American College: SITXFIN003 Project - Budget Management

This project document, designed for the SITXFIN003 unit, focuses on the critical skills required to manage finances within a budget. The project includes a comprehensive glossary of terms, covering various types of financial records such as bank statements, invoices, and transaction reports. It also provides detailed explanations and examples in the form of FAQs regarding different types of budgets, including cash budgets, departmental budgets, and sales budgets. Furthermore, the project addresses factors for consideration in the preparation of financial and statistical reports, such as cash flow, cost-benefit analysis, and variance analysis. The student is required to demonstrate understanding of budget resource allocation, financial activity monitoring, and the identification of opportunities for improved budget performance. The project aims to equip students with the knowledge and practical skills necessary for effective budget management in the tourism, travel, hospitality, and event sectors.

Document Title: Task 2 Project
Document Subtitle: SITXFIN003 - Manage Finances
Within a Budget

Contents
COMPETENCY DEMONSTRATION...................................................................................... 4
STUDENT DETAILS............................................................................................................ 5
STUDENT INSTRUCTIONS FOR PROJECT...........................................................................6
ASSESSMENT TASK 2 PROJECT BRIEF............................................................................... 7
ASSESSMENT TASK INSTRUCTIONS.................................................................................. 8
APPENDIX 1...................................................................................................................... 9
SECTION 1 – GLOSSARY OF TERMS TYPES OF FINANCIAL RECORDS:...............................9
SECTION 2 – FAQ - TYPES OF BUDGETS............................................................................9
SECTION 3 – GLOSSARY- FACTORS FOR CONSIDERATION IN THE PREPARATION OF
FINANCIAL AND STATISTICAL REPORTS
.......................................................................................................................................
10
SECTION 4 – Use, contents of and formats for...............................................................11
SECTION 5 – GLOSSARY – BUDGET TERMINOLOGY.........................................................11
SECTION 6 – FAQ SPECIFIC INDUSTRY SECTOR AND ORGANISATION.............................12
ASSESSMENT OF REQUIRED OVERALL SKILLS AND KNOWLEDGE FOR THIS TASK..........13

COMPETENCY DEMONSTRATION
This Assessment Task covers the following unit of competency:
Unit of
competency:
Unit Code SITXFIN003 Unit Title Manage Finances
within a Budget
This unit describes the performance outcomes, skills and knowledge required to take
responsibility for budget management where others may have developed the budget. It
requires the ability to interpret budgetary requirements, allocate resources, monitor
actual income and expenditure, and report on budgetary deviations.
The skills and knowledge for budget development are covered in SITXFIN004 Prepare
and monitor budgets.
This unit applies to all tourism, travel, hospitality and event sectors. The budget may be
for an entire organisation, for a department or for a particular project or activity.
It applies to those who operate independently or with limited guidance from others.
This includes supervisors and departmental managers.
No occupational licensing, certification or specific legislative requirements apply to this unit
at the time of publication.
To demonstrate your competency in this unit you will need to provide evidence of your ability
to:
 Allocate budget resources.
 Monitor financial activities against budget.
 Identify and evaluate options for improved budget performance.
 Complete financial and statistical reports.

STUDENT
DETAILS
Please complete
this declaration
with the student
Unit of competency: Unit Code SITXFIN003 Unit Title Manage Finances
within a Budget
Trainer/Assessor Name:
Student Name:
Student ID:
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ASSESSMENT TASK 2 PROJECT
BRIEF
Objective of the task The purpose of this project is to assess your knowledge the
requirement to take responsibility for budget management
where others may have developed the budget. It requires the
ability to interpret budgetary requirements, allocate resources,
monitor actual income and expenditure, and report on budgetary
deviations.
You are to provide a FAQ and a Glossary of terms on an overall
view of the following learning outcomes:
Allocate budget resources.
Monitor financial activities against budget.
Identify and evaluate options for improved budget performance.
Resources Learner Guide
PowerPoint Slides/Handouts
You will be required
to complete
FAQ and Glossary of terms (APPENDIX 1)
Time allocation Refer to Training Plan

ASSESSMENT TASK INSTRUCTIONS
Your task For your simulated establishment your task is to complete Appendix 1
“FAQ and a Glossary of terms”. You are required to complete section 1
to 6 as given below
Appendices include 1 FAQ and a Glossary of terms
Evidence
summary/Submissi
on Instructions
☐ FAQ and a Glossary of terms (Appendix 1)

APPENDIX 1
SECTION 1 – GLOSSARY OF
TERMS TYPES OF FINANCIAL
RECORDS:
1.1 Define the following types of financial
records
Bank deposit
documentati
on
Bank deposit documentation is a deposit slip which is used in banks to make
deposits by the customers. It contains several information such as date, name
of the depositor, amount to be deposit, bank account holder's name, details of
deposit whether deposit is by way of cheues or in cash, signature of the
depositor.
Bank statements Bank statement is a periodical statement which contains all the details
regarding transactions done through the bank account by the customers in a
specific period of time. It can be monthly, quarterly, half yearly or yearly. It
provides a summary of transactions done through the bank account either
payment or receivables of funds.
Business
activity
statements
Business activity statements are a specific type of activity statement which are
issued by the Australian Taxation Office. It is a form which reflects all the tax
liabilities related to business which is required to pay or paid by business over
a specific time period. It can be submitted monthly, quarterly or annually.
Cheque books Cheque book is a compiled mini book which contains orderly numbered
cheque instruments to be issued by the bank to account holder used to pay for
the various goods or services consumed. Cheques are a type a negotiable
instrument. To make payment by way of cheques, cheque holder is required to
handed over the signed cheque to the goods or service vendor.
Credit card
transaction
statements
Credit card transaction statement is a statement which records all the necessary
and relevant information regarding the transactions done through the credit
card by the credit card holder. These statements are issued to the credit card
users at fixed intervals. It contains several information regarding payment due
date, minimum amount due, credit limit, current outstanding balance, billing
cycle etc.
Invoices Invoice is a commercial document which is issued by the seller to the buyer of
the goods or service receiver containing various details about the name of the
seller or service provider, date, invoice no., goods or services details, total
amount receivables from the customers, signed by the vendor etc. It is a very
important document which records the sale done by an organisation.
Journal entries Journal entry is a function of keeping records of the various transactions or
events occurred during the year. It helps in tracking records of each financial
event which can affect the business in any way. There are several types of
journal entries: it can be compound, adjusting or reversing. At the year end,
entity is required to pass closing entries so that all the transactions occurred
during the year can be summed up in a manner so that reporting will be easy
for such transactions.
Labour and wages
reports
Labour and wages report is a report containing comprehensive details
regarding wages required to pay by an organization to their labours for the
operations during the year. It provide assistance to the higher authority so that
they can track labour expenses as well as to manage those expenses.
Merchant statements Merchant statement is a detailed document which consists all transactions,
sales activity or processing fees for s specified period. It helps merchants to

track their financial transactions for a specified period and to make budgets
accordingly. It helps merchant to monitor their activities closely. A fixed fee is
charged for the merchant account within particular period.
Merchant summaries Merchant summary reports contain details about total no. of transactions incurred or
total amount processed through the merchant account during a specified period of
time. It shows total no. of transactions entered, total purchase amount processed for
each credit card or total amount processed for each type of credit card etc.
Transaction reports Transaction report is a report which contains several information and data relating to a
transaction entered by a person in the security market. The basic purpose of the
transaction reports are to provide insights to investigate any insider trading activities
or activities related to market manipulation. It can be submitted by only the
investment firms submitting their own reports.
SECTION 2 – FAQ - TYPES OF
BUDGETS
2.1 Explain in detail. What are:
cash budgets Cash budget is shows the outflow of the cash in a business for a specific time
period . It can be prepared monthly, weekly, annual or quarterly. Cash budget
helps to identify whether the entity has enough cash to continue the business.
To use cash budget can be identify the efficient use of surplus cash.
cash flow budgets A cash flow budget is an evaluation of all cash inflow and all cash outflow
which is expected to occur in a future. In cash flow budget the following terms
included such as sales forecasts, debtors, creditors, tax payments, the expenses
which is related to continue the business. A cash flow budget is two types-short
term and long term cash flow budgets.
Departmental/operating
budgets
The business where has one or more department to prepare Departmental
budget. It is prepare in a dollar amount and it is an aggregation of total
operating and maintenance expenses. Department budget can revise to the
better need of people, city manager. It provides information and services in
according to people. This budget is also help in funding.
event budgets Event budget helps to identify the cost which will incur on the event on the
basis of plans and research. The expenses will incurred in an event in
according to budget. This budget helps to reduce labor cost, control cost of
hotel and provide new technology in according to event.
project budgets Project budget is a best technique of the project manager which is help to
identify the total cost incurred to complete the project. In a large budget there
has many phases to complete the project and often have several cost such as
material cost, labor cost and administrating expenses. The project budget
should be updated time to time yet the project is not completed.
purchasing budgets In purchase budget contains the detail of inventory which is purchase in during
the budget period cycle. The amount of inventory contain in budget is
sufficient to full fill the needs of customer. The purchase budget is prepared by
retailer or wholesaler. It is not profit or expense budget, whether it helps to
identify the need of the organization for material.
sales budgets Sales budgets are focuses on the company's revenue in a given time frame. It
attentions on the prices of the product which they are sold and number of the
product sold , product development and production capacity. The sales budget
can prepared on monthly, quarterly and annually. The sales budget should an
accurately to know how much stock is manufacture during the period and also
identify the order and distribution channel in different countries.
wage budgets The Economic Research Institute explain the wage budget the money has spent in a
specific amount which is to pay wages within a time period. Wage budget is play an

important role in an organization. Wage expenses are the biggest portion of the
expenditure which is to identify the amount pays to the employees in respect of
wages. It is prepared on the basis of industry data.
whole of
organisation
budgets
This budget is also known as master budget It is an aggregation of all operational and
financial budget. It is an important tool when planning in the future business and
determine the material has available in the business to continue the operating cycle. It
is prepared for a specific period.