Unit Title
BSBFIM501 – Manage Budgets and Financial Plans
Unit Purpose
This unit describes the performance outcomes, skills and knowledge required to undertake financial management within a work team in an organisation. This includes planning and implementing financial management approaches, supporting team members whose role involves aspects of financial operations, monitoring and controlling finances, and reviewing and evaluating the effectiveness of financial management processes in line with the financial objectives of the work team and the organisation.
Prerequisites
There are no pre-requisites for this unit
Content
Plan financial management approaches
Implement financial management approaches
Monitor and control finances
Review and evaluate financial management processes
Resources/Readings
Readings A - I are located in the associated BSBFIM501 Readings tab of this module.
Suggested Hours
Although everyone will work at their own pace, we suggest you allow approximately 70 hours to complete this unit competently, including assessment activities.
Assessment
This unit will be assessed by completing all activities in the BSBFIM501 Assessment.
How to Use This Module
This module and associated BSBFIM501 Readings contain all of the information that you need to complete the assessment tasks associated with this unit. You must read through all of the information provided (both the module and associated readings) before attempting the assessment tasks.
Throughout this module there are a few icons used to help you. These include:
Tip
This is used to indicate the presence of tips or additional instructions that may assist you as you work through this module. They are designed to help you expand you knowledge and kills and deepen your understanding of how concepts and practices are applied in workplaces.
Reading
You will find these throughout the module. They indicate that a particular Reading contains additional information on the topic is being discussed at that point.
Self Reflection
This indicated a self-reflection question. You are not required to submit answers to thise questions.They are designed to get you thinking more about the topic and to consider key points in order to aid your understanding.
Upon completion of this unit, you should be able to:
| Element | Performance Criteria |
|---|---|
| 1. Plan financial management approaches | 1.1 Access budget/financial plans for the work team 1.2 Clarify budget/financial plans with relevant personnel within the organisation to ensure that documented outcomes are achievable, accurate and comprehensible 1.3 Negotiate any changes required to be made to budget/financial plans with relevant personnel within the organisation 1.4 Prepare contingency plans in the event that initial plans need to be varied |
| 2.Implement financial management approaches | 2.1 Disseminate relevant details of the agreed budget/financial plans to team members 2.2 Provide support to ensure that team members can competently perform required roles associated with the management of finances 2.3 Determine and access resources and systems to manage financial management processes within the work team |
| 3. Monitor and control finances | 3.1 Implement processes to monitor actual expenditure and to control costs across the work team 3.2 Monitor expenditure and costs on an agreed cyclical basis to identify cost variations and expenditure overruns 3.3 Implement, monitor and modify contingency plans as required to maintain financial objectives 3.4 Report on budget and expenditure in accordance with organisational protocols |
| 4. Review and evaluate financial management processes | 4.1 Collect and collate for analysis, data and information on the effectiveness of financial management processes within the work team 4.2 Analyse data and information on the effectiveness of financial management processes within the work team and identify, document and recommend any improvements to existing processes 4.3 Implement and monitor agreed improvements in line with financial objectives of the work team and the organisation |
Performance Evidence
Evidence of the ability to:
- Use financial skills to work with and interpret budgets, ageing summaries, cash flow, petty cash, Goods and Services Tax (GST), and profit and loss statements
- Communicate with relevant people to clarify budget/financial plans, negotiate changes and disseminate information
- Prepare, implement and modify financial contingency plans
- Monitor expenditure and control costs
- Support and monitor team members
- Report on budget and expenditure
- Review and make recommendations for improvements to financial processes
- Meet record keeping requirements for the Australian Taxation Office (ATO) and for auditing purposes.
Knowledge Evidence
To complete the unit requirements safely and effectively, the individual must:
- Describe basic accounting principles
- Identify and explain the relevant legislation and current requirements of the Australian Taxation Office, including the Goods and Services Tax (GST)
- Explain the key requirements for financial record keeping and auditing
- Describe the principles and techniques involved in managing:
- Budgeting
- Cash flows
- Electronic spreadsheets
- GST
- Ledgers and financial statements
- Profit and loss statements.
About this Unit:
This unit outlines the knowledge and skills required to manage budgets and finances for a work team in an organisation. This includes planning and implementing financial management approaches, supporting team members whose role involves aspects of financial operations, monitoring and controlling finances, and reviewing and evaluating the effectiveness of financial management processes in line with the financial objectives of the work team and the organisation.
Overview of Sections:
Section 1: Understanding Basic Financial Reports and Budgets
In this section, you will be provided with an introduction to basic accounting concepts, including an explanation of what budgets and financial reports are. You will learn how this information is commonly used within a business environment.
Section 2: Implement Financial Management Processes
In this section, you will explore the steps involved in designing and implementing an effective financial management process. You will also learn about the importance of effective communication of these processes to team members.
Section 3: Managing Variances and Control Measures
In this section, you will learn how to implement processes that help monitor expenditure and control costs. You will learn how to identify variances in budgets and how to handle these variances with contingency plans. Finally, you will learn about the need for regular reporting for both internal purposes and for statutory requirements.
Section 4: Review and Evaluate Financial Management Processes
In this section, you will learn about reports that help managers evaluate and review financial management processes within a business. You will learn how to analyse data effectively, how to implement methods for continuous improvement, and the benefit of being inclusive when reviewing financial management processes.
