Reference no: EM133169380

BSBFIM601 Manage finances

1. Plan for financial management
2. Establish budgets and allocate funds
3. Implement budgets

Evidence of the ability to:
• plan for financial management
• read and review profit and loss statements, cash flows and aging summaries
• prepare, implement and revise a budget which aligns with the business plan, is based on research and analysis of previous financial data and cash flow trends, and meets all compliance requirements
• contribute to financial bids and estimates
• establish a budget and allocate funds in accordance with statutory and organisational requirements
• communicate with other people including:
• reporting on financial activity and making recommendations
• identifying and prioritising significant issues
• ensuring managers and supervisors are clear about budgets.
• analyse the effectiveness of existing financial management approaches including reviewing financial management software, managing risks of misappropriation of funds, ensuring systems are in place to record all transactions, maintaining an audit trail and complying with due diligence.

Knowledge Evidence
To complete the unit requirements safely and effectively, the individual must:
• identify the requirements for financial probity
• describe the principles of accounting and financial systems
• explain Australian, international and local legislation and conventions that are relevant to financial management in the organisation
• outline the requirements of the Australian Tax Office, including Goods and Services Tax, Company Tax, Pay As You Go.

Assessment : Knowledge Questions

Question 1. Identify and describe financial probity requirements for businesses.

Question 2. Identify four examples of what would be consider fraudulent behaviour in regard to company finances.

Question 3. Identify the requirements for audited accounts and the purpose of an audit report.

Question 4. Describe the principle of cash accounting one advantage and one disadvantage of cash accounting.

Question 5. Describe the principle of accrual accounting and one advantage and one disadvantage of accrual accounting.

Question 6. Explain the four main taxation and superannuation obligations for a business. Briefly discuss each obligation.

Question 7. Identify the Act that details requirements for financial reporting and auditing and, explain the requirements for companies for preparing and lodging financial reports under this Act.

Question 8. Explain the requirements for registered foreign companies regarding preparing and lodging financial reports.

Question 9. Identify the current company tax rate for both smaller and larger businesses.

Question 10. Explain the process by which a business reports GST to the Australian Tax Office.

Question 11. Identify the penalty rate to be applied if a supplier does not provide an ABN?

Question 12. A non-profit organisation needs to register for GST after it has a turnover of more than how much?

Question 13. Explain the difference in Pay As You Go withholding obligations for employees and contractors.