Assessment Requirements for BSBSMB406 Manage small business finances

Release: 2

Assessment Requirements for BSBSMB406 Manage small business finances

Modification History

Release	Comments
Release 2	This version released with BSB Business Services Training Package Version 2.0. Version created to clarify intent of unit
Release 1	This version first released with BSB Business Services Training Package Version 1.0.

Performance Evidence

Evidence of the ability to:

operate the business according to the business plan, including:

adhering to legal requirements

meeting requirements of financial backers

defining strategies for debt collection and contingencies for debtors

managing cash flow

defining key performance indicators

communicating with relevant people

monitor the business against financial plan and make changes as required.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

discuss benchmarking

explain financial decision-making relevant to the business

summarise significant financial indicators

outline purposes of financial reports

clarify preparation and interpretation of budget/actual reports

identify principles for preparing balance sheets and their interpretation

outline debt collection procedures or strategies

characterise principles for preparing profit and loss statements and their interpretation

discuss stock records and stock control relevant to the business.

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the Management and Leadership – Small and Micro Business field of work and include access to:

business equipment and resources

relevant legislation, regulations, standards and codes

relevant workplace documentation and resources

case studies or where possible, real situations

interaction with others.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.

Links

Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10