You've reached the end of your free preview.
Want to read all 19 pages?
Unformatted text preview: BSBFIM501 Manage budgets and financial plans
ASSESSMENT COVER SHEET Student ID Student Name First Name: Mayra 43349 Last Name: Yasmine De Oliveira Student’s declaration: By submitting this assessment, you are acknowledging and agreeing to the following conditions: Please check each item in the box, if you agree. ✔ I have read and understood the details of the assessment. ✔ I have been informed of the conditions of the assessment and the appeals process and understand I may appeal if I believe the assessment is not equitable, fair or just. ✔ I agree to participate in this assessment, and I am ready to be assessed. ✔ I declare that the attached is my own work or in collaboration with other members of a group as required. ✔ I have acknowledged all sources where appropriate in accordance with ILSC’s Academic Integrity Policy, and I believe other group members have done the same. Submitting your assessment: Complete all assessment tasks, save, and upload in Moodle for grading. Please view the videos on submitting work through Moodle in the FAQ section of your VET Orientation course. Check Moodle grades and feedback on your submission. You will receive an email notification when your assessment has been graded. Assessor’s acknowledgement: Please verify each of the following principles of assessment by placing a tick in each box. Refer to the assessor's handbook for further information if required. Authentic: The assessor is assured that the evidence presented for assessment is the learner’s own work. Valid: The assessor is assured that the learner has the skills, knowledge and attributes as described in the module or unit of competency and associated assessment requirements. Current: The assessor is assured that the assessment evidence demonstrates current competency. This requires the assessment evidence to be from the present or the very recent past. Sufficient: The assessor is assured that the quality, quantity and relevance of the assessment evidence enable a judgement to be made of a learner’s competency. ILSC Business College: BSBFIM501 Assessment Version 4.0518 Page 1 of 19 How to work through your assessment
Your assessment is designed to assess your performance of competency for the unit BSBFIM501 Manage budgets and financial plans, Release 1. Your assessor will help you fully understand assessment requirements for this unit. The features of this assessment are detailed in the following table. Features of the assessment resource Assessment information and scope Explanation This unit describes the skills and knowledge required to undertake financial management within a work team in an organisation. It includes planning and implementing financial management approaches, supporting team members whose role involves aspects of financial operations, monitoring and controlling finances and reviewing and evaluating effectiveness of financial management processes. The key outcomes are: Plan financial management approaches. Assessment overview Implement financial management approaches. Monitor and control finances. Review and evaluate financial management processes. To demonstrate competency, you must successfully complete all the following assessment tasks: Task 1: Online Moodle Quizzes Task 2: Questioning Task 3: Case Studies - Prepare financial statements and reports for Simpsons Pty Ltd Complete the following tasks ü Task 1: Online Moodle Quizzes You will be completing online Moodle quizzes for each topic to demonstrate your knowledge of the unit requirements. These are selfmarking. ü Task 2: Questioning You will be demonstrating a sound knowledge of the unit requirements in your responses to short answer questions. ü Task 3: Case Studies - Prepare financial statements and reports for Simpsons Pty Ltd. You will be demonstrating the required skills and knowledge by completing an assignment report. ILSC Business College: BSBFIM501 Assessment Version 4.0518 Page 2 of 19 TASK 1 – Please complete the following quizzes on Moodle: §
§ Topic 1 Online Quiz
Topic 2 Online Quiz
Topic 3 Online Quiz TASK 2: Questioning
Purpose You will demonstrate a sound knowledge of the unit requirements in your responses to short answer questions. Instructions All questions must be answered satisfactorily for Task 2 to be completed satisfactorily. There is no restriction on the length of the question responses. You must complete all questions unassisted by the assessor or other personnel, but may refer to reference material as needed. Resources required You will have access to the learning resources and relevant documents to research information when answering questions. Assessment conditions Assessment will be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities to undertake financial management within a work team and include access to: Reasonable adjustment § Office equipment and resources. § relevant legislation, regulations, standards and codes. § interaction with others. If you do not wish to respond to the questions in written form, an interview may be used as an alternative approach if negotiated with your assessor. ILSC Business College: BSBFIM501 Assessment Version 4.0518 Page 3 of 19 Please provide responses to the following: 1. Provide a brief definition for each of the following financial terms: Accrual Accounting Accrual accounting is an accounting method that measures the
performance and position of a company by recognizing economic
events regardless of when cash transactions occur. Ageing A technique for evaluating the composition of a firm's accounts
receivables to determine whether irregularities exist. It is carried out
by grouping a firm's accounts receivables according to the length of
time accounts have been outstanding. Ageing Summaries An accounts receivable aging is a report that lists unpaid customer
invoices and unused credit memos by date ranges. The aging report
is the primary tool used by collections personnel to determine which
invoices are overdue for payment. ATO The Australian Taxation Office (ATO) is the Australian government's
main revenue collection agency. Auditing Financial auditing is the process of examining an organization's (or
individual's) financial records to determine if they are accurate and in
accordance with any applicable rules (including accepted accounting
standards), regulations, and laws. Balance Sheet A balance sheet is a financial statement that reports a company's
assets, liabilities and shareholders' equity at a specific point in time,
and provides a basis for computing rates of return and evaluating its
capital structure. Budget A budget is an estimation of revenue and expenses over a specified
future period of time; it is compiled and re-evaluated on a periodic
basis. Cash Accounting Cash accounting is an accounting method in which payment receipts
are recorded during the period they are received, and expenses are
recorded in the period in which they are actually paid. In other words,
revenues and expenses are recorded when cash is received and paid Cash Flow Cash flow is the accumulation of net assets for a given period and, for
this reason, is an important indicator for measuring the liquidity of a
company for a sampling period. ILSC Business College: BSBFIM501 Assessment Version 4.0518 Page 4 of 19 Costs An amount that has to be paid or given up in order to get something.
In business, cost is usually a monetary valuation of effort, material,
resources, time and utilities consumed, risks incurred, and opportunity
forgone in production and delivery of a good or service. Cost Variations A Cost Variation (CV) is an indicate the work actually performed more
cost or less than planned from earned value data. It is the
mathematical difference between Budgeted Cost for Work Performed
(BCWP) and Actual Cost of Work Performed (ACWP). Contingency Plans A contingency plan is a plan devised for an outcome other than in the
usual (expected) plan. It is often used for risk management for an
exceptional risk that, though unlikely, would have catastrophic
Is a cost that is reported on the income statement for the period . Expense Expenditure An expenditure is money spent on something. Expenditure is often
used when people are talking about budgets. Expenditure Overruns Expenditure overruns are common in business, especially those
where businesses rely heavily upon estimates to determine their
budgets. Government agencies are notorious for running into cost
overruns, allowing expenses to spiral out of control. Financial Management means planning, organizing, directing and
Financial Management controlling the financial activities such as procurement and utilization
of funds of the enterprise. It means applying general management
principles to financial resources of the enterprise. Financial Statements Financial statements are reports prepared by a company's
management to present the financial performance and position at a
point in time. Financial Plans A financial plan gives you a road map for handling your money in a
way that cuts stress and builds security. It’s crucial for meeting goals,
such as buying a house or creating a nest egg that will last long after
you’ve collected your final paycheck. Financial Objectives Business owners set different types of objectives, including financial
objectives, to give them a solid plan for moving in the direction of
long-term success. Common financial business objectives include
increasing revenue, increasing profit margins, retrenching in times of
hardship and earning a return on investment. ILSC Business College: BSBFIM501 Assessment Version 4.0518 Page 5 of 19 Financial Reports GAAP Financial statements (or financial reports) are formal records of the
financial activities and position of a business, person, or other entity.
Relevant financial information is presented in a structured manner
and in a form which is easy to understand.
It is a set of laws and standards that must be followed by the area of
accounting in order to standardize the operations of each company. GST Goods and Service Tax (GST) is an indirect tax (or consumption tax)
imposed in India on the supply of goods and services. It is a
comprehensive multistage, destination based tax. Matching The matching principle is a fundamental accounting rule for preparing
an income statement. It simply states, “Match the sale with its
associated costs to determine profits in a given period of time—
usually a month, quarter, or year.” Petty Cash Petty cash or a petty cash fund is a small amount of money available
for paying small expenses without writing a check. Petty Cash is also
the title of the general ledger current asset account that reports the
amount of the company's petty cash. Profit & Loss Statements The profit and loss (P&L) statement is a financial statement that
summarizes the revenues, costs and expenses incurred during a
specified period, usually a fiscal quarter or year. Resources The money available to a business for spending in the form of cash,
liquid securities and credit lines. Before going into business, an
entrepreneur needs to secure sufficient financial resources in order to
be able to operate efficiently and sufficiently well to promote success. Revenue Revenue is the amount of money that a company actually receives
during a specific period, including discounts and deductions for
returned merchandise. It is the top line or gross income figure from
which costs are subtracted to determine net income. ILSC Business College: BSBFIM501 Assessment Version 4.0518 Page 6 of 19 2. When discussing budgets and financial plans, it is important to ensure that the documented
outcomes are achievable, accurate and comprehensible. List five (5) relevant personnel, within an organisation, that would need to be consulted.
Stakeholders 3. List and explain five (5) of the basic accounting principles:
Accrual principle - This is the concept that accounting transactions should be recorded in the
accounting periods when they actually occur, rather than in the periods when there are cash flows
associated with them.
Conservatism principle.- This is the concept that you should record expenses and liabilities as soon
as possible, but to record revenues and assets only when you are sure that they will occur.
Consistency principle. This is the concept that, once you adopt an accounting principle or method,
you should continue to use it until a demonstrably better principle or method comes along.
Cost principle. This is the concept that a business should only record its assets, liabilities, and equity
investments at their original purchase costs.
Economic entity principle. This is the concept that the transactions of a business should be kept sep 4. Provide two (2) examples of business operational risk scenarios that could affect your budgets
and financial plans.
For instance, a company might hire poorly trained or inexperienced personnel in lieu of more
appropriate individuals as a cost-saving measure. These inexperienced employees may make
innocent mistakes that result in loss. Say a manufacturing plant hires inexperienced contractors who
end up fumbling their duties, leading to mechanical breakdowns and production delays.
Systems & Processes
Imagine McDonald's all of a sudden experiencing a software failure whereupon none of its
restaurants are able to take orders even though is staff are perfectly capable of doing so when all
the systems work 5. If your initial financial plans need to be varied, what contingency planning strategies could
you put in place?
In the process of developing a company’s overall strategic plan, business managers may develop
alternative strategies as a means to accommodate unexpected conditions or events, such as
economic recessions or catastrophic events. Contingency planning involves having alternative
strategies in place as a way of preparing for the unexpected. These types of plans may also be
categorized as disaster recovery plans or business continuity plans, depending on the overall
purpose of the plan. The primary purpose for a contingency plan provides a strategy for minimizing
the effects of unexpected circumstances. By doing so, business managers increase the likelihood
that a business’ main operations will continue with minimal losses or damages. ILSC Business College: BSBFIM501 Assessment Version 4.0518 Page 7 of 19 6. Match each of the following financial management roles with their respective job descriptions. Financial Management Roles: 1.
9. Maintaining journals, ledgers and other record keeping systems
Ensuring security, accuracy and currency of financial operations
Invoicing clients, customers and consumers
Arranging for use of corporate credit cards
Maintaining petty cash systems
Wages, salary payments and record keeping
Purchasing and procurement Financial management roles: 6. Arranging for use of
corporate credit cards Job descriptions: a. Person who organises contract entitlements, approval from
management, daily limits, timing and methods for reconciliation, producing receipts for card use and procedures for lost cards. 7. Maintaining petty cash
systems 3. Debt collection b. Person responsible for petty cash, the petty cash limit, the
process for replacing petty cash, record keeping, access to petty cash and security of petty cash and storage. c. Person who is responsible for etiquette for recovering
accounts and training in dealing with conflict and company procedures 4. Banking d. Person who is responsible for the banking and safety and
reconciliation procedures for banking and security. 5. Invoicing clients, customers
and consumers e. Person responsible for software, MYOB or invoicing programs,
managing accounts, professional communication and relationship management, data entry accuracy, program and computer use and the appropriate authority to invoice. ILSC Business College: BSBFIM501 Assessment Version 4.0518 Page 8 of 19 1. Maintaining journals, ledgers
and other record keeping
systems 2. Ensuring security, accuracy
and currency of financial
operations 9. Purchasing and procurement 8. Wages, salary payments and
record keeping f. Person responsible for using recognised accounting standards,
follows company procedures for bookkeeping, reporting responsibilities, access to data, dissemination processes, reporting hierarchy, ATO and legal responsibilities and they have the appropriate training. g. Person responsible for ensuring standards, audit procedures,
audit requirements by law, communication between departments, researching the latest financial techniques and ongoing staff training. h. Person responsible for pre-existing service agreements with
suppliers, delivery procedures, software to track purchases, training required, ordering aligned with company supply needs, budgets for ordering and following established procedures. i. Person responsible for using timesheets, electronic recording
of information, HR and payroll requirements regarding format, timing, entitlements and paper work standards, using external sources for payroll management, using spreadsheets and tables for record keeping, communicating channels and establishing awards, contracts and pay rates. 7. Outline at least three (3) ways support could be provided to a finance team to ensure that
they perform their roles competently. Financial Controller – Their function and responsibilities include financial accounting, preparation,
reporting, analysis, budgeting, project management and more. Their key role tends to focus on
immediate financial issues and management.
Treasury Manager – The treasury manager’s role in the accounting department revolves around the
formulation and development of treasure policies.
Accounting Manager – An accounting manager is responsible for a company’s accounting activities
that include maintaining and reporting on both the cost and financial sets of accounts but does not
handle or negotiate. 8. List and describe at least three (3) of the main resources and/or systems that finance
personnel may need to manage financial management processes successfully.
Making and adhering to a financial limit may appear somewhat extreme to accomplish at first yet it
satisfies at last (no quip planned).
Solicit anybody off the top from their head to reveal to you the amount they go through a month on
everything and they probably won't almost certainly do as such.
Solicit anybody off the top from their head to disclose to you the amount they make a month and in
spite of the fact that they most likely won't let you know, inside they know ILSC Business College: BSBFIM501 Assessment Version 4.0518 Page 9 of 19 9. As a finance manager, what processes would you implement to monitor actual expenditure
and to control costs?
Regular monitoring of expenditure is essential; not only to check the expense against the target, but
also to identify changing patterns or circumstances that need corrective action.
To monitor expenditure, the types of information you need to include: budget for the area of activity
for the full year and profiled for the year to date. When profiling the budget, planned expenditure
patterns should be considered.There are several reports in uBASE that can help you with tracking
your spending against your budget. Information about reports is available in the Reports catalog.
Budgetary expenditure control should be regularly carried out by the head of department on a global
basis and, where appropriate, at a more detailed level by individual budget holders.Meetings
between the Head of Department and individual budget holders should be held at regular intervals (i 10. Categorise each of the following types of source documents according to whether
you would access them to ‘report on actual expenditure’ and to ‘control costs’ or for ‘information to include in your budgets and financial plans...
View Full Document
- One '18
- Arnav Dutta