BSBFIM501 Manage Budgets and Financial Plans

BSBFIM501 Manage Budgets and Financial Plans

BSBFIM501 Manage Budgets and Financial Plans

This assessment describes the knowledge and skills needed for financial management within a work team in an organization.

It containing planning and executing financial management approaches, observing and controlling finances and reviewing and assessing the effectiveness of financial management procedures.

Students are advised to read following guidelines carefully to get higher marks in their academics.

Students will need to accomplish four tasks to complete this assessment.

Task 1 (Plan financial management approaches)


To show the ability to plan financial management approaches.


On the basis of provided scenario, you will explain budget plans and convey alterations to the budget. Then you will classify and examine a risk to budget and make an exigency strategy to avert or minimize the risk.

1. Read the provided scenario carefully and answer following questions:

(a) Identify areas of the budget that are not attainable, unclear or inaccurate.
(b) Prepare to negotiate compulsory changes to the budget.
(c) Use the provided template for this task to make an exigency plan document for tenacious risks after budget changes.

2. Meet with your manager to clarify budget and negotiate changes:

(a) Recognize minimum two issues for clarification
(b) Negotiate at least two changes
(c) Include a discussion of basic accounting principles
(d) Refer to related legislation and ATO requirements
(e) Refer to principles and techniques of managing budget items
(f) Take and keep notes of agreed changes.

3. Use the template provided in Appendix 3 to this assessment task to prepare a contingency plan document for persistent risks after budget changes.

Task 2 (Implement financial management approaches)


The student will show the skill to implement financial management approaches.


In accordance with the provided scenario, you will access and interconnect details of the budget to a team member.

1. Read the provided scenario and communicate budget and then train your team member in a new role:

(a) Access needed information on a budget
(b) Control organizational requirements
(c) Recognize coaching/training needs of a team member.
(d) Plan coaching/training session.

2. Meet with your team member to coach them in the role:

(a) Define budget and significance to participant’s accountabilities.
(b) Use suitable coaching techniques or models like GROW
(c) Use applicable motivational theory
(d) Train learner in prerequisite spreadsheet methods contains features of instruction, practice, and feedback/testing.
(e) Take account of recordkeeping necessities and auditing purposes for petty cash and GST items.

Task 3 (Monitor and Control Finances)


Students will show the skills to monitor and control finances.


Based on the given scenario, you will prepare a spreadsheet budget to capture observing information. Then you will use the budget spreadsheet to create a report on expenditure according to policies and procedures of the organization. You will also amend an exigency plan.

Read the provided scenario and:

1. Design and prepare a spreadsheet to capture actual and budget statistics to produce a modification report.

2. Access actual budget statistics from relevant and accounting systems.

3. Observe and record real statistics.

4. Consider feedback from your team members.

5. Produce a variance report in accordance with specified organizational requirements.

6. Consider the information of the scenario and exigency plan provided and examine the variance report.

7. Rectify the exigency and execution plans provided in the scenario to enhance effectiveness.

Task 4 (Review and evaluate financial management processes)


Students will show the skills to evaluate and assess procedures for financial management.


You will need to respond to a number of scenario tasks using the provided scenario information. Then you will have to gather and examine financial data and make recommendations to enhance current procedures. You will also make a plan to execute and observe solutions.

Based on the provided scenario, tasks and information included in this task deliver written responses to the following five tasks.

Task A

1. Evaluate the statements of financial performance to calculate:

(a) The average stock turnover
(b) The average creditor days
(c) The average debtor days

2. Make two recommendations for enhancements to current financial management procedures to increase cash flow. To backing your recommendations, denote data sources, analytical techniques, and organizational needs.

Task B

1. According to document, work out:

(a) How many units at present adjustable cost would require being formed to obtain profit objective.
(b) What the adjustable costs would require being to obtain revenue aim at present manufacturing capacity.

2. Prepare one recommendation based on your analysis.

Task C

 Students will require preparing a Business Activity Statement.

1. State how many years you will need to keep GST records to content ATO needs?

2. Complete the GST budget to anticipate GST liability.

Task D

Select one of your given recommendations from Task A or B and grow an action plan to apply and observe the recommendation.

Task E

Replicating on the tasks undertaken by you and on your knowledge of planning principles:

(a) Explain ledgers and financial statements b
(b) Explain cash flows
(c) Explain profit and loss statements.
(d) Explain fundamental accounting principles.