Bright Net Financial Services project.pdf

Project for work related product

1. Project : EY & Sunshine Inn
Date: 9 July ,2020

Name: Shiyi QIU

Email: [email protected]

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/