BSBFIM601 Manage finances

Activity 1A 

Objective:  To provide you with an opportunity to understand how to review and analyse previous financial data to establish areas which have generated a profit or loss.?

 Question 1  : Identify an area of business and explain how you could use different forms of current and present financial data to ascertain whether the department made a profit or a loss?You do not have to use actual figures from your business?

Objective: To provide you with an opportunity to understand how to undertake research to review reasons for previous profit and loss.

Question 2:  Using your answer from the previous activity, explain how you would undertake research to review the reasons for the profit or loss? 

Objective:  To provide you with an opportunity to understand how to review business plans to establish critical dates and initiatives that will require or generate resources in the next financial cycle.

Question 3: Using your business plan, identify your business’ critical dates in terms of income and resource use and generation?

 Objective: To provide you with an opportunity to understand how to analyse cash flow trends.

Question 4:Explain how and why you would analyse your business’ cash flow trends?

 Objective: To provide you with an opportunity to understand how to review statutory requirements for compliance and liabilities for tax.

Question 5: Which taxes are applied to your business? Explain each one, including the rates and geographical variations, if applicable?

 Objective: To provide you with an opportunity to understand how to review existing software and its suitability for financial management.

Question 6: In reference to your current financial management software, give all of the pros and cons you can think of.

Summarise whether you think the software is suitable for both your current needs and future needs?

Objective : To provide you with an opportunity to use previous financial data to determine allocations for resources.

Question 7 : Give an example of how you could use previous financial data to determine the allocation of resources?Explain the figures and how you would allocate resources accordingly?

Objective : To provide you with an opportunity to make informed estimates of new items for inclusion in budget.

Activity Identify a new item you could add to the budget in your business. Estimate the costs of the new item and how it would be included in the budget.

You need to estimate both upfront and ongoing costs?

Objective To provide you with an opportunity to understand how to prepare budgets in accordance with organisational requirements and statutory requirements.

Question 7 : Give an overview of the organisational policies and requirements you need to adhere to when you are preparing budgets.

Objective: To provide you with an opportunity to understand how to circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations.

Question 8 : Write a plan detailing how you would circulate newly-written budgets to managers and explain any additional information they need to know, such as reporting requirements and financial delegations?

Objective:  To provide you with an opportunity to understand how to manage risks by checking there are no opportunities for misappropriation of funds and that systems are in place to properly record all financial transactions.

Question 9 : Identify five different ways staff could misappropriate company funds and suggest a resolution for each?

Objective : To provide you with an opportunity to understand how to review profit and loss statements, cash flows and ageing summaries.

Question 10 : Explain your organisation’s use of ageing summaries, in terms of accounts payable and receivable, where applicable?

Objective :To provide you with an opportunity to understand how to revise budgets, as required, to deal with contingencies.

Question 10:  Give an example of a contingency that could occur at your workplace and explain how you would revise the budget to deal with it?

Objective : To provide you with an opportunity to understand how to maintain audit trails to ensure accurate tracking and to identify discrepancies between agreed and actual allocations.

Question 10 : Give an example of how you could use an audit trail to identify a discrepancy in budget allocations?

Objective: To provide you with an opportunity to understand how to ensure compliance with due diligence.

Question 11: Identify three areas of compliance you could monitor in your workplace and explain how you would ensure that regulations are being adhered to?