesn't make it clear that the amount is due in a certain number of days. This can be avoided by regular review of the invoices and including all the details like an invoice date, the contact information of the client, a unique number to the invoice payment terms and deadline with an acceptable payment method, systemic pricing of each item including the net amount, etc.

- Review of the invoicing policy: It is also important to look at the invoicing policy.If there is paid every month but there is still a cash shortage issue change the policy to bimonthly. Again if the invoice is sent to the client on the last day of the month then shift it to the 1st day of the next, so that the client who makes a run of invoices on that would less likely to miss it.

- Reviewing the invoicing technology: Shift from the traditional software like Ms-excel or Ms- word to technical software like SQUARE. This will help to track client interaction with the invoices, automate follow-ups for unpaid invoices, etc.

- Review of billing communication: Most businesses send invoices to clients and then make a follow-up email. It will be better by setting internal policies to make phone calls to clients when the due is more than a certain number of days. It will be harder to ignore by the client.

- Making the payments easy: It is important to state the accepted payment method in the invoice, and again it can be made more comfortable and easy in various ways. If the mode of payment is through PayPal then inserting a link for the payment in the invoice will make it more effective.

- Immediate presentation of the bill terms: If the business is having a separate credit policy then it will be better to present it at the beginning so that only qualified clients will be involved in the credit policy. There may be a signing of a legal contract regarding how the company collects the unpaid debt.

- Making a confirmation of the client's payment process: The invoice must be reached to the client's accounting team. Make a confirmation that the contact provided by the client is of the accounting team or the person is itself from the account.

- Make proper provision to deal with consistently late paying clients: It is inevitable that at least one of your clients pays late regularly.To handel with such client extension of payment terms can be arranged just for them.There are other successful strategy like if the client is not responding to the emails and is very responsive to phone calls then while collecting the accounting team of the business can be instructed to make phone calls and if there is any problem with the payment method with certain person then
alternative payment method can be arranged only for the individual (Storms and Verschraegen, 2019).

- Higher an accountant: Besides the accounting task small business owners get themselves burdened with other important works which are necessary like proper management in providing services.So to make it easy a accountant or a bookkeeper can be appointed for the task only if the budget is sufficient enough to give the salary of an accountant.

- Hiring a debt collection agency: This is the only option when the businesses mark that the client is not responding to emails or avoiding repeated phone calls.This should be the last resort because it will break the trust between both the parties.This is also a easier step without paying extra fees to the lawyer if followed the recovery method legally.


If the client was not responding to the phone calls and even avoiding the emails then the last way to collect the debt from Harry’s Timber Yard will be through personal visit or hiring a debt collection agency of the due is large. If the client is responding to the emails and phone calls with specific reasons for the late payments then the payment terms are to be noted in the invoices and follow up should be done in the respective due period.


It should be better to shiver ties with the clients or complete closer or credit facilities or make strict credit policies for those who are making regularly late payments because they are the main reason for cash shortage.If there is no problem in cash cash shortage then just regular updates or reminder should be done so that the debt doesn't go to bad debt categories.


Looking at the previous data of the net income and comparing it with the budget it seems that the net income is more than the estimated budget but not considerable (Onar et al. 2020). There is also a higher variance in the expenses so for the long term expenses of the shop there may be a shortage of cash can be seen in the subsequent years.If the shop effectively manages it's casts and collects its debt then this can be avoided.


While preparing the budget Giuseppe needs to communicate with the senior management and executive manager and account who are the internal stake holders.From the external stakeholders they may call the unions or NGO's for their suggestion and those who will provide sufficient support.


The profit of a business is mostly the primary interest of the stakeholders.But there are also stakeholders who are concerned about the overall health of the business like cost involved in spending, social impact, employees happiness, health and safety and finally job security of the employees are the key factors of interest for the investors and stakeholders (Enloe and Neff, 2022). These are necessary for the development of the company.


While managing the finances of the company it's necessary to keep track of the cost of the work team.cost control and management important for profitability.There are several points to consider while managing cost are mentioned below

- Effective planning of the budget

- Recruitment of workers based on the time and workload is important.

- Monitor all the expenses which can be made easier by understanding cost management and cost control.This can be achieved by making a customized dashboard.

- Tracking the earned value is also important.It definitely need some accounting knowledge like monitoring variable cost and prevention of variances from occurring in future.Earned value is the amount of work that has been completed.Earned value can be traced by multiplying the percentage of the work completed with the budget.

- Last and the most important of all is to manage the time effectively and divide the work force according to it.

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