British Poor Law Reform in the Industrial Revolution

One of the most infamous British laws of the modern age was the Poor Law Amendment Act of 1834. It was designed to deal with the rising costs of poor relief, and reform a system from the Elizabethan era unable to cope with the urbanization and industrialization of the Industrial Revolution (more on coal, iron, steam) by sending all able-bodied people in need of poor relief into workhouses where conditions were deliberately harsh. The State of Poverty Relief Before the Nineteenth Century The treatment of the poor in Britain before the major nineteenth-century laws depended on a large element of charity. The middle class paid a Parish poor rate and often saw the increasing poverty of the era merely as a financial worry. They often wanted the cheapest, or most cost-effective, way of treating the poor. There was little engagement with the causes of poverty, which ranged from illness, poor education, disease, disability, underemployment, and poor transport preventing movement to regions with more jobs, to economic changes which removed domestic industry and agricultural changes which left many without jobs. Poor harvests caused grain prices to rise, and high housing prices led to greater debt. Instead, Britain largely viewed the poor as one of two types. The ‘deserving’ poor, those who were old, handicapped, infirm or too young to work, were considered blameless as they obviously couldn’t work, and their numbers stayed more or less even across the eighteenth century. On the other hand, the able-bodied who were without work were considered ‘undeserving’ poor, thought of as lazy drunkards who could have got a job if they needed one. People simply didn’t realize at this point how the changing economy could affect workers. Poverty was also feared. Some worried about deprivation, those in charge worried about the increase in expenditure needed to deal with them, as well as a widely perceived threat of revolution and anarchy. Legal Developments Before the Nineteenth Century The great Elizabethan Poor Law Act was passed at the start of the seventeenth century. This was designed to fit the needs of the static, rural English society of the time, not that of the industrializing centuries afterward. A poor rate was levied to pay for the poor, and the parish was the unit of administration. Unpaid, local Justices of the Peace administered the relief, which was supplemented by local charity. The act was motivated by the need to secure public order. Outdoor relief – giving money or supplies to people on the street – was coupled with indoor relief, where people had to enter a ‘Workhouse’ or similar ‘correctional’ facility, where everything they did was tightly controlled. The 1662 Act of Settlement acted to cover up a loophole in the system, under which parishes were shipping sick and destitute people into other areas. Now you could only receive relief in your area of birth, marriage or long-term living. A certificate was produced, and the poor had to present this if they moved, to say where they came from, impinging on freedom of labor movement. A 1722 act made it easier to set up workhouses into which to funnel your poor, and provided an early ‘test’ to see if people should be forced in. Sixty years later more laws made it cheaper to create a workhouse, allowing parishes to team up to create one. Although the workhouses were meant for the able-bodied, at this point it was mainly the infirm that were sent to them. However, the Act of 1796 removed the 1722 workhouse act when it became clear a period of mass unemployment would fill the workhouses. The Old Poor Law The result was the absence of a real system. As everything was based on the parish, there was a huge amount of regional diversity. Some areas used mainly outdoor relief, some provided work for the poor, others used workhouses. Substantial power over the poor was given to local people, who ranged from honest and interested to dishonest and bigoted. The whole poor law system was unaccountable and unprofessional. Forms of relief could include each rate payer agreeing to support a certain number of workers – depending on their poor rate assessment — or just paying wages. The ‘rounds’ system saw laborers sent round the parish until they found work. An allowance system, where food or money was given out to people on a sliding scale according to family size, was used in some areas, but this was believed to encourage idleness and poor fiscal policy among the (potentially) poor. The Speenhamland System was created in 1795 in Berkshire. A stop-gap system to stave off mass destitution, it was created by the magistrates of Speen and quickly adopted around England. Their motivation was a set of crises which occurred in the 1790s: rising population, enclosure, wartime prices, bad harvests, and fear of a British French Revolution. The results of these systems were that farmers kept wages down as the parish would make up the shortfall, effectively giving employers relief as well as the poor. While many were saved from starvation, others were degraded by doing their work but still needing poor relief to make their earnings economically viable. The Push to Reform Poverty was far from a new problem when steps were taken to reform the poor law in the nineteenth century, but the industrial revolution had changed the way poverty was viewed, and the impact it had. The rapid growth of dense urban areas with their problems of public health, housing, crime, and poverty was clearly not suited to the old system. One pressure to reform the poor relief system came from the rising cost of the poor rate which rapidly increased. Poor-rate payers began to see poor relief as a financial problem, not fully understanding the effects of war, and poor relief grew to 2% of the Gross National Income. This difficulty was not spread evenly over England, and the depressed south, near London, was hit hardest. In addition, influential people were beginning to see the poor law as out of date, wasteful, and a threat to both the economy and the free movement of labor, as well as encouraging large families, idleness, and drinking. The Swing Riots of 1830 further encouraged demands for new, harsher, measures on the poor. The Poor Law Report of 1834 Parliamentary commissions in 1817 and 1824 had criticized the old system  but offered no alternatives. In 1834 this changed with the creation of the Royal Commission of Edwin Chadwick and Nassau Senior, men who wanted to reform the poor law on a utilitarian basis. Critical of amateur organization and desirous for greater uniformity, they aimed for the ‘greatest happiness for the greatest number.’ The resulting Poor Law Report of 1834 had is widely regarded as a classic text in social history. The commission sent out questionnaires to over 15,000 parishes and only heard back from around 10%. Then they send assistant commissioners to roughly a third of all poor law authorities. They were not seeking to end the causes of poverty – it was considered inevitable, and necessary for cheap labor – but to change how the poor was treated. The result was an attack on the old poor law, saying it was costly, badly run, out of date, too regionalized and encouraged indolence and vice. The suggested alternative was the strict implementation of Bentham’s pain-pleasure principle: the destitute would have to balance the pain of the workhouse against getting a job. Relief would be given for the able-bodied only in the workhouse, and abolished outside it, while the state of the workhouse should be lower than that of the poorest, but still employed, laborer. This was ‘less eligibility’. The 1834 Poor Law Amendment Act A direct response to the 1834 report, the PLAA created a new central body to oversee poor law, with Chadwick as secretary. They sent out assistant commissioners to oversee the creation of workhouses and the implementation of the act. Parishes were grouped into unions for better administration – 13,427 parishes into 573 unions – and each had a board of guardians elected by ratepayers. Less eligibility was accepted as a key idea, but outdoor relief for the able-bodied wasn’t abolished after political opposition. New workhouses were built for them, at the expense of the parishes, and a paid matron and master would be in charge of the difficult balance of keeping workhouse life lower than paid labor, but still humane. As the able-bodied could often get outdoor relief, the workhouses filled with the sick and old. It took until 1868 for the entire country to be unionized, but the boards worked hard to provide efficient and occasionally humane services, despite sometimes difficult agglomerations of parishes. Salaried officials replaced volunteers, providing a major development in local government services and the collection of other information for policy changes (e.g. Chadwick’s use of the poor law health officers to reform public health legislation). Education of poor children was begun inside. There was opposition, such as the politician who referred to it as the â€Å"starvation and infanticide act†, and several locations saw violence. However, opposition gradually declined as the economy improved, and after the system became more flexible when Chadwick was removed from power in 1841. Workhouses tended to swing from nearly empty to full depending on the bouts of periodic unemployment, and the conditions depended on the generosity of the staff working there. The events in Andover, which caused a scandal for the poor treatment, were unusual rather than typical, but a select committee was created in 1846 which created a new Poor Law Board with a president who sat in parliament. Criticism of the Act The evidence of the commissioners has been called into question. The poor rate was not necessarily higher in areas making large-scale use of the Speenhamland system and their judgments on what caused poverty were wrong. The idea that high birth rates were connected to allowance systems is now also largely rejected. Poor rate expenditure was already falling by 1818, and the Speenhamland system was able to mostly disappear by 1834, but this was ignored. The nature of unemployment in industrial areas, created by the cyclical employment cycle, was also misidentified. There was criticism at the time, from campaigners who highlighted the inhumanity of the workhouses, to Justices of the Peace upset they had lost power, to radicals concerned with civil liberties. But the act was the first national, monitored central government program for poor relief. Outcome The basic demands of the act weren’t being properly implemented by the 1840s, and in the 1860s the unemployment caused by the American Civil War and the collapse of cotton supplies led to outdoor relief returning. People began to look at the causes of poverty, rather than simply reacting to ideas of unemployment and allowance systems. Ultimately, while the costs of poor relief initially fell, much of this was due to the return of peace in Europe, and the rate rose again as the population rose.

Love In Short Story - 1030 Words

Love is a strong emotion experienced by people across all spectrums of life everyday. Love comes naturally to human nature, whether it be the platonic love of family and friends or the romantic love of your partner. Historically, the importance of love to all people is evidenced by the fact that it is a common theme throughout all forms of literature and storytelling. In fairy tale books, the main characters overcome their own obstacles in the face of true love. This is also true of several ballads, folklore, fables, and short stories. The short stories â€Å"The Gift of the Magi† by O. Henry, â€Å"The Necklace† by Guy de Maupassant, and â€Å" Rules of the Game† by Amy Tan, are about the main characters going through hard times of their own and†¦show more content†¦And now suppose you put the chops on.’† However, Della no longer had her long hair and therefore had no use for hair combs. This proves how Jim and Della both love eachother so much that they would give up their prized possessions to get the other a present for Christmas day. Since love had taken control of their money problems, they both see how strong they both feel for eachother. Furthermore, the short story â€Å"The Necklace† also portrays the theme of love overpowering all. The main character, Madame Loisel, finds herself getting caught up in looking stunning for the party that her husband did everything he could to get in which to get invited.. Although, Madame and Monsieur Loisel weren’t poor, Monsieur Loisel bought his wife everything she wanted to look her absolute best at the party, because she had said they she wouldn’t go looking underrated. In speaking to his wife, Monsieur Loisel states, â€Å" All right. 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Productive and Counterproductive Behaviors Paper Free Essays

Productive and Counterproductive Behaviors in the Workplace Employees within an organization can either contribute positively or negatively towards their employing organization’s overall success and effectiveness. The organizations that ream the most productive behaviors from their employees typically incorporate motivational and leadership activities that encourage these behaviors (Jex Britt, 2008). This paper will define counterproductive and productive behaviors and describe the impact those behaviors have on job performance and the overall performance of an organization. We will write a custom essay sample on Productive and Counterproductive Behaviors Paper or any similar topic only for you Order Now Counterproductive Behaviors Logic says that employees should want to do well in their jobs. But despite this logic, some employees do not. For various reasons employees will sometimes perform counterproductively towards their employer’s overall goals. Examples of these types of behaviors are ineffective job performance, frequent absence from work, unsafe behavior, turnover, theft, violence, substance abuse, and sexual harassment (Jex Britt, 2008). These types of behaviors can result in high costs for organizations.Detecting Counterproductive Behavior The best way employers can detect counterproductive behavior among employees is to perform routine performance appraisals. There are several methods for performing appraisals, including electronic, production data, and subjective appraisals. Each of these systems has pros and cons to it, and are only marginally effective (Jex Britt, 2008). The truly best way to detect counterproductive behavior is to interact with employees and monitor their job satisfaction. What Causes Counterproductive Behavior?An employee who does not perform well in his or her job may do so for reasons like lack of ability, interruptions from other employees, or poor task design (Jex Britt, 2008). As well, poor job performance may result from elements in the organizational climate that provoke poor attitude, or, much less often, because of deep psychiatric problems (Jex Britt, 2008). Once an employer detects a counterproductive behavior among his or her workforce he or she must try to pinpoint the cause of the behavior. One way of doing this is through the attribution process, in which the mployee’s supervisor would evaluate an employee’s current performance against his or her past performance, his or her performance on specific tasks versus his or her overall performance, and his or her performance compared to other employees. By doing this the supervisor can try to determine the cause of the ineffective behavior and whether it is being caused by internal (lack of ability or motivation, poor attitude, or psychiatric issues) or external (coworkers, poor task design, or lack of tools) factors (Jex Britt, 2008). Responding to Counterproductive BehaviorOnce a beh avior is detected and the cause of the behavior is analyzed, employers must decide how to respond to the behavior. The best first response is to have the employee’s manger discuss the counterproductive behavior with the employee in question (Jex Britt, 2008) and determine whether the behavior can be corrected in order for the employee to retain his or her position. Once the discussion takes place the manager and employee can decide whether further training or coaching would encourage improved behavior or whether an Employee Assistance Program (EAP) would be beneficial (Jex Britt, 2008). Of course, organizations would be best off to prevent counterproductive behaviors from occurring at all. This can be done by going to the effort and expense of hiring the right employees, possibly by utilizing the tools of selection programs to analyze potential employees skills and personalities. As well, employers should nurture their employees’ skills and abilities to encourage productive job performance. Finally, they should also offer employees frequent feedback and measurement of their performance to help keep them on track with respect to organizational expectations (Jex Britt, 2008).Productive Behaviors Despite the fact that some employees do not contribute positively to the organizations they work for, most employees try to perform their jobs to the best of their abilities and even go above and beyond their required duties at times. Examples of productive behaviors include positive job performance, organizational citizenship, creativity, and innovation (Jex Britt, 2 008). Assessing Productive Behaviors Organizational psychologists use various models to assess job performance. These models evaluate in-role (technical aspects of a given job) and extra-role (skills that transcend the specific content of a job such as communication skills and being a team player) performance by employees (Jex Britt, 2008). These assessments allow managers to recognize productive employees and encourage and motivate them to continue in their efforts. Predictors of Productive Behaviors There are several methods that organizations can use when recruiting employees to predict whether candidates will contribute positively to their organization.These include general cognitive ability, level of job experience, and the personality trait of conscientiousness (Jex Britt, 2008). By evaluating these predictors, organizations can save themselves time and money by hiring the right people who will contribute to organizational goals without excess coaching, training, or need for reprimand. The Affects of Counterproductive and Productive Behaviors Clearly an organization will be affected by the employees that support it. Employees that contribute positively will help the organization move towards its goals, and, if innovation and creativity are present, possibly even surpass their goals. On the other hand, employees who work counterproductively within an organization, will cost management time and may require additional effort to be spent on reputation management, recruitment, and training (Jex Britt, 2008). Organizations would be best served to recruit employees with the most potential to work productively by analyzing their job experience, personality, and cognitive ability before offering an individual a job.References Jex, S. M. , Britt, T. W. (2008). . Organizational Psychology. A Scientist-Practitioner Approach, Second Edition. Retrieved from https://ecampus. phoenix. edu/classroom/ic/classroom. aspx. 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Ownership Concentration and Accuracy of Financial Reporting

Question: Discuss about the Ownership Concentration And Accuracy Of Financial Reporting ? Answer: Introduction Plato Limited is known for the quality of computers that they have been manufacturing. Recently, it is seen that sale of computers have reduced. The cash flow of Plato limited shoes that they have to improve in various areas so that they can regain the competitive position in the market and also grow further. The organization should, first and foremost, understand the importance of financial reporting so that they can improvise on the current reporting strategy that is used by the organization. The company will have to introduce monthly cash budget so that they can undertake immediate corrective actions rather than that of waiting for the ultimate time period when the situation gets out of control. Cash Flow statement The cash flow statement of Plato limited should be analysed by the management. The analysis will help the management to understand wherein they are currently making their investment and the areas wherein they need make further investment. The cash flow statement of Plato limited is as follows:- Cash flows from operating activities Amount in Net Income 430000 Depreciation and amortization 550000 Gain on sale of facility -150000 Increase in trade receivables -150 Decrease in inventories 80 Decrease in trade payables 30 Cash generated from operations 829960 Cash flows from investing activities Purchase of property, plant, and equipment 0 Proceeds from sale of equipment 0 Net cash used in investing activities 0 Cash flows from financing activities Proceeds from issue of common stock 0 Proceeds from issuance of long-term debt 0 Dividends paid 560000 Net cash used in financing activities 560000 Net increase in cash and cash equivalents 269960 Cash and cash equivalents at beginning of period 2015 4690 Cash and cash equivalents at end of period 2015 4350 Current strategy used by Plato Limited Looking at the cash flow statement, it is seen that there are certain areas wherein the organization needs to make some investments and some areas, they should make disinvestment. This will help the organization to grow further and also reduce the losses that they are currently making. Few of the investment decisions that would help the organization to grow further are discussed below. The deduction depreciation method which is used by the organization should be changed, so that the management have some little extra cash to spend. Currently, the organization charges the full years depreciation in the year of acquisition and this expensive. There are other depreciation methods which the organization can use so that the organization is not burdened with the depreciation cost. The organization can understand the life of the equipment, asset or facility and accordingly, the depreciation should be spread over a period of time. This will ensure that at any point of time, the organization is not burdened with excess cost of depreciation. The sale of equipments and other assets should be planned in advance so that the management doesnt have to sell the equipments at a very cheap price. If the life span of equipment is 7 years time then the organization should sell the equipment on completion of 5 years. This will ensure that the organization receives a better price for the equipment. In 5 years time, the organization can upgrade to existing technology with the sale of outdated equipments. The organization should reduce the inventory that they have with themselves as this is one of the best ways by which they can reduce the cost. The organization can have a tie-up with the supplier to supply the inventories, as and when required, rather than that of filling the inventory once in a month or quarterly. If the organization is having excess inventory with itself then there are very high possibilities that the inventory may not move. If the inventory doesnt move then the organizations money will be held up in inventory. Trade receivable should be reduced to the great extend so that bad debts and possibilities of bad debt can be reduced. The organization can set a time period of 45 days for the trade receivables so that the customers can pay the money in maximum of 45 days time. The trade receivables have been reduced from 570 in 2014 to 420 in 2015. This is a positive sign. The management and the sales executive in the team should ensure that the students should be motivated to opt for EMI. The organization can give an option of 3 months or 6 months EMI options rather than that one year or 18 months EMI options. The current investment and the cash and bank have reduced drastically in the year 2015, as compared to what it was in the 2014. This is not a positive sign for any business. The current investment for Plato Ltd in 2014 was 350 and in the year 2015, it was reduced to 20. Similarly, in the year 2014, the cash and bank was 620, which was reduced to just 10, in the year 2015. This is a negative sign for the growth and betterment of the business. The organization should reserve some cash and at the same time, they should also make some more current investments. This will help the business to survive in difficult times. The current liabilities of the organization should be reduced at the earliest so that the organization is not financially burdened. The trade payables has reduced from 320 to 290 in 2015 and this is a positive sign but the organization will have to put in more efforts to reduce it further. The bank loan taken should be paid off at the earliest. This will help the organization to make further investments. The bank loan in the year 2014 was 200 and it didnt reduce at all in the year 2015 so this is not a positive sign for any business. The tax liability of the organization has reduced in the year 2015 but the organization will not be in a position to do anything about this. The dividend paid by the organization to the investors is quite high and the organization need not pay such huge dividends when they are already in trouble. The organization will have to look for ways by which the dividends paid can be reduced. The retained earnings of Plato Limited are a positive sign that the organization has saved something for the betterment of the future of the organization. The organization should increase the retained earnings or they should look for ways by which the retained earnings can be used for the betterment of organization so that the organization can gain back its old position in the market. Lastly, if the organization thinks that they would require some money for the purpose of restructuring the business then they can think about issuing share capital so that the business can grow further with equipments (Garrett 2014). Accounting Business To The management of Plato Limited From The consultant Date March 31, 2016 Reference Importance of accounting This memo will take about the importance of accounting in business. Different types of financial reporting tools are available and each one has its own importance. Certain tools are mandatory while others can be used by business if the management wants to use it for convenient accounting. It is very important for a business to understand the importance of accounting so that they can put in equal efforts in accounting. Accounting is a way by which the financial data of the organization is collected and presented in a perfect format so that it can be easily understood by the stakeholders of business. The accounting reports are used by the tax authorities, creditors, and investors to analyze the current position of the organization. Asset management, fund raising and future investments are few of the common and important decisions that are undertaken by way of using the accounting reports. Balance sheet, cash flow statement, statement of retained earnings and income statement are few of the commonly used accounting reports in large organizations. Each report helps in monitoring the business. It is the responsibility of the management to analyze the accounting reports at regular intervals so that the business decisions can be controlled at the right time. A detailed analysis of the role of each of the accounting report is discussed below. Balance sheet will help the business owners to understand the assets, liabilities and also the owners equity of the organization. This accounting report will give a synopsis of the organizations current financial situation. This can be accessed by the management to understand the areas wherein they need to improve and the areas wherein they need to improve. If Plato Limited applies for loan from any financial institution then the financial institution will analyse the previous years balance sheet so that they can understand the financial situation of the business. The decision to lend or not is based on the soundness of the balance sheet (Tanyi 2015). Just like balance sheet, cash flow statement is also important for the business. With the help of cash flow statement, the decision makers can understand the current cash inflow and cash outflow of the business. It is the responsibility of every business unit to ensure that the cash inflow is more than that of the outflow. Plato Limited will have to look for ways by which the inflow can be increased and at the same time, the outflow should be reduced. The cash flow statement will help the decision makers to understand the solvency of the organization at any point of time. Plato limited will have increase the liquidity of the business so that they can make quick business decisions. Increase in liquidity would mean that the business is capable enough to pull in sufficient funds for the growth or expansion of the expansion. With regards to the assets, liabilities and owners equity, additional information will be provided by the cash flow statement. The organization can plan their future cash flows with the help of this accounting report. The organization can understand the funds that will flow into the business in the near future and also the funds that would move out of the business. Taking the cash inflows and outflows, the business decision should be taken (Barth 2015). Retaining earning accounting cant be ignored by business. Retained earnings are used by the organization to repay the debts that they have taken, to restructure the organization or some other investment which can save the organization from the financial crunch. The statement of retained earnings will help the decision makers of business to understand the change in the retained earnings over a period of time. Throughout the year, the organization will track the additions and subtractions from the retained earnings. This is used by the management to make any decision regarding the investment plans that they have. Similarly, this is also referred by the creditors when an organization requests for financial support. Plato Limited should ensure that the retained earnings are well maintained. This is a positive sign for the business. If there is a reduction in the retained earnings of the business then the investors and shareholders will be sceptical about making an investment in the organization. The creditors will also not be willing to lend money as they may assume that the financial position of the organization is very weak (Filip 2015). Income statement will help the organization to understand the income, gains, expenses or losses that they made during the reporting year. This is also called as the profit and loss statement of the organization. This statement is used by the lending institutions, banks, lenders and shareholders while they are planning to make an investment in the organization. The shareholders and the creditors will compare the year-on-year income statement of the organization to understand if the financial situation of the organization is improving. Income statement of the organization can be used for predicting the future performance of the organization. The last five years income statement can be analyzed to understand the revenue that would be generated by the organization in the upcoming years. The income and losses of the organization can be predicted with the help of income statement and hence, this helps the organization to understand the cash flow that will take place in the upcoming years (Jhunjhunwala 2014). Plato limited should analyse the last five years income statement so that they can understand the change in figures of various components. Accordingly, the management can make decisions so that the organization can look for ways by which they can reduce the amount that they spending on activities that arent yielding much results. The future investments that the organization will make should be dependent on the yields that they received in the past. Similarly, the organization will have to cut down on the losses that they expenses that are ultimately leading to losses (Whittington 2015). The financial reports of an organization are not only used by the internal decision makers but it is used by various external bodies for various purposes. Few of the bodies that commonly go through the financial statements of any organization are as follows: - The investors will try to understand the businesss behaviour before they make an investment in any business. They will thoroughly go through the financial reports of an organization and finally, they will make a sound decision on investment. The financial reports also help the investors to understand the fair activities and also the wrong activities that are undertaken by them (Hunton 2015). Common people also go through the financial statements to understand the various well being activities that are undertaken by the organization. This allows them to form a perception of the organization. This helps the organization to develop goodwill and reputation. If an organization is not accepted by the common people then their survival in the market would be difficult. The tax paid by the organization is verified based by the government officials by way of analysing the financial statements. The government agencies also track the various activities that are undertaken by the organization. They also try to understand of the organization is involved in legal practices alone so that the interests of the investors, shareholders and other stakeholders can be safeguarded by the business (Akbar 2015). It is very important for Plato limited to consider these accounting methods so that the organization can track its expenses and income effectively. In case of ignorance, the business may start to suffer huge losses. Recommendation for monthly cash budget Looking at the situation of Plato Limited, it can be said that the organization is really confused about the investment that they will have to make and the investments that they need to ignore. Monthly cash budget is one of the easiest ways by which the decision makers of the organization can be rest assured about the spending and savings that they need to undertake. Plato limited can start with monthly cash budget so that they can track the cash flow of the organization. The purpose of monthly cash budget is as follows: - This budget will help the organization to understand the short-term requirements of the business. The management will be aware of the investment that they would be making in various activities in the upcoming month. The decision makers will aware of issues that requires immediate attention so accordingly, funds can be allocated to those tasks. Similarly, if the management feels that they have some excess cash with them for the upcoming month then the organization can look for some short-term investment plans that can yield good returns (Imhof 2015). There are various advantages of preparing short-term budgets over a period of time rather than that of having one budget for the complete year. Few of the advantages of having monthly cash budgets are discussed below. The management will be aware of the incomes that they will be receiving in the upcoming month. This will help the management of Plato Limited especially during the financial year end. Many organizations end up paying more tax, so that they can safeguard themselves from the complications that may arise due to paying less tax. This can be avoided with the help of monthly cash budgets. The organization will be aware of the income that will come-in, in the upcoming month so taxes can be paid accordingly (Bertomeu 2015). If Plato limited is planning to take some loan from a financial institution then the executive will also for pro forma of the balance sheet. If the monthly cash budget is not in place then the organization will take ages to prepare a final pro forma of balance sheet but with the help of monthly cash budget, the pro forma of balance sheet can be prepared in no time. The organization can easily avail loan from the lending institutions (Litt 2014). The management of Plato limited will be aware of the areas wherein the organization is spending more than required. If the management notices that the office supplies are being ordered in excess then the management can check for suppliers who can offer better price for the office supplies. On the other end, the management can also try to understand if the office supplies are being used appropriately or if they are being wasted (Boochun 2014). It is important for Plato Limited to prepare estimated cash budget and actual cash budget. This will help the organization to understand the various wherein they are spending much more than required. The company will be able to understand the areas wherein they need to concentrate and invest more and also the areas wherein you need to disinvest. In many situations, the management may feel that they are falling short of cash but with the help of cash budget, the management will get to know about the cash requirements of business, in advance so the management will get sufficient time to make arrangements for cash (Kermis 2014). Plato Limited will be informed about the corrective actions that they need to take. If the organization is immediately informed about the wrong steps that they have taken then the corrective actions can be implemented easily. Implementation of corrective measures would be difficult if the management is not able to understand the corrective actions for a long period of time (Piotroski 2014). Conclusion The management of Plato Limited should analyze the financial reports of the organization at regular time period. This will give the management an idea on the areas wherein they need to concentrate. The organization should compare the financial reports of the previous years to the current year so that they can understand the areas which have changed and the areas which require immediate attention. Monthly cash budget can be a saviour for Plato Limited. This cash budget will help the organization to understand the short-term fund requirements, expenses and income. This will also help the organization to take corrective measures immediately. 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