Reference no: EM132890528
Task 1 Finance Management
For a business you work in, have access to or a simulated business, in consultation with your Assessor, you are required to review the financial management of that business. In order to undertake budgeting, financial forecasting and reporting and to allocate and manage resources to achieve the required outputs for the business unit.
You will need to access the business' financial data, relevant legislation and Australian Tax Office requirements and the business' business plans, profit and loss statements, cash flows and aging summaries. You must also refer to the business' organisational financial policies and procedures and the financial management software utilised by the business.
Explain the relevant legislation and Australian Tax office (ATO) requirements for business reporting. Outline how the business needs to comply with ATO reporting and the frequency of these reports
Create a report for management, analysing the financial performance and financial position of the organisation using relevant ratios to assess the profitability and the financial viability of the company. Use graphic representations wherever necessary.
Explain how bias, errors or material misstatement is to be avoided and how to ensure that the reports are checked for accuracy prior to release.
What is an audit trail? How does companies maintain an audit trail to ensure diligence in financial reporting?
Explain the benefits of using Accounting software available to businesses for the management of their financial operations.
Using the information available from your trainer, develop a financial budget for the business. Explain why it is important to communicate with different departments with regard to the budget. Also explain how you would communicate this budget information to other departments as well. A Contingency plan needs to be developed for any uncertain items.
Task 2 - Finance Management - Policy and Procedure Manual
For the business reviewed in Task 1, develop a Financial Policy and Procedure Manual utilising the template provided.
Financial Policy and Procedure Manual Template
Note: Delete this and the next page once you complete the template.
Who should use this template?
All small business operators who employ one or more staff.
Why use a policy and procedure manual?
This financial policy and procedure manual is for the small business operator and their employees.
The main benefits to having this policy and procedure manual:
• ensures all staff are aware of obligations in relation to finance transactions within the business
• is a proven way to help your managers and supervisors make consistent and reliable decisions
• helps give each employee a clear understanding as to what you expect and allow.
It takes some effort to complete, but brings definite long-term benefits, reduces disputes, and adds to the professionalism of your business.
How to complete this template
Designed to be customised
The template provided is for a finance policy and procedures manual. It is made up of example topics for you to modify and develop. You can customise these if you wish, for example, by adding or removing topics.
Include what you must and can comply with
Your commitments in this manual may also form part of any compliance requirements such as Australian Taxation Office compliance requirements.
To complete the template:
• Guidance text appears throughout the document, marked by the word Guidance. Where you see a guidance note, read and then delete it. Guidance has been added to help you complete the template and should not appear in your final version.
• Using Word's Replace function, search for {Business Name} and replace with your company name.
• In Word's Home ribbon, open the Find and Replace tool, choose Replace to open the Find and Replace tool. The Find and Replace dialog opens with the Replace tab selected.
• Enter {Business Name} in the Find what field.
• Enter your company name in the Replace with field.
• Click Replace All
• Replace {items in curly brackets} with your own wording.
• Where you see a reference to other policies, insert a link to another example policy that applies in your business
• Once you have finished work on the template, delete the first three pages of the document.
• Lastly refresh the page numbers in the table of contents.
• Right mouse click on the table of contents
• In the small menu that appears, choose ‘Update Field' then ‘Update page numbers only.
Other tips
• To stop this policy manual sitting on a desk collecting dust, make it a living document. How? Ask your staff for their thoughts on how to improve it. Then review it every six months.
• Make explaining your policies and procedures an important part of your induction process.
• Leave the words ‘Document valid when printed only' in the footer to remind the reader they might be using an out-of-date copy. (The ‘Last printed' date automatically updates in the footer when you print. You don't need to update this.) Try to destroy or archive all out-of-date copies.
• The writing style doesn't need to be formal or longwinded to be effective. Use simple sentences and plain English to reduce the chance an employee or manager will be confused about the intent of your policy or the way to carry out a procedure.
Note: Delete this and the previous page once you complete the template.
Attachment:- Finance Management.rar