BSBFIM601 Manage finances

Student name:

Date submitted:

Assessment Tasks

BSBFIM601 Manage finances

Assessment plan

The following outlines the requirements of your final assessment for BSBFIM601 Manage finances. You are required to complete all tasks to demonstrate competency in this unit.

This unit is assessed through the following:

Assessment Requirements Assessment Overview Due date
1. Written questions


Students must correctly answer all questions
2. Financial management planning project (Part A)


Students must plan for financial management by reviewing financial data, as well as preparing budgets.
3. Financial management planning project (Part B)


Students must communicate budgets and financial reporting requirements and delegations to managers.
4. Review budget project




Students must review interim financial data and revise budgets as required.
5. Aged debtor project Students must review an aged debtor report and develop a report on best practice debtor management.

All assessments will ensure that the principles of assessment and rules of evidence are adhered to. The principles of assessment are that assessment must be valid, fair, reliable and consistent. The rules of evidence state that evidence must be sufficient, valid, current and authentic.

If reassessment is required, you will be given the chance to resubmit the assessment task. You will have up to three opportunities to resubmit each assessment task. If, after the third attempt, the assessment is still not satisfactory your trainer/assessor will make alternative arrangements for assessment.

Agreement by the student
Have you read and understood what is required of you in terms of assessment?  Yes  No
Do you understand the requirements of this assessment?  Yes  No
Do you agree to the way in which you are being assessed?  Yes  No
Do you have any special needs or considerations to be made for this assessment? If yes, what are they?  Yes  No
Do you understand your rights to appeal the decisions made in an assessment?  Yes  No

Student name:

Student signature: Date:

Assessor name:

Assessor signature: Date:

Assessment Task 1 – Written Questions

Task Summary

  • This is an open book test.
  • Students need to answer all of the written questions correctly.
  • Answer should be provided on a separate sheet of paper with the assessment task number clearly indicated, the students name and each question clearly marked. Answers must be word-processed and sent to the assessor via email.

What do students need to complete this assessment?

  • Access to textbooks/other learning materials
  • Computer and Microsoft Office
  • Access to the internet

When and where do students need to do this?

This assessment task will be completed in the classroom.

Write in the date as advised by your assessor:

___________________________________________________

What do students have to submit?

  • Answers to all questions

What if students get something wrong?

If your assessor sees that you did not complete the task satisfactorily, they will give you feedback about the questions you have not answered correctly and a timeline for resubmission.

Instructions to students

Answer all of the questions below:

  1. Identify and describe financial probity requirements for businesses.
  1. Identify four examples of what would be consider fraudulent behaviour in regard to company finances.
  1. Identify the requirements for audited accounts and the purpose of an audit report.
  1. Describe the principle of cash accounting one advantage and one disadvantage of cash accounting.
  1. Describe the principle of accrual accounting and one advantage and one disadvantage of accrual accounting.
  1. Explain the four main taxation and superannuation obligations for a business. Briefly discuss each obligation.
  1. Identify the Act that details requirements for financial reporting and auditing and, explain the requirements for companies for preparing and lodging financial reports under this Act.
  1. Explain the requirements for registered foreign companies regarding preparing and lodging financial reports.
  1. Identify the current company tax rate for both smaller and larger businesses.
  1. Explain the process by which a business reports GST to the Australian Tax Office.
  1. Identify the penalty rate to be applied if a supplier does not provide an ABN?
  1. A non-profit organisation needs to register for GST after it has a turnover of more than how much?
  1. Explain the difference in Pay As You Go withholding obligations for employees and contractors.

Assessment Task 2: Financial Management planning project

This assessment task is in two parts.

For Part A, you are required to review existing financial information and prepare budgets.

For Part B, you are required to meet with the management team to discuss budgets, as well as reporting requirements and delegations.

Part A: Analyse finances and prepare budgets

Task summary

You are required in the role of the General Manager for Grow Management Consultants to review existing financial information and prepare budgets for the following financial year based on your review.

What do students need to complete this assessment?

  • Computer and Microsoft Office
  • Access to the internet for research
  • Profit and Loss Statement 2014 – 2015
  • Strategic Business Plan Grow Management Consultants
  • Cash flow statements 2014 – 2015
  • Conference/e-book costs and income
  • Reprot template

Where and when do students need to do this?

This assessment task will be completed in the classroom as part of the simulated work environment.

Write in the date for this assessment as advised by your assessor

___________________________________________________ 


What do students have to submit?

  • Finances Report
  • Financial Management Policy and Procedure
  • Completed budgets for 2015 – 2016

What if students get something wrong?

If your assessor sees that you did not complete the task satisfactorily, they will give you feedback about the questions you have not answered correctly and a timeline for resubmission.

Instructions to students

Grow Management Consultants specialises in leadership consultancy. It has been operational for five years. The company offers a range of services to assist companies to assess leadership behaviour of existing managers and performance metrics. They also design and implement customized leadership programs based on the assessment. Services are offered Australia-wide. The company employs a General Manager (you), 2 Principal Consultants (who are also Directors), 1 Senior Consultant, an Administration Officer and Receptionist. Over the last two years, the company has diversified, and now offers regular professional development workshops on all aspects of leading and managing staff. These workshops are conducted approximately every 3 months in all major cities including Sydney, Brisbane and Melbourne. In 2016 – 2017, the company ran a total of 36 workshops. The company has also recently produced an E-book about leadership techniques. The intention is to replace the workshops with the annual conference in the next financial year, as the workshops were not well attended. Client feedback and continued business indicates a personalized, company focused approach in the form of consulting services is the service of choice. The E-book has had reasonable sales, but there needs to be a wider selection of books, as well as more marketing. The plan is to generate $10,000 worth of sales for the e-books during the next financial year and increasing over time. As the General Manager for the company and with responsibility for finances, you are currently completing the financial planning for the year ahead. This involves a review of the company’s business plan, previous year’s profit and loss statement, the current business plan and strategic directions and cash flow statements. Based on the review, you will be establishing budgets and allocating funds. In developing the budget, you are to assume a 5% increase in cost of sales, as well as a 10% increase in sales for consulting services and executive search. As set out in the business plan, the company plans to run an annual conference each year starting in 2018. The costs for the conference have been estimated by the Principal Consultant and are set out in the Estimated Costs and Income document. Conference attendance is aimed at 100 people paying $750 each. The Principal Consultant has also asked you to review the current accounting software used by business. The company is currently using MYOB but as it has grown, the Principal Consultant wishes to review whether this is the best accounting software available for their needs. He has also requested that the software have a cloud feature.

Complete the following activities:

  1. Prepare a financial performance report

Review the case study scenario above, as well as the information provided in Profit and Loss 2016/17 and Cash Flow Statement 2016/17 Using this information, identify areas of the business that have generated a profit and those that have generated a loss.

Conduct research to establish why those areas have made a profit or loss. Your research should include a review of the financial data provided to you and economic conditions and business trends that may have resulted in the profit or loss.

Your report should include the following:

  • Overview of the purpose of the report.
  • Analysis of the previous year’s (2016 – 2017) profit and loss statement for Grow Management Consultant, including revenue generated, cost of sales, as well as gross profit/loss margin and net profit/loss margin.
  • Analysis of overall business performance, as well as performance of each of the income streams for 2016 – 2017.
  • Outline of reasons for profit or loss based on your analysis of the data and research on economic conditions and business trends.
  • Analysis of the organisation’s goals and priorities for the upcoming financial year as documented in the Strategic Business Plan and financial resources required to achieve these goals, as well as key dates.
  • An analysis of cash flow trends as per the cash flow statements.
  • Review and analysis of at least three other financial software products that the business could use, including the advantages and disadvantages of each, as well as the advantages and disadvantages of MYOB that is currently used.

Use Finance Report Template to guide your work.

  1. Develop budget forecasts

Develop budget forecasts, ensuring that the analysis of the previous year’s data and future plans as indicated in the business plan is taken into account in determining projected income and expenditure.

Use the Budget Forecast Template to guide your work.

Ensure that your budget includes the estimated income and costs for the conference and e-book to be implemented in 2018 in the document Costs and Income

Assume a 5% increase in all general costs, as well as a 10% increase in income for consulting and executive recruitment service. Input costs and income for the conference and e-book as set out in the Costs and Income data.

  1. Develop report on key financial compliance requirements and liabilities for tax.

So that financial risks are managed in relation to the misappropriation of funds and recording of transactions, you are also required to outline reporting requirements and financial delegations as outlined in the company’s financial policy and procedures.

You should also research and report on the company’s compliance requirements and tax liabilities.

Research and report on the business’ key financial compliance requirements and liabilities for tax.

The report should explain:

  • GST reporting requirements (the company is required to report quarterly)
  • PAYG withholding obligations
  • PAYG income tax instalment
  • Payroll tax obligations (state government)
  • Superannuation entitlements and requirement to comply with legislation regarding frequency of payment, choice of fund and reporting to staff.
  1. Send an email to the Principle Consultant (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachments. Ask them to read the documents in preparation for discussing them at the upcoming meeting.

Attach the following to the email:

  • Your financial report
  • Your budget forecasts
  • Your financial compliance and tax liabilities report
  1. Prepare for meeting

The Principal Consultant has approved your budget for the upcoming financial year, 2017 – 2018. You are now required to meet with the Senior Managers to communicate the budgets you have developed.

Print off a copy of the following to take with you to the meeting:

  • The budget that you have developed.
  • The Financial Policy and Procedures. You will be required to explain key reporting requirements to the Managers attending the meeting, as well as financial delegations. Review this document and highlight the relevant passages.
  • Your report on key financial compliance requirements and liabilities for tax

At the meeting, you will need to:

  • Discuss the budget you have developed and the rationale for the budget figures.
  • Discuss the amounts allocated to activity, including the conference and the e-book.
  • Explain that there will be no more workshops conducted.
  • Provide an outline of the financial policy and procedure. to ensure that roles and responsibilities are understood and risks of misappropriation of funds/incorrect recording of financial transactions is minimised.
  • Explain the company’s key financial compliance requirements and tax liabilities.
  1. Conduct meeting

Conduct the meeting as set out in the requirements above, making sure that you provide the team with all the required documentation.

During the meeting, demonstrate effective communication skills including:

  • Speaking clearly and concisely
  • Using non-verbal communication to assist with understanding
  • Asking questions to identify required information
  • Responding to questions as required
  • Using active listening techniques to confirm understanding

Assessment Task 3: Budget review project

Task summary

This assessment task requires you to review the profit and loss statement for 2015 – 2016, as well as the cash flow statement for Grow Management Consultants.

What do I need?

  • Computer and Microsoft Office
  • Access to the internet for research
  • Profit and Loss Account for 2015 – 2016
  • Cash flow statement for 2015 – 2016

Where and when do I need to do this?

This assessment task will be completed in the classroom as part of the simulated work environment.

Write in the date for this assessment as advised by your assessor

___________________________________________________ 


What do I have to submit?

  • Report on performance for 2015 – 2016

What if I get something wrong? 


If your assessor sees that you did not complete this task satisfactorily, they will ask you to redo the task. 


Instructions

Complete the following activities:

It is now 1 year later and you are required to review the profit and loss account for 2015 – 2016, as well as the cash flow statement.

The Principal Consultant has also asked you to focus on reviewing the conference costs as, while there was very positive feedback from the conference and the company wishes to run it next year, there needs to be revisions to the budget and a potential price increase for the conference fee to make the conference profitable.

The Principal Consultant would like you to report on a proposed conference fee given a 10% increase in all the recorded costs for the conference as shown in the profit and loss statement (and that match the conference costs for the document you reviewed in Assessment Task 2) and assuming 70 people will attend the 2017 conference. The Principal Consultant would also like a 20% return on the conference costs.

  1. Write a financial performance report.

Analyse the information provided in Profit and Loss 2017/18 and Cash Flow Statement 2017/18.

Based on your analysis, develop a short report for the Principal Consultant that includes

  • Review of overall performance and gross/net profit margins.
  • Calculation of variation in actual versus budgeted amounts for each income source.
  • Calculation of variation in actual versus budgeted costs, focusing particularly on conference costs.
  • Recommended revisions to the budget for conference costs for 2017/18.
  • Proposed conference fee for 2018 conference assuming attendance of 70 people and to make a profit of at least 20%.
  1. Send an email to the Principle Consultant (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment.

Attach your financial performance report to the email:

Assessment Task 4: Debtor management project

Task summary

This assessment task requires you to review and evaluate financial management processes.

What do I need?

  • Computer and Microsoft Office
  • Access to the internet for research
  • Aged debtor summary

Where and when do I need to do this?

This assessment task will be completed in the classroom as part of the simulated work environment.

Write in the date for this assessment as advised by your assessor

___________________________________________________ 


What do I have to submit?

  • Report on debtor management

What if I get something wrong? 


If your assessor sees that you did not complete this task satisfactorily, they will ask you to redo the task. 


Instructions

Complete the following activity:

  1. Write a debtor management report.

Review the Aged Debtor Report, noting that the company’s usual terms are payment 10 days from invoice.

Using the Internet, research best practice debtor management and make notes on your findings.

Your report should be approximately 1 page.

Provide a report for your CEO based on your analysis that includes:

  • A summary: an interpretation of the information in the aged debtor report.
  • Good practice debtor management
  • Develop at least 5 recommendations that could be adopted by the company in response to your analysis. This will also be based on the debtor management research you conducted.
  1. Send an email to the CEO (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment, and seek approval to implement best practice debtor management processes.

Attach your debtor management report to the email:

Leave a Reply

Your email address will not be published. Required fields are marked *