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Evidence Guide: AHCBUS508 - Prepare and monitor budgets and financial reports

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

AHCBUS508 - Prepare and monitor budgets and financial reports

What evidence can you provide to prove your understanding of each of the following citeria?

Prepare a budget

  1. Obtain information on past receipts and payments and compare to current prices and cost trends
  2. Prepare gross margin projections for each production enterprise of the business
  3. Identify projected non-enterprise income and overhead costs for the business
  4. Identify projected capital-based income and costs for the business
  5. Prepare a plan for a period which allows for expected income and expenditure, using the 'most likely' prices and costs
  6. Ensure the plan allows the business to meet financial reporting requirements
Obtain information on past receipts and payments and compare to current prices and cost trends

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Prepare gross margin projections for each production enterprise of the business

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Identify projected non-enterprise income and overhead costs for the business

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Identify projected capital-based income and costs for the business

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Prepare a plan for a period which allows for expected income and expenditure, using the 'most likely' prices and costs

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Ensure the plan allows the business to meet financial reporting requirements

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Implement and monitor a budget

  1. Monitor receipts and payments and reconcile against the original budget
  2. Allocate funds in accordance with budget objectives and parameters
  3. Identify variances against the original plan and calculate the impact on overall profit and loss and cash flow
  4. Make adjustments to the original plan for the remainder of the budget period where necessary to respond to unacceptable variations
  5. Renegotiate and restructure budgets and plans to optimise enterprise performance
Monitor receipts and payments and reconcile against the original budget

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Allocate funds in accordance with budget objectives and parameters

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Identify variances against the original plan and calculate the impact on overall profit and loss and cash flow

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Make adjustments to the original plan for the remainder of the budget period where necessary to respond to unacceptable variations

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Renegotiate and restructure budgets and plans to optimise enterprise performance

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Prepare financial report

  1. Maintain records of financial performance
  2. Assemble information with source documents according to the requirements of the report recipient
  3. Prepare financial reports to meet both management and legislative requirements
  4. Forward documentation in a timely and efficient manner
Maintain records of financial performance

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Assemble information with source documents according to the requirements of the report recipient

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Prepare financial reports to meet both management and legislative requirements

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Forward documentation in a timely and efficient manner

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

Element

Performance criteria

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Prepare a budget

1.1 Obtain information on past receipts and payments and compare to current prices and cost trends

1.2 Prepare gross margin projections for each production enterprise of the business

1.3 Identify projected non-enterprise income and overhead costs for the business

1.4 Identify projected capital-based income and costs for the business

1.5 Prepare a plan for a period which allows for expected income and expenditure, using the 'most likely' prices and costs

1.6 Ensure the plan allows the business to meet financial reporting requirements

2. Implement and monitor a budget

2.1 Monitor receipts and payments and reconcile against the original budget

2.2 Allocate funds in accordance with budget objectives and parameters

2.3 Identify variances against the original plan and calculate the impact on overall profit and loss and cash flow

2.4 Make adjustments to the original plan for the remainder of the budget period where necessary to respond to unacceptable variations

2.5 Renegotiate and restructure budgets and plans to optimise enterprise performance

3. Prepare financial report

3.1 Maintain records of financial performance

3.2 Assemble information with source documents according to the requirements of the report recipient

3.3 Prepare financial reports to meet both management and legislative requirements

3.4 Forward documentation in a timely and efficient manner

Required Skills and Knowledge

Element

Performance criteria

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Prepare a budget

1.1 Obtain information on past receipts and payments and compare to current prices and cost trends

1.2 Prepare gross margin projections for each production enterprise of the business

1.3 Identify projected non-enterprise income and overhead costs for the business

1.4 Identify projected capital-based income and costs for the business

1.5 Prepare a plan for a period which allows for expected income and expenditure, using the 'most likely' prices and costs

1.6 Ensure the plan allows the business to meet financial reporting requirements

2. Implement and monitor a budget

2.1 Monitor receipts and payments and reconcile against the original budget

2.2 Allocate funds in accordance with budget objectives and parameters

2.3 Identify variances against the original plan and calculate the impact on overall profit and loss and cash flow

2.4 Make adjustments to the original plan for the remainder of the budget period where necessary to respond to unacceptable variations

2.5 Renegotiate and restructure budgets and plans to optimise enterprise performance

3. Prepare financial report

3.1 Maintain records of financial performance

3.2 Assemble information with source documents according to the requirements of the report recipient

3.3 Prepare financial reports to meet both management and legislative requirements

3.4 Forward documentation in a timely and efficient manner

The candidate must be assessed on their ability to integrate and apply the performance requirements of this unit in a workplace setting. Performance must be demonstrated consistently over time and in a suitable range of contexts.

The candidate must provide evidence that they can:

develop a budget

prepare financial reports to meet industry standards

monitor receipts and payments

negotiate and restructure budgets

implement and monitor a budget.

The candidate must demonstrate knowledge of:

budget formulation

financial information systems

budget analysis and reporting processes

standards for organisational recordkeeping and audit requirements.

Range Statement