Bright Net Financial Services project.pdf
- 1. Project : EY & Sunshine Inn Date: 9 July ,2020 Name: Shiyi QIU Email: kuweisuanines@gmail.com
- 2. 1. An overvew of Sunshine Inns 2. Recent Developments 3. Other recent developments
- 3. OVERVIEW Core leadership team Mary Sunshine - CEO Mike Sunshine - Financial Director - Molly and Marshall Sunshine - The core member of previous leader team General growth journey - 2015-now, double digit growth in city hotels - Reduction of value in pounds and EU referendum increases number of tourists and demand of staycations - “City” division growths continuously year on year, propelling the whole company forward - Currently recruited a business advisor to help them with management
- 4. RECENT DEVELOPMENT A. Perspective growth in revenue but late in filing accounts for the last 3 years: Our Financial Accounting Advisory Services: ● Support comliance with evoling financial requirements. ● Cover corporate governance services that make your business meet changing market conditions. ● Develop knowledge and share ideas with your team B. Increase restaurant offerings within the Country Division following the EU referendum in June 2016 Our EY-Partheon’s teams offer Strategy services: ● In collaboration with broader TAS teams, challenge assumptions and help create strategies for the clients to optimize portfolios and improve profitability
- 5. C. Need a loan from bank to expand the City Divisions model Our Audit services support: ● Provide high quality audit report by testing financial statements and their reliability for better decision-making and enhance transparency and trust ● Understanding business drivers, associated risks and potential effect on financial statement account ● Promote the business and access processes/controls to produces financial statement. D. Continued growth in the corporation tax bill : Launch the brand abroad or not? Our professionals of Tax Services help you: ● Collect all information required to ensure complete accurate tax comliance ● Prepare tax accounting calculations and review transactions and accounting entries ● Adjust corporation tax consequences and provide advices on launching the brand abraod RECENT DEVELOPMENT
- 6. E. The petty cash reconciliations have been consistently incorrect over the last financial years at a number of hotels Our Financial Accounting Advisory Services: ● Support comliance with evoling financial requirements. ● Cover corporate governance services that make your business meet changing market conditions. ● Develop knowledge and share ideas with your team RECENT DEVELOPMENT
- 7. F. HMRC wish to review the last 3 years of corporation tax returns. Mike must provide: ● Profit and loss account (income statement) ● balance sheet (statement of financial position) ● Notes ● Directors’ report The main components of corporte tax return are: ● Details about the company ● Calculation of the corporation tax due ● Details of any capital allowances claimed ● Details of any losses claimed RECENT DEVELOPMENT
- 8. COVID-19: ● Hotel occupancy has dropped to 53% and revenue per available room has declined by 32.5% for the week ending March 14, according to Smith Travel Research (STR). ● The World Travel and Tourism Council (WTTC) estimates that more than 50 million jobs in the travel and tourism sector could be at risk globally. OTHER RECENT DEVELOPMENT
- 9. SUPPORT As hotels respond to this economic reality, they will need to think through key issues both for the short and long terms. EY has developed a resiliency framework (see below) that addresses major concerns that companies have during these turbulent times.
- 10. Key aspects of the resiliency framework that hotel companies will need to address include: • Availability of cash: Keeping cash on hand via liquidity management strategies, such as maximizing one-time revenue opportunities, realigning and reducing costs, employing working capital crisis management techniques and deferring capital expenditures. • Short-term, non-traditional sources of revenue: From serving as temporary hospital facilities to providing “work from home” environments, hotels should evaluate opportunities where they can. • Brand protection: How companies respond to this crisis will have long-term implications for how their brand is perceived both by customers and by employees. SUPPORT
- 11. • Cyber threats: Rogue forces could take advantage of the situation with the potentially increased vulnerability from the use of personal computing devices. Companies will also need to protect against the spread of malware and misinformation. • Supply chain issues: These have become increasingly complex; the materials needed to develop and operate hotels are sourced globally. Hotels need to evaluate and mitigate the risks posed by their current supply chain. • Business continuity: Planning and executing a business continuity program will enable resumption of critical business functions and a swift return to business as usual once the outbreak is under control. SUPPORT
- 12. Based on current developments and Covid-19 crisis, a liquidity loss is certain. Sunshine Inns need to optimize tax planning and assets, without applying for loans, looking for dividing shares with venture capital funds to continue increasing profit growth perspectives. EY can help Sunshine Inns perform those smoothly by different service lines. Summary
- 13. REFERENCE LIST ● COV-19 hotel development: https://www.ey.com/en_us/covid-19/covid-19-what-hotel-companies-should-do-now-an d-beyond ● Corporate tax return: https://informi.co.uk/finance/how-do-i-complete-company-tax-return ● EY service line: https://uk.gradconnection.com/employers/ey-hk/about-ey-service-lines/