BSBFIM601 Manage Finances - Project 1 | Desklib

ADV DIPLOMA OF LEADERSHIP & MANAGEMENT
BSBFIM601 - MANAGE FINANCES
Project 1
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Scenario
Summative assessment 2
Project 1
 This is a series of practical and theory activities that will enable you to demonstrate skill and knowledge—and produce end
products suitable for use in the work place.
Evidence collected as a result of workplace observation will support this assessment.
Address each of these:
For the business in which you work you need to prepare a budget. The budget must align with the business plan.
1. Describe the business and its core operations.
2. Explain what data you would use to inform the budget and why this data would be relevant.
3. Who else would you involve in developing the budget?
4. Draw up the budget to cover the next financial year.
5. Explain how the budget would be used to monitor the financial performance of the organisation.
6. List and explain the application of statutory and legislative requirements as they apply to financial management within a
business organisation.
7. Write a report explaining how the budget that you have developed contributes to financial management.
8. Present this report verbally in order to demonstrate your communication skills as well as the ability to explain budgets
and deal with questions.
9. Analyse the existing financial management approaches of the organisation. Are there any recommendations you should
make and what are they?
10. What software packages/ programs have you used when developing the budget and how did these assist?
Submit:
1. the budget—with appropriate explanations about its implementation
2. answers to the questions
3. the report on how the budget contributes to financial management
4. the report on how effective current financial management approaches are
If you are not working develop a scenario for an imaginary business. Describe the business and what it does then address the
assessment project questions. The business could be a private or a not-for-profit organisation.
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Contents
Describe the business and its core operations......................................................4
Explain what data you would use to inform the budget and why this data would be
relevant.................................................................................................................5
Who else would you involve in developing the budget?........................................5
Draw up the budget to cover the next financial year............................................5
Explain how the budget would be used to monitor the financial performance of the
organisation...........................................................................................................6
List and explain the application of statutory and legislative requirements as they apply to
financial management within a business organisation..........................................7
Write a report explaining how the budget that you have developed contributes to
financial management...........................................................................................8
Analyse the existing financial management approaches of the organisation. Are there
any recommendations you should make and what are they?...............................8
What software packages/ programs have you used when developing the budget and how
did these assist?....................................................................................................9
Conclusion.............................................................................................................10
References.............................................................................................................11
BSBFIM601 Manage finances
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Introduction
BSBFIM601 Manage finances
Financial Management helps in planning, organizing and controlling of the monetary activities. It takes
care of the utilization of resources in the effective and efficient way. A budget is a financial plan that estimated
the future expenses and predicts the sales of the goods and services. A business operates by the help of many
departments which run the business (Nikulina, 2019). In this report, a shoe manufacturing company has been
taken named Ronexo Shoe which was establishes in the year 2021. The budget has been prepared for the
company considering the estimated direct and indirect expenses and the net profit for the organization. The
importance of financial performance and the contribution of financial management in budgeting has also been
mentioned in the report.
Describe the business and its core operations.
Business is the procedure of various stages for accomplishment of pre-determined goals & objectives to
achieve general and organizational desires. Ronexo is the shoe manufacturing newly startup company
established by Mr Gary in 2021 for the purpose of establishing its different zone in the nation (the balance small
business, 2021). The enterprise must have include five activities of basic requirements:
 Marketing & Sales: The most affectionate & critical task for the Ronexo is to promote & attract
maximum people in relevance to demand & supply of products and services in earlier stage. They have
to create the budget. Who else would you involve in developing the budget? And awareness and loyalty
to take over stability in marketplace.
 Designing & Manufacturing: Ronexo company also wants sustainability and effective utilization of
resources in their production for the future growth. It is possible only when the quality-products has
been produced & served in the market. This gives major satisfaction to the consumers and beneficiary
terms to the firm.
 Technology: It is containing the adaptability of updated techniques which presents the new way of
working, innovative ideas and more capacity of doing job-order to achieve the client's attention. Ronexo,
as a startup manufacturing has a special benefit that they have newly launched tools for the making of
design and final product.
 Human Resources: It is defining the management of proper utilities in workforce of the company.
Ronexo manufacturers only select and trained those people whom they find relatable skills and talents of
doing job in effective manner.
 Finance: It is the key role for the Ronexo firm because as a new company, it has to manage funds and
investment at huge level with high risk which is used in every department for the proper functioning of
activities. It includes the financial budgets, banking operations, risk-return policies and vary
fundamentals.
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