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BSBFIM

6

01
Manage finances
Learner Workbook

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Table of Contents

Table of Contents

1

Candidate Details

2

3

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Assessment – BSBFIM601: Manage finances

2

Competency Record to be completed by Assessor

3

Observation/Demonstration

4

Activities

5

Activity 1A

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Activity 1B

6

Activity 1C

7

Activity 1D

8

Activity 1E

9

Activity 1F

10

Activity 2A

11

Activity 2B

12

Activity 2C

13

Activity 3A

14

Activity 3B

15

Activity 3C

16

Activity 3D

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Activity 3E

18

Activity 3F

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Activity 4A

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Activity 4B

21

Activity 4C

22

Activity 4D

23

Skills and Knowledge Activity

24

Major Activity

26

Candidate Details

Assessment – BSBFIM601: Manage finances

Please complete the following activities and hand in to your trainer for marking. This forms part of your assessment for BSBFIM601: Manage finances.

Name:

_____________________________________________________________

Address: _____________________________________________________________

_____________________________________________________________

Email: _____________________________________________________________

Employer: _____________________________________________________________

Declaration

I declare that no part of this assessment has been copied from another person’s work with the exception of where I have listed or referenced documents or work and that no part of this assessment has been written for me by another person.

Signed: ____________________________________________________________

Date: ____________________________________________________________

If activities have been completed as part of a small group or in pairs, details of the learners involved should be provided below:

This activity workbook has been completed by the following persons and we acknowledge that it was a fair team effort where everyone contributed equally to the work completed. We declare that no part of this assessment has been copied from another person’s work with the exception of where we have listed or referenced documents or work and that no part of this assessment has been written for us by another person.

Learner 1: ____________________________________________________________

Signed: ____________________________________________________________

Learner 2: ____________________________________________________________

Signed: ____________________________________________________________

Learner 3: ____________________________________________________________

Signed: ____________________________________________________________

Competency Record to be completed by Assessor

Learner Name: _______________________________________________________

Date of Assessment: _______________________________________________________

The learner has been assessed as competent in the elements and performance criteria and the evidence has been presented as:

Assessor Initials

Authentic

Valid

Reliable

Current

Sufficient

Learner is deemed: COMPETENT NOT YET COMPETENT (Please circle)

If not yet competent, date for re-assessment: ____________________________________

Comments from Trainer/Assessor:

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Assessor Signature: ________________________________________________________
Observation/Demonstration

Throughout this unit, you will be expected to show your competency of the elements through observations or demonstrations. Your instructor will have a list of demonstrations you must complete or tasks to be observed. The observations and demonstrations will be completed as well as the activities found in this workbook. An explanation of demonstrations and observations:

Demonstration is off-the-job

A demonstration will require:

Performing a skill or task that is asked of you

Undertaking a simulation exercise

Observation is on-the-job

The observation will usually require:

Performing a work based skill or task

Interaction with colleagues and/or customers

Your instructor will inform you of which one of the above they would like you to do. The demonstration/observation will cover one of the unit’s elements.

The observation/demonstration will take place either in the workplace or the training environment, depending on the task to be undertaken and whether it is an observation or demonstration. Your instructor will ensure you are provided with the correct equipment and/or materials to complete the task. They will also inform you of how long you have to complete the task.

You should be able to demonstrate you can:

1. Plan for financial management

2. Establish budgets and allocate funds

3. Implement budgets

4. Report on finances

You should also demonstrate the following skills:

· Reading

· Writing

· Oral communication

· Numeracy

· Navigate the world of work

· Interact with others

· Get the work done.

Activities

Activity 1A

Estimated Time

20 Minutes

Objective

To provide you with an opportunity to review and analyse previous financial data to establish areas which have generated a profit or loss.

Activity

Identify an area of business and explain how you could use different forms of current and present financial data to ascertain whether the department made a profit or a loss.
You do not have to use actual figures from your business.

Activity 1B

Estimated Time

15 Minutes

Objective

To provide you with an opportunity to undertake research to review reasons for previous profit and loss.

Activity

Using your answer from the previous activity, explain how you would undertake research to review the reasons for the profit or loss.

Activity 1C

Estimated Time

20 Minutes

Objective

To provide you with an opportunity to review business plan to establish critical dates and initiatives that will require or generate resources in the next financial cycle.

Activity

Using your business plan, identify your business’ critical dates in terms of income and resource use and generation.

Activity 1D

Estimated Time

15 Minutes

Objective

To provide you with an opportunity to analyse cash flow trends.

Activity

Explain how and why you would analyse your business’ cash flow trends.

Activity 1E

Estimated Time

20 Minutes

Objective

To provide you with an opportunity to review statutory requirements for compliance and liabilities for tax.

Activity

Which taxes are applied to your business?
Explain each one, including the rates and geographical variations, if applicable.

Activity 1F

Estimated Time

20 Minutes

Objective

To provide you with an opportunity to review existing software and its suitability for financial management.

Activity

In reference to your current financial management software, give all of the pros and cons you can think of.
Summarise whether you think the software is suitable for both your current needs and future needs.

Activity 2A

Estimated Time

25 Minutes

Objective

To provide you with an opportunity to use previous financial data to determine allocations for resources.

Activity

Give an example of how you could use previous financial data to determine the allocation of resources.
Explain the figures and how you would allocate resources accordingly.

Activity 2B

Estimated Time

20 Minutes

Objective

To provide you with an opportunity to make informed estimates of new items for inclusion in budget.

Activity

Identify a new item you could add to the budget in your business. Estimate the costs of the new item and how it would be included within the budget.
You need to estimate both upfront and ongoing costs.

Activity 2C

Estimated Time

20 Minutes

Objective

To provide you with an opportunity to prepare budgets in accordance with organisational requirements and statutory requirements.

Activity

Give an overview of the organisational policies and requirements you need to adhere to when you are preparing budgets.

Activity 3A

Estimated Time

15 Minutes

Objective

To provide you with an opportunity to circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations.

Activity

Write a plan detailing how you would circulate newly-written budgets to managers and explain any additional information they need to know, such as reporting requirements and financial delegations.

Activity 3B

Estimated Time

25 Minutes

Objective

To provide you with an opportunity to manage risks by checking there are no opportunities for misappropriation of funds and that systems are in place to properly record all financial transactions.

Activity

Identify five different ways staff could misappropriate company funds and suggest a resolution for each.

Activity 3C

Estimated Time

20 Minutes

Objective

To provide you with an opportunity to review profit and loss statements, cash flows and ageing summaries.

Activity

Explain your organisation’s use of ageing summaries, in terms of accounts payable and receivable, where applicable.

Activity 3D

Estimated Time

15 Minutes

Objective

To provide you with an opportunity to revise budgets, as required, to deal with contingencies.

Activity

Give an example of a contingency that could occur at your workplace and explain how you would revise the budget to deal with it.

Activity 3E

Estimated Time

15 Minutes

Objective

To provide you with an opportunity to maintain audit trails to ensure accurate tracking and to identify discrepancies between agreed and actual allocations.

Activity

Give an example of how you could use an audit trail to identify a discrepancy in budget allocations.

Activity 3F

Estimated Time

30 Minutes

Objective

To provide you with an opportunity to ensure compliance with due diligence.

Activity

Identify three areas of compliance you could monitor in your workplace and explain how you would ensure so.

Activity 4A

Estimated Time

15 Minutes

Objective

To provide you with an opportunity to ensure structure and format of reports are clear and conform to organisational and statutory requirements.

Activity

Identify a report used in your workplace and list all of your organisation’s specifications here, including format and style.

Activity 4B

Estimated Time

10 Minutes

Objective

To provide you with an opportunity to identify and prioritise significant issues in statements, including comparative financial performances for review and decision making.

Activity

How are significant issues in statements highlighted for priority attention in your workplace?

Activity 4C

Estimated Time

15 Minutes

Objective

To provide you with an opportunity to prepare recommendations to ensure financial viability of the organisation.

Activity

Explain how you would use each of the following to determine the financial viability of the organisation:
· Cash flow
· Changes in business activity including markets, goods or services traded
· Consolidation
· Expenses and overheads
· Labour costs including decisions to move production to other locations or sites
· Loss
· Profit
· Write-offs.

Activity 4D

Estimated Time

25 Minutes

Objective

To provide you with an opportunity to evaluate the effectiveness of financial management processes.

Activity

Outline here how you would evaluate the effectiveness of your organisation’s financial management processes.

Skills and Knowledge Activity

Estimated Time

60-120 Minutes

Objective

To provide you with an opportunity to demonstrate your knowledge of the foundation skills, knowledge evidence and performance evidence.

Activity

Complete the following individually and attach your completed work to your workbook.
The answers to the following questions will enable you to demonstrate your knowledge of:
· Plan for financial management
· Read and review profit and loss statements, cash flows and aging summaries
· Prepare, implement and revise a budget which aligns with the business plan, is based on research and analysis of previous financial data and cash flow trends, and meets all compliance requirements
· Contribute to financial bids and estimates
· Establish a budget and allocate funds in accordance with statutory and organisational requirements
· Communicate with other people
· Analyse the effectiveness of existing financial management approaches including reviewing financial management software, managing risks of misappropriation of funds, ensuring systems are in place to record all transactions, maintaining an audit trail and complying with due diligence
· Reading skills
· Writing skills
· Oral communication skills
· Numeracy skills
· Navigate the world of work
· Interact with others
· Get the work done
· Identify the requirements for financial probity
· Describe the principles of accounting and financial systems
· Explain Australian, international and local legislation and conventions that are relevant to financial management in the organisation
· Outline the requirements of the Australian Tax Office, including Goods and Services Tax, Company Tax, Pay As You Go.
Answer each question in as much detail as possible, considering your organisational requirements for each one.
1. You have just been taken on in the financial management department of your organisation. You have been told that you need to:
· Plan for financial management
· Establish budgets and allocate funds
· Implement budgets
· Report on finances
Over the next financial year.
For this activity you will have to document your work in your department, demonstrating all of the skills and knowledge listed above.
Firstly, you will have to plan for financial management.
Explain how you did this, including:
· Reviewing previous financial data
· Looking into areas of profit and loss
· Identifying important business dates
· Analysing cash flow trends
· Understanding different tax liabilities
· Deciding if the current financial management software is still suitable.
Next, you will have to establish and implement budgets for the financial year.
Explain how you did this, including:
· Examining previous data
· Estimating new areas of the budget
· Preparing the budget in line with your organisation’s policies and protocols
· Distributing budget information to managers and staff
· Removing and minimising opportunities for the ,misappropriation of funds
· Working with ageing summaries
· Revising budgets in the case of contingencies
· Maintaining audit trails
· Ensuring compliance of self and others.
At the end of the year, you have to report on the business’ finances.
Explain how you did this, including:
· Writing the report in formats and styles approved and required by the organisation
· Highlighting important issues
· Advise on the financial viability of the organisation
· Evaluate the effectiveness of the financial management process used.

Major Activity

Estimated Time

1 Hour

Objective

To provide you with an opportunity to demonstrate your knowledge of the entire unit.

Activity

This is a major activity – your instructor will let you know whether you will complete it during class or in your own time.
Attach your completed answers to the workbook.
You must individually, answer the following questions in full to show your competency of each element:
1. Plan for financial management
2. Establish budgets and allocate funds
3. Implement budgets
4. Report on finances
1. Why is examining previous financial data important for managing current and future finances?
2. Why might you need to understand the reasons for profit and loss?
3. Why should you identify your business’ or industry’s critical dates?
4. Why might you need to analyse cash flow trends?
5. Why do you need to be aware of your tax liabilities?
6. Why is it important to ensure that your financial management software is suitable for your business?
7. Why do you need to consider previous financial data when managing resource allocation?
8. Why do you need to estimate the costs of potential new items?
9. Why do you need to prepare budgets in line with organisational policies?
10. Why do managers need to be clear about the budget?
11. What could happen if you took no steps to prevent misappropriation of funds?
12. Why are ageing summaries useful?
13. Why might you have to revise budgets in the case of contingencies?
14. How can an audit trail help you identify discrepancies?
15. Why do you need to be diligent when ensuring compliance?
16. Why might your organisation make specifications about report formatting?
17. Why do you need to draw attention to significant issues in reports?
18. Why do you need to monitor the financial viability of the organisation?
19. Why do you need to review the effectiveness of your financial management processes?