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BSBFIM601 Financial Management Assignment

   

Added on  2019-09-27

94 Pages15848 Words96 Views
BSBFIM601Manage financesLearner Guide

P a g e | 1Table of ContentsUnit of Competency...............................................................................................................................5Application..........................................................................................................................................5Performance Criteria...........................................................................................................................6Foundation Skills.................................................................................................................................7Assessment Requirements..................................................................................................................81. Plan for financial management........................................................................................................101.1 – Review and analyse previousfinancial data to establish areas which have generated a profit or loss........................................................................................................................................................11Accounting principles........................................................................................................................11Examining past figures......................................................................................................................13Your budget.......................................................................................................................................13Forecasting........................................................................................................................................14Activity 1A.........................................................................................................................................161.2 – Undertake research to review reasons for previous profit and loss.............................................17Investigating profit and loss..............................................................................................................17Researching results...........................................................................................................................17Activity 1B.........................................................................................................................................211.3 – Review business plan to establish critical dates and initiatives that will require or generate resources in the next financial cycle.....................................................................................................22Critical dates.....................................................................................................................................22Slow periods......................................................................................................................................23Resources..........................................................................................................................................23Business plan.....................................................................................................................................25Activity 1C.........................................................................................................................................261.4 – Analyse cash flow trends..............................................................................................................27Cash flow...........................................................................................................................................27Analysing cash flow...........................................................................................................................27Activity 1D.........................................................................................................................................301.5 – Review statutory requirements for compliance and liabilities for tax..........................................31Tax liability........................................................................................................................................31Clinton Institute | RTO ID: 41597 CRICOS Provider Code: 03540CMelbourne Campus: 1101/343 Little Collins St, Melbourne VIC 3000 | Phone: 03 083940 2064Hobart Campus: 232-242 Liverpool St, Hobart TAS 7000 | Phone: 03 06135 04390v – Mar ‘18

P a g e | 2Other statutory requirements and restrictions.................................................................................33World Trade Organization (WTO) - Agriculture. (n.d.). Retrieved from http://www.agriculture.gov.au/market-access-trade/wto Accessed 01/02/17................................34Fair trading laws................................................................................................................................34Licencing permits..............................................................................................................................34Activity 1E.........................................................................................................................................341.6 – Review existing software and its suitability for financial management........................................34Financial management software.......................................................................................................34Activity 1F..........................................................................................................................................342. Establish budgets and allocate funds...............................................................................................342.1 – Use previous financial data to determine allocations for resources.............................................34Resource allocation...........................................................................................................................34Financial data....................................................................................................................................34Activity 2A.........................................................................................................................................342.2 – Make informed estimates of new items for inclusion in budget..................................................34Estimating new resources.................................................................................................................34Informed estimates...........................................................................................................................34Activity 2B.........................................................................................................................................342.3 – Prepare budgets in accordance withorganisational requirements and statutory requirements.34Preparing budgets.............................................................................................................................34Activity 2C.........................................................................................................................................343. Implement budgets..........................................................................................................................343.1 – Circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations................................................................................................34Circulating budgets...........................................................................................................................34The budget........................................................................................................................................34Reporting requirements....................................................................................................................34Communicating effectively................................................................................................................34Active listening and questioning.......................................................................................................34Activity 3A.........................................................................................................................................343.2 – Manage risks by checking there are no opportunities for misappropriation of funds and that systems are in place to properly record all financial transactions.........................................................34Avoiding theft....................................................................................................................................34Fraud.................................................................................................................................................34Recording transactions......................................................................................................................34Clinton Institute | RTO ID: 41597 CRICOS Provider Code: 03540CMelbourne Campus: 1101/343 Little Collins St, Melbourne VIC 3000 | Phone: 03 083940 2064Hobart Campus: 232-242 Liverpool St, Hobart TAS 7000 | Phone: 03 06135 04390v – Mar ‘18

P a g e | 3Activity 3B.........................................................................................................................................343.3 – Review profit and loss statements, cash flows and ageing summaries........................................34Reviewing past information..............................................................................................................34Profit and loss statements.................................................................................................................34Cash flows.........................................................................................................................................34Ageing summaries.............................................................................................................................34Activity 3C.........................................................................................................................................343.4 – Revise budgets, as required, to deal with contingencies..............................................................34Contingencies....................................................................................................................................34Revising budgets...............................................................................................................................34Activity 3D.........................................................................................................................................343.5 – Maintain audit trails to ensure accurate tracking and to identifydiscrepanciesbetween agreed and actual allocations...........................................................................................................................34Audit trails.........................................................................................................................................34Budget allocations.............................................................................................................................34Activity 3E.........................................................................................................................................343.6 – Ensure compliance with due diligence.........................................................................................34Compliance.......................................................................................................................................34Due diligence.....................................................................................................................................34Activity 3F..........................................................................................................................................344. Report on finances...........................................................................................................................344.1 – Ensure structure andformat of reports are clear and conform to organisational and statutory requirements........................................................................................................................................34Checking reports...............................................................................................................................34Receiving reports..............................................................................................................................34Ratio analysis....................................................................................................................................34Activity 4A.........................................................................................................................................344.2 – Identify and prioritise significant issuesin statements, including comparative financial performances for review and decision making.....................................................................................34Identifying issues...............................................................................................................................34Activity 4B.........................................................................................................................................344.3 – Preparerecommendations to ensure financial viability of the organisation................................34Financial viability...............................................................................................................................34Recommendations............................................................................................................................34Activity 4C.........................................................................................................................................34Clinton Institute | RTO ID: 41597 CRICOS Provider Code: 03540CMelbourne Campus: 1101/343 Little Collins St, Melbourne VIC 3000 | Phone: 03 083940 2064Hobart Campus: 232-242 Liverpool St, Hobart TAS 7000 | Phone: 03 06135 04390v – Mar ‘18

P a g e | 44.4 – Evaluate the effectiveness of financial management processes...................................................34Evaluating financial management.....................................................................................................34Activity 4D.........................................................................................................................................34Summative Assessments.......................................................................................................................34References............................................................................................................................................34Clinton Institute | RTO ID: 41597 CRICOS Provider Code: 03540CMelbourne Campus: 1101/343 Little Collins St, Melbourne VIC 3000 | Phone: 03 083940 2064Hobart Campus: 232-242 Liverpool St, Hobart TAS 7000 | Phone: 03 06135 04390v – Mar ‘18

P a g e | 5Unit of CompetencyApplicationThis unit describes the skills and knowledge required to undertake budgeting, financial forecasting and reporting and to allocate and manage resources to achieve the required outputs for the business unit. Itincludes contributing to financial bids and estimates, allocating funds, managing budgets and reporting on financial activity.It applies to individuals who have managerial responsibilities which include overseeing the managementof financial and other resources across a business unit, a series of business units or teams, or an organisation. It covers all areas of broad financial management. In a larger organisation this work would be supported by specialists in financial management.No licensing, legislative or certification requirements apply to this unit at the time of publication.Unit Mapping InformationBSBFIM601A Manage finances – equivalent unitUnit SectorFinance – Financial ManagementClinton Institute | RTO ID: 41597 CRICOS Provider Code: 03540CMelbourne Campus: 1101/343 Little Collins St, Melbourne VIC 3000 | Phone: 03 083940 2064Hobart Campus: 232-242 Liverpool St, Hobart TAS 7000 | Phone: 03 06135 04390v – Mar ‘18

P a g e | 6Performance CriteriaElementElements describe the essential outcomes.Performance CriteriaPerformance criteria describe the performance needed to demonstrate achievement of the element.1.Plan for financial management1.1Review and analyse previousfinancial data to establish areaswhich have generated a profit or loss1.2Undertake research to review reasons for previous profit and loss1.3Review business plan to establish critical dates and initiativesthat will require or generate resources in the next financial cycle1.4Analyse cash flow trends1.5Review statutory requirements for compliance and liabilities for tax1.6Review existing software and its suitability for financial management2.Establish budgets and allocate funds2.1Use previous financial data to determine allocations for resources2.2Make informed estimates of new items for inclusion in budget2.3Prepare budgets in accordance withorganisational requirements and statutory requirements3.Implement budgets3.1Circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations3.2Manage risks by checking there are no opportunities for misappropriation of funds and that systems are in place to properly record all financial transactions3.3Review profit and loss statements, cash flows and ageing summaries3.4Revise budgets, as required, to deal with contingencies3.5Maintain audit trails to ensure accurate tracking and to identifydiscrepanciesbetween agreed and actual allocations3.6Ensure compliance with due diligence4.Report on finances4.1Ensure structure andformat of reports are clear and conform to organisational and statutory requirements4.2Identify and prioritise significant issuesin statements, including comparative financial performances for review anddecision making4.3Preparerecommendations to ensure financial viability of theorganisation4.4Evaluate the effectiveness of financial management processesClinton Institute | RTO ID: 41597 CRICOS Provider Code: 03540CMelbourne Campus: 1101/343 Little Collins St, Melbourne VIC 3000 | Phone: 03 083940 2064Hobart Campus: 232-242 Liverpool St, Hobart TAS 7000 | Phone: 03 06135 04390v – Mar ‘18

P a g e | 7Foundation SkillsThis section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.ReadingInterprets, analyses and evaluates complex information to determine and adhere to organisational or legislative requirements and to assist with financial decision making.WritingDevelops and records information which incorporates a detailed analysis of factual and forecasted informationPrepares documents using format, content and layout appropriate to audience, purpose and regulatory requirements.Oral CommunicationExplains financial decisions and outcomes clearly and uses listening and questioning techniques to exchange information and obtain agreement.NumeracyReviews and analyses numerical data embedded in organisational documentation and legislationCompares and contrasts complex numerical data to analyse and evaluate financial position and processes.Uses appropriate formulae to analyse financial data to assess and manage risk and identify discrepancies.Navigate the world of workRecognises, understands and adheres to legislative and organisational requirements in undertaking own work.Interact with othersSelects and uses appropriate conventions and protocols when communicating with supervisors and managers to share information or seek agreement.Get the work doneUses logical processes in planning, implementing and evaluating complex tasks to achieve stated goalsUses formal analytical thinking techniques to identify issues, investigate underlying causes and generate possible solutions, seeking input from others as required Uses a range of digital technology to access, filter, compile, integrate and logically present complex information from multiple sourcesInvestigates new digital technologies and applications to manage and manipulate data.Clinton Institute | RTO ID: 41597 CRICOS Provider Code: 03540CMelbourne Campus: 1101/343 Little Collins St, Melbourne VIC 3000 | Phone: 03 083940 2064Hobart Campus: 232-242 Liverpool St, Hobart TAS 7000 | Phone: 03 06135 04390v – Mar ‘18

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