Reference no: EM133171009

BSBFIM601 Manage finances

Learning Outcome: Develop and submit your annual budget as outlined above

Assessment Task 1:

PART A - For this assessment, students are to utilise the data in the Appendices regarding Ed's Whitegoods. The trainer can role-play the part of Edward Tan, the proprietor and will give any additional information required, including company policies and procedures, milestones etc.

Students are to undertake the following:
• List all personnel you would consult with in order to gain adequate advice prior to commencing your reports.
• Consult with your instructor to determine management requirements
• Prepare a 1-year budget & projected financial statement including:
- Sales forecast, taking into account additional information in Appendix 5
- Estimated expenses / inventory costs
- Estimated profits
• Ensure report layout and format comply with management information requirements, are clear and error- free

Students must ensure that estimates of future cash flow, costs and revenues are realistic in context of the available information at the time of creating the budget. Changes in circumstances should be anticipated as best as possible with particular emphasis on financial risks and creating protection strategies in accordance with organisational procedures. Any liaison with the proprietor of the business to determine milestones, policies, goals etc. should be carried out with your instructor, who will role play the relevant parts.

PART B - Now you are to take your completed budget and arrange an appointment with your trainer, who will role- play a finance specialist. In this meeting, you are to
• Manage the meeting direction and progress
• Discuss with the finance specialist the aspects of your budgets / financial plans (the package)
• Have your package reviewed, ensuring your validate your reasons and proposals
• Amend / revise your package as appropriate
You must now:
• Detail in writing all delegations and budget accountabilities for implementation and management of your package
• Develop a written procedure that details the recording systems and documentation process you will follow for monitoring and controlling all activities against your plans.
• Develop a risk management and contingency plan for all your proposed financial plans; along with a policy and procedure to be followed when implementing these plans
• Develop a policy and procedure that outlines proper maintenance of records of financial performance and provides for evaluation of the effectiveness of your financial management process