The unit can apply to a variety of financial services industry sectors and has application to job roles such as accountant and financial planner.

ELEMENT

PERFORMANCE CRITERIA

1. Assess client needs

1.1. Expectations and objectives of the client are clarified and confirmed to ensure mutual understanding of client goals

1.2. The client's specific legal and financial requirements are identified when establishing, structuring and financing a business

1.3. Financial options and processes are discussed with the client to develop suitable plans for the provision of information and the achievement of client goals

1.4. Progress of plans is reviewed regularly against agreed criteria and results clearly communicated to the client

1.5. Client objectives are monitored to identify changes in client needs

1.6. Feedback on service is regularly obtained, analysed and incorporated into services to client

1.7. Shortfalls in customer service are investigated and proposals for overcoming them are formulated and implemented

2. Analyse data

2.1. Advice on reliability and accuracy of data is sought from appropriate authorities and sources in accordance with organisational procedures

2.2. Data are compiled and reconciled to ensure statements are accurate and comply with organisational procedures, statutory requirements and standard financial reporting principles

2.3. Revenues and costs are analysed in accordance to standard accounting techniques and consistent with the organisation's objectives

2.4. All data and reports are analysed in accordance with standard financial analysis techniques

2.5. Information is evaluated in relation to the financial performance of a business, specifically profitability, efficiency and financial stability

2.6. Analysis is undertaken to ensure consistency of analysis with client's business and personal objectives

2.7. Evaluation is undertaken to assess the financial potential of the business, its future funding requirements and statutory obligations

3. Prepare advice

3.1. Advice provides the client with a realistic view of the business financial performance and compliance, including significant taxation issues and comparisons of options

3.2. Suitable methods of presentation and formats, language and forms of documentation are used to convey information to client

3.3. Advice identifies how risks and contingencies and future cash flows may be identified and quantified and the client is advised of risk management options and rights and obligations

3.4. Client is advised on new or alternative sources and features of short-term and long-term finance

Required skills

well-developed communication skills to:

determine and confirm client requirements, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

research skills such as:

accessing and managing financial services information

accessing financial product and services information

interpreting documentation

well-developed literacy skills for analysing information on client needs and preparing clear written advice, plans and reports

numeracy skills for financial calculations and analysis

IT skills for developing and using spreadsheets and databases and using internet information

learning skills to maintain knowledge of changes to compliance legislation and requirements

problem solving skills to identify any issues that have the potential to impact on client services or reporting and to develop options to resolve these issues when they arise

organisational skills, including the ability to plan and sequence work

teamwork skills

Required knowledge

financial legislation such as:

deductions

allowance in taxation legislation

forecasting techniques

government financial policies and secretary's financial management instructions

methods of presenting financial data

principles of cash flow and budgetary control

relevant corporations and consumer legislation

sources of information on financial products and markets such as:

banks

financial advisers

State and Territory charges and taxes

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

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

Evidence of the ability to:

interpret and apply State, Territory and Commonwealth taxation and charges

comply with financial legislation and accounting standards, practices and principles

access clients' needs and analyse their financial data to prepare appropriate advice

assess taxation, compliance and business viability issues faced by clients and risk management options and practices.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables.

Method of assessment

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

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

observing processes and procedures in workplaces or role plays

verbal or written questioning on underpinning knowledge and skills

setting and reviewing workplace projects and business simulations/scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

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, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Expectations and objectives may include:

administrative efficiency

asset development

financial consolidation

higher levels of investment return

improved cash flows

improved quality of life

reduction in tax liabilities

wealth accumulation.

Clients may include:

businesses

small

medium

large

company officers and board of management

financial institutions

government departments

in-line management

partnerships, trusts

incorporated

unincorporated organisations

private individuals

shareholders

sole traders

statutory authorities.

Financial options may include:

adjustment of borrowings

asset liquidation

cost of capital

cost recoveries

debt and equity

dividends

funding alternatives

long-term investments

purchases

sources of finance.

Plans may include:

accounts receivable management

adequate funding structure

alternate forms of finance

business plans

business registration

cash flow development

insurance needs

long-term and short-term financial requirements

personal financial needs and position

personal investments

regulations, permits and licences

review of financial systems

suitable business structure

tax issues

working capital needs.

Agreed criteria may include:

asset management

budgeting

business turnover

capital budgeting

costing, pricing and budgeting

decision making authorities

forecast returns

net present values

periodic reports

profitability and financial stability

strategic priorities

working capital management.

Shortfalls in customer service may include:

accuracy of advice

consideration of relevant factors

maintenance of records

presentation of advice

response time.

Appropriate authorities and sources may include:

chief executive or financial officers

company officers and board of management

government Ministers

organisational procedures and policies

program managers

statutory returns and guidelines.

Standard financial analysis techniques may include:

benchmarking

cash flow analysis

cost-benefit analysis

financial statement analysis including ratios.

Significant taxation issues may include:

Business Activity Statement (BAS) reporting requirements

compliance advice

Pay As You Go (PAYG) obligations

reporting and lodgement dates

State or Territory tax obligations.

Methods of presentation and formats may include:

detail of calculations

estimates and projections

explanatory notes

graphics

tables.

Risks and contingencies may include:

business forecasts

debtor default

funding costs

hedging arrangements

insurable risks

operating costs

opportunity costs.

Risk management options may include:

insurance products

internal control procedures.

Rights and obligations may include:

contract law

corporations law

employment law

legislative protection for consumers

Privacy Act

taxation legislation.

Unit sector

Accounting

This unit contains employability skills.