Manage budgets and financial plans

This unit describes the performance outcomes, skills and knowledge required to undertake financial management within a work team in an organisation. This includes planning and implementing financial management approaches, supporting team members whose role involves aspects of financial operations, monitoring and controlling finances, and reviewing and evaluating effectiveness of financial management processes in line with the financial objectives of the work team and the organisation.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.


This unit addresses the requirement for managers to ensure that financial resources are used effectively. This is done by ensuring access to budget/s and ongoing monitoring expenditure against the budget/s.

The unit applies to managers working in small and large business environments and not for profit organisations.

Elements and Performance Criteria



1. Plan financial management approaches

1.1. Access budget/financial plans for the work team

1.2. Clarify budget/financial plans with relevant personnel within the organisation to ensure that documented outcomes are achievable, accurate and comprehensible

1.3. Negotiate any changes required to be made to budget/financial plans with relevant personnel within the organisation

1.4. Prepare contingency plans in the event that initial plans need to be varied

2. Implement financial management approaches

2.1. Disseminate relevant details of the agreed budget/financial plans to team members

2.2. Provide support to ensure that team members can competently perform required roles associated with the management of finances

2.3. Determine and access resources and systems to manage financial management processes within the work team

3. Monitor and control finances

3.1. Implement processes to monitor actual expenditure and to control costs across the work team

3.2. Monitor expenditure and costs on an agreed cyclical basis to identify cost variations and expenditure overruns

3.3. Implement, monitor and modify contingency plans as required to maintain financial objectives

3.4. Report on budget and expenditure in accordance with organisational protocols

4. Review and evaluate financial management processes

4.1. Collect and collate for analysis, data and information on the effectiveness of financial management processes within the work team

4.2. Analyse data and information on the effectiveness of financial management processes within the work team and identify, document and recommend any improvements to existing processes

4.3. Implement and monitor agreed improvements in line with financial objectives of the work team and the organisation

Required Skills

Required skills

numeracy skills to read and understand a budget and to update a budget

technology skills to use software associated with financial record keeping.

Required knowledge

basic accounting principles

organisational requirements related to financial management

relevant legislation and current requirements of the Australian Taxation Office, including GST

requirements for organisational record keeping and auditing

principles and techniques involved in:


cash flows

electronic spreadsheets


ledgers and financial statements

profit and loss statements.

Evidence Required

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:

financial skills required to work with and interpret budgets, ageing summaries, cash flow, petty cash, GST, and profit and loss statements

knowledge of the record keeping requirements for the ATO and for auditing purposes.

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 indicating broad knowledge of managing budgets and managing financial resources in the organisation

demonstration of techniques using financial record keeping software

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

oral or written questioning to assess knowledge of requirements for organisational record keeping and auditing

review of contingency plans

review of identification of cost variations and expenditure overruns

evaluation of documentation reportingon budget and expenditure

review of documentation identifying and recommending improvements to financial management processes.

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 Diploma of Management.

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.

Budget/financial plans may include:

cash flow projections

long-term budgets/plans

operational plans

short-term budgets/plans

spreadsheet-based financial projections

targets or key performance indicators for production, productivity, wastage, sales, income and expenditure

Relevant personnel may include:

financial managers, accountants or financial controllers

supervisors, other frontline managers

Contingency plans may include:

contracting out or outsourcing human resources and other functions or tasks

diversification of outcomes

finding cheaper or lower quality raw materials and consumables

increasing sales or production

recycling and re-using

rental, hire purchase or alternative means of procurement of required materials, equipment and stock

restructuring of organisation to reduce labour costs

risk identification, assessment and management processes

seeking further funding

strategies for reducing costs, wastage, stock or consumables

succession planning

Support may include:

access to specialist advice

documentation of procedures

help desk or identified experts within the organisation

information briefings or sessions

intranet-based information

training including mentoring, coaching and shadowing

Required roles may include:

arranging for use of corporate credit cards


debt collection

ensuring security, accuracy and currency of financial operations

invoicing clients, customers and consumers

maintaining journals, ledgers and other record keeping systems

maintaining petty cash system

purchasing and procurement

wages and salaries payments and record keeping

Resources and systems may include:

hardware and software

human, physical or financial resources

record keeping systems (electronic and paper-based)

specialist advice or support

Processes to monitor actual expenditure and to control costs across the work team include:

reporting of:








Reporting may include data from:

bank statements

credit card statements

financial reports

invoices and receipts

ledgers and journals


petty cash records

spreadsheet-based records

Data and information on the effectiveness of financial management processes may include records (paper-based and electronic) related to:

bank account records

cash flow data


credit card receipts

employee timesheets

files of paid purchase and service invoices

income and expenditure

insurance reports


job costings

petty cash receipts


taxation records

wages/salaries books


Unit sector

Competency Field

Management and Leadership - Management

Employability Skills

This unit contains employability skills.

Licensing Information

Not applicable.