Unit of competency
Modification History
Release |
Comments |
Release 2 |
This version first released with BSB Business Services Training Package Version 5.0. Version created to clarify intent of unit |
Release 1 |
This version first released with BSB Business Services Training Package Version 3.0. |
Application
This unit describes the skills and knowledge required to implement and review financial management strategies on a regular basis, including by using new and emerging digital technologies.
It applies to individuals who operate a small business that stands alone, or that 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 strategy |
1.1 Identify financial information requirements and obtain specialist services, as required, to profitably operate the business 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 Develop a plan to negotiate and manage business capital to best enable implementation of the business plan 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 in line with the business plan 1.7 Record and communicate financial procedures to relevant personnel to facilitate implementation of the business plan |
2. Monitor financial performance |
2.1 Use available digital technologies to regularly monitor and report on financial performance targets, and analyse data to establish extent to which the financial goals have been met 2.2 Monitor marketing and operational strategies for their effects on the financial goals 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 2.5 Undertake research regularly to identify opportunities to implement new and emerging technologies to boost business profitability in accordance with the 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 |
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Writing |
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Oral Communication |
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Numeracy |
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Navigate the world of work |
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Interact with others |
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Get the work done |
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Unit Mapping Information
Supersedes and is equivalent to BSBSMB406 Manage small business finances.
Links
Companion Volume Implementation Guides are available from VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10