BSBSMB406A - Manage Small Business Finances | Skills Assessment

Skills Assessment
Criteria
Unit code, name and release number
BSBSMB406A - Manage small business finances (1)
Qualification/Course code, name and release
number
CPC40110 - Certificate IV in Building and Construction (Building) (7)
Student details
Student number
Student name
Assessment Declaration
 This assessment is my original work and no part of it has been
copied from any other source except where due acknowledgement is
made.
 No part of this assessment has been written for me by any other
person except where such collaboration has been authorised by the
assessor concerned.
 I understand that plagiarism is the presentation of the work, idea or
creation of another person as though it is your own. Plagiarism
occurs when the origin of the material used is not appropriately
cited. No part of this assessment is plagiarised.
Student signature and Date
Document title: BSBBDM406_AE_Sk_2of2_20181015 Page 1 of 34
Resource ID: IEC_18_005_U02 STUDENT NAME:

Version: 21/01/2019
Date created: 29 August 2019
Date modified: 14/09/2022
For queries, please contact:
Infrastructure, Energy and Construction SkillsPoint
Mount Druitt
© 2018 TAFE NSW, Sydney
RTO Provider Number 90003 | CRICOS Provider Code: 00591E
This assessment can be found in the: Learning Bank
The contents in this document is copyright © TAFE NSW 2018, and should not be
reproduced without the permission of the TAFE NSW. Information contained in this
document is correct at time of printing: 14 September 2022. For current information
please refer to our website or your teacher as appropriate.
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Resource ID: IEC_18_005_U02 STUDENT NAME:

Assessment instructions
Table 1 Assessment instructions
Assessment
details Instructions
Assessment
overview
The objective of this assessment is to assess your
knowledge as would be required to implement, monitor
and review strategies for the ongoing management of a
small business's finances. It also includes day to day
financial management of the small business.
Assessment
Event number
2 of 2
Instructions for
this assessment
This is a skill based assessment and will be assessing you
on your ability to demonstrate skills required in the unit.
This assessment is in 6 parts:
1. Task 1 – Prepare a Business Financial Plan
2. Task 2 – Produce Financial Budgets and Projections
3. Task 3 – Prepare a Cash Flow Estimate
4. Task 4 – Develop a Credit Policy
5. Task 5 – Monitor Financial Performance
6. Assessment Feedback
Submission
instructions
On completion of this assessment, you are required to
upload it or hand it to your assessor for marking.
Ensure you have written your name at the bottom of each
page of this assessment.
It is important that you keep a copy of all electronic and
hardcopy assessments submitted to TAFE and complete
the assessment declaration when submitting the
assessment.
What do I need
to do to achieve
a satisfactory
result?
To achieve a satisfactory result for this assessment all
questions must be answered correctly.
What do I need Calculator, pens, measuring equipment, reference
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Resource ID: IEC_18_005_U02 STUDENT NAME:

Assessment
details Instructions
to provide? documents
Due date/time
allowed/venue
Your teacher will confirm assessment requirements when
you receive this assessment document.
Assessment
feedback, review
or appeals
Appeals are addressed in accordance with Every Students
Guide to Assessment.
Specific task instructions
The instructions and the criteria in the tasks and activities below will be used by
the assessor to determine whether the tasks and activities have been
satisfactorily completed. Use these instructions and criteria to ensure you
demonstrate the required skills and knowledge.
You are required to develop, implement and monitor a small business financial
plan for your newly formed building company.
Task 1: Prepare a Business Financial Plan
To complete this part of the assessment, you are required to complete the
attached business financial plan template and complete the following:
1.1Establish and implement the goals and objectives of your business company,
detail the steps that must be taken to achieve these goals. Note: Items b to
g below should be between 200 to 400 words for each point. Ensure
you answer each point in sufficient detail to present a professional
business financial plan. Include the following within your business plan:
a. The Business -
 Business name
Imperial Financial Hub ltd.
 Business summary
The company is committed to ensure proper solution in providing
the best output from their side. It mainly deals with financial
services to their clients. Those clients are situated throughout the
globe. Mainly in Europe and South East Asia.
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 Vision statement
“To enhance trust and love from people by providing best financial
solutions in the most professional and transparent way”.
 Business structure
It is organized and governed by higher authority of the company.
The company specially intends to understand the value of the
shareholders, capital market, and also the communication process
which is maintained exclusively by the team. Legal structure,
remuneration and the various policies which is identified to conclude
the independence within the organization is practiced by the
employees effectively. More specifically, network standards of the
company along with using the breadth of the company in respecting
to the associated subsidiaries aligned with it is enabled by
maintaining higher quality of reputation and excellence throughout
the performances carried out by the Organization.
 Business location / date established
Location: Melbourne
Establishment: 21st July, 2008
 Registrations
It is registered under ASIC registration of Australia under the
government security and investment structure in Australia.
b. Staff structure
The organization intends to support and serves important function
throughout the financial world. It also focuses to serve as the mediator
between the investors and the corporation of providing the best service to
the clients by carrying out the best solution in focusing of attributing the
task of financial transactions. However, the financial markets are rendered
to focus on the financial markets but it is where our financial institution
works under. It is very much complex because there are so many people
who are transacting in different sort of firms, even it also includes different
section of task by enabling different kinds of segments which helps to
create a new environment to enact the business association more flexible.
It is focused on creating the team on multiple purposes and the staff
structure is identified by this purpose and renders to reflect the diversity
of the financial attributes. The structure and regulation of the financial
institution is however determined by national laws which is enacted by the
Australian government and hence it is being determined according to the
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financial regulations. There is a numerous growth associated with the
particular structure which is practiced by the branch serving customers. It
is hence practiced by several sort of companies to fix up the problems in
rendering the conceptual framework associated with it.
c. Operational strategies
The framework in the financial services is established in order to maintain
the framework in according to the research area which is in perspective from
the management perspective. The operations in financial services have not
yet deceived itself in area of the well-defined area of the research within the
operational management community. Financial services consists of different
sort of segments which basically concludes of important issues in relation to
the link ups with different segments with the other one. The financial
product and design of different sort in perspective to the relation of
operation management perspective and also providing process of the
delivery design in focusing the system associated of ensuring proper system
in giving out delivery to the end customers very effectively. Lastly, the
process delivery management is associated very significantly to focus on the
financial services which is enacted by the global environment. These
operations are focused by affecting the various significance to enact the
financial services very effectively. The manufacturing section of the
company is focused to create the on field experience in putting on the
benefits require to promote the factors of business which is practiced to
enclose the deals with the clients by selling to whom the company will incur
revenue.
d. Financial requirements/ procedures
The financial requirements of the company is to set up a financial plan in
order to implement the additional frameworks associated very much
significantly in focusing on the procedures that are very much helpful for the
consignment of the company. Particularly during the initial stage, it is very
much important to invest the business and for that debt is to be taken by the
company for obtaining the settlement of the business. While taking the debt
the finance managers are taken into account for the association of benefits
undergoing with the obtaining of procedure focusing on profit of the
business. Bonds are purchased by the company in relation to the attributes
for implementing the resources from which it can be able to earn maximum
amount of profit. The best possible option is to undertake loans from
Australian government and it helps to issue the substances by undergoing
with the document very efficiently and effectively. The government issues
various sort of discounts effectively for the companies who have minimum
amount of net assets. The loans are disbursed at a lower rate, which gives
enough time for the companies to revert the amount to the government.
These are the procedures which is issued by the process to grab the financial
requirements and the procedures are involved from the above stages.
e. Business capital requirements
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There are various amount of working capital requirement associated with
this business. To discover out the financial flexibility if the firm, it is required
to bring out the 1:1 ratio in order to bring out the balance in terms of debt
and equity in the business. If the company prefers to go with investing half
amount of money in terms of investing by the owners and stakeholders and
the other half by investing through taking loan from the financial institutions.
It is the best way to deal with investing purposes so that the balance
between the income and expenditure will remain the same. There are also
other type of instances by which the company can issue business capital by
raising bond through the market. It is proved the better type of instance
which is followed by the company to incur better degree of profitability. It is
the best financial strategy which is helpful in finding out the solution of
financial crisis that is being rendered by the company with maintaining
financial flexibility. Interest rate that is having a better option of incurring
the suitability section and also selecting the instances by mentioning the
following object of transaction. The knowledge associated with
implementing the capital requirement in associating of the investment is
acquired with implementing the performance of the company.
f. Legal requirements
The financial requirements in association of the institution law area, which is
amended by the regulatory agencies, are mainly associated with frequent
and extensive type of conditions that is being implemented with the issue of
the net laws and regulations. In association of the subnet of requirement
that is being associated with proper feedback of the national council of
finance in Australia. Legal rights and the laws of control are particularly very
much applied to the financial institution and it involves al the types of
transactions by also involving the credit cards, electronic transfer, and
consumer credit. However, it focuses on the secured transfer of financing
data of judicial decisions that are being associated with the particular type of
associative skills rendered in it. The regulations associated with it is implied
with the activities of the detailing of transactions rendered with the
professional journals and mostly it is required to maintain the laws and
reviews in relation to the existence reference . Although, it is considered as
the most lethal tool in terms of regulating the legal application through the
secondary sources that are particularly intensified. Insolvency and
reorganization benefits, civil liability of institution application to the
consumer protection rights in relying on the segments are associated in
rendering opportunities to the clients.
g. Marketing strategies
Marketing strategies, which are applied to the business solution, is
particular to the rate of optimising better profitability of growth which is allocated
to the business section more specifically in relation to the market demands of the
business. PESTLE analysis is a part of strategy which is being able to apply in this
section. Political scenario is considered as the important section in this part
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because the auditing technique and standard of framework is very much different
from one country due to several reasons such as monitoring the taxation is quite
different. The economic viability from one company to another is also somewhat
different and later it is being sectioned into different scenario by knowing the
economic power of the target country. Although technological conception is
basically focusing to grow much more advanced than what it is today. It shall be
more advanced and also opt to advanced functioning of the technologies much
effectively and efficiently. The social acceptance of the products and services
associated with rendering the choices ad needs that are required to promote the
promotion of the business. However, legal requirements associated with the
business are being able to determine the associative structure in focusing the
strategies and then implementing it specifically. The economic regulations in
focusing the segments of the business are appropriately regulated in accordance
of the positioning of structure.
Task 2: Produce Financial Budgets and Projections
As part of your business financial plan, you are required to produce financial
budgets/ projections and present to relevant stakeholders. For this task
complete the following:
Cash Book/ Bank Reconciliation.
You are required to produce and complete your cash book and ensure
reconciliation as per bank statement for one month of trading. Refer to the
Student Financial Workbook (Excel spreadsheet) attached and complete the
following:
2.1 Refer to the Cashbook
(actual costs) transactions
table at right and enter all the
transactions within the
cash book provided on the
next page of this assessment.
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