Financial Management Software & Business Plan
Added on 2020-06-04
27 Pages7414 Words76 Views
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Student Name:Student ID:Assessment Type:Project Other:Assessor’s Name:Assessment Outcome:☐ Satisfactory ☐ Not Yet SatisfactoryStudent Declaration:By submitting this assessment via Moodle, I declare that this is my own work and had not been copied or plagiarised from any other source. Please refer to the Student Handbook for more information.Assessment Conditions:Each assessment criteria is recorded as either Satisfactory (S) or Not Yet Satisfactory (NYS). A student can only achieve a ‘Satisfactory’ Assessment Outcome for the entire assessment when all assessment Criteria listed below are ‘Satisfactory’. A student who is assessed as ‘Not Yet Satisfactory’ is eligible for re-assessment with their trainer.All assessment answers must be typed, include this assessment cover sheet and uploaded in ‘WORD’ version to module. Assessment CriteriaElementPerformance CriteriaSDevelop and use emotional intelligence 1 Plan for financial management1.1 Review and analyse previousfinancial data to establish areas which have generated a profit or loss☐1.2 Undertake research to review reasons for previousprofit and loss☐1.3 Review business plan to establish critical dates and initiatives that will require or generate resources in the next financial cycle☐1.4 Analyse cash flow trends1.5 Review statutory requirements for compliance andliabilities for tax☐1.6 Review existing software and its suitability for financial management☐
2 Establish budgetsand allocate funds2.1 Use previous financial data to determine allocations for resources☐2.2 Make informed estimates of new items for inclusion in budget☐2.3 Prepare budgets in accordance withorganisationalrequirements and statutory requirements☐3 Implement budgets3.1 Circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations☐3.2 Manage risks by checking there are no opportunities for misappropriation of funds and that systems are in place to properly record all financial transactions☐3.3 Review profit and loss statements, cash flows and ageing summaries☐3.4 Revise budgets, as required, to deal with contingencies3.5 Maintain audit trails to ensure accurate tracking and to identifydiscrepanciesbetween agreed and actual allocations3.6 Ensure compliance with due diligence4 Report onfinances4.1 Ensure structure andformat of reports are clear and conform to organisational and statutory requirementsS4.2 Identify and prioritise significant issuesin statements, including comparative financial performances for review and decision making
4.3 Preparerecommendations to ensure financial viability of the organisation☐4.4 Evaluate the effectiveness of financial management processes☐☐☐☐FINANCIAL MANAGEMENT: ASSESSMENTWEEK 2 (20 marks) ASSESSMENT ACTIVITY: SHORT ANSWER RESPONSES1. Describe at least one (1) business that is profitable and explain why you think it is enjoyingfinancial success.NAB (National Australian Banking): it is one of the successful banking and financial industry inAustralia.
It is 41st largest bank in the world operating financial and banking sector across the world.It has a large capital structure which is helpful to enhance the scope the of NAB across the globe.It has a large revenue share too. In Australia it has 74%, in Europe it has 12% in New Zealand ithas 10% in USA 3% and in Asia it has 1%. Capital Structure: Organisation is enjoying its financial success with its strong financial and capitalstructure. It is seen that the company is capable to build its market share at optimum level.Technology: NAB uses late test technology and advanced tools. The Siebel and Teradata CRM(Customer Relation Management) system is one of the technology used by the organisation.It has launched “NextGen” program also to deal the financial problems and challenges.2. While the evidence suggests otherwise, there is a common view that many new businesses failwithin the first year of operation. Why do you think a new business might not succeed?There are some reasons that new business get fail to attain profit at initial stage.Lake of goodwillLow capital structureLow number of investors and financiers3. Explain the following fundamental accounting concepts: Business Entity Concept Concept of business is considered as separate from the owner. It is considered as simple that theremust be septate accounts to be recorded from the owner.It is also considered as separate entity concept and economic entity concept.Final accounts of the business are prepared separate from the owner.Dual Aspect Concept Dual concept indicates towards the double entry accounting system.
It is a fundamental convention of accounting which is considered as essential accounting principle.As per this transaction a transaction effect both side of account such as debit side and credit side.Money Measurement ConceptThis concept tells that only those transactions must be recorded in the books which are measurablein money.There should be a separate accounting system adopted by the organisation subject to record nonmonetary transactions and events.4. Explain the following fundamental accounting concepts: Objectivity Concept As per this concept the financial statements of an organisation must be prepared on the basis ofrelevant and accurate information.Estimated and assumption based information and dare are avoided while preparing financialaccountsGoing Concern Concept It is considered that the business and organisation is established in subject to operating regularworking. Operations and functions are deemed to be consistent for long term perspective.Periodicity ConceptThis concept defines the time duration of recording the transactions in books.Accounts period are considered as quarter, month and year.This concept is also known as the time period assumption concept.31st march, 31st June, 31st September and 31st December are considered in periodicity concept.
5. Explain the following fundamental accounting concepts: Cost Concept This concept provides a path to record the assets and liabilities in books.As per this concept the assets and liabilities must be recorded on their original cost. Depreciation and deficiency must be deducted from the cost of the assets while recording thetransactions.This concept is basically implemented on fixed assets. Conservatism Concept This concept is based upon actual scenario and assumptions.As per this concept estimated and predicted cost should not be considered in profit and lossaccounts.There must be a provision made for losses and expenses.Materiality ConceptAs per this concept the all the important figures and material information to be recorded in thebooks of accounts. Irrelevant and non material information and data are not considered in books and records whilepreparing financial statements.6. Explain the following fundamental accounting concepts: Realisation Concept Realisation concept is related to goods and services. This concept tells that the amount should be recorded in books when the services and goods arerendered or provided to customers.It is also called as accrual basis accounting system.Matching Concept
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