Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to manage day-to-day financial operations of a small organisation, a department within a larger organisation or a complex project. The unit is not intended to cover detailed specialist accounting skills that are undertaken by qualified accountants or financial controllers, but does include the awareness of accounting issues and concepts needed by managers for effective communication with accountants or other specialists on financial matters. |
Application of the Unit
Application of the unit |
This unit applies to any manager responsible for overseeing the financial operations of a small business, a department within a larger organisation or a complex project. It requires the application of highly developed planning and management skills underpinned by significant knowledge of financial management concepts. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
Nil |
Employability Skills Information
Employability skills |
The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit is packaged will assist in identifying employability skills requirements. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the required performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge and/or the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
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1 |
Develop approaches to financial management. |
1.1 |
Assess scope of financial management requirements for a given organisation or project. |
1.2 |
Identify need for and organise specialist accounting assistance where appropriate. |
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1.3 |
Develop approaches to financial management based on overall direction and goals of the organisation or project. |
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1.4 |
Develop financial management systems and procedures according to organisation needs. |
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2 |
Develop and monitor financial procedures and systems. |
2.1 |
Develop financial procedures and systems to meet relevant statutory and internal control requirements. |
2.2 |
Communicate importance of financial objectives, management controls and systems to all staff. |
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2.3 |
Develop practical procedures and systems for monitoring income and ensuring payment of accounts. |
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2.4 |
Research and integrate the use of current industry practices and technology into systems where appropriate. |
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2.5 |
Check compliance with procedures and systems on a regular basis. |
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2.6 |
Monitor the flow of financial information within the organisation in terms of currency, accuracy, level of detail and relevance. |
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2.7 |
Review financial management systems regularly and make adjustments according to organisation needs. |
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3 |
Make pricing decisions. |
3.1 |
Make pricing decisions based on current, sufficient, accurate and relevant financial and marketplace data. |
3.2 |
Identify fixed, variable and semi-variable costs. |
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3.3 |
Perform and interpret simple cost-volume-profit analysis. |
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3.4 |
Set appropriate profit margins according to organisation policy and calculate prices correctly. |
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4 |
Monitor financial performance. |
4.1 |
Monitor budgets against performance targets on a regular basis. |
4.2 |
Negotiate corrective budgets to maximise business performance. |
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4.3 |
Take remedial action to address financial performance problems where appropriate. |
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4.4 |
Prepare and interpret profit and loss statements accurately with appropriate level of detail. |
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4.5 |
Conduct financial ratio analysis and apply the findings to financial management and reporting as appropriate. |
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4.6 |
Communicate feedback on positive and negative performance to appropriate colleagues in an appropriate manner. |
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5 |
Prepare financial reports. |
5.1 |
Prepare accurate, concise, relevant and sufficiently detailed financial reports to schedule, in a format appropriate to the audience and according to organisation and statutory requirements. |
5.2 |
Identify the need for and access specialist advice on reporting requirements where appropriate. |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the essential skills and knowledge and their level, required for this unit. |
The following skills must be assessed as part of this unit:
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The following knowledge must be assessed as part of this unit:
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Evidence Guide
EVIDENCE GUIDE |
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The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package. |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the following is essential:
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Context of and specific resources for assessment |
Assessment must ensure:
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Methods of assessment |
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended. |
Assessing employability skills |
Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors. How these skills are applied varies between occupations and qualifications due to the different work functions and contexts. Employability skills embedded in this unit should be assessed holistically with other relevant units that make up the skill set or qualification and in the context of the job role. |
Range Statement
RANGE STATEMENT |
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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 in the performance criteria is detailed below. |
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Scope of financial management requirements for different projects or organisations will vary and may relate to differing requirements for: |
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Financial procedures and systems : |
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Financial reports must include: |
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Unit Sector(s)
Sector |
Cross-Sector |
Competency field
Competency field |
Finance |