Unit of competency details

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to analyse and report on a broad range of financial and business performance information and encompasses assessing clients' needs, analysing data and preparing advice.

This unit has application to a variety of financial services sectors and is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements so the varying Commonwealth, State or Territory requirements should be confirmed with the relevant body.

Application of the unit 

The unit can apply to a variety of financial services industry sectors and has application to job roles such as accountant and financial planner.

Prerequisite units 

Employability skills 

This unit contains employability skills.

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.

ELEMENT 

PERFORMANCE CRITERIA 

1. Assess client needs

1.1. Expectations and objectives  of the client  are clarified and confirmed to ensure mutual understanding of client goals

1.2. The client's specific legal and financial requirements are identified when establishing, structuring and financing a business

1.3. Financial options  and processes are discussed with the client to develop suitable plans  for the provision of information and the achievement of client goals

1.4. Progress of plans is reviewed regularly against agreed criteria  and results clearly communicated to the client

1.5. Client objectives are monitored to identify changes in client needs

1.6. Feedback on service is regularly obtained, analysed and incorporated into services to client

1.7. Shortfalls in customer service  are investigated and proposals for overcoming them are formulated and implemented

2. Analyse data

2.1. Advice on reliability and accuracy of data is sought from appropriate authorities and sources  in accordance with organisational procedures

2.2. Data are compiled and reconciled to ensure statements are accurate and comply with organisational procedures, statutory requirements and standard financial reporting principles

2.3. Revenues and costs are analysed in accordance to standard accounting techniques and consistent with the organisation's objectives

2.4. All data and reports are analysed in accordance with standard financial analysis techniques 

2.5. Information is evaluated in relation to the financial performance of a business, specifically profitability, efficiency and financial stability

2.6. Analysis is undertaken to ensure consistency of analysis with client's business and personal objectives

2.7. Evaluation is undertaken to assess the financial potential of the business, its future funding requirements and statutory obligations

3. Prepare advice

3.1. Advice provides the client with a realistic view of the business financial performance and compliance, including significant taxation issues  and comparisons of options

3.2. Suitable methods of presentation and formats , language and forms of documentation are used to convey information to client

3.3. Advice identifies how risks and contingencies  and future cash flows may be identified and quantified and the client is advised of risk management options  and rights and obligations 

3.4. Client is advised on new or alternative sources and features of short-term and long-term finance

REQUIRED SKILLS AND KNOWLEDGE 

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

Required skills 

• well-developed communication skills to:

• determine and confirm client requirements, using questioning and active listening as required
• liaise with others, share information, listen and understand
• use language and concepts appropriate to cultural differences

• research skills such as:

• accessing and managing financial services information
• accessing financial product and services information
• interpreting documentation

• well-developed literacy skills for analysing information on client needs and preparing clear written advice, plans and reports
• numeracy skills for financial calculations and analysis
• IT skills for developing and using spreadsheets and databases and using internet information
• learning skills to maintain knowledge of changes to compliance legislation and requirements
• problem solving skills to identify any issues that have the potential to impact on client services or reporting and to develop options to resolve these issues when they arise
• organisational skills, including the ability to plan and sequence work
• teamwork skills

Required knowledge 

• financial legislation such as:

• deductions
• allowance in taxation legislation

• forecasting techniques
• government financial policies and secretary's financial management instructions
• methods of presenting financial data
• principles of cash flow and budgetary control
• relevant corporations and consumer legislation
• sources of information on financial products and markets such as:

• banks
• financial advisers

• State and Territory charges and taxes

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 ability to:

• interpret and apply State, Territory and Commonwealth taxation and charges
• comply with financial legislation and accounting standards, practices and principles
• access clients' needs and analyse their financial data to prepare appropriate advice
• assess taxation, compliance and business viability issues faced by clients and risk management options and practices.

Context of and specific resources for assessment 

Assessment must ensure:

• competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
• access to and the use of a range of common office equipment, technology, software and consumables.

Method of assessment 

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

• evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
• observing processes and procedures in workplaces or role plays
• verbal or written questioning on underpinning knowledge and skills
• setting and reviewing workplace projects and business simulations/scenarios
• evaluating samples of work
• accessing and validating third party reports.

Guidance information for assessment 

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.

Expectations and objectives  may include:

• administrative efficiency
• asset development
• financial consolidation
• higher levels of investment return
• improved cash flows
• improved quality of life
• reduction in tax liabilities
• wealth accumulation.

Clients  may include:

• businesses

• small
• medium
• large

• company officers and board of management
• financial institutions
• government departments
• in-line management
• partnerships, trusts

• incorporated
• unincorporated organisations

• private individuals
• shareholders
• sole traders
• statutory authorities.

Financial options  may include:

• adjustment of borrowings
• asset liquidation
• cost of capital
• cost recoveries
• debt and equity
• dividends
• funding alternatives
• long-term investments
• purchases
• sources of finance.

Plans  may include:

• accounts receivable management
• adequate funding structure
• alternate forms of finance
• business plans
• business registration
• cash flow development
• insurance needs
• long-term and short-term financial requirements
• personal financial needs and position
• personal investments
• regulations, permits and licences
• review of financial systems
• suitable business structure
• tax issues
• working capital needs.

Agreed criteria  may include:

• asset management
• budgeting
• business turnover
• capital budgeting
• costing, pricing and budgeting
• decision making authorities
• forecast returns
• net present values
• periodic reports
• profitability and financial stability
• strategic priorities
• working capital management.

Shortfalls in customer service  may include:

• accuracy of advice
• consideration of relevant factors
• maintenance of records
• presentation of advice
• response time.

Appropriate authorities and sources  may include:

• chief executive or financial officers
• company officers and board of management
• government Ministers
• organisational procedures and policies
• program managers
• statutory returns and guidelines.

Standard financial analysis techniques  may include:

• benchmarking
• cash flow analysis
• cost-benefit analysis
• financial statement analysis including ratios.

Significant taxation issues  may include:

• Business Activity Statement (BAS) reporting requirements
• compliance advice
• Pay As You Go (PAYG) obligations
• reporting and lodgement dates
• State or Territory tax obligations.

Methods of presentation and formats  may include:

• detail of calculations
• estimates and projections
• explanatory notes
• graphics
• tables.

Risks and contingencies  may include:

• business forecasts
• debtor default
• funding costs
• hedging arrangements
• insurable risks
• operating costs
• opportunity costs.

Risk management options  may include:

• insurance products
• internal control procedures.

Rights and obligations  may include:

• contract law
• corporations law
• employment law
• legislative protection for consumers
• Privacy Act
• taxation legislation.

Unit sector 

Accounting

Competency field 

Co-requisite units