This unit covers the reporting of financial activity for business both in response to client requests and to meet statutory requirements such as the completion of statutory requirement reports.

This unit is related to BSBCMN308A Maintain financial records.

Common

Element

Performance Criteria

1. Compile financial information and data

1.1 Current financial data is collected, evaluated and coded to ensure consistency, quality and accuracy in accordance with organisational requirements

1.2 Conversion and consolidation procedures are used to compile analysis in accordance with organisational requirements

1.3 Asset and liability valuations are made, recorded and disclosed in accordance with organisational requirements

1.4 Discrepancies, unusual features or queries are identified, resolved or referred to the appropriate authority

2. Prepare statutory requirement reports

2.1 Income and expenditure is correctly recorded to ensure compliance with statutory requirements

2.2 Liabilities for tax are calculated in accordance with current legislation and revenue gathering practices

2.3 Relevant receipts, revenue documentation and payments are identified correctly

2.4 Statements and claims take full advantage of available benefits and allowances in accordance with statutory requirements

2.5 Statutory requirement reports are submitted to appropriate authorities within stated deadlines

3. Provide financial business recommendations

3.1 Recommendations are logically derived and supported by evidence in report

3.2 Recommendations propose constructive actions to enhance the effectiveness and efficacy of functions and services

3.3 Recommendations are concise and facilitate direction and control of organisation’s operations

3.4 Significant issues in statements including comparative financial performances are identified and prioritised for review and decision-making

Critical Aspects of Evidence

• Organising financial data to highlight relevant features

• Presenting of information in comprehensive formats

• Completing of Business Activity Statements

• Interpreting and identifying applications of statutory requirements

• Referring discrepancies outside scope of own responsibility to the appropriate persons

Underpinning Knowledge*

* At this level the learner must demonstrate understanding of a broad knowledge base incorporating some theoretical concepts.

• The relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination

• Knowledge of organisational policies and procedures relating to maintaining financial data, reporting, preparing statutory returns

• Principles of double entry bookkeeping and accrual accounting

• Knowledge of techniques for forecasting and analysis

• Understanding methods to present financial data

• Knowledge of State and Federal Government taxes and charges

• Knowledge of financial legislation

• Knowledge of options, methods and practices for deductions, benefits and depreciations

• Principles and practices for auditing and reporting

Underpinning Skills

• Literacy skills to identify financial information, to follow Australian Accounting and Auditing Standards and the organisation’s accounting procedures

• Research skills to analyse the organisations financial and business status

• Proof reading skills to check accuracy and consistency of information by consulting additional resources

• Problem solving skills for a defined range of predictable problems

• Report writing skills to assess information for relevance and accuracy from a range of sources

• Decision making skills in a limited range of options

• Numeracy skills for calculating data, reconciling figures

• Planning skills for timetabling and scheduling reports and lodgements

• Ability to relate to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities

Resource Implications

The learner and trainer should have access to appropriate documentation and resources normally used in the workplace

Consistency of Performance

In order to achieve consistency of performance, evidence should be collected over a set period of time which is sufficient to include dealings with an appropriate range and variety of situations

Context/s of Assessment

• Competency is demonstrated by performance of all stated criteria, including paying particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide, and within the scope as defined by the Range Statement

• Assessment must take account of the endorsed assessment guidelines in the Business Services Training Package

• Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment

• Assessment should reinforce the integration of the key competencies and the Business Services Common Competencies for the particular AQF Level. Refer to the Key Competency Levels at the end of this unit

Legislation, codes and national standards relevant to the workplace which may include:

• award and enterprise agreements and relevant industrial instruments

• relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination

• relevant industry codes of practice

Financial data may include:

• budgets and forecasts

• financial/operational statements and reports (eg. expenditures and receipts, profit and loss statements)

• market valuations

• budget variances

• cash flow/profit reports

• Australian Bureau of Statistics (ABS) economic data

• financial markets monitoring services (eg, Reuters)

Organisational requirements may include:

• quality assurances and/or procedures manuals

• price and exchange parameters

• reporting requirements

• legal and organisational policy/guidelines and requirements

• financial analysis assessments

• Occupational Health and Safety policies, procedures and programs

• recording and filing systems

• standard financial analysis techniques

• financial management manuals

Conversion and consolidation procedures may include:

• spreadsheets

• standardised variables

• moving averages

• unit costs

• trend analysis

Discrepancies may include:

• expenditure report mismatches

• incorrect payments

• absence of auditable trail

• inappropriate authorisations

• variances from budget and phasings

• unreconciled cash flows and operating statements

• incorrect report formats

Statutory requirements may include:

• reporting periods

• taxation payment timings

• delegated authorities

• internal control procedures

Revenue gathering practices may include:

• sales

• leasing

• investments

• billing schedules

• lending and financing

• fees and charges

Revenue documentation may include:

• invoices

• declarations

• bills

• sales proceeds

• cash received

• debit notes

Available benefits and allowances may include:

• depreciation

• donations

• sales tax deductions

• interest payments

Stated deadlines may include:

• monthly returns

• annual reports

• lodgement dates

• payment schedules

Recommendations may relate to:

• profit

• loss

• expenses

• consolidation

• write-offs

• cash flow

Evidence may include:

• budgetary analysis

• forecasts and estimates

• returns on investments

• order and supplier documentation

• taxation and statutory returns

Significant issues may include:

• profitability

• losses and returns

• cost structures

• suppliers

• internal controls

• statutory obligations

Format of reports may include:

• cash flow statements

• statutory forms

• financial year reports

• balance sheets

• operating statements

• spreadsheets

• electronic forms