BSBFIM601- Manage Finances

Task:

Assessment description

This assessment requires you to determine the requirements to undertake budgeting, financial forecasting and reporting requirements for an organisation. You will also need to review the case study provided and prepare a budget (in electronic spreadsheet format) and budget notes for distribution and implementation in the organisation.

Procedure

1.Read and analyse the case study information (including business plan summary and previous financial data) and complete the following.

a.Develop a sales budget, profit budget, cash flow budget and debtor ageing summary using electronic spreadsheets (as separate worksheets) making sure each budget is divided into quarterly periods and that you use previous financial data to determine allocations for resources. 

i.Ensure each budget you prepare complies with the organisational and policies and procedures as provided.

b.Develop budget notes that include:

i.identification of reasons for previous profits and losses

ii.your comment on the effectiveness of existing financial management approaches

iii.all assumptions and bases that have been made or used to form budgets

iv.any relevant notes regarding implementation and monitoring of budget expenditure.

Upon completion of the budgets you meet with Jim to provide an overview of the information contained within the budgets, the budget notes and recommendations regarding the internal controls to prepare him for the meetings with the senior managers. To clarify his understanding of the information, Jim asks you a series of questions (listed below, which you will complete written or orally as agreed with your assessor).

1.Identify the current statutory requirements for tax compliance and list and calculate the tax liabilities for Houzit Pty Ltd under taxation legislation.

2.Identify the current compliance requirements and liabilities for this organisation under the Corporations Act 2001.

3.Review commercially available financial management software to select the most suitable software for Houzit Pty Ltd. 

Ensure you diagnose software options by comparing two commercially available software titles against the capabilities of the existing technology for the organisation and against the prioritised requirements, and outline the reasons that lead you to this recommendation.

4.Explain how you can apply the following principles of accounting in developing the budgets required for this task:

a.matching principle

b.account groups

c.time periods.

5.Explain and discuss the implications of probity when preparing and revising budgets.

6.List the critical dates and initiatives that will require or generate resources for Houzit Pty Ltd in the next financial cycle.

7.List the items you would recommend for inclusion in the budgets for Houzit Pty Ltd.

8.List the new or modified internal controls that could improve risk management for Houzit Pty Ltd including the maintenance of audit trails.