Manage finances Assessment
1 - Project
This assessment project is to be completed in addition to the learning and assessment activities you complete in class. The project is designed to assess the knowledge and skills required to undertake budgeting, financial forecasting and reporting and to allocate and manage resources to achieve the required outputs for the business unit. It includes contributing to financial bids and estimates, allocating funds, managing budgets and reporting on financial activity.
If you are not sure about any aspect of the assessment or would like to discuss your particular needs, please speak to your trainer. Your trainer will tell you the date you need to submit your assignment.
All parts of the project will be given to you at the same time. You need to complete all parts and submit them together by the due date. This will be in the last week of classes for the unit.
This project assignment is to be completed using the information provided under Appendix 1-5.
The checklist and scope of submission table will identify the records that you are required to prepare and submit (as a single submission).
Your assignment must be typed (in 12 point type on A4 paper) and attached to the front page of this assessment document, which you need to complete as an Assessment Cover Page.
Make sure you keep a copy of your assignment before you hand it in to your trainer.
Part 1.
#Task 1
For this part, students are to utilise the data in the Appendices regarding Ed's Whitegoods. The instructor 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
Note: Students must use spreadsheet to undertake this task.
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.
#Task 2
Now you are to take your completed budget and arrange an appointment with your assessor, 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)
• Review and ensure to 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
Part 1. Checklist and Scope of Submission
Before you hand in part 1, use the checklist below to make sure you have completed all the tasks and have included all the relevant information. I have:
• Developed and submitted annual budget
• Detailed all delegations and budget accountabilities for implementation and management of proposal
• Developed a plan and policy and procedure for risk management and contingency
• Developed a policy and procedure for proper maintenance of records
Part 2.
#Task 1
You are required to compare their budgeted figures against actual figures located below:
Ed's Whitegoods 1 year result:
Total Sales: $1,623,000
Total Purchases: $701,400
Total Expenses: $402,000
You are to undertake the following:
• Prepare a variance analysis between budgeted and actual figures
• Ensure report demonstrates major differences
• What was the discrepancy?
- Is the discrepancy a positive or negative one?
- Locate the area and give at least 5 reasons why the discrepancy may have occurred
• Utilise the data provided to determine the effectiveness of the cost budgeting techniques used
• Lastly, you should give recommendations as to how their variance may be corrected for future budgets for the business.
The variance report should be submitted along with a written report detailing answers to the above questions.
Part 2. Checklist and Scope of Submission
Before you hand in these assessment tasks, use the checklist below to make sure you have completed all the tasks and have included all relevant information. I have:
• developed and submitted the following
o revised budget
o budget assessment report
o feasibility report
Part 3.
#Task 1
For this task you are to identify and evaluate a minimum of 3 commercially available financial management software for its appropriateness within your actual or projected business. You need to consider
1. Price
2. Usability
3. Features and functions
4. Compatibility with other programs
5. Compatibility with other specialists
Provide your review in the form of a written report, making a recommendation on the most suitable product for you. Be sure to explain your approach, including the pros and cons of each product evaluated
Part 3. Checklist and Scope of Submission
Before you hand in these assessment tasks, use the checklist below to make sure you have completed all the tasks and have included all relevant information. I have:
• Prepared and submitted the research report.
Attachment:- Manage finances.rar