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Evidence Guide: BSBSMB303 - Organise finances for the micro business

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

 

BSBSMB303 - Organise finances for the micro business

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

Ascertain own financial position and ability to provide capital/equity for the business

  1. Realistically detail personal, family or community financial situation showing funds available and commitments already incurred
  2. Determine equity finance and assets available for micro business from personal, family or community sources
Realistically detail personal, family or community financial situation showing funds available and commitments already incurred

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine equity finance and assets available for micro business from personal, family or community sources

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine projected cash flow for the business

  1. Determine level of forecast business activity over a year and the business mix
  2. Estimate establishment costs for the business and repayment schedule for borrowings
  3. Calculate monthly variable and fixed costs needed to conduct business activity over a year
  4. Estimate personal drawings needed from the business
  5. Estimate monthly income generated by the business for a year, based on price per unit item or hourly charge rate for labour
  6. Develop a cash flow budget for the first year of business operation
  7. Seek professional advice to estimate goods and services tax and operating finance required for the business
Determine level of forecast business activity over a year and the business mix

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Estimate establishment costs for the business and repayment schedule for borrowings

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate monthly variable and fixed costs needed to conduct business activity over a year

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Estimate personal drawings needed from the business

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Estimate monthly income generated by the business for a year, based on price per unit item or hourly charge rate for labour

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop a cash flow budget for the first year of business operation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Seek professional advice to estimate goods and services tax and operating finance required for the business

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Source required funds to establish the business

  1. Estimate required funding to establish and run the business based on expected sales and activity levels, available finances and commitments
  2. Investigate methods of accessing alternative sources of finance
  3. Identify strategies for meeting financial obligations
  4. Implement plans to access available funds as required
Estimate required funding to establish and run the business based on expected sales and activity levels, available finances and commitments

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Investigate methods of accessing alternative sources of finance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify strategies for meeting financial obligations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement plans to access available funds as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor business profitability

  1. Maintain and review monthly expenditure and income records
  2. Compare equity at beginning and end of a year to estimate business performance
  3. Assess financial viability of the business after a year of operation
  4. Seek professional advice on depreciation, insurance and tax implications of the business
Maintain and review monthly expenditure and income records

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Compare equity at beginning and end of a year to estimate business performance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess financial viability of the business after a year of operation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Seek professional advice on depreciation, insurance and tax implications of the business

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ascertain own financial position and ability to provide capital or equity for the business

  1. Realistically detail personal, family or community financial situation showing funds available and commitments already incurred
  2. Determine equity finance and assets available for micro business from personal, family or community sources
Realistically detail personal, family or community financial situation showing funds available and commitments already incurred

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine equity finance and assets available for micro business from personal, family or community sources

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. Ascertain own financial position and ability to provide capital or equity for the business

1.1 Realistically detail personal, family or community financial situation showing funds available and commitments already incurred

1.2 Determine equity finance and assets available for micro business from personal, family or community sources

2. Determine projected cash flow for the business

2.1 Determine level of forecast business activity over a year and the business mix

2.2 Estimate establishment costs for the business and repayment schedule for borrowings

2.3 Calculate monthly variable and fixed costs needed to conduct business activity over a year

2.4 Estimate personal drawings needed from the business

2.5 Estimate monthly income generated by the business for a year, based on price per unit item or hourly charge rate for labour

2.6 Develop a cash flow budget for the first year of business operation

2.7 Seek professional advice to estimate goods and services tax and operating finance required for the business

3. Source required funds to establish the business

3.1 Estimate required funding to establish and run the business based on expected sales and activity levels, available finances and commitments

3.2 Investigate methods of accessing alternative sources of finance

3.3 Identify strategies for meeting financial obligations

3.4 Implement plans to access available funds as required

4. Monitor business profitability

4.1 Maintain and review monthly expenditure and income records

4.2 Compare equity at beginning and end of a year to estimate business performance

4.3 Assess financial viability of the business after a year of operation

4.4 Seek professional advice on depreciation, insurance and tax implications of the business

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. Ascertain own financial position and ability to provide capital or equity for the business

1.1 Realistically detail personal, family or community financial situation showing funds available and commitments already incurred

1.2 Determine equity finance and assets available for micro business from personal, family or community sources

2. Determine projected cash flow for the business

2.1 Determine level of forecast business activity over a year and the business mix

2.2 Estimate establishment costs for the business and repayment schedule for borrowings

2.3 Calculate monthly variable and fixed costs needed to conduct business activity over a year

2.4 Estimate personal drawings needed from the business

2.5 Estimate monthly income generated by the business for a year, based on price per unit item or hourly charge rate for labour

2.6 Develop a cash flow budget for the first year of business operation

2.7 Seek professional advice to estimate goods and services tax and operating finance required for the business

3. Source required funds to establish the business

3.1 Estimate required funding to establish and run the business based on expected sales and activity levels, available finances and commitments

3.2 Investigate methods of accessing alternative sources of finance

3.3 Identify strategies for meeting financial obligations

3.4 Implement plans to access available funds as required

4. Monitor business profitability

4.1 Maintain and review monthly expenditure and income records

4.2 Compare equity at beginning and end of a year to estimate business performance

4.3 Assess financial viability of the business after a year of operation

4.4 Seek professional advice on depreciation, insurance and tax implications of the business

Evidence of the ability to:

conduct an investigation of own financial position, commitments and needs

determine projected cash flow for the business

estimate the funding needed to establish and operate the business

assess the financial viability of the business.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

identify sources of specialist financial advice for micro business operators

describe appropriate accounting software for use in the business

locate the Australia Taxation office (ATO) website and summarise data for operating a micro business

explain key financial terminology relevant to micro business

describe the relationship between finances and business sales and marketing strategies

describe methods of costing or pricing and preparation of financial forecasts