Modelling the finances of a business

Essay by uzzi04University, Bachelor's September 2004

download word file, 14 pages 5.0

Downloaded 75 times


The aim of this coursework is to design a new system for a company called Mig importers and exporters. This company imports a variety of textiles from Asia and the Middle East and sell them wholesale in Europe, mainly in the UK. Currently the company uses a manual based system to manage their finances, this involves using a lot of filling cabinets to store the data and invoices and then calculating the company's profit or loss at the end of each month. This method isn't very accurate and it takes along time to make any calculations. The new system I will design will model the company's finances and will be user friendly so that the user can be efficient.

My new system will model all the information needed to work out if the company is making a profit/loss. Examples of calculations are trade price, duties and tax, freight, selling price, quantity sold, wages, rates, electricity, gas, water, advertising, motoring, telephone etc.

the system will include cell-referenced formulas so that if any numerical data changes, subsequent relevant data will adjust automatically.

Using my new system the company will be able to use model situations to find out what amount they need to sell to break-even or how much profit will they make if they sell a certain amount of their product. They will also be able to fin out what effect a price reduction will have on their profit. This can all be done by changing a few quantities or a few prices and the formulas will automatically adjust the profit/loss. With the current system the company is unable to do this because it is impractical and will take a lot of time just to find out the results for one small criteria but with the new system answers to...