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Financial Management of a Small Burger Restaurant - Coursework Example
Author : krystelmills
Finance & Accounting
Pages 6 (1506 words)
Financial Management of a Small Burger Restaurant Name University Financial Management of a Small Burger Restaurant Introduction: Financial projections are an important aspect and an essential in operations of any business. The company can forecast and estimate its performance by projecting financial statements which involves planning of activities into monetary terms…
They provide a rough idea of how the business can be in future and can even identify areas of concerns that can appear in future. Each head in the projected financial statement is based on certain assumptions; some can easily be predicted while some are difficult to predict as they are outside business’s control for e.g. changes in taxes, an unpredictable event etc. (Lasher. 2000; Covello. 1998) In a small business like burger restaurant operative in a college campus, since there are no proper planning departments and tools, the projection technique of financial management can be useful. A typical small burger restaurant’s sources of revenue can be sale of food and beverages. The main heads of costs could be the material costs, packaging and transportation of food etc. In any other business, the restaurants have operating expenses like rents, utilities, labor wages, cleaning expenses etc. Such businesses are not operative in a very dynamic environment nor are very large businesses which have many complexities and changes to take account of. ...