Unit of competency details

BSBFIM601A - Manage finances (Release 1)

Summary

Releases:
ReleaseStatusRelease date
1 1 (this release)Current 18/Apr/2008

Usage recommendation:
Superseded
Mapping:
MappingNotesDate
Is superseded by and equivalent to BSBFIM601 - Manage financesUpdated to meet Standards for Training Packages 24/Mar/2015

Training packages that include this unit

CodeTitleSort Table listing Training packages that include this unit by the Title columnRelease
SIT12 - Tourism, Travel and Hospitality Training PackageTourism, Travel and Hospitality Training Package 1.0-2.0 
SIS10 - Sport, Fitness and Recreation Training PackageSport, Fitness and Recreation Training Package 2.0-3.1 
MTM11 - Australian Meat Industry Training PackageAustralian Meat Industry Training Package 1.0-4.0 
CUV11 - Visual Arts, Crafts and Design Training PackageVisual Arts, Crafts and Design Training Package 1.0 
CUV03 - Visual Arts, Craft and Design Training PackageVisual Arts, Craft and Design Training Package 3.0 
CUS09 - MusicMusic 1.1-1.2 
CUF07 - Screen and Media Training PackageScreen and Media Training Package 1.2 
CUA - Creative Arts and Culture Training PackageCreative Arts and Culture Training Package 1.0 
BSB07 - Business Services Training PackageBusiness Services Training Package 5.0-9.0 

Qualifications that include this unit

CodeTitleSort Table listing Qualifications that include this unit by the Title columnRelease
SIT60313 - Advanced Diploma of HospitalityAdvanced Diploma of Hospitality 
SIT60312 - Advanced Diploma of HospitalityAdvanced Diploma of Hospitality 1-3 
SIT60212 - Advanced Diploma of EventsAdvanced Diploma of Events 1-3 
SIT60112 - Advanced Diploma of Travel and TourismAdvanced Diploma of Travel and Tourism 1-3 
SIS50712 - Diploma of Sport and Recreation ManagementDiploma of Sport and Recreation Management 1-2 
MTM60111 - Advanced Diploma of Meat ProcessingAdvanced Diploma of Meat Processing 1-2 
CUV60311 - Advanced Diploma of Creative Product DevelopmentAdvanced Diploma of Creative Product Development 
CUV60307 - Advanced Diploma of Creative Product DevelopmentAdvanced Diploma of Creative Product Development 
CUS60309 - Advanced Diploma of Music BusinessAdvanced Diploma of Music Business 1-2 
CUS60209 - Advanced Diploma of Sound ProductionAdvanced Diploma of Sound Production 1-2 
Items per page 10 | 20 | 50 | 100
Displaying items 1 - 10 of 18

Classifications

SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 081199 Banking, Finance And Related Fields, N.e.c.  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 081199 Banking, Finance And Related Fields, N.e.c.  25/Jul/2008 
The content being displayed has been produced by a third party, while all attempts have been made to make this content as accessible as possible it cannot be guaranteed. If you are encountering issues following the content on this page please consider downloading the content in its original form

Modification History

Not applicable.

Unit Descriptor

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to undertake budgeting, financial forecasting and reporting requirements, and to allocate and manage resources to achieve the required outputs for the business unit. It includes contributing to financial bids and estimates, allocating funds, managing budgets and reporting on financial activity.

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

Application of the Unit

Application of the unit 

This unit applies to people who have managerial responsibilities which include overseeing the management of financial and other resources across a business unit, a series of business units or teams, or an organisation.

It covers all areas of broad financial management. In a larger organisation this work would be supported by specialists in financial management.

Licensing/Regulatory Information

Not applicable.

Pre-Requisites

Prerequisite units 

Employability Skills Information

Employability skills 

This unit contains employability skills.

Elements and Performance Criteria Pre-Content

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

Elements and Performance Criteria

ELEMENT 

PERFORMANCE CRITERIA 

1. Plan for financial management

1.1. Review and analyse previous financial data  to establish areas which have generated a profit or loss

1.2. Undertake research to review reasons for previous profit and loss

1.3. Review business plan to establish critical dates and initiatives that will require or generate resources in next financial cycle

1.4. Analyse cash flow trends

1.5. Review statutory requirements for compliance and liabilities for tax

1.6. Review existing software and its suitability for financial management

2. Establish budgets and allocate funds

2.1. Use previous financial data to determine allocations for resources

2.2. Make informed estimates of new items for inclusion in budget

2.3. Prepare budgets in accordance with organisational requirements  and statutory requirements 

3. Implement budgets

3.1. Circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations

3.2. Manage risks by checking there are no opportunities for misappropriation of funds and that systems are in place to properly record all financial transactions

3.3. Review profit and loss statements, cash flows and ageing summaries

3.4. Revise budgets, as required, to deal with contingencies

3.5. Maintain audit trails to ensure accurate tracking and to identify discrepancies  between agreed and actual allocations

3.6. Ensure compliance with due diligence

4. Report on finances

4.1. Ensure structure and format  of reports are clear and conform to organisational and statutory requirements

4.2. Identify and prioritise significant issues  in statements, including comparative financial performances for review and decision making

4.3. Prepare recommendations  to ensure financial viability of the organisation

4.4. Evaluate the effectiveness of financial management processes

Required Skills and Knowledge

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the skills and knowledge required for this unit.

Required skills 

  • communication skills to explain budgets and reporting requirements, and to deal with questions
  • mathematical skills to read and interpret budgets
  • technology skills to work with financial software.

Required knowledge 

  • financial probity
  • principles of accounting and financial systems
  • relevant Australian, international and local legislation and conventions, such as:
  • bilateral or regional trade agreements
  • International Commercial Terms (INCOTERMS)
  • Trade Practices Act
  • Warsaw Convention
  • World Trade Organization determinations
  • requirements of the Australian Tax Office, including Goods and Services Tax, Company Tax, PAYG.

Evidence Guide

EVIDENCE GUIDE 

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment 

Critical aspects for assessment and evidence required to demonstrate competency in this unit 

Evidence of the following is essential:

  • preparation of budgets which align with the business plan, use previous financial data and meet all compliance requirements
  • analysis of the effectiveness of existing financial management approaches
  • knowledge of the requirements of the Australian Tax Office.

Context of and specific resources for assessment 

Assessment must ensure:

  • access to appropriate documentation and resources normally used in the workplace.

Method of assessment 

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

  • assessment of written reports on financial systems and financial management
  • direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
  • review of budgets prepared
  • oral or written questioning to assess knowledge of legislative requirements or the tax system
  • evaluation of documentation reviewing profit and loss statements, cash flows and ageing summaries
  • analysis of maintenance of audit trails
  • review of recommendations prepared to ensure the financial viability of the organisation.

Guidance information for assessment 

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

  • other units from the BSB60407 Advanced Diploma of Management.

Range Statement

RANGE STATEMENT 

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Financial data  may include:

  • budgets, forecasts and variations
  • cash flow/profit reports
  • financial/operational statements and reports (e.g. expenditures and receipts, profit and loss statements)
  • market valuations

Organisational requirements  may include:

  • financial analysis assessments
  • financial management manuals
  • legal and organisational policies, guidelines and requirements
  • occupational health and safety policies, procedures and programs
  • price and exchange parameters
  • quality assurance and/or procedures manuals
  • recording and filing systems
  • reporting requirements
  • standard financial analysis techniques

Statutory requirements  may include:

  • delegated authorities
  • internal control procedures
  • limits on volumes and types of financial transactions
  • reporting of duty, excise and other overseas government charges
  • reporting periods
  • taxation and payment timings

Discrepancies  may include:

  • absence of auditable trail
  • expenditure report mismatches
  • inappropriate authorisations
  • incorrect payments
  • incorrect report formats
  • unreconciled cash flows and operating statements
  • variances from budget and phasings

Format  may include:

  • audits
  • balance sheets
  • cash flow statements
  • electronic forms
  • financial year reports
  • operating statements
  • spreadsheets
  • statutory forms

Issues  may include:

  • cost structures
  • internal controls
  • losses and returns
  • profitability
  • statutory obligations
  • suppliers and markets

Recommendations  may refer to:

  • 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

Unit Sector(s)

Unit sector 

Competency field

Competency field 

Finance - Financial Management

Co-requisite units

Co-requisite units 

Training component details
The following details are displayed for each different NRT:-

Training packages

- Training package details
- Training package components

Qualifications

- Qualification details
- Qualification components

Accredited courses

- Accredited course details

Modules

- Module details

Units of competency

- Units of competency details
- Unit components

Skill sets

- Skill set details
- Skill set components

Click on the Export link to export the NRT information to MS Word or PDF.

Click on the Manage notification link to create or change a notification for this NRT.

When selecting the Display history check box a set of tables will appear displaying a log of historical values describing what has changed and when over time.

If you have access to make changes to an NRT, click on the Edit link on the upper right hand side of the summary box.