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Evidence Guide: BSBSMB402 - Plan small business 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

 

BSBSMB402 - Plan small business finances

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

Identify costs, calculate prices and prepare profit statement

  1. Identify and document costs associated with production and delivery of business products and services
  2. Calculate prices based on costs and profit margin, as an hourly charge-out rate for labour or unit price for products
  3. Calculate breakeven sales point to establish business viability and profit margins
  4. Identify appropriate pricing strategies in relation to market conditions to meet business profit targets
  5. Prepare projected profit statement to supplement the business plan
Identify and document costs associated with production and delivery of business products and services

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate prices based on costs and profit margin, as an hourly charge-out rate for labour or unit price for products

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate breakeven sales point to establish business viability and profit margins

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify appropriate pricing strategies in relation to market conditions to meet business profit targets

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare projected profit statement to supplement the business plan

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop a financial plan

  1. Set profit targets or goals to reflect owner’s desired returns
  2. Identify working capital requirements necessary to attain profit projections
  3. Identify noncurrent asset requirements and consider alternative asset management strategies
  4. Prepare cash flow projections to enable business operation in accordance with business plan and legal requirements
  5. Identify capital investment requirements accurately for each operational period
  6. Select budget targets to enable ongoing monitoring of financial performance
Set profit targets or goals to reflect owner’s desired returns

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify working capital requirements necessary to attain profit projections

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify noncurrent asset requirements and consider alternative asset management strategies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare cash flow projections to enable business operation in accordance with business plan and legal requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify capital investment requirements accurately for each operational period

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Select budget targets to enable ongoing monitoring of financial performance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Acquire finance

  1. Identify startup and ongoing financial requirements according to financial plan/budget
  2. Identify sources of finance, including potential financial backers, to provide required liquidity for the business to complement business goals and objectives
  3. Investigate cost of securing finance on optimal terms
  4. Identify strategies to obtain finance as required to ensure financial viability of the business
Identify startup and ongoing financial requirements according to financial plan/budget

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify sources of finance, including potential financial backers, to provide required liquidity for the business to complement business goals and objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Investigate cost of securing finance on optimal terms

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify strategies to obtain finance as required to ensure financial viability of the business

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. Identify costs, calculate prices and prepare profit statement

1.1 Identify and document costs associated with production and delivery of business products and services

1.2 Calculate prices based on costs and profit margin, as an hourly charge-out rate for labour or unit price for products

1.3 Calculate breakeven sales point to establish business viability and profit margins

1.4 Identify appropriate pricing strategies in relation to market conditions to meet business profit targets

1.5 Prepare projected profit statement to supplement the business plan

2. Develop a financial plan

2.1 Set profit targets or goals to reflect owner’s desired returns

2.2 Identify working capital requirements necessary to attain profit projections

2.3 Identify noncurrent asset requirements and consider alternative asset management strategies

2.4 Prepare cash flow projections to enable business operation in accordance with business plan and legal requirements

2.5 Identify capital investment requirements accurately for each operational period

2.6 Select budget targets to enable ongoing monitoring of financial performance

3. Acquire finance

3.1 Identify startup and ongoing financial requirements according to financial plan/budget

3.2 Identify sources of finance, including potential financial backers, to provide required liquidity for the business to complement business goals and objectives

3.3 Investigate cost of securing finance on optimal terms

3.4 Identify strategies to obtain finance as required to ensure financial viability 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. Identify costs, calculate prices and prepare profit statement

1.1 Identify and document costs associated with production and delivery of business products and services

1.2 Calculate prices based on costs and profit margin, as an hourly charge-out rate for labour or unit price for products

1.3 Calculate breakeven sales point to establish business viability and profit margins

1.4 Identify appropriate pricing strategies in relation to market conditions to meet business profit targets

1.5 Prepare projected profit statement to supplement the business plan

2. Develop a financial plan

2.1 Set profit targets or goals to reflect owner’s desired returns

2.2 Identify working capital requirements necessary to attain profit projections

2.3 Identify noncurrent asset requirements and consider alternative asset management strategies

2.4 Prepare cash flow projections to enable business operation in accordance with business plan and legal requirements

2.5 Identify capital investment requirements accurately for each operational period

2.6 Select budget targets to enable ongoing monitoring of financial performance

3. Acquire finance

3.1 Identify startup and ongoing financial requirements according to financial plan/budget

3.2 Identify sources of finance, including potential financial backers, to provide required liquidity for the business to complement business goals and objectives

3.3 Investigate cost of securing finance on optimal terms

3.4 Identify strategies to obtain finance as required to ensure financial viability of the business

Evidence of the ability to:

develop a financial plan which identifies financial requirements of the business, including cash flow projections and a projected profit statement

follow the financial plan, including:

demonstrating an awareness of appropriate legal requirements

implementing strategies to monitor financial performance

identify sources and investigate costs of securing appropriate financial assistance.

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:

explain breakeven analysis

clarify costing for the business, including margin or markup, hourly charge-out rates and unit costs

summarise financial decision-making relevant to the business

outline methods and relative costs of obtaining finance

summarise principles for preparing balance sheets

provide a detailed explanation of:

principles for preparation of cash flow forecasts

principles for preparation of profit and loss statements

purpose of financial reports

explain relevant accounting terminology

describe working capital cycles.