Assessment Requirements for CPCCBC5019 Manage building and construction business finances

Release: 1

Assessment Requirements for CPCCBC5019 Manage building and construction business finances

Modification History

Release 1	This version first released with CPC Construction, Plumbing and Services Training Package Release 5.0. New unit.

Performance Evidence

To demonstrate competency, a candidate must meet the elements and performance criteria of this unit by managing the business finances for a building and construction business over at least six months of business activity and including at least one building and construction project.

In doing this, the candidate must:

manage business financial systems and processes

schedule, monitor and process incoming and outgoing payments

manage budgeting, cash flow and debt recovery

lodge monthly, quarterly or annual statements and pay tax and workplace liabilities for the registered business

conduct a business financial risk assessment.

Knowledge Evidence

To be competent in this unit, a candidate must demonstrate knowledge of:

economic and industry trends

financial concepts:

revenue streams

expenses

project costings

contingency planning

business overheads

profit

key government sources for industry information

Australian Consumer Law

Competition and Consumer Act

Australian Taxation Office (ATO) obligations for building and construction businesses:

income tax

capital gains tax

payroll tax

fringe benefits tax

pay as you go (PAYG) instalments

goods and services tax (GST)

tax differences between a sole trader and a company

registering for taxes

methods of paying taxes

maintaining business and taxation records

accounting systems:

types of invoices

invoicing and collecting payments

budgeting and reporting

end of financial year

payment methods:

credit and debit card

direct debit

cheque

cash

analysing business finances:

financial health check

sales calculators

profit ratios

liquidity and finance ratios

options to improve business financial position:

recover outstanding debt

reduce or rearrange expenses

sell assets

increase prices

consolidate debt

track and improve cash flow

insurance policies:

public liability

builders’ risk

income loss

workers compensation

commercial vehicles

contractual financial arrangements:

payment subject to quality of work

product quality and compliance

terms and conditions of payment.

Assessment Conditions

Assessors must meet the requirements for assessors contained in the Standards for Registered Training Organisations.

Assessment can be undertaken in the workplace or in a simulated workplace environment.

A simulated environment is one that realistically replicates workplace conditions, materials and equipment, interactions with others and workplace irregularities, and which meets industry standards for safety and environmental practices.

Candidates must have access to:

financial documentation and other quality documentation to undertake the performance criteria and assessment requirements

digital devices, applications and software to monitor, manage and record business finances

government business legislation.

Links

Companion volumes to this training package are available at the VETNet website - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=7e15fa6a-68b8-4097-b099-030a5569b1ad