This unit describes the performance outcomes, skills and knowledge required to interpret financial information and reports used by organisations to monitor business performance and provide information on operational or departmental financial activities.

The unit applies to all tourism, travel, hospitality and event sectors.

It applies to those people who operate independently or with limited guidance from others. This includes supervisors and departmental managers. This unit does not include the skills required to produce reports for the overall operation of the department or whole organisation. These would be created by senior managers, financial specialists or accountants.

No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

correctly complete each of the following financial information documents or reports used to monitor overall business performance:

account summaries and balances

balance sheets

bank deposit documentation

bank statements

banking summaries

business activity statements

credit card transaction statements

invoices

journal entries

merchant statements

merchant summaries

profit and loss statements

trial balance

provide financial information using correct financial terminology on six different operational or departmental financial activities listed in the knowledge evidence.

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

specific industry sector and organisation:

financial terminology specific to financial report

reporting periods and different financial years observed by different businesses

key features and functions of accounting software programs used to manage financial operations

use of financial information and reports in monitoring overall business performance

operational or departmental financial activities relevant to the sector:

average customer spend

daily, weekly and monthly transactions

departmental expenditure on:

labour

stock purchased

wastage

departmental income:

covers and gross income

commission earnings

occupancy and gross income

sales

outstanding accounts:

payable

receivable

quotations realised to sales

sales performance

stock levels

variance from budget

types of financial reports and their purpose:

budgets

cash flow

covers

expenditure

labour and wages

occupancy rates

purchases

receivables

sales

stock

transactions

transactions exempted

units sold

variance

wastage

key elements of financial record-keeping and key terminology:

ledgers, subsidiary ledgers and journals

transactions, receipts and disbursements

invoices, accounts payable, debtors and creditors

cash flow

key elements of accounting and how it provides information for business management:

charts of accounts and account categories

basic rules for double-entry accounting and the concept of debits and credits

accrual versus cash accounting

profit and loss statements and balance sheets as key financial statements used to measure business performance:

purpose

how these reports are generated

format

features

key information

reconciliations:

purpose

different types of reconciliation, and the impact of unpresented cheques

bank charges

direct debits and credits

concept of costing, and fixed and variable costs

accounting for and reporting goods and services tax (GST).

Skills must be demonstrated in an operational tourism, travel, hospitality or events environment for which financial information can be interpreted. This can be:

an industry workplace

a simulated industry environment.

Assessment must ensure access to:

computers, printers and accounting software packages

financial data and reports.

Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.

Cross-Sector

Finance