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Elements and Performance Criteria

  1. Develop approaches to financial management.
  2. Develop and monitor financial procedures and systems.
  3. Make pricing decisions.
  4. Monitor financial performance.
  5. Prepare financial reports.

Required Skills

This section describes the essential skills and knowledge and their level required for this unit

The following skills must be assessed as part of this unit

critical thinking and analytical skills to evaluate complex financial and other business information and develop appropriate management initiatives

planning and organisational skills to develop and implement systems and procedures for sound financial management within an organisation or project

literacy skills to interpret and develop information and documentation dealing with complex ideas concepts and data

numeracy skills to interrogate and develop financial data work with complex mathematical ideas and develop approaches to strategic issues such as pricing

The following knowledge must be assessed as part of this unit

different financial management roles for given industry sectors or types of business including operational managers owneroperators financial controllers and external accountants or auditors

aspects of financial management to be considered for a given organisation or industry sector

ways in which financial management interrelates with all other areas of business activity

major steps in the total accounting process and relationship of each with business operations and reporting requirements

typical financial management systems and technology relevant to the organisation or industry sector including features and capabilities of one or more computerised accounting packages

key features of and how to prepare the main financial reports used to monitor business performance including

profit and loss statements

balance sheets

sales and receivables reports

techniques for calculating profit margins relevant to a given industry sector

overview of specific financial and taxation regulations and requirements relevant to the industry sector including how GST applies to different business operations and reporting requirements

overview of economic issues that affect financial performance in specific industry contexts

Evidence Required

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria required skills and knowledge the range statement and the Assessment Guidelines for this TrainingPackage

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential

understanding of the total financial management process within a business

ability to integrate the financial management activities of a business into overall business operations

knowledge of financial control reporting and monitoring systems

establishment and management of financial systems over a period of time so that the monitoring and implementation aspects of the unit can be assessed

Context of and specific resources for assessment

Assessment must ensure

project or work activities that include the use of figures and data that reflect the financial operating conditions of industry

use of industrycurrent technology for financial management

Methods of assessment

A range of assessment methods should be used to assess practical skills and knowledge The following examples are appropriate for this unit

evaluation of financial reports detailing financial performance of projects or activities conducted by the candidate

evaluation of financial management strategies produced by the candidate detailing systems and procedures for the management of given business operations or situations

case studies and problemsolving to assess application of financial management strategies to particular situations

review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the candidate

Holistic assessment with other units relevant to the industry sector workplace and job role is recommended

Assessing employability skills

Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors How these skills are applied varies between occupations and qualifications due to the different work functions and contexts

Employability skills embedded in this unit should be assessed holistically with other relevant units that make up the skill set or qualification and in the context of the job role


Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the performance criteria is detailed below.

Scope of financial management requirements for different projects or organisations will vary and may relate to differing requirements for:

budgeting and forecasting

reporting, including depth, regularity and nature of reports

control mechanisms

specialist financial skills.

Financial procedures and systems:

must address:

transaction recording

checking and reconciliation processes

banking procedures

invoicing

accounts payable and receivable

cash management and security measures

cash flow management

budget management

reporting requirements

GST and other taxation requirements

statutory requirements that apply to the specific business structure

sector specific requirements, such as the Travel Compensation Fund in retail travel

may cover:

stock control

financial responsibilities within an organisation or department.

Financial reports must include:

GST reports and business activity statements

cash flow statements

profit and loss statements

balance sheets

reconciliations.