Assessment Requirements for BSBSMB402 Plan small business finances

Release: 1

Assessment Requirements for BSBSMB402 Plan small business finances

Modification History

Release	Comments
Release 1	This version first released with BSB Business Services Training Package Version 1.0.

Performance Evidence

Evidence of the ability to:

develop a financial plan which identifies financial requirements of the business, including cash flow projections and a projected profit statement

follow the business plan, including:

demonstrating an awareness of appropriate legal requirements

implementing strategies to monitor financial performance

identify sources and investigate costs of securing appropriate financial assistance.

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:

explain breakeven analysis

clarify costing for the business, including margin/markup, hourly charge-out rates and unit costs

summarise financial decision-making relevant to the business

outline methods and relative costs of obtaining finance

summarise principles for preparing balance sheets

provide a detailed explanation of:

principles for preparation of cash flow forecasts

principles for preparation of profit and loss statements

purpose of financial reports

describe working capital cycles.

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:

office equipment and resources for financial calculations

relevant workplace documentation

case studies and, where possible, real situations

interaction with others.

Assessors must satisfy NVR/AQTF assessor requirements.

Links

Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10