BSBFIM601: Manage finances Assignment

Activities:

Activity 1A

Objective

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

Activity

Question 1:

• Identify an area of business 
• Explain how you could use different forms of current and present financial data to ascertain whether the department made a profit or a loss. 

Activity 1B

Objective

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

Activity

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

Activity 1C

Objective

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

Activity

1. Identify businesses that would entertain increased demand for goods or services based on critical time periods (seasonal fluctuations)
2. Complete the following individually or in a group (as applicable to the specific activity and the assessment environment):

Using your business plan, identify your business’ critical dates in terms of income and resource use and generation. 

Activity 1D

Objective

To provide you with an opportunity to analyse cash flow trends.

Activity

1. Explain how and why you would analyse your business’ cash flow trends.

2. Box and Co. is a storage company based in New York. You have been hired to analyse their cash flow from the 2019/20 financial year and identify potential explanations for performance and suggest improvements for the future.

Activity 1E

Objective

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

Activity

Your business is conducting analysis of its taxable income for the 2015/16 financial year. The company is classified as a small business entity, with annual turnover below $5 million dollars and 10 full-time employees. 

1. Which taxes apply to this business?
2. What level of company tax is your business required to pay in 2015/16?
3. If the company purchases an asset for $6 million in 2015, and 6 months later sells the asset for $7 million in 2016, what tax will the company be required to pay?
4. Explain why a large credit union is generally considered a more tax effective operating entity than a medium credit union?
5. What elements of Australian Consumer Law (ACL) do we need to be aware of when conducting trading relations between your business and consumers?

Activity 1F

Objective

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

Activity

1. Why should your company seek to implement financial management software?

2. What specific tasks does effective Financial Management software assist in managing?

Activity 2A

Objective

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

Activity

1. Give an example of how you could use previous financial data to determine the allocation of resources, for this scenario, human resources in the hospitality industry.

2. Explain the figures and how you would allocate resources accordingly.

Activity 2B

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 within the budget.

You need to estimate both upfront and ongoing costs.

Activity 2C

Objective

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

Activity

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

Why is it important to maintain both internal and external compliance measures to adhere with organisational requirements and statutory requirements?

Activity 3A

Objective

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

Activity

1. Suppose that you are managing a supermarket. In groups of 3-4, brainstorm the areas and departments in which the supermarket’s budget could be allocated for.

2. 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.

3. In the same groups, conduct a role play by allocating one individual the manager role in charge of communicating information about the annual budget review to other participating individuals representing their respective departments. Display positive verbal and non-verbal cues and handle any potential objections that may arise. This activity is complete once each individual has been provided the opportunity to be manager at least once. Students are assessed based on their deliverance of information and their ability to interpret forthcoming information. These factors should be taken in to consideration.

Activity 3B

Objective

To provide you with an opportunity 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.

Activity

1. Identify five different ways staff could misappropriated company funds and suggest a resolution for each. 
2. Brainstorm common types of fraud which can pose risk to a business.

Activity 3C

Objective

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

Activity

1. How is cash flow calculated? 
2. Do all profitable companies operate with positive cash flow for each reporting period?
3. Explain how organisations would use ageing summaries, in terms of accounts payable and receivable, where applicable.
4. Please consider the information below. Which customers would you identify as high credit risk (default) and eligible for blacklisting, explain your reasoning?

Activity 3D

Objective

To provide you with an opportunity to revise budgets, as required, to deal with contingencies.

Activity

1. Give an example of a contingency that could occur at your workplace and explain how you would revise the budget to deal with it. 
2. How does insurance assist in contingency planning?

Activity 3E

Objective

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

Activity

1. Your business completed a transaction with a stationary retailer for $2000. Upon inspection of the audit trail, it is recognised that the transaction occurred twice, four seconds apart, yet only the regular order was received. As a finance manager, how would you rectify this scenario with the stationary retailer? 
2. What occurrences encountered in the audit trail may identify fraudulent activities?

Activity 3F

Objective

To provide you with an opportunity to ensure compliance with due diligence.

Activity

1. As a manager, compliance is an essential component of maintaining daily operations. In this position, there are three essential components that compliance can be broken down into: budgets, reporting requirements, spending rules.

Activity 4A

Objective

To provide you with an opportunity to ensure structure and format of reports are clear and conform to organisational and statutory requirements.

Activity

1. Your organisation is creating a quarterly report. How will the report be formatted?
2. Input the missing values into the balance sheet.

Activity 4B

Objective

To provide you with an opportunity to identify and prioritise significant issues in statements, including comparative financial performances for review and decision making.

Activity

1. How are significant issues in statements highlighted for priority attention in your workplace?
2. Give three examples of significant issues in your workplace which need to be communicated for review?

Activity 4C

Objective

To provide you with an opportunity to prepare recommendations to ensure financial viability of the organisation.

Activity

1. Explain how you would use each of the following to determine the financial viability of the organisation:

• Cash flow
• Changes in business activity, including markets, goods or services traded
• Consolidation 
• Expenses and overheads
• Labour costs, including decisions to move production to other locations or sites
• Loss
• Profit
• Write-offs.

Activity 4D

Objective

To provide you with an opportunity to evaluate the effectiveness of financial management processes.

Activity

1. Outline here how you would evaluate the effectiveness of your organisation’s financial management processes.