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Evidence Guide: BSBSMB406 - Manage 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

 

BSBSMB406 - Manage small business finances

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

Implement financial plan

  1. Identify financial information requirements and obtain specialist services, as required, to profitably operate and extend the business in accordance with the business plan
  2. Produce financial budgets/projections, including cash flow estimates, as required for each forward period, and distribute to relevant people in accordance with legal requirements
  3. Negotiate, secure and manage business capital to best enable implementation of the business plan and to meet requirements of financial backers
  4. Develop and maintain strategies to enable adequate financial provision for taxation in accordance with legal requirements
  5. Develop, monitor and maintain client credit policies, including contingencies for debtors in default, to maximise cash flow
  6. Select key performance indicators to enable ongoing monitoring of financial performance
  7. Record and communicate financial procedures to relevant people to facilitate implementation of the business plan
Identify financial information requirements and obtain specialist services, as required, to profitably operate and extend the business in accordance with the business plan

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Produce financial budgets/projections, including cash flow estimates, as required for each forward period, and distribute to relevant people in accordance with legal requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate, secure and manage business capital to best enable implementation of the business plan and to meet requirements of financial backers

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop and maintain strategies to enable adequate financial provision for taxation in accordance with legal requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop, monitor and maintain client credit policies, including contingencies for debtors in default, to maximise cash flow

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Select key performance indicators to enable ongoing monitoring of financial performance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Record and communicate financial procedures to relevant people to facilitate implementation of the business plan

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor financial performance

  1. Regularly monitor and report on financial performance targets, and analyse data to establish extent to which the financial plan has been met
  2. Monitor marketing and operational strategies for their effects on the financial plan
  3. Calculate and evaluate financial ratios according to own/industry benchmarks
  4. Assess financial plan to determine whether variations or alternative plans are needed, and change as required
Regularly monitor and report on financial performance targets, and analyse data to establish extent to which the financial plan has been met

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor marketing and operational strategies for their effects on the financial plan

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate and evaluate financial ratios according to own/industry benchmarks

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess financial plan to determine whether variations or alternative plans are needed, and change as required

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. Implement financial plan

1.1 Identify financial information requirements and obtain specialist services, as required, to profitably operate the business in accordance with the business plan

1.2 Produce financial budgets or projections, including cash flow estimates, as required for each forward period, and distribute to relevant people in accordance with legal requirements

1.3 Negotiate, secure and manage business capital to best enable implementation of the business plan and to meet requirements of financial backers

1.4 Develop and maintain strategies to enable adequate financial provision for taxation in accordance with legal requirements

1.5 Develop, monitor and maintain client credit policies, including contingencies for debtors in default, to maximise cash flow

1.6 Select key performance indicators to enable ongoing monitoring of financial performance

1.7 Record and communicate financial procedures to relevant people to facilitate implementation of the business plan

2. Monitor financial performance

2.1 Regularly monitor and report on financial performance targets, and analyse data to establish extent to which the financial plan has been met

2.2 Monitor marketing and operational strategies for their effects on the financial plan

2.3 Calculate and evaluate financial ratios according to own or industry benchmarks

2.4 Assess financial plan to determine whether variations or alternative plans are needed, and change as required

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. Implement financial plan

1.1 Identify financial information requirements and obtain specialist services, as required, to profitably operate the business in accordance with the business plan

1.2 Produce financial budgets or projections, including cash flow estimates, as required for each forward period, and distribute to relevant people in accordance with legal requirements

1.3 Negotiate, secure and manage business capital to best enable implementation of the business plan and to meet requirements of financial backers

1.4 Develop and maintain strategies to enable adequate financial provision for taxation in accordance with legal requirements

1.5 Develop, monitor and maintain client credit policies, including contingencies for debtors in default, to maximise cash flow

1.6 Select key performance indicators to enable ongoing monitoring of financial performance

1.7 Record and communicate financial procedures to relevant people to facilitate implementation of the business plan

2. Monitor financial performance

2.1 Regularly monitor and report on financial performance targets, and analyse data to establish extent to which the financial plan has been met

2.2 Monitor marketing and operational strategies for their effects on the financial plan

2.3 Calculate and evaluate financial ratios according to own or industry benchmarks

2.4 Assess financial plan to determine whether variations or alternative plans are needed, and change as required

Evidence of the ability to:

operate the business according to the business plan, including:

adhering to legal requirements

meeting requirements of financial backers

defining strategies for debt collection and contingencies for debtors

managing cash flow

defining key performance indicators

communicating with relevant people

monitor the business against financial plan and make changes as required.

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:

discuss benchmarking

explain financial decision-making relevant to the business

summarise significant financial indicators

outline purposes of financial reports

clarify preparation and interpretation of budget/actual reports

identify principles for preparing balance sheets and their interpretation

outline debt collection procedures or strategies

characterise principles for preparing profit and loss statements and their interpretation

discuss stock records and stock control relevant to the business.