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Unit of competency details

BSBESB407 - Manage finances for new business ventures (Release 1)

Summary

Usage recommendation:
Current
Mapping:
MappingNotesDate
Supersedes and is equivalent to BSBSMB421 - Manage small business finances 18/Oct/2020

Release Status:
Current
Releases:
ReleaseRelease date
1 1 (this release) 19/Oct/2020


Training packages that include this unit

CodeSort Table listing Training packages that include this unit by the Code columnTitleSort Table listing Training packages that include this unit by the Title columnRelease
SFI - Seafood IndustrySeafood Industry 2.0 
CPC - Construction, Plumbing and Services Training PackageConstruction, Plumbing and Services Training Package 5.0-6.4 
FWP - Forest and Wood Products Training PackageForest and Wood Products Training Package 6.0-6.3 
AHC - Agriculture, Horticulture and Conservation and Land Management Training PackageAgriculture, Horticulture and Conservation and Land Management Training Package 6.0-6.2 
CUA - Creative Arts and Culture Training PackageCreative Arts and Culture Training Package 5.0-5.1 
CPP - Property Services Training PackageProperty Services Training Package 11.0-15.0 
SIS - Sport, Fitness and Recreation Training PackageSport, Fitness and Recreation Training Package 5.0 
BSB - Business Services Training PackageBusiness Services Training Package 7.0-7.2 
ACM - Animal Care and Management Training PackageAnimal Care and Management Training Package 4.0-4.1 

Qualifications that include this unit

CodeSort Table listing Qualifications that include this unit by the Code columnTitleSort Table listing Qualifications that include this unit by the Title columnUsage RecommendationSort Table listing Qualifications that include this unit by the Usage Recommendation columnRelease
FWP40216 - Certificate IV in Timber ProcessingCertificate IV in Timber ProcessingCurrent4-5 
CPC31420 - Certificate III in Construction WaterproofingCertificate III in Construction WaterproofingCurrent1-2 
SFI40119 - Certificate IV in AquacultureCertificate IV in AquacultureCurrent
CPC32320 - Certificate III in StonemasonryCertificate III in StonemasonryCurrent1-3 
AHC40620 - Certificate IV in Nursery OperationsCertificate IV in Nursery OperationsCurrent
CPP50221 - Diploma of Spatial Information ServicesDiploma of Spatial Information ServicesCurrent
CPC30120 - Certificate III in ShopfittingCertificate III in ShopfittingCurrent1-3 
CPC40120 - Certificate IV in Building and ConstructionCertificate IV in Building and ConstructionCurrent1-4 
CPC31220 - Certificate III in Wall and Ceiling LiningCertificate III in Wall and Ceiling LiningCurrent1-4 
BSB40320 - Certificate IV in Entrepreneurship and New BusinessCertificate IV in Entrepreneurship and New BusinessCurrent
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Classifications

SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 080301 Business Management  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 080301 Business Management  19/Oct/2020 
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Unit Of competency

Modification History

Release  

Comments  

Release 1

This version first released with BSB Business Services Training Package Version 7.0.

Application

This unit describes the skills and knowledge required to implement and review financial management strategies, including by using new and emerging digital technologies and interpreting financial reports and other numerical data.

The unit applies to those establishing a business providing self-employment, as well as those establishing a new venture as part of a larger organisation.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

Unit Sector

Business Competence – Entrepreneurship and Small Business

Elements and Performance Criteria

ELEMENT 

PERFORMANCE CRITERIA 

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Implement financial strategy

1.1 Identify financial information requirements and obtain specialist services, as required

1.2 Produce financial budgets or projections for each forward period, and distribute to required people according to legal requirements and workplace procedures

1.3 Develop a plan to negotiate and manage business capital to best enable implementation of the business plan

1.4 Develop and maintain strategies and enable adequate financial provision for taxation according to legal requirements

1.5 Develop, monitor and maintain client credit policies to maximise cash flow

1.6 Select key performance indicators (KPIs) to enable ongoing monitoring of financial performance in line with business plan

1.7 Record and communicate financial procedures to required personnel to facilitate implementation of business plan according to workplace procedures

2. Monitor financial performance

2.1 Use available systems to monitor and report on financial performance targets, and analyse data to establish extent to which financial goals have been met

2.2 Monitor marketing and operational strategies for their effects on financial goals

2.3 Calculate and evaluate financial ratios according to own business and/or industry benchmarks

3. Review financial performance

3.1 Assess financial strategy to determine whether variations or alternative plans are needed according to workplace procedures, and change as required

3.2 Research and implement, with relevant personnel, new and emerging digital technologies to boost business profitability according to business plan

Foundation Skills

This section describes those language, literacy, numeracy and employment skills that are essential to performance but not explicit in the performance criteria.

Skill 

Description 

Reading

  • Evaluates complex text to determine legislative, regulatory and workplace documentation

Writing

  • Prepares written reports and workplace documentation that communicate complex information clearly and effectively

Oral communication

  • Articulates clearly using specific and relevant language suitable to audience to convey requirements, and employs listening and questioning techniques to confirm understanding

Numeracy

  • Interprets numerical information to calculate required financial information

Self-management

  • Identifies implications of legal and regulatory responsibilities for own work
  • Selects appropriate form, channel and mode of communication for a specific purpose relevant to own role

Initiative and enterprise

  • Uses formal and informal processes to monitor implementation of ideas and analyse outcomes

Planning and organising

  • Develops plans to manage relatively complex, non-routine tasks that may contribute to longer-term operational and strategic goals

Unit Mapping Information

Supersedes and is equivalent to BSBSMB421 Manage small business finances.

Links

Companion Volume Implementation Guide is found on VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10

 

Assessment requirements

Modification History

Release  

Comments  

Release 1

This version first released with BSB Business Services Training Package Version 7.0.

Performance Evidence

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

  • implement a financial strategy for at least one business or new business venture according to business plan and goals.

In the course of the above, the candidate must:

  • adhere to legal requirements
  • produce financial projections, including cash flow estimates
  • develop a plan to negotiate and manage business assets and financial capital
  • define strategies for debt collection and contingencies for debtors
  • manage cash flow
  • define key indicators for financial performance
  • communicate with required people
  • seek specialist services, where required
  • monitor the financial performance of the business and make changes to strategy as required
  • identify opportunities to implement new and emerging digital technologies to support the financial management of the business.

Knowledge Evidence

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

  • legislative and regulatory financial requirements that apply to new business venture described in performance evidence
  • key purposes of financial reports
  • components of financial budgets or projections, including cash flow estimates
  • workplace procedures for:
  • recording and communicating financial procedures to required personnel
  • distributing financial budgets and projections
  • using digital technologies to monitor and report on financial performance targets and analyse data
  • assessing and changing financial plan
  • forms, channels and modes of communication used in relation to managing business finances
  • key features of business and industry benchmarking used to evaluate financial ratios
  • key features of financial decision-making relevant to the business, including:
  • strategies that enable adequate financial provision for taxation
  • components of client credit policies, including contingencies for debtors in default
  • key features of significant financial indicators
  • key features of balance sheet preparation and interpretation
  • key features of debt collection procedures and strategies
  • key features of profit and loss statement preparation and interpretation
  • key features of stock records and stock control relevant to the business.

Assessment Conditions

Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.

This includes access to:

  • business equipment and resources, including business technology
  • legislation, regulations, codes of practice and standards relating to business described in performance evidence
  • workplace documentation and resources relevant to performance evidence.

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 Guide is found on VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10