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.

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

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

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

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.