j) Financial management systems It is the methodology and software that an organization uses to oversee and govern its income, expenses, and assets with the objectives of maximizing profits and ensuring sustainability. It is crucial to the success of any business. Several approaches can be taken to ensure that your business is managed to the appropriate degree. Different business structures and sizes will often mean different approaches are taken, based on the availability of staff time and their level of expertise for a complex system. Some approaches to financial management should be undertaken for all businesses, but you may need to enlist the help of your accountant or other business specialists.
The five principles of financial management systems are: Consistency Timeliness Justification Documentation Certification. 4. Explain the following Australian, international and local legislation and conventions that are relevant to financial management in your organisation. Where these are not relevant to your organisation, provide a detailed example for each of these applied to a suitable business activity. a)Australian Consumer Law (ACL) It is a national unfair contract law and it cover standard for customers and small business contract. It is in all states and territories in Australian business. The ACL sets out consumer rights that are called consumer guarantees. These include our rights to a repair, replacement or refund as well as compensation for damages and loss and being able to cancel a faulty service. For example; when you buy a product with wrong price, company don’t have the right to ask for returns, cancellation or more payment, this is because customers are protected by ACL ACL includes: a national unfair contract terms law covering standard form consumer and small business contracts; a national law guaranteeing consumer rights when buying goods and services; a national product safety law and enforcement system; a national law for unsolicited consumer agreements covering door-to-door sales and telephone sales; simple national rules for lay-by agreements; and penalties, enforcement powers and consumer redress options. The ACL offers protections in the areas of: unfair contract terms, covering standard form consumer contracts consumer rights when buying goods and services product safety unsolicited consumer agreements covering door-to-door sales and telephone sales lay-by agreements b)International Commercial Terms (INCOTERMS) It is a term published by the International Chamber of Commerce relating to international commercial law, international transactions or procurement processes. Incoterms prevent confusion in foreign trade contracts by clarifying the obligations of buyers and sellers.
Parties involved in domestic and international trade commonly use them as a kind of shorthand to help understand one another and the exact terms of their business arrangements. Some Incoterms apply to any means of transportation; others apply strictly to transportation across water.
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