Assessment 2 Practical Evidence
Assessment 2 Practical Evidence
SITXFIN009 Manage finances within a budget
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Date Assessment 2 Practical / Knowledge / Observation Brief
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Complete all parts within this task
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What is the objective of this task?
To demonstrate performance application for this task, you should:
plan and organise workflow for a team operation or activity that considers at least six of the following contingencies:
delays and time difficulties
difficult customer service situations
equipment breakdown or technical failure
financial resources
staffing levels and skill profiles
rostering requirements
staff performance
procedural requirements
product development and marketing
monitor and respond to team-based operational and service issues during the above operation or activity
complete each of the following organisational records for the above operation or activity:
performance reports
staff records.
What do you need to complete?
You are required to research and complete the templates and questions
Time allocation:
Refer to assessment due dates on the KCBT LMS/Moodle
Your task:
Complete ALL questions, templates
Resources:
Learner guide
Internet (Computer)
Learner Guide refer to the knowledge overview
Annex attachments
Background Information
The information below will help you complete your assessment. Read it before starting.
The restaurant profit-and-loss statement and budget formats differ from that of other businesses in that they make it easier to identify the four major checkpoints restaurants need to monitor - sales, prime cost, controllable profit and net income.
Sales While this is obvious, the top line is the single biggest profit-determining factor on the profit-and-loss statement. Strong sales volume can make up for quite a few management mistakes and cost control glitches -- at least for a while anyway. It is good to compare current sales with the same period of the prior year and to a budget or forecast. It is also helpful to look at check average and customer counts when comparing sales from one period with another
Prime Cost Prime cost is the total cost of sales plus all payroll-related costs, including wages, benefits, payroll taxes, workers' compensation, and other similar expenses. Keeping close tabs on your prime cost is critical for several reasons; it represents your two biggest and most volatile cost areas and is really one of the few costs over which you have control.
In table-service restaurants, the generally accepted rule says that prime cost should run no more than 65 percent of total sales. Many of the larger, casual-theme chain operators can keep their prime cost 60 percent or less but for most table-service independents achieving a prime cost of 60 percent to 65 percent of sales still provides the opportunity to achieve a healthy net income provided a restaurant has a normal cost-and-expense structure in the other areas of their profit-and-loss statement.
Controllable Income Sometimes referred to as "operating income," controllable income reflects only those expenses over which the operations personnel have any real control or influence. This makes it a good benchmark for evaluating management's overall effectiveness at "running the restaurant."
Net Income Finally, what's left after all the expenses are paid, and hopefully with no brackets around it that indicate a loss. The importance of this number is quite apparent; however, it may be helpful to compare "Net Income" with one or more prior periods to see if you're gaining or losing ground. Another important measure of profitability is to compare annual Net Income with the total investment you have in the restaurant. This is your "return on investment."
In the example shown below, it's easy to see how each of these four areas is reflected on the financial statement. This particular format includes key ratios and allows the owner to see how to compare results with the annual budget in both dollars and percentages; the importance of percentages is addressed later. In other words, it shows how successful or unsuccessful management was in executing the budget. It provides a definitive measure of what's working and what's not
Variance ($) Variance ($) = Actual ($)-Budget ($)
Variance (%) Variance (%) = Variance ($)/Budget ($) x100(%)
Food Cost ($) Food Cost ($) = Food Cost (%)*Food sale ($)
Food Cost (%) Food Cost (%) = Food Cost ($)/Food sale ($) x100(%)
Controllable Income Controllable Income=Total Net Sales-Prime Cost-Total Other Controllable Expenses
Prime Cost Prime Cost=Total Cost of Sales + Total Cost of Labor
Restaurant Operating Income Restaurant Operating Income=Controllable Income-Total Non-Controllable Expenses
Net Income Before Income Taxes Net Income Before Income Taxes= Restaurant Operating Income -Corporate Overhead and Interest Expense
Sale Actual (%) Sale Actual (%)=Sale Actual ($)/Total Gross Sales($) x100%
Cost of sale actual (%) Cost of Sale Actual (%)=Sale Cost Actual ($)/Sale Actual ($)x100%
Other costs (%) Other Costs (%)=Costs Actual ($)/Total Net Sales ($) x100%
Sales budget (%) Sale Budget (%)=Sale Budget ($)/Total Gross Sales($) x100%
Cost of sale budget (%) Cost of Sale Budget (%)=Sale Cost Budget ($)/Sale Budget ($)x100%
Other cost budget (%) Other Costs Budget (%)=Costs Budget ($)/Total Net Sales ($) x100%
Task A Fund allocation - EXCEL REPORT / ROLEPLAY S NS
You have been appointed as the new Head Chef, of On the Water restaurant.
On the Water is a new Mediterranean restaurant on the Sunset Strip. The Restaurant has an ala carte restaurant, and a drive-through and walk-in bottle shop.
You are the head chef of an A la carte restaurant. The restaurant seats 210 people and is open for lunch and dinner for seven days a week. The restaurant promotes a luxury high tea on every weekend morning for dine in and take away.
The management team has developed an operational budget for the business based on previous budgets which include food costs, labor costs, equipment expenses, and for other resources such as take away containers, cutlery and crockery.
Budgets are developed on a quarterly basis and each department has quarterly and monthly budget targets. Monthly budgets can be adjusted during a quarterly cycle if circumstances within the department change.
As part of your newly appointed role as the head chef at the restaurant, you are required
to allocate funds in a 3-months operational budget template (appendix 1) using the quarterly budget (attachment 10) and month 1 profit and loss statement (attachment 10A).
Conduct business budget allocation from the figures provided in the profit and loss statement and divide the total profit and loss figures.
Ensure when allocating funds, the total column is in whole dollars to match the quarterly budget (attachment 10).
Your assessor will directly observe you conducting a meeting to discuss the allocation of funds according to budget and agreed priorities. using the assessor observation checklist
Task A1 Funds Allocation EXCEL REPORT / ROLEPLAY S NS
Now you need to allocate funds for the next few months. Before allocating funds for the next months, you will need to discuss, negotiate, and decide on establishment priorities with your management team for the next 2 months because of recent expansion.
Use the budgeted figures (appendix 1) based on the quarterly budget (attachment Task 10) as a basis for discussion to allocating funds.
It is important you have a clear understanding of what your establishments strategic priorities are before you can determine how much funding to provide different arears of the establishment to meet the establishment objectives
To understand the establishment priorities, review the operating procedures (attachment 21), mission statement and vision statement (attachment 20) and meet with the decision makers to discuss and clarify strategic direction with a goal to maximise profitability overall.
It is important to discuss any expenditure changes with colleagues before implementing them. It is important to consult the personnel listed above to ensure knowledge of the establishment is increased, including how provide specific details where:
More staff are needed in certain operational areas and what funding is needed to achieve this
Overheads can be reduced to free up funding to be used in different areas
Savings can be achieved
Adjustments can be made and ensure the changes do not impact other areas to make a loss.
Your assessor will directly observe you conducting a meeting to discuss the allocation of funds according to budget and agreed priorities. using the assessor observation checklist
SUBMIT
Complete the attached excel templates (Appendix 1) ensuring you label the document as follows.
Student ID_Your fist name_A2 SITXFIN009 Appendix 1
Attach/Embedded Appendix 1 below.
Task B Budget control and update EXCEL REPORT / ROLEPLAY S NS
In this roleplay you will be acting as the newly appointed role as the head chef at the restaurant and your classmates will act as the managers from relevant departments, accounting professionals, managerial agents, and purchasing staff).
The following events have taken place during the month 3 budget period.
Prices for fruit and vegetables have increased as a result of out of season.
Meats price have risen slightly due to the hotel has decided to use all halal products.
A major wine supplier has been running an in-house promotional campaign, with staff product knowledge training provided to help increase sales.
The high tea menu will be added to the new menu from month3, and its introduction is being promoted in February throughout the restaurant.
Specific equipment will be need for high tea presentation
You will need to discuss and promote awareness of BUDGET CONTROL. Below points are to be addressed during roleplay,
Expected income in the budgetary period
Cover strategies that will maximise income
Cover strategies that will minimise overheads
How much funding each area will get
Specific funding for events
Specific funding for development
Funding for recruitment and staff training
Funding for marketing and advertising
Recording and reporting protocols ensuring all personnel are clear and confident about how financial data is recorded and reported
Another topic to be addressed in the meeting is the UPDATE THE BUDGET planning document (appendix 2). Discuss with your team below topics;
The importance of the essential elements of the sales forecast.
The sales of food, drinks, and merchandise take a while to grow but will be near $2 million in the secondyear.
Update the monthly sales figures in the updated budget document (appendix 2) to align with attachment 10A.
Current suppliers
Role: Current supplier-Your Assessor, Finance team-Your classmates
Running a restaurant requires a lot of supplies and ingredients.
You must find new sources for all your foods and beverages. The costs for all those goods can vary widely, so you can negotiate with current suppliers to get the best possible prices.
Inform your finance team of the agreed lock in prices down by 20% achieved because of your discussions with suppliers.
Update the budget for food and beverages costs and sales. (appendix 2).
Assumptions include a 20% decline in Costs across all areas impacted by foods and beverages price down. Check for accuracy and adjustments as required
During this roleplay, ensure you have;
Take the necessary steps so all colleagues voices are heard when talking matters of budget outcomes
Use effective communication to convey your message through others
Have an effective discussion that involves all personnel and demonstrate your ability to:
Value everyones opinions regardless of whether you agree
Encourage and accept all views regardless of whether you agree or disagree
Involve the correct people in the discussion as appropriate based on the position within the establishment, knowledge, and experience in the matter at hand
Communicate clearly using both verbal and non-verbal communication skills
Compromise when necessary
Use active listening techniques
Listen, clarify, and confirm information
Be open minded to innovative ideas and points of view
Show trust in your colleagues
Maintain detailed records to resource and finalise the following record keeping documents in Appendix 2.
Your assessor will directly observe you conducting a meeting to discuss the allocation of funds according to budget and agreed priorities. using the assessor observation checklist
SUBMIT
Complete the attached excel templates (Appendix 2) ensuring you label the document as follows.
Student ID_Your fist name_A2 SITXFIN009 Appendix 2
Attach/Embedded Appendix 2 below.
Task C Variance Report Excel Report / ROLEPLAY S NS
1st Quarter actual figures have been finalised and you have been provided with the profit and loss statement (attachment 10B). Part of your job role is to regularly monitor financial activity such as income and expenditure and evaluate budgetary performance over the above budgetary life cycle.
Your CEO has asked you to provide a VARIANCE REPORT (appendix 3) showing the difference between the planned financial outcomes and actual outcomes for the descriptions and categories provided in the variance report.
The main goal of budget monitoring is to ascertain that your expenses fall below your income. If you have more money going out than coming in, then that's your cue to adjust.
For any variations / budget deviations identified you need to identify the cause and consider improvement options to ensure the initial budget is adhered to.
When monitoring budgets versus actuals for 1st Quarter, the types of information you need, identify include but not limited to:
Budget for the area of activity for 1st Quarter profiled for the year to date. When profiling the budget, planned expenditure/income patterns should be considered. For certain types of expenditure (particularly non-staff costs) and income it is likely that expenditure and income will peak and through at points in each month.
Actual expenditure and income to date
Future expenditure and income commitments
Balance of budget remaining. When actual expenditure and income and commitments together are compared to the month budget, this will indicate the balance of budget remaining at the review point
Forecast outturn. This is the expected position against budget at the end of the quarter after considering all anticipated expenditure and income. The forecast outturn may not be equal to the original budget
Analysis and explanation of any positive or negative variances when comparing expenditure and forecast outturn to budget, together with a documented action plan for one area to address adverse variances
Interpret and use budget deviations day-to-day work operations
Calculate budget estimates and scenarios for performance improvement.
Budget deviations and deficiencies and develop options for improved budgetary performance.
Complete the variance report, Appendix 3
Calculate the variances form budget estimates versus actual (attachment 10A and B) using the excel spreadsheet (appendix 3) for 1st Quarter
Your assessor will directly observe you conducting a meeting to discuss the allocation of funds according to budget and agreed priorities. using the assessor observation checklist
SUBMIT
Complete the attached excel templates (Appendix 3) ensuring you label the document as follows.
Student ID_Your fist name_A2 SITXFIN009 Appendix 3
Attach/Embedded Appendix 3 below.
Task D Annual Fiscal Management Report - Report / ROLEPLAY S NS
During this role play your assessor will act as the COE and your classmates as department managers.
You will need to write a detailed ANNUAL FISCAL MANAGEMENT REPORT (appendix 4) for the 1st Quarter budget versus actuals -refer to appendix 3). Record your findings in the report using the report template (appendix 4).
Provide your CEO and management team with an opportunity to investigate appropriate options for more effective management of deviations .Your CEO has asked for the report to be produced by the end of business tomorrow. Ensure your report details:
1st Quarter budget reviews ensuring you acknowledge the following changes impacting the last month budget
A price increase to cost of foods in the Month1 because the meats price has risen slightly due to the hotel has decided to use all halal products that has caused concern and requires you to undertake analysis of new suppliers
Assumptions include a 20% decline in sales across all areas impacted from month2. by roster changes due to staff isolation requirements and mandatory wage increase. Check for accuracy and adjustments as required
Assumptions include 2.5% increase to kitchen staff wages. Check for accuracy and adjustments as required
Variations / deviations including reasons by reporting on the most used variances:
PURCHASE PRICE VARIANCE -Purchase price variance results when actual price which is paid for materials is more/less than the budgeted cost for such materials.
LABOR RATE VARIANCE -Labor rate variance results when the actual price which is paid as wages is more/less than the budgeted cost for wages. For instance, labor is paid at $ 10 per hour, but are paid at $ 12 in actual.
VOLUME VARIANCE -volume variance means actual quantities sold or consumed and budgeted quantity expected to be consumed or sold
Make the following considerations and recommendations to ensure expenditure is with budget allocations when dealing with deviations and outline significant changes required to be made to the budget that may mean:
Reducing or increasing funding
Accepting overspending in a time
Scrapping or rethinking priorities
Rethinking purchasing levels, wage increases and inexperienced staff
Make at least one recommendation for more effective management of variations / deviations
Provide a modified budget that provides a more reliable reflection of actual expenditure and income in consideration with your findings (forms part of appendix 4 fiscal report)
Define and communicate the benefits and disadvantages of innovative approaches to budget management and record your findings in the report. Defining approaches will require you to meet your relevant personnel (classmates as directed by your assessor) to discuss why it is worth adopting innovative approaches, and why they will help the establishment to control finances more effectively. Involve all employees in the meeting who deal with any aspect of establishment finances as these staff will ensure the innovative approaches are implemented correctly. It is important to note a lack of information may lead to a lack of financial control potentially leading to the failure of new strategies and approaches.
Record your findings in the space allocated in the report (appendix 4)
Review all establishment financial documentation and provide management with the opportunity to define the benefits and disadvantages of new budgetary approaches and record your finding in the space allocated in the report (appendix 4). Discuss in your response:
How can you define new approaches for the benefit of your colleagues?
What information should you provide your colleagues with?
Why it is important to define the benefits of any new approaches to budgetary management before communicating them to your teams?
Consider in your report (appendix 4) the impacts on customer service levels and colleagues in developing innovative approaches. In doing this determine how will innovatively approaches to managing finances affect the customer experience.
Present a clear and logical recommendation for budget and financial management in your establishment based on current financial controls and on research carried out. Describe what information you will use and how you will present it. To persuasively make a case for a particular approach or strategy provide in your conclusion unmistakable evidence wherever possible to suggest why it will work should it be considered. You can include evidence such as but not limited to:
Evidence of clear failures or weaknesses
An outline as to why change needs to happen with a focus on current strategies (attachment 20) and approaches which have proven to be inadequate
A focus on financial data (contained in financial data attachment 10, 10A,10B appendix 1, 2, and 3) which may show:
Poor estimation of costs and income
Examples of overspending
Examples of significant variances and deviations
Examples of wastage
Examples of poor funding allocation
Examples of objectives and goals that have not been met because of poor control of finances
Evidence of the benefits associated with proposed changes
Evidence that strategies and approaches are fit for adoption
Back up evidence why proposed changes will work in the establishment
Expert views as to why recommendation will work
Evidence that innovative approaches will benefit both customers and employees
Include in your response
Strategic vs. Tactical Financial Management
Importance of Financial Management for the three pillars of sound fiscal governance
Objectives of Financial Management
Scope of Financial Management including:
Planning
Budgeting
Managing and accessing risk that outlines market risk, credit risk, liquidity risk: and Operational risk.
Procedures
Functions of Financial Management
Managing cash flow functions
Cash management and finance management functions
Managing financial controls functions
Provide responses to your findings for the above in the financial report appendix 4 ensuring you prepare and present clear and concise information to enable informed decision making by your management team. To do this
Choose your words deliberately, constructing your sentences carefully, and using grammar properly.
By writing clearly and concisely, you will get straight to your point in a way your audience can easily comprehend.
Your assessor will directly observe you conducting a meeting to discuss the allocation of funds according to budget and agreed priorities. using the assessor observation checklist Appendix 4 Introduction:
This report relates to 1st Quarter has been a challenging quarter for the company, with sales and operating expenses surging because of the weak hospitality market.
Fortunately, the strategies we have identified in the previous months have contributed much to the stable growth of our cash flow and revenue. As we strive to continue improving, we need to continue to look at what we could still do to accelerate sales.
PROFIT AND LOSS STATEMENT - 1st Quarter
Financial Accounts Projected Amounts Actual Amounts Variance Percentage
Total Sales -Income (Example) $ 378500 $ 3,790,000 $ 5,000 0.1 %
Total Cost of Sales (COGS) $0.00 $0.00 $0.00 0.00 %
Total Cost of Labor $0.00 $0.00 $0.00 0.00 %
Controllable Income $0.00 $0.00 $0.00 0.00 %
Restaurant Operating Income $0.00 $0.00 $0.00 0.00 %
Net Income Before tax $0.00 $0.00 $0.00 0.00 %
4.2 BUDGET VS. REVENUE (right click on the table to edit the data in excel)
4.3 MANAGEMENT ACTION ITEMS:
Develop options for improved budgetary performance.
Issues Raised Actionable (Y/N) Recommended Action Owner (your name) Target date of completion
A price increase to cost of goods in the last quarter that has caused concern and requires you to undertake analysis of new suppliers yes A 20% decline in sales across all areas impacted by roster changes due to staff isolation requirements and mandatory wage increase Yes 2.5% increase to kitchen staff wages Yes Make the following considerations and recommendations as part of your monitoring of income and expenditure activity (appendix 3) and outline the budgetary control process used to evaluate the budgetary performance over the budgetary life cycle to ensure expenditure is within budget allocations set by your establishment
From the budget analysis versus actuals for 1st Quarter you know how your budgeted amounts stack up against actual costs. You are now able to inform management and make recommendations to ensure a stronger financial and competitive performance by your establishment moving forward. Provide the following report to inform management of considerations relating to:
Improved spending decisions budgetary analysis
Improved cash flow to help you plan spend to accommodate upcoming expenses
Insight into potentially problematic workflows, vendors, or market trends that are affecting spend and creating negative variances and the process and efficiency improvements that support positive variances.
Accurate and complete financial statements, variance reports, and forecasts
4.5 To ensure effective budgetary control, 1st Quarter budget have effectively monitored and managed. Explain the monitoring and managing budget process undertaken
Monitoring budget Managing budget 4.6 The budgetary control process ensures funds are being utilised in accordance with the required level and quality of output from the allocated resources. Explain the following process undertaken as part of the analysis:
How did you establish the actual position? How did you compare the actual with budget? How did you calculate variances? How did you establish reasons for variances? How did you take action to exert control? 4.7 Outline the following causes of labour rate variances:
Incorrect Standards
(Example) The labor standard may not reflect recent changes in the rates paid to employees. For example, the standard may not reflect the changes imposed by fair work and applicable awards
Pay premium Staffing variances Component Trade-offs Benefits Changes How can your establishment manage direct material variance? 4.8 Explain the fixed overhead variances, identified in your analysis in relation to:
Budget Variances, or differences between actual and budgeted amounts.
Describe instances where actual costs are either higher or lower than the standard or projected costs. An unfavourable, or negative, budget variance is indicative of a budget shortfall, which may occur because revenues miss, or costs come in higher than anticipated. Responses should be relevant to appendix 3 variance analysis 4.9 Outline the cost reduction strategies recommended to inform management of future budget cost reduction activity based on your findings of the most recent budget analysis (appendix 1 - 3)
Roles: Existing suppliers (your assessor)
Action item Recommendation
Identify high-cost, low-profit items in your menu Example) The establishments menus have certain items that, despite costing a lot to make, dont sell very well. The recommendation is to replace them with items that will sell
After discussions with existing suppliers, you have decided to optimize your supply chain and source new suppliers After discussions with existing suppliers, you have decided to minimize the number of suppliers you use After review of operating procedures, it was decided to incorporate the FIFO method into the establishment After review of operating procedures, it was decided to reduce food and beverage costs use by discussing with existing suppliers After review of operating procedures, it was decided to implement a free online ordering system Negotiating with your landlord and suppliers 4.10 Cutting business costs is straightforward. But reducing expenditure without affecting the quality of your products or service is more of a challenge. Even something as minor as the quality of paper you use can reflect on your brand image.
So, when you embark on a cost-cutting exercise, you must keep in mind the impact any reductions in spending will have on your customers. But there are ways that you can reduce costs without impacting quality.
Inform management of ways they can cut back on costs while retaining quality.
Renegotiate with Suppliers (Example) Explore the market to look for alternative suppliers that will provide the same products at a lower price. Consider, too, if there are cheaper alternative products that you could use that would not compromise quality and ask existing suppliers for discounts before you switch vendors. If current suppliers know we are shopping around, they will be prepared to offer us a better deal.
Buy in large quantities Improve efficiency Reduce Wastage Review employee productivity Cut energy usage Review finance arrangements Reduce days sales outstanding (DSO) Refocus marketing 4.11 Make at least one recommendation and why for more effective management of variations / deviations
4.12 Define and communicate the benefits and disadvantages of innovative approaches to budget management and record your notes based on discussion with relevant personnel.
4.13 Complete the comparison table for advantages and disadvantages of budget
Advantages Disadvantages
A budget is a more time-consuming and inaccurate format for estimating a summation of expenditures and revenues.
The seniors of an organization are responsible to frame a budget plan resulting in effective handling of expenses. There is a constant change taking place in the industry or market. Hence the framed plan may not be as worthy as it may appear in the beginning.
The budget reflects the coordination between the employees of an organization as it takes them towards the same end Sometimes the budgeting might be very costly than the actual business plan which may or may not be affordable by all types of companies.
A budget is set on assumptions and predictions as there is scope to change. 4.14 Provide management with the opportunity to define the benefits and disadvantages of new budgetary approaches and record your finding in the space allocated in the report (appendix 4). Discuss in your response:
How can you define new approaches for the benefit of your colleagues? What information should you provide your colleagues with? Why it is important to define the benefits of any new approaches to budgetary management before communicating them to your teams? Outline two (2) reasons by defining the benefit of new approaches to budget management are vital 4.15 Consider the impacts on customer service levels and colleagues in developing innovative approaches. In doing this determine how innovative approaches to managing finances affect the customer experience.
Give at least three 3 examples
4. 16 Present recommendation
Present a clear and logical recommendation for budget and financial management in your establishment based on current financial controls and on research carried out. Describe what information you will use and how you will present it. To persuasively make a case for a particular approach or strategy provide in your conclusion unmistakable evidence wherever possible to suggest why it will work should it be considered. You can include evidence such as but not limited to:
Evidence of clear failures or weaknesses
An outline as to why change needs to happen with a focus on current strategies (attachment 20) and approaches which have proven to be inadequate
A focus on financial data (contained in financial data attachment 10, 10A,10B appendix 1, 2 and 3) which may show:
Poor estimation of costs and income
Examples of overspending
Examples of significant variances and deviations
Examples of wastage
Examples of poor funding allocation
Examples of objectives and goals that have not been met because of poor control of finances
Evidence of the benefits associated with proposed changes
Evidence that strategies and approaches are fit for adoption
Back up evidence why proposed changes will work in the establishment
Expert views as to why recommendation will work
Evidence that innovative approaches will benefit both customers and employees
Include in your response
Strategic vs. Tactical Financial Management
Importance of Financial Management for the three pillars of sound fiscal governance
Objectives of Financial Management
Scope of Financial Management including:
Planning
Budgeting
Managing and accessing risk that outlines market risk, credit risk, liquidity risk: and Operational risk.
Procedures
Functions of Financial Management
Managing cash flow functions
Cash management and finance management functions
Managing financial controls functions
Provide responses to your findings regarding the above in the financial report appendix 4 ensuring you prepare and present clear and concise information to enable informed decision making by your management team. To do this
Choose your words deliberately, constructing your sentences carefully, and using grammar properly.
By writing clearly and concisely, you will get straight to your point in a way your audience can easily comprehend.
Present a clear and logical recommendation for budget and financial management in your establishment based on current financial controls and on research carried out. Describe what information you will use and how you will present it. To persuasively make a case for a particular approach or strategy provide in your conclusion unmistakable evidence wherever possible to suggest why it will work should it be considered.
Strategic vs. Tactical Financial Management Importance of Financial Management Objectives of Financial Management Scope of Financial Management
Planning Budgeting Managing and accessing risk Market risk Credit risk Liquidity risk Operational risk Procedures Present a clear and logical recommendation for budget and financial management in your establishment based on current financial controls and on research carried out.
Describe what information you will need to use and how you will present it.
To make a case for a particular approach or strategy provide in your conclusion evidence wherever possible to suggest why it will work
Functions of Financial Management Managing cash flow functions Cash management and finance management functions Managing financial controls functions Task E Fiscal Management Analysis Email - EMAIL S NS
In this task you are required to email the CEO and relevant management team of the budget status in relation to the budget.
In your email ensure you have
Attached Appendix 4 (Attachment can be mentioned only)
Address email to
Senior management including your CEO and keep them updated as much as possible
Heads of department (supervisors) given they have control over income and expenditure, so it is vital they are updated on the status
Start with a meaningful subject line by keeping it brief, but before you write the subject line think about your intentions. The subject line should summarize why you are contacting them.
Use correct budget and financial terminology
Address the email appropriately. Everyday language such as Hey may be OK to send to a colleague or friend, but it is not the best choice for professional inquiries. On the other hand, Dear is too formal. A simple Hi or Hello is more appropriate.
Keep the email concise and to the point, so there is no confusion as to what you need to be completed and by when
Make it easy to read by adding indentations or spaces between paragraphs for light reading and skimming. In addition, keep your most valuable information at the beginning of each paragraph so that they can recognize your most important points.
Dont use slang or emojis. Do not use slang, as professional emails require a particular formal language level. In addition, pick a simple typeface and dont add too many colours, if any at all.
Be kind and thankful
Remember to be kind and friendly as they do you a big favour as they are typically terribly busy and taking time out of their day to talk
Re-read the email. Minor grammatical errors can make or break a professionals opinion of you. Even when you write quick and short emails, it can easily include mistakes.
Use an appropriate signature, i.e. Two appropriate closers are Best regards and Thank you. Dont forget to add your name after choosing a closer.
Email to CEO
From To Cc Subject
