Unit of competency details

BSBSMB406 - Manage small business finances (Release 2)

Summary

Releases:
ReleaseStatusRelease date
2 (this release)Current 14/Jan/2016
(View details for release 1) Replaced25/Mar/2015

Usage recommendation:
Current
Mapping:
MappingNotesDate
Supersedes and is equivalent to BSBSMB406A - Manage small business 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
SIR - Retail Services Training PackageRetail Services Training Package 1.0-3.0 
MSF - Furnishing Training PackageFurnishing Training Package 2.0-3.1 
FWP - Forest and Wood Products Training PackageForest and Wood Products Training Package 2.0 
CUA - Creative Arts and Culture Training PackageCreative Arts and Culture Training Package 2.0-3.0 
CPP07 - Property Services Training PackageProperty Services Training Package 14.4-14.5 
CPC08 - Construction, Plumbing and Services Training PackageConstruction, Plumbing and Services Training Package 9.3-9.4 
BSB - Business Services Training PackageBusiness Services Training Package 2.0 
AUR - Automotive Retail, Service and Repair Training PackageAutomotive Retail, Service and Repair Training Package 3.0 
AHC - Agriculture, Horticulture and Conservation and Land Management Training PackageAgriculture, Horticulture and Conservation and Land Management Training Package 1.0-1.1 

Qualifications that include this unit

CodeTitleSort Table listing Qualifications that include this unit by the Title columnRelease
SIS40215 - Certificate IV in FitnessCertificate IV in Fitness 
SIR40316 - Certificate IV in Retail ManagementCertificate IV in Retail Management 1-2 
SIF40113 - Certificate IV in Funeral ServicesCertificate IV in Funeral Services 
SHB50216 - Diploma of Salon ManagementDiploma of Salon Management 
SHB50115 - Diploma of Beauty TherapyDiploma of Beauty Therapy 
SHB30315 - Certificate III in Nail TechnologyCertificate III in Nail Technology 
SHB30215 - Certificate III in Make-UpCertificate III in Make-Up 
SFL50115 - Diploma of Floristry DesignDiploma of Floristry Design 
SFL40115 - Certificate IV in FloristryCertificate IV in Floristry 
MSF50113 - Diploma of Stained Glass and LeadlightingDiploma of Stained Glass and Leadlighting 
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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  30/Jul/2015 
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Unit Of competency

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.

Application

This unit describes the skills and knowledge required to implement and review financial management strategies on a regular basis.

It applies to individuals who operate a small business that stands alone, or is part of a department within a larger organisation. Individuals in this role interpret financial reports and other numerical data to develop financial management strategies.

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

Unit Sector

Management and Leadership – Small and Micro 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 plan

1.1 Identify financial information requirements and obtain specialist services, as required, to profitably operate the business in accordance with the business plan

1.2 Produce financial budgets or projections, including cash flow estimates, as required for each forward period, and distribute to relevant people in accordance with legal requirements

1.3 Negotiate, secure and manage business capital to best enable implementation of the business plan and to meet requirements of financial backers

1.4 Develop and maintain strategies to enable adequate financial provision for taxation in accordance with legal requirements

1.5 Develop, monitor and maintain client credit policies, including contingencies for debtors in default, to maximise cash flow

1.6 Select key performance indicators to enable ongoing monitoring of financial performance

1.7 Record and communicate financial procedures to relevant people to facilitate implementation of the business plan

2. Monitor financial performance

2.1 Regularly monitor and report on financial performance targets, and analyse data to establish extent to which the financial plan has been met

2.2 Monitor marketing and operational strategies for their effects on the financial plan

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

2.4 Assess financial plan to determine whether variations or alternative plans are needed, and change as required

Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.

Skill 

Performance 

Criteria 

Description 

Reading

1.1-1.4, 2.1, 2.4

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

Writing

1.2-1.5, 1.7, 2.1

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

Oral Communication

1.3, 1.7, 2.1

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

Numeracy

1.1-1.5, 2.1, 2.3, 2.4

  • Interprets numerical information to calculate all relevant financial information

Navigate the world of work

1.2, 1.4

  • Appreciates implications of legal and regulatory responsibilities related to own work

Interact with others

1.7, 2.1

  • Selects appropriate form, channel and mode of communication for a specific purpose relevant to own role

Get the work done

1.1, 1.2, 1.4-1.6, 2.2, 2.4

  • Develops plans to manage relatively complex, non-routine tasks with an awareness of how they may contribute to longer-term operational and strategic goals
  • Makes a range of critical and non-critical decisions in relatively complex situations, taking a range of constraints into account
  • Uses formal and informal processes to monitor implementation of ideas and reflect on outcomes

Unit Mapping Information

Code and title  

current version 

Code and title 

previous version 

Comments 

Equivalence status 

BSBSMB406 Manage small business finances Release 2

BSBSMB406 Manage small business finances Release 1

Updated to clarify intent

Equivalent unit

Links

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

 

Assessment requirements

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.education.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10

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