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Microsoft Word - BSBFIM601 Task 1 V1.0 CCMT‐BSBFIM601 Task 1‐V1.0 Bhairav Baba Pty Ltd T/A Canberra College of Management & Technology | ABN: 79 639 129 454 |CRICOS: 03880E | RTO Code: 45648 L2, 15 Barry Drive, Turner, ACT 2612 | E‐mail:
[email protected] | Website: www.ccmtcollege.edu.au | Phone: 02 9188 1733 1 of 8 BSBFIM601 Manage finances Assessment 1 ‐ Part A: Short Answer Questions Instruction You are required to answer all of the following questions. You need to answer all of the written questions correctly. Generally, you are expected to write a response one or two paragraphs long. Please answer the questions using word processing software. Assessment criteria All questions must be answered correctly in order for you to be assessed as having completed the task satisfactorily. 1. Identify and describe financial probity requirements for businesses. 2. Identify four examples of what would be consider fraudulent behaviour in regard to company finances. 3. Identify the requirements for audited accounts and the purpose of an audit report. 4. Describe the principle of cash accounting as well as one advantage and one disadvantage of cash accounting. 5. Describe the principle of accrual accounting and one advantage and one disadvantage of accrual accounting. 6. Explain the four main taxation and superannuation obligations for a business. Briefly discuss each obligation. 7. Identify the Act that details requirements for financial reporting and auditing and, explain the requirements for companies for preparing and lodging financial reports under this Act. 8. Explain the requirements for registered foreign companies regarding preparing and lodging financial reports. 9. Identify the current company tax rate for both smaller and larger businesses. 10. Explain the process by which a business reports GST to the Australian Tax Office. 11. Identify the penalty rate to be applied if a supplier does not provide an ABN? 12. A non‐profit organisation needs to register for GST after it has a turnover of more than how much? 13. Explain the difference in Pay As You Go withholding obligations for employees and contractors. CCMT‐BSBFIM601 Task 1‐V1.0 Bhairav Baba Pty Ltd T/A Canberra College of Management & Technology | ABN: 79 639 129 454 |CRICOS: 03880E | RTO Code: 45648 L2, 15 Barry Drive, Turner, ACT 2612 | E‐mail:
[email protected] | Website: www.ccmtcollege.edu.au | Phone: 02 9188 1733 2 of 8 Assessment 1 ‐ Part B: Project Instruction For this assessment task the student is required, in the role of the General Manager for Grow Management Consultants, to review existing financial information and prepare budgets for the following financial year based on your review. This task will also require you to review existing financial software to ensure that it is meeting the company’s needs. You are then required to meet with the management team (your assessor) to discuss the budgets you have prepared for the upcoming financial year, as well as to confirm reporting requirements and financial delegations as documented in the financial management policy and procedure. You are also required to research and report on a guide for managers about the business’s financial compliance requirements, as well as tax liabilities. Assessment Resources Profit and Loss 2017/18 Strategic Business Plan Cash Flow Statement Data 2017/18 Estimated Costs and Income Finance Report Template Finance Policy and Procedures Budget Forecast Template Assessment criteria Students must complete all of the activities listed and submit: financial report budget forecasts financial compliance and tax liabilities report Signed Observation Checklist Carefully read the following: Grow Management Consultants specialises in leadership consultancy. It has been operational for five years. The company offers a range of services to assist companies to assess leadership behaviour of existing managers and performance metrics. They also design and implement customized leadership programs based on the assessment. Services are offered Australia‐wide. The company employs a General Manager (you), 2 Principal Consultants (who are also Directors), 1 Senior Consultant, an Administration Officer and Receptionist. Over the last two years, the company has diversified, and now offers regular professional development workshops on all aspects of leading and managing staff. These workshops are conducted approximately every 3 months in all major cities including Sydney, Brisbane and Melbourne. In 2017 – 2018, the company ran a total of 36 workshops. The company has also recently produced an E‐book about leadership techniques. The intention is to replace the workshops with the annual conference in the next financial year, as the workshops were not well attended. Client feedback and continued business indicates a personalized, company focused approach in the form of consulting services is the service of choice. The E‐book has had reasonable sales, but there needs to be a wider selection of books, as well as more marketing. The plan is to generate $10,000 worth of sales for the e‐books during the next financial year CCMT‐BSBFIM601 Task 1‐V1.0 Bhairav Baba Pty Ltd T/A Canberra College of Management & Technology | ABN: 79 639 129 454 |CRICOS: 03880E | RTO Code: 45648 L2, 15 Barry Drive, Turner, ACT 2612 | E‐mail:
[email protected] | Website: www.ccmtcollege.edu.au | Phone: 02 9188 1733 3 of 8 and increasing over time. As the General Manager for the company and with responsibility for finances, you are currently completing the financial planning for the year ahead. This involves a review of the company’s business plan, previous year’s profit and loss statement, the current business plan and strategic directions and cash flow statement data. Based on the review, you will be establishing budgets and allocating funds. In developing the budget, you are to assume a 5% increase in cost of sales, as well as a 10% increase in sales for consulting services and executive search. As set out in the business plan, the company plans to run an annual conference each year starting in 2019. The costs for the conference have been estimated by the Principal Consultant and are set out in the Estimated Costs and Income document. Conference attendance is aimed at 100 people paying $750 each. The Principal Consultant has also asked you to review the current accounting software used by business. The company is currently using MYOB but as it has grown, the Principal Consultant wishes to review whether this is the best accounting software available for their needs. He has also requested that the software have a cloud feature. Complete the following activities: 1. Review the case study scenario above, as well as the information provided in Profit and Loss 2017/18 and Cash Flow Statement Data 2017/18. Using this information, identify areas of the business that have generated a profit and those that have generated a loss. Conduct research to establish why those areas have made a profit or loss. Your research should include a review of the financial data provided to you and economic conditions and business trends that may have resulted in the profit or loss. Complete the Financial Report Template. Your report should include the following: Overview of the purpose of the report. Analysis of the previous year’s (2017 – 2018) profit and loss statement for Grow Management Consultant, including revenue generated, cost of sales, as well as gross profit/loss margin and net profit/loss margin. Analysis of overall business performance, as well as performance of each of the income streams for 2017 – 2018. Outline of reasons for profit or loss based on your analysis of the data and research on economic conditions and business trends. Analysis of the organisation’s goals and priorities for the upcoming financial year as documented in the Strategic Business Plan and financial resources required to achieve these goals, as well as key dates. An analysis of cash flow trends as per the cash flow statement data. Review and analysis of at least three other financial software products that the business could use, including the advantages and disadvantages of each, as well as the advantages and disadvantages of MYOB that is currently used. CCMT‐BSBFIM601 Task 1‐V1.0 Bhairav Baba Pty Ltd T/A Canberra College of Management & Technology | ABN: 79 639 129 454 |CRICOS: 03880E | RTO Code: 45648 L2, 15 Barry Drive, Turner, ACT 2612 | E‐mail:
[email protected] | Website: www.ccmtcollege.edu.au | Phone: 02 9188 1733 4 of 8 2. Develop budget forecasts, ensuring that the analysis of the previous year’s data and future plans as indicated in the business plan is taken into account in determining projected income and expenditure. You must use the Budget Forecast Template. Ensure that your budget includes the estimated income and costs for the conference and e‐book to be implemented in 2019 in the document Costs and Income. Assume a 5% increase in all general costs, as well as a 10% increase in income for consulting and executive recruitment service. Input costs and income for the conference and e‐book as set out in the Costs and Income data. 3. You are required to write a report on the company’s key financial compliance requirements and its current tax liabilities. To ensure that the company’s financial risks in relation to the misappropriation of funds and recording of transactions are managed adequately, you are required to outline reporting requirements and financial delegations as outlined in the company’s Finance Policy and Procedures. Research and report on the business’ key financial compliance requirements and liabilities for tax. The report should explain: GST reporting requirements (the company is required to report quarterly) PAYG withholding obligations PAYG income tax instalment Payroll tax obligations (state government) Superannuation entitlements and requirement to comply with legislation regarding frequency of payment, choice of fund and reporting to staff. Your Financial compliance and tax liabilities report should be between one and two pages long. 4. The Principal Consultant has approved your budget for the upcoming financial year, 2018 – 2019. You are now required to meet with the Senior Managers (your assessor) to communicate the budgets you have developed. At the meeting, you will need to: Discuss the budget you have developed and the rationale for the budget figures. Discuss the amounts allocated to activity, including the conference and the e‐book. Explain that there will be no more workshops conducted. Provide an outline of the financial policy and procedure. to ensure that roles and responsibilities are understood and risks of misappropriation of funds/incorrect recording of financial transactions is minimised. Explain the company’s key financial compliance requirements and tax liabilities. 5. Conduct the meeting as set out in the requirements above, making sure that you provide the team (your assessor) with all the required documentation. Microsoft Word - BSBFIM601 Task 2 V1.0 CCMT‐BSBFIM601 Task 2 ‐V1.0 Bhairav Baba Pty Ltd T/A Canberra College of Management & Technology | ABN: 79 639 129 454 |CRICOS: 03880E | RTO Code: 45648 L2, 15 Barry Drive, Turner, ACT 2612 | E‐mail:
[email protected] | Website: www.ccmtcollege.edu.au | Phone: 02 9188 1733 1 of 4 BSBFIM601 Manage finances Assessment 2 ‐ Project Instruction This assessment task requires the student to review Grow Management Consultants’ Profit and Loss and Cash Flow Statement Data for 2018–19 and write a financial performance report on this. Also you are required to review and evaluate financial management processes in relation to debtor management and to ensure Grow Management’s financial due diligence. Assessment Resources • Profit and Loss 2017/18 • Profit and Loss 2018/19 • Cash Flow Statement Data 2017/18 • Cash Flow Statement Data 2018/19 • Financial Performance Report Template • Estimated Costs and Income Assessment criteria Students must complete all of the activities listed and submit: • Financial performance report • Debtor management report Complete the following activities: It is now 1 year later, and you are required to review the profit and loss account for 2018 – 2019, as well as the Cash Flow Statement Data. The Principal Consultant has asked you to review the conference costs, as the conference will not be repeated if it continues to lose money. Revisions need to be made to the conference budget and the conference fee increased to make it profitable. The review will be submitted to the company’s management as a bid to host the conference again. To ensure that the revised conference budget is accepted with confidence by management, you are required to state the source of the figures that you use. This will make it easier for them to be checked and verified. The Principal Consultant would like you to propose a cost‐covering conference fee given a 10% increase in all the recorded costs for the conference as shown in the profit and loss statement 2018‐ 2019 (and that match the conference costs for the document you reviewed in Assessment Task 1) and assuming 70 people will attend the 2020 conference. The Principal Consultant would like a 20% return on the conference costs. 1. Analyse the information provided in the following files: Profit and Loss 2017/18 Profit and Loss 2018/19 Cash Flow Statement Data 2017/18 CCMT‐BSBFIM601 Task 2 ‐V1.0 Bhairav Baba Pty Ltd T/A Canberra College of Management & Technology | ABN: 79 639 129 454 |CRICOS: 03880E | RTO Code: 45648 L2, 15 Barry Drive, Turner, ACT 2612 | E‐mail:
[email protected] | Website: www.ccmtcollege.edu.au | Phone: 02 9188 1733 2 of 4 Cash Flow Statement Data 2018/19 Based on your analysis, Use the Financial Performance Report Template for the Principal Consultant that includes: Review of overall performance and gross/net profit margins. Calculation of variation in actual versus budgeted amounts for each income source. Calculation of variation in actual versus budgeted costs. Identify the discrepancies between agreed budget allocations for the conference and the actual figures Recommended revisions to the 2020 conference budget to deal with contingencies. Proposed conference fee for 2019 conference assuming attendance of 70 people and to make a profit of at least 20%. Show your calculations. 2. Review the Aged Debtor Report, noting that the company’s usual terms are payment 10 days from invoice. Using the Internet, research best practice debtor management and make notes on your findings. Your report should be approximately 1 page. Provide a report for your CEO based on your analysis that includes: A summary: an interpretation of the information in the aged debtor report. Good practice debtor management Develop at least 5 recommendations that could be adopted by the company in response to your analysis. This will also be based on the debtor management research you conducted.