SITXFIN003 Manage Finances Within a Budget - Q&A Homework

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Added on 2024/07/02

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This assignment provides answers to questions related to the SITXFIN003 unit of competency, which focuses on managing finances within a budget. The questions cover various aspects of budget management, including identifying examples of financial records, listing different types of budgets, explaining the purpose of preparing a draft budget, and understanding how to utilize feedback from the draft budget. It also addresses the importance of departmental heads and staff understanding their roles in the budget, the frequency of budget monitoring, and the content of management reports. Furthermore, the assignment explores financial reports for checking budget performance, variance analysis, and research approaches for effective budget management. It concludes by discussing essential elements of budget reports for decision-making, considerations for expenditure cuts, and accounting programs for budget management. Desklib offers a wealth of similar resources, including past papers and solved assignments, to support students in their academic endeavors.

Assessment Tasks and Instructions
Student Name
Student Number
Course and Code
Unit(s) of Competency and Code(s) SITXFIN003 Manage finances within a budget
Stream/Cluster
Trainer/Assessor
Assessment for this Unit of Competency/Cluster Details
Assessment 1 Short Answers
Assessment 2 Project
Assessment 3
Assessment conducted in this instance: Assessment 1 2 3
Reasonable Adjustment
1. Has reasonable adjustment been applied to this assessment?
No No further information required
Yes Complete 2.
2. Provide details for the requirements and provisions for adjustment of assessment:
Student to complete
My assessor has discussed the adjustments with me
I agree to the adjustments applied to this assessment
Signature Date
2nd Assessor to complete
I agree the adjustments applied to this assessment are reasonable
Name
Signature Date
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Assessment Guidelines
What will be assessed
The purpose of this assessment is to assess your underpinning knowledge to complete the tasks outlined in the
elements and performance criteria for this unit of competency and relating to the following aspects:
 types of financial records:
o bank deposit documentation
o bank statements
o banking summaries
o business activity statements
o cheque books
o credit card transaction statements
o invoices
o journal entries
o labour and wages reports
o merchant statements
o merchant summaries
o transaction reports
 types of budgets:
o cash budgets
o cash flow budgets
o departmental budgets
o event budgets
o project budgets
o purchasing budgets
o sales budgets
o wage budgets
o whole of organisation budgets
 factors for consideration in the preparation of financial and statistical reports:
o cash flow
o commercial account activity
o commission earnings
o covers and financial return
o daily, weekly and monthly transactions
o expenditure
o income
o occupancy rates and financial return
o performance of department, project and/or products and services
o sales performance
o sales returns
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o staff costs
o stock levels
o variance in income and/or expenditure
o wastage
o yield
 use, contents of and formats for:
o budgets
o financial reports
o statistical reports
 budget terminology
 specific industry sector and organisation:
o use of budgets to control costs and enhance profitability
o importance of budget control
o techniques for maximising budget performance
o financial reporting procedures and cycles
o features and functions of accounting software programs used to manage budgets.
Place/Location where assessment will be conducted
RTO to complete
Resource Requirements
Pen, Paper or computer
Instructions for assessment including WHS requirements
You are required to address all questions to achieve competence. Your trainer will provide you with instructions
for time frames and dates to complete this assessment.
Once completed, carefully read the responses you have provided and check for completeness. Your trainer will
provide you with feedback and the result you have achieved.
Statement of Authenticity
I acknowledge that I understand the requirements to complete the assessment tasks
The assessment process including the provisions for re-submitting and academic appeals were explained
to me and I understand these processes
I understand the consequences of plagiarism and confirm that this is my own work and I have
acknowledged or referenced all sources of information I have used for the purpose of this assessment
Student Signature: Date: / /201
This assessment: First Attempt 2nd Attempt Extension – Date: / /
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RESULT OF ASSESSMENT Satisfactory Not Yet Satisfactory
Feedback to Student:
Assessor(s) Signature(s): Date: / /
Student Signature Date: / /
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Assessment 1
Your Task:
Answer the following questions below. All questions must be answered.
Question 1
List 8 examples for financial records
1. Cashbook records
2.Banking records
3.General account books
4.Tax invoices and tax records
5. Debtors records
6.Creditors records
7.Stock records
8.Expenses records
Question 2
List 4 different types of budgets.
1.Master Budget
2. Cash flow Budget
3.Financial Budget
4.Sales Budget
Question 3
What is the purpose of preparing a draft budget?
The main aim of drafting a budget is to have a visual description of the expected financial outcomes of the
business activities in a given period of time. Drafting of the budgets helps in the better implementation of the
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business decisions. The act of developing draft budgets help the businesses in thinking and developing picture of
the business in the next three, six, nine and twelve months. Budget is one of the most powerful business tools
that helps in the implementation of better decisions. It enables in developing and maintaining a thorough
understanding of the financial workings of the business.
Question 4
What should you do with the feedback from the draft budget?
The feedback about the draft budget can be effectively used in implementing changes in the budget as changes
lead to the development of an effective final budget. Also, consulting and discussing with others about the
budget helps in the identification of the pros and cons of the draft budget with greater ease and flexibility. The
feedback also helps in the preparation of the accurate budget activities that save plenty of time and money and
years of wasted efforts. The budget planners should critically implement the changes as specified in the draft
budget for the development of final budget.
Question 5
List 2 people the final budget might need to be distributed to.
1.Project team members
2.Department team heads
Question 6
Why is it important for each department head to understand their part of the budget?
It is important for each department head to understand their part of budget in order to ensure the effective
execution of the budget activities. If the department heads are unaware about their budget roles and
responsibilities, it is not possible to attain desired outcomes. If the department heads are aware about their
roles and responsibilities in the budget, they can easily segregate the tasks to their respective teams accordingly.
Question 7
Why should all staff have some knowledge of the budget for their area?
Management of budget is a critical skill for the business that involves constant monitoring, controlling and
managing the income and expenditures to keep efficient track of every financial activities and outcomes. It is the
sole responsibility of the senior management and staff to have accurate and updated information about the
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budgeting procedures. The managers and staff involved in the process of budgeting must develop the budget for
their respective roles and responsibilities and then submit it to finance department. The staff should have
proper understanding of the purpose of budgets, its legal and regulatory requirements, cost and expenses in
order to accomplish the desired goals and objectives with greater ease and flexibility.
Question 8
Once the final budget has been approved, how often should it be monitored?
After approval, the final budget need proper and systematic monitoring that depends upon the size and scale of
operations of the organisations. The final budget can be monitored weekly, monthly and quarterly. The
monitoring of the budget should be timely undertaken by the head of departments and budget planners so as to
address the variances timely.
Question 9
As well as receiving the final budget the management team should be advised of their reporting duties. What
should their report contain?
The final report by the budget management team includes the changes in the budget from the draft along with
the explanation of the changes. Also, the report should contains information about the changes requested in the
draft and has not been made in the report with proper explanation for the same.
Question 10
Name 2 financial reports you might generate from your accounting system to check your budget against
actual income or expenditure.
1.Profit and loss accounts: Profit and loss accounts are one of the financial statements of the company and
reflects company’s revenues and expenses for a given period of time..
2.Balance sheets: Balance sheets are the fundamental financial sheets that displays company’s total assets on
one side and liabilities on the other.
Question 11
Every revenue and expense item on the Profit and Loss Statement should be compared to what?
While preparing budget, it is important to compare every revenue and expense item on the profit and loss
statement with the financial budget. It compares the actual revenue and expenses with the estimated or
budgeted revenue and expense items and the difference might be profitable or loss for the business.
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Question 12
When revenue variances occur, why should you talk to the staff to help identify, and find options to
address the issue?
During the occurrence of revenue variances, it is beneficial to discuss with the front line staff as the front line
staffs have direct interaction with the customers. Hence they can better state about the needs and expectations
of the customers. The revenue variance is the difference between actual revenue and budgeted revenue.
Favourable revenue variances occur when the actual revenues exceed budgeted revenues while unfavourable
variances are the result when budgeted revenue exceeds the actual revenue. The severe issue of variances in
revenue can be easily addressed by discussing with the front line staff and the situation can be handled with
greater ease and flexibility.
Question 13
List 2 factors that can cause variances in staff budgets.
1. Labour Costs: It sums up the wages paid to the employees and also the payroll taxed paid by the employer.
2. Material Costs: Material costs are the cost of direct materials which are identified with the unit of production.
Question 14
List 3 colleagues you may advise if you noticed that there were deviations between your budget and your
targets.
1. Senior Manager
2. Financial Advisor
3. Departmental heads
Question 15
List 2 ways you might research new approaches to managing your budget.
1.Regular reassessment of budget
2.Identification of new suppliers to save the costs
Question 16
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List 3 things you need to include in your budget report, to give the decision maker enough information to do a
clear cost versus benefit analysis of the budget request.
1.Causes for change
2.Advantages to business
3.Financial profits
Question 17
If you are cutting expenditure, why must you be careful that the cuts do not cause the level of service and
product to fall?
It is important to be careful about long term drawbacks that have the tendency to damage the budget planning
and activities which ultimately create adverse situation for the business. Hence it is essential for the budget
planner t o critically analyse the degree of expenses for the successful completion of expected goals and
objectives.
Question 18
Name an accounting program you can use to help manage budgets.
SCORO is an efficient accounting program that combines the budgeting features with the other tools for the
proper and systematic management of the budget. It is effective software that integrates project management
with sales, team management and professional services for the attainment of the desired goals and outcomes. It
can be easily used by the small as well as medium enterprises for the proper and systematic management and
monitoring of the budgets.
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