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Evidence Guide: BSBFIM601A - Manage finances

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

 

BSBFIM601A - Manage finances

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

Plan for financial management

  1. Review and analyse previous financial data to establish areas which have generated a profit or loss
  2. Undertake research to review reasons for previous profit and loss
  3. Review business plan to establish critical dates and initiatives that will require or generate resources in next financial cycle
  4. Analyse cash flow trends
  5. Review statutory requirements for compliance and liabilities for tax
  6. Review existing software and its suitability for financial management
Review and analyse previous financial data to establish areas which have generated a profit or loss

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Undertake research to review reasons for previous profit and loss

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review business plan to establish critical dates and initiatives that will require or generate resources in next financial cycle

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse cash flow trends

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review statutory requirements for compliance and liabilities for tax

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review existing software and its suitability for financial management

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish budgets and allocate funds

  1. Use previous financial data to determine allocations for resources
  2. Make informed estimates of new items for inclusion in budget
  3. Prepare budgets in accordance with organisational requirements and statutory requirements
Use previous financial data to determine allocations for resources

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Make informed estimates of new items for inclusion in budget

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare budgets in accordance with organisational requirements and statutory requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement budgets

  1. Circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations
  2. Manage risks by checking there are no opportunities for misappropriation of funds and that systems are in place to properly record all financial transactions
  3. Review profit and loss statements, cash flows and ageing summaries
  4. Revise budgets, as required, to deal with contingencies
  5. Maintain audit trails to ensure accurate tracking and to identify discrepancies between agreed and actual allocations
  6. Ensure compliance with due diligence
Circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Manage risks by checking there are no opportunities for misappropriation of funds and that systems are in place to properly record all financial transactions

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review profit and loss statements, cash flows and ageing summaries

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Revise budgets, as required, to deal with contingencies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Maintain audit trails to ensure accurate tracking and to identify discrepancies between agreed and actual allocations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure compliance with due diligence

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Report on finances

  1. Ensure structure and format of reports are clear and conform to organisational and statutory requirements
  2. Identify and prioritise significant issues in statements, including comparative financial performances for review and decision making
  3. Prepare recommendations to ensure financial viability of the organisation
  4. Evaluate the effectiveness of financial management processes
Ensure structure and format of reports are clear and conform to organisational and statutory requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and prioritise significant issues in statements, including comparative financial performances for review and decision making

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare recommendations to ensure financial viability of the organisation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluate the effectiveness of financial management processes

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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 following is essential:

preparation of budgets which align with the business plan, use previous financial data and meet all compliance requirements

analysis of the effectiveness of existing financial management approaches

knowledge of the requirements of the Australian Tax Office.

Context of and specific resources for assessment

Assessment must ensure:

access to appropriate documentation and resources normally used in the workplace.

Method of assessment

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

assessment of written reports on financial systems and financial management

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

review of budgets prepared

oral or written questioning to assess knowledge of legislative requirements or the tax system

evaluation of documentation reviewing profit and loss statements, cash flows and ageing summaries

analysis of maintenance of audit trails

review of recommendations prepared to ensure the financial viability of the organisation.

Guidance information for assessment

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

other units from the BSB60407 Advanced Diploma of Management.

Required Skills and Knowledge

Required skills

communication skills to explain budgets and reporting requirements, and to deal with questions

mathematical skills to read and interpret budgets

technology skills to work with financial software.

Required knowledge

financial probity

principles of accounting and financial systems

relevant Australian, international and local legislation and conventions, such as:

bilateral or regional trade agreements

International Commercial Terms (INCOTERMS)

Trade Practices Act

Warsaw Convention

World Trade Organization determinations

requirements of the Australian Tax Office, including Goods and Services Tax, Company Tax, PAYG.

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, 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.

Financial data may include:

budgets, forecasts and variations

cash flow/profit reports

financial/operational statements and reports (e.g. expenditures and receipts, profit and loss statements)

market valuations

Organisational requirements may include:

financial analysis assessments

financial management manuals

legal and organisational policies, guidelines and requirements

occupational health and safety policies, procedures and programs

price and exchange parameters

quality assurance and/or procedures manuals

recording and filing systems

reporting requirements

standard financial analysis techniques

Statutory requirements may include:

delegated authorities

internal control procedures

limits on volumes and types of financial transactions

reporting of duty, excise and other overseas government charges

reporting periods

taxation and payment timings

Discrepancies may include:

absence of auditable trail

expenditure report mismatches

inappropriate authorisations

incorrect payments

incorrect report formats

unreconciled cash flows and operating statements

variances from budget and phasings

Format may include:

audits

balance sheets

cash flow statements

electronic forms

financial year reports

operating statements

spreadsheets

statutory forms

Issues may include:

cost structures

internal controls

losses and returns

profitability

statutory obligations

suppliers and markets

Recommendations may refer to:

cash flow

changes in business activity including markets, goods or services traded

consolidation

expenses and overheads

labour costs including decisions to move production to other locations or sites

loss

profit

write-offs