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Unit of competency details

BSBSMB406 - Manage small business finances (Release 2)

Summary

Usage recommendation:
Superseded
Mapping:
MappingNotesDate
Supersedes and is equivalent to BSBSMB406A - Manage small business financesUpdated to meet Standards for Training Packages 24/Mar/2015
Is superseded by and equivalent to BSBSMB421 - Manage small business finances 26/Sep/2018

Releases:
ReleaseRelease date
2 (this release) 14/Jan/2016
(View details for release 1) 25/Mar/2015


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
SIR - Retail Services Training PackageRetail Services Training Package 1.0-3.0 
FBP - Food, Beverage and PharmaceuticalFood, Beverage and Pharmaceutical 1.0-5.2 
CPC08 - Construction, Plumbing and Services Training PackageConstruction, Plumbing and Services Training Package 9.3-9.8 
MSF - Furnishing Training PackageFurnishing Training Package 2.0-3.1 
CPP07 - Property Services Training PackageProperty Services Training Package 14.4-14.7 
FWP - Forest and Wood Products Training PackageForest and Wood Products Training Package 2.0-3.0 
AHC - Agriculture, Horticulture and Conservation and Land Management Training PackageAgriculture, Horticulture and Conservation and Land Management Training Package 1.0-6.2 
RGR - Racing and Breeding Training PackageRacing and Breeding Training Package 2.0 
CUA - Creative Arts and Culture Training PackageCreative Arts and Culture Training Package 2.0-4.1 
BSB - Business Services Training PackageBusiness Services Training Package 2.0 
AUR - Automotive Retail, Service and Repair Training PackageAutomotive Retail, Service and Repair Training Package 3.0-6.1 

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 columnRelease
SFL40115 - Certificate IV in FloristryCertificate IV in Floristry
HLT52615 - Diploma of Ayurvedic Lifestyle ConsultationDiploma of Ayurvedic Lifestyle Consultation1-3 
BSB42615 - Certificate IV in New Small BusinessCertificate IV in New Small Business
CPC31011 - Certificate III in Solid PlasteringCertificate III in Solid Plastering
AHC40416 - Certificate IV in HorticultureCertificate IV in Horticulture1-2 
CPC31411 - Certificate III in Construction WaterproofingCertificate III in Construction Waterproofing
CPC30911 - Certificate III in ScaffoldingCertificate III in Scaffolding3-4 
CUA40615 - Certificate IV in Aboriginal and Torres Strait Islander Cultural ArtsCertificate IV in Aboriginal and Torres Strait Islander Cultural Arts1-2 
CPC31611 - Certificate III in PavingCertificate III in Paving
AHC40516 - Certificate IV in Parks and GardensCertificate IV in Parks and Gardens1-2 
AHC40716 - Certificate IV in Retail NurseryCertificate IV in Retail Nursery1-2 
CPC31111 - Certificate III in SteelfixingCertificate III in Steelfixing
AHC41116 - Certificate IV in IrrigationCertificate IV in Irrigation
CUA60715 - Advanced Diploma of Visual ArtsAdvanced Diploma of Visual Arts1-2 
CPC30116 - Certificate III in ShopfittingCertificate III in Shopfitting
SIF40113 - Certificate IV in Funeral ServicesCertificate IV in Funeral Services2-3 
CPC40912 - Certificate IV in Plumbing and ServicesCertificate IV in Plumbing and Services
CPC31511 - Certificate III in Formwork/FalseworkCertificate III in Formwork/Falsework
CPC32313 - Certificate III in Stonemasonry (Monumental/Installation)Certificate III in Stonemasonry (Monumental/Installation)
CPP40407 - Certificate IV in Property Services (Stock and Station Agency)Certificate IV in Property Services (Stock and Station Agency)
CPC30812 - Certificate III in Roof TilingCertificate III in Roof Tiling
FWP40216 - Certificate IV in Timber ProcessingCertificate IV in Timber Processing
HLT52015 - Diploma of Remedial MassageDiploma of Remedial Massage1-3 
CPC32011 - Certificate III in Carpentry and JoineryCertificate III in Carpentry and Joinery
SHB50216 - Diploma of Salon ManagementDiploma of Salon Management
HLT42015 - Certificate IV in Massage TherapyCertificate IV in Massage Therapy1-3 
BSB42515 - Certificate IV in Small Business ManagementCertificate IV in Small Business Management
SHB30215 - Certificate III in Make-UpCertificate III in Make-Up
SIS40215 - Certificate IV in FitnessCertificate IV in Fitness
CPC32211 - Certificate III in Joinery (Stairs)Certificate III in Joinery (Stairs)
MSF30813 - Certificate III in Flooring TechnologyCertificate III in Flooring Technology4-5 
HLT52515 - Diploma of ReflexologyDiploma of Reflexology1-3 
CHC41015 - Certificate IV in CelebrancyCertificate IV in Celebrancy
CPC30211 - Certificate III in CarpentryCertificate III in Carpentry
CPC31211 - Certificate III in Wall and Ceiling LiningCertificate III in Wall and Ceiling Lining
HLT52215 - Diploma of Shiatsu and Oriental TherapiesDiploma of Shiatsu and Oriental Therapies1-3 
CPP40307 - Certificate IV in Property Services (Real Estate)Certificate IV in Property Services (Real Estate)2-3 
FBP30117 - Certificate III in Food ProcessingCertificate III in Food Processing
HLT52415 - Diploma of KinesiologyDiploma of Kinesiology1-3 
HLT52315 - Diploma of Clinical AromatherapyDiploma of Clinical Aromatherapy1-3 
CPP40611 - Certificate IV in Property Services (Operations)Certificate IV in Property Services (Operations)
AHC41616 - Certificate IV in Organic FarmingCertificate IV in Organic Farming1-2 
BSB40415 - Certificate IV in Small Business ManagementCertificate IV in Small Business Management
MSF50113 - Diploma of Stained Glass and LeadlightingDiploma of Stained Glass and Leadlighting
SHB50115 - Diploma of Beauty TherapyDiploma of Beauty Therapy
SIR40316 - Certificate IV in Retail ManagementCertificate IV in Retail Management1-2 
CPC30711 - Certificate III in RiggingCertificate III in Rigging3-4 
RGR40118 - Certificate IV in Racing (Racehorse Trainer)Certificate IV in Racing (Racehorse Trainer)
HLT62615 - Advanced Diploma of AyurvedaAdvanced Diploma of Ayurveda1-3 
CUA51215 - Diploma of CeramicsDiploma of Ceramics1-2 
CPC30511 - Certificate III in DoggingCertificate III in Dogging3-4 
FBP30217 - Certificate III in Plant BakingCertificate III in Plant Baking1-2 
AHC41016 - Certificate IV in AgribusinessCertificate IV in Agribusiness1-3 
SFL50115 - Diploma of Floristry DesignDiploma of Floristry Design
CPC31912 - Certificate III in JoineryCertificate III in Joinery
CPP40507 - Certificate IV in Property Services (Business Broking)Certificate IV in Property Services (Business Broking)
CPC30611 - Certificate III in Painting and DecoratingCertificate III in Painting and Decorating
SHB30315 - Certificate III in Nail TechnologyCertificate III in Nail Technology
CUA51115 - Diploma of Visual ArtsDiploma of Visual Arts1-3 
FBP30617 - Certificate III in Food Processing (Sales)Certificate III in Food Processing (Sales)
CPP40811 - Certificate IV in Access ConsultingCertificate IV in Access Consulting
AHC40116 - Certificate IV in AgricultureCertificate IV in Agriculture1-3 
CPC30111 - Certificate III in Bricklaying/BlocklayingCertificate III in Bricklaying/Blocklaying
CPC31311 - Certificate III in Wall and Floor TilingCertificate III in Wall and Floor Tiling
RGR50118 - Diploma of Racing (Racehorse Trainer)Diploma of Racing (Racehorse Trainer)
HLT52115 - Diploma of Traditional Chinese Medicine (TCM) Remedial MassageDiploma of Traditional Chinese Medicine (TCM) Remedial Massage1-3 
AUR40116 - Certificate IV in Automotive ManagementCertificate IV in Automotive Management
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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.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.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10