BSBFIN601 Manage organisational finances

STUDENT PACK

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What is the purpose of this document?
The Student Pack is the document you, the student, needs to complete to demonstrate competency. This document
includes the context and conditions of your assessment, the tasks to be completed by you and an outline of the
evidence to be gathered.

The information includes the following:

 Information related to the unit of competency

 Guidelines and instructions to complete each task and activity

These documents are designed after conducting thorough industry consultation. Students are encouraged to evaluate
this document and provide constructive feedback to their training organisation if they feel that this document can be
improved.

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ASSESSMENT INFORMATION for students
1.1 How you will be assessed

The process we follow is known as competency-based assessment. This means that evidence of your
current skills and knowledge will be measured against national standards of best practice, not against the
learning you have undertaken either recently or in the past. Some of the assessment will be concerned with
how you apply your skills and knowledge in the workplace, and some in the training room as required by
each unit.

The Graduate Diploma is at Level 8 on the Australian Qualifications Framework. This means that course
design, delivery and assessment must meet the specifications of Level 8 in the AQF – see
https://www.aqf.edu.au/sites/aqf/files/aqf-2nd-edition-january-2013.pdf

Graduates of a Graduate Diploma will have advanced knowledge within a systematic and coherent body of
knowledge that may include the acquisition and application of knowledge and skills in a new or existing
discipline or professional area.

They will have:

• cognitive skills to review, analyse, consolidate and synthesise knowledge and identify and provide
solutions to complex problems
• cognitive skills to think critically and to generate and evaluate complex ideas
• specialised technical and creative skills in a field of highly skilled and/or professional practice
• communication skills to demonstrate an understanding of theoretical concepts • communication skills to
transfer complex knowledge and ideas to a variety of audiences

The assessment tasks have been designed to enable you to demonstrate the required skills and knowledge
and produce the critical evidence to successfully demonstrate competency at this standard.
Your assessor will ensure that you are ready for assessment and will explain the assessment process.
Your assessment tasks will outline the evidence to be collected and how it will be collected, for example, a
written activity, case study, or demonstration and observation.

The assessor will also have determined if you have any special needs to be considered during assessment.
Changes can be made to the way assessment is undertaken to account for special needs and this is called
making Reasonable Adjustment.

What happens if your result is ‘Not Yet Satisfactory’ for one or more assessment tasks?
Our assessment process is designed to answer the question “has the desired learning outcome been
achieved yet?” If the answer is “Not yet”, then we work with you to see how we can get there.
In the case that one or more of your assessments has been marked ‘NYS’, your trainer will provide you with
the necessary feedback and guidance, in order for you to resubmit your responses.

What if you disagree on the assessment outcome?

You can appeal against the decision made on your assessment. An appeal should only be made if you
have been assessed as ‘Not Yet Competent’ against a unit of competency and you feel you have sufficient
grounds to believe that you are entitled to be assessed as competent. You must be able to adequately
demonstrate that you have the skills and experience to be able to meet the requirements of units you are
appealing the assessment of.

Your trainer will outline the appeals process, which is available to the student. Nova Institute’s Complaints
and Appeals Policy is on the Nova Institute website. You can request a form from Reception to make an
appeal and submit it to your trainer, the course coordinator, or the Student Support Officer. Nova will
examine the appeal and you will be advised of the outcome within 14 days. Any additional information you
wish to provide may be attached to the appeal form.
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What if I believe I am already competent before training?
If you believe you already have the knowledge and skills to be able to demonstrate competence in this unit,
speak with your trainer, as you may be able to apply for Recognition of Prior Learning (RPL).

How should I format my assessments?

Your assessments should be typed in a 11 or 12 size font for ease of reading. You must include a footer on
each page with the complete student name (not just a first name), unit code and date. Your assessment
needs to be submitted as an electronic copy as requested by your trainer. Your trainer will provide you with
an email address to send it to.

How long should my answers be?

The length of your answers will be guided by the description in each assessment.

Use the word count function in Microsoft Word to check the number of words in your answer. Your answers
must not be too long or too short.

How should I reference the sources of information I use in my assessments?

Include a reference list at the end of your work on a separate page. You MUST reference the sources you
have used in your assessments in the Harvard Style (see Nova Website) and provide a reference list.

ASSESSMENTS THAT DO NOT HAVE APPROPRIATE REFERENCING WILL NOT BE ACCEPTED. If

you have problems referencing your assessment, see your trainer or the Training and Compliance Manager
for help.

1.2 Guide to satisfactory assessment completion

The following table shows you how to achieve a satisfactory result against the criteria for each type of
assessment task. The following is a list of general assessment methods that can be used in assessing a
unit of competency. Check your assessment tasks to identify the ones used in this unit of competency.

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Assessment Satisfactory Result Non-Satisfactory Result
Method
You will receive an overall result of Competent or Not Yet Competent for the unit. The assessment
process is made up of a number of assessment methods. You are required to achieve a satisfactory
result in each of these to be deemed competent overall. Your assessment may include the following
assessment types.
Questions All questions answered correctly Incorrect answers for one or more
questions
Answers address the question in full; Answers do not address the question in
referring to appropriate sources from full. Does not refer to appropriate or
your Learner Guide, textbooks and e- correct sources.
journals. and/or workplace
Answers address the question at the Answers do not address the question at
level of the qualification in the required the level of the qualification in the
domain, e.g. if asked to analyse, the required domain, e.g. provides a list of
answer contains analysis rather than a factors when asked to analyse factors.
statement.
Written Activity The assessor will mark the activity Does not follow guidelines/instructions
against the detailed
guidelines/instructions
Attachments if requested are attached Requested supplementary items are not
attached
All requirements of the written activity Response does not address the
are addressed/covered. requirements in full; is missing a
response for one or more areas.
Responses must refer to appropriate One or more of the requirements are
sources from your student workbook, answered incorrectly.
textbooks and e-journals. and/or Does not refer to or utilise appropriate or
workplace correct sources of information
Responses must show the level of Responses are descriptive rather than
analysis required for a graduate diploma, analytic.
rather than description, or merely Uses material from other sources but
quoting sources. does not use it in analysis or to develop
an argument to support an opinion.
Case Study All comprehension questions answered Lack of demonstrated comprehension of
correctly; demonstrating an application the underpinning knowledge (remove) 1.3
of knowledge of the topic case study. required to complete the case study If
questions correctly. One or more
questions are answered incorrectly.
Answers address the question in full; Answers do not address the question in
referring to appropriate sources from full; do not refer to appropriate sources.
your student workbook, textbooks and e-
journals. and/or workplace
Attachments if requested are attached Requested supplementary items are not
attached
your assessment is NYC

 Where a student’s answers are deemed not yet satisfactory after the first attempt, a resubmission attempt will
be allowed.
 If a third submission is required, the student must pay the reassessment fee of $200

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ASSESSMENT COVER SHEET
BSBFIN601 Manage organisational finances

Student’s
VARTESH CHAUDHARY ID
name:
Assessors Date
Name: Submitted:
The following questions are to be completed by the assessor:
Is the Student ready for assessment? Yes No
Has the assessment process been explained? Yes No
Does the Student understand which evidence is to be
Yes No
collected and how?
Have the Student’s rights and the appeal system been fully
Yes No
explained?
Have you discussed any special needs to be considered
Yes No
during assessment?
The following documents must be completed and attached:

o Written Activity and Checklist

The student will complete the written activity provided to
S NYS
them by the assessor. The Written Activity Checklist will be
completed by the assessor.
o Practical Activity and Checklist
The student will demonstrate a range of skills in a practical
S NYS
activity. The Practical Activity checklist will be completed by
the assessor.

Student Declaration

I agree to undertake assessment in the knowledge that information gathered will only be used for
professional development purposes and can only be accessed by the RTO

I declare that:
o The material I have submitted is my own work
o I have kept a copy of all relevant notes and reference material that I used in the production of my
work;
o I have given references for all sources of information that are not my own, including the words,
ideas and images of others.

Student
VARTESH CHAUDHARY Date:
Signature:

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 Result and Feedback

Feedback to Student:

Overall Outcome oCompetent oNot yet Competent

Assessor Signature Date:

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Assessment Task 1 - Knowledge Test
Instructions for answering the written questions:
 Complete a written assessment consisting of a series of questions.
 You will be required to answer all the questions correctly.
 Do not start answering questions without understanding what is required. Read the
questions carefully and critically analyse them for a few seconds; this will help you to
identify what information is needed in the answer.
 Your answers must demonstrate an understanding and application of the relevant concepts
and critical thinking.
 Be concise, to the point and write answers within the word-limit given to each question. Do
not provide irrelevant information. Remember, quantity is not quality.
 You must write your responses in your own words.
 Use non-discriminatory language. The language used should not devalue, demean, or
exclude individuals or groups based on attributes such as gender, disability, culture, race,
religion, sexual preference or age. Gender-inclusive language should be used.
 When you quote, paraphrase, summarise or copy information from other sources to write
your answers or research your work, always acknowledge the source.

Task instructions
 This is an individual assessment.
 To ensure your responses are satisfactory, consult a range of learning resources and other
information such as handouts, textbooks, learner resources etc.
 To be assessed as Satisfactory in this assessment task, all questions must be answered
correctly.

The following questions should be answered using Microsoft Word and submitted to your Assessor
electronically. Answer every part of the question. Type your answers below the questions.

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Assessment Task 1 - Knowledge Test
Provide your response to each question in the box below.

Q1: 1. Explain the process to establish and review profits and losses from financial statements.
Write your answer in 150-200 words.

The student must include the following information:

 Process to establish and review profits and losses from financial statements
 Importance to review profits and losses from financial statements
Example answer:
P&L is a summary of income and expenses for your business. It will inform you whether
your business made or lost money for the month under review.
A P&L usually has five main components:
1. revenue (sales/turnover)
2. cost of goods sold (COGS)
3. gross profit (revenue minus COGS)
4. expenses
5. net profit (gross profit minus expenses)
Formula: Sales – COGS = gross profit – expenses = net profit o
The net profit will show whether your business has earned or lost money. o When
reviewing your P&L, it is useful to analyse four key benchmarks or performance indicators
(KPIs).
Analysis KPI(S) Formula
What percentage of the sales COGS as a percentage of COGS ÷ revenue x 100
price covers the cost of sales/revenue
providing or producing the
product or service?
Is my business running Gross profit margin Net profit Gross profit ÷ revenue x 100
profitably? margin Net profit ÷ revenue x 100
What percentage of the sale Expenses as a percentage of Expenses ÷ revenue x 100
price covers the fixed costs of sales/revenue
my business?

Gross profit is an indicator of efficiency.

o The net profit margin is an indicator of how much profit you make (before tax) from every dollar you spend.

Q2: Why it is important to review profits and losses from financial statements? Answer in
150-200 words

2 Reviewing the P&L statement helps in the following manner: A profit and loss
statement (P&L), or income statement or statement of operations, is a financial report
that provides a summary of a company's revenues, expenses, and profits/losses over
a given period. The P&L statement shows a company's ability to generate sales,
manage expenses, and create profits. The P&L statement reveals the company's
realized profits or losses for the specified time by comparing total revenues to the
company's total costs and expenses. Over time it can show a company's ability to
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 increase its profit, either by reducing costs and expenses or increasing sales. The P&L
statement provides the top and bottom line for a company. It begins with an entry for
revenue, known as the top line, and subtracts the costs of doing business, including
the cost of goods sold, operating expenses, tax expenses, interest expenses, and any
other expenses sometimes referred to as "extraordinary" or "onetime" expenses. The
difference, known as the bottom line, is net income, also referred to as profit or
earnings.

Q3: Explain the following processes/methods of analysing financial statements in 150-200

words.

a) Vertical Analysis
b) Horizontal Analysis
c) Ratio Analysis
d) Trend Analysis

Processes/methods of analysing financial statements

a. Vertical Analysis Vertical analysis is a method of financial statement analysis in

which each entry for each of the three major categories of accounts, or assets,
liabilities and equities, in a balance sheet is represented as a proportion of the total
account. Vertical analysis is also used across other financial statements as a
percentage measure

b. Horizontal Analysis Horizontal analysis is the comparison of data sets for two
periods. Financial statements users review the change in data much like an indicator.
Optimistic analysts look for growth in revenue, net income and assets in addition to
reductions in expenses and liabilities.

c. Ratio Analysis Ratios express a relationship between two more financial statement
totals and compare to budgets and industry benchmarks. Five common categories of
ratios exist: liquidity, asset turnover, leverage, profitability and solvency.

d. Trend Analysis A trend analysis is an aspect of technical analysis that tries to

predict the future movement based on past data. Trend analysis is based on the idea
that what has happened in the past gives traders an idea of what will happen in the
future.

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 Q4: Answer the following question regarding principles of accounting and budgeting:

What is financial probity? Why is it required in organisations? Write your answer in

150-200 words.

Financial probity means strict obedience to a code of ethics based on absolute honesty,
especially in commercial or monetary matters and beyond legal requirements. A financial
probity check investigates the financial background of a candidate to assess whether they
meet the regulatory requirements of working in certain industries, e.g. financial services,
banking and insurance. These industries involve many compliance regulations that must be
met to ensure professionalism and competence to protect the general public. Following are the
benefits of conducting Financial Probity Checks:
 Meet your compliance requirements by conducting thorough checks on your candidates to
ensure they meet the regulatory requirements of your industry. This will protect you from any
penalties or fines that would apply if employees are found to have breached the regulations or
are practising without a license.
 Minimise your company’s financial and people risk by obtaining a comprehensive overview of
the prospective candidate.
 Protect yourself from fraudulent and disreputable candidates or companies by conducting
due diligence on all potential candidates.

Q5: Answer the following question regarding principles of accounting and budgeting:

What are the requirements for financial probity? Answer in 100 – 150 words.

The requirements for financial probity as an employee of an organization are as

follows:

Officials must act ethically by following the APS Values (set out in section 10 of the
Public Service Act 1999) and Code of Conduct (set out in section 13 of the Public
Service Act1999) at all times in undertaking procurement.

 Treat tender participants (and potential tender participants) fairly and equally and

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 avoid giving one tender participant an improper advantage over another.

 Maintain confidentiality of participants confidential information, including

commercially sensitive information and intellectual property.

 Ensure tender processes, negotiations, evaluation processes, and contract

management processes are auditable, transparent and accountable.

Proactively identify and manage conflicts of interest, whether real, potential or

perceived appropriately and following applicable legal and policy requirements.

Q6: Explain the four (4) principles of accounting and financial systems in 100-150 words

There are four basic principles of financial accounting measurement:

(1) Objectivity: The accounting data should consistently stay accurate and be free of personal
opinions. Make sure the data is also supported by evidence that can include vouchers,
receipts, and invoices. Having an objective viewpoint, in this case, helps rely on financial
results.
(2) Matching: Expenses should be matched to the revenues recognized in the same
accounting period and be recorded in the period the expense was incurred. If there is a time
where revenue was recognized on sold products or services, then the cost of those things
should also be recognized.
(3) Revenue recognition: When you are recording information about your business, you need
to consider the revenue recognition principle. This is the period where revenues are
recognized through the income statement of your company. For your revenues to be
recognised in the period that the services were provided if you are on the accrual basis, If you
are on the cash basis then, the revenues need to be recognized in the period the cash was
received.
(4) Full Disclosure Principle: The information on financial statements should be complete so
that nothing is misleading.

Q7: Why should principles of accounting and financial systems be maintained in

organisations? Answer in 100-150 words.

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 Following points explain the need of complying with accounting principles and
financial systems:

1. The purpose of having - and following - accounting principles is to be able to

communicate economic information in a language that is acceptable and
understandable from one business to another.

2. The ultimate goal of any set of accounting principles is to ensure that a

company's financial statements are complete, consistent, and comparable.

3. It becomes easier for investors to analyze and extract useful information

from the company's financial statements, including trend data, over some
time.

4. Accounting principles ensure that companies follow certain standards of

recording how economic events should be recognised, recorded, and presented

Q8: Explain three (3) key functions of financial management software. Write your answer
in 150-200 words.

Financial management software includes:

1. Reporting: o In the creation process of a report, data from different systems must be gathered,
then extracted and analysed in a consolidated.
o These steps are very complicated and can easily cause data entry errors and meaningless
information, especially if it is being rekeyed into a spreadsheet.
o Thus, the reports generated manually usually do not provide a clear view of the business
performance but rather a mess of confusing information, which is useless for the
decisionmaking process as it typically has errors. By the time it’s produced, it is too late
anyway.

2. Systems integration: when you maintain functional applications like accounting or human
resources as independent systems, integration must be done by manual entry, which is
time-consuming and costly. More importantly, these systems often produce wrong
information due to data duplication and fragmentation.
3. Functionality: Financial software has basic accounting functionality, which reduces the
amount of information retrieved and processed by users, meaning the attained data could
be insufficient, incorrect or fixed. In practice, several companies try to shorten the

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 information input by storing them in sub-systems.

Q9: What are the three (3) benefits of financial management software? Write your answer in
100-150 words.

Following are the benefits of financial management software:

1. Consolidate, Streamline and Automate Your Financial Processes: The need for
financial management software continues to grow at a rapid pace. In addition,
corporate globalization, mergers and acquisitions, and business diversification are on
the rise. As a result, accounting and finance processes are becoming increasingly
complex, making them harder to coordinate, execute, and track.

2. Streamlined Accounting and Finance Processes: financial operations are often

fragmented and disjointed, particularly in larger enterprises with multiple divisions.
Budget management may vary greatly from one department to the next, or each
business unit may recognize income and revenue differently.

3. More Accurate and Accessible Financial Information: financial information often

resides in various disparate databases scattered across numerous remote locations
throughout a business. This can make it difficult to obtain a complete global view of its
financial status or monitor and manage related activities.

Q10 What are the four (4) key components of a financial budget? Answer in 150-200 words.
:

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 Following are key components of a financial budget:
1. Income: The most basic element of all budgets is income. You should keep track of how
much you make and from which sources. Make a note of both pre-and post-tax income.
2. Fixed expenses: Fixed expenses are those expenses over which you have little control or
are unchangeable. For example, your mortgage is a fixed expense; your Netflix account is
not. Once you subtract the value of your fixed expenses from your income, you’ll have a
better understanding of the third basic element: flexible expenses.
3. Flexible expenses: Flexible expenses refer to things that you want to spend money on but
don’t necessarily need. Entertainment is an example of a flexible expense, as is going out to
dinner, buying new clothes, or buying concert tickets.
4. Unplanned expenses and savings: Your budget should also consider two other critical
pieces: unplanned expenses or emergency expenses (like your car breaking down or having
to replace a part in your stove) and savings.

Q11 Explain three (3) essential parts of developing a budget in 150-200 words.
:

Essential parts of developing a budget are :

1. Revenue Forecasting: o One of the essential parts of the budget process is

projecting your sales revenues.
o While you might have irregular revenues such as profits from investments or
the sale of assets, knowing your core revenue streams will help you form the
foundation of your budget.
o Use historical sales data, surveys of customers and projections from your sales
staff to estimate your revenues accurately.
2. Expense Estimates: o Once you have a good idea of your revenue, you can more
accurately set expense levels.
o Dividing your costs into production and overhead expenses is a fundamental
part of developing a business budget.
o Production expenses are those related to creating your product or service,
while overhead costs are those you have even when you aren’t making what you
sell. o Examples of production expenses include materials and labour, while
overhead expenses include marketing, rent and phones.
3. Cash Flow Projections: o Small-business owners often make the mistake of
creating budgets that show income and expenses, but not when they arrive or
come due.

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 Q12 What are the legislation and conventions relevant to financial management in the
: organisation? Write your answer in 150-200 words.

Following are the Legislation and conventions relevant to financial management:

The same reporting standards apply in all Australian states and territories. Businesses in
Australia may be required to report to the Australian Taxation Office (ATO), the Australian
Securities and Investments Commission (ASIC) and/or the Australian Securities Exchange
(ASX).
Australian Accounting Standards: Australian Accounting Standards are set by the Australian
Accounting Standards Board (AASB), an independent Australian Government agency. The
standards are legislative requirements for corporations. They must also be applied to all other
general-purpose financial reports of public and private sector reporting entities. The
Australian Accounting Standards meet the requirements of the International Financial
Reporting Standards (IFRS). Whilst much of the standard-setting is the responsibility of the
International Accounting Standards Board (IASB), the AASB maintains standard-setting power
over matters specifically relating to Australia.
Business Activity Statement: Businesses operating in Australia are required to lodge a
Business Activity Statement (BAS) to the Australian Taxation Office (ATO) to make payments
and report their tax obligations. Certain individuals may also be required to lodge a BAS.
Financial reporting requirements: The Australian Securities and Investments Commission
(ASIC) is Australia’s corporate, financial markets and financial services regulator.

Q13 Explain the following Australian, international and local legislation and conventions that
: are relevant to financial management in an organisation.

a) Competition and Consumer Act 2010

b) Privacy Act 1988

c) National Employment Standards under the Fair Work Act 2009

Write your answer in 200-250 words.

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 a)The Competition and Consumer Act 2010 (the CCA) contains Australia's centre
legislation for tending to anti-competitive direct. The Competition and Consumer Act
2010 (CCA) covers most areas of the market: the relationships between suppliers,
wholesalers, retailers, and consumers. Its purpose is to enhance the welfare of
Australians by promoting fair trading and competition and through the provision of
consumer protections.

b)Privacy Act 1988 The Privacy Act 1988 is a law that oversees the regulation and
handling of private and personal information about individuals – most commonly,
individuals’ names, signatures, addresses, contact numbers, dates of birth, medical
records, bank account details, and commentary or opinion about a person. The Privacy
Act is difficult legislation to monitor, given that it delves further into thirteen Australian
Privacy Principles. Breaches in privacy are covered under the Notifiable Data Breaches
scheme, which is available for us by APP entities as well as individuals; when the breach
is assumed to cause serious harm to those affected.

c) Fair Work Act 2009 (FWA) and the Fair Work Regulations 2009 Mostly governed by
the Fair Work Act 2009 (FWA) and the Fair Work Regulations 2009, the Fair Work
Ombudsman promotes a healthy workplace for employees, contractors, and employers
alike, by providing information and advice on workplace rights and obligations. On the
whole, these Acts are substantial and legally complex; making it difficult for everyday
employers to interpret. Failure to comply with the Fair Work Act can result in formidable
damage to your business.

Q14 What are the Australian Tax Office (ATO) requirements for:
:
a) Goods and Services Tax

b) Company Tax

c) Pay As You Go (PAYG).

Write 150-200 words for each.

The Goods and Services Tax (GST) is a national, broad-based consumer tax on most goods
and services sold or consumed in Australia. Most businesses are required to register for GST
with the Australian Taxation Office. Businesses that have paid for business supplies inclusive
of GST are entitled to claim an equivalent input tax credit. Certain businesses may also be
eligible for GST concessions. If you run a business or other enterprise and have a GST
turnover of $75,000 or more ($150,000 or more for non-profit organisations) you need to:
Register for GST
o Work out whether your sales are taxable (that is, subject to GST, and not exempted
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 because they are GST-free or input-taxed) and include GST in the price of your taxable sales
o Issue tax invoices for your taxable sales and obtain tax invoices for your business purchases
o Claim GST credits for GST included in the price of your business purchases
o Account for GST on either a cash or non-cash basis o Lodge activity statements or annual
returns to report your sales and purchases and pay GST to us or receive a GST refund.
b) An Australian resident company is subject to company tax, at a rate set by the Australian
Government. A non-resident company is taxed on its Australian source income at the same
rate as a resident company. Taxable income and the tax rate may vary under limited
circumstances, such as industry or business structure. A corporation (including the head
company of a consolidated tax group) lodges/files a tax return under a self-assessment
system that allows the ATO to rely on the information stated on the return. A corporation is in
doubt about its tax liability regarding a specific item, it can ask the ATO to consider the
matter and obtain a binding private ruling. Generally, the tax return for a corporation is due
to be lodged/filed with the ATO by the 15th day of the seventh month following the end of the
relevant income year or such a later date as the Commissioner of Taxation allows. Additional
time may apply where the tax return is lodged/filed by a registered tax agent.
c) Pay As You Go (PAYG): 1. A PAYG instalment system applies to companies other than those
whose annual tax is less than AUD 8,000 that are not registered for GST. Most companies are
obligated to pay instalments of tax for their current income year on a monthly or quarterly
basis. 2. Instalments are calculated by applying an instalment rate to the amount of the
company's actual ordinary income (ignoring deductions) for the previous quarter. The
instalment rate is notified to the taxpayer by the ATO and determined by reference to the tax
payable for the most recent assessment. 3. The ATO may notify a new rate during the year on
which subsequent instalments must be based. Taxpayers can determine their instalment rate,
but there may be penalty tax if the taxpayer's rate is less than 85% of the rate that should
have been selected. 4. Final assessed tax is payable on the first day of the sixth month
following the end of that income year, or such later date as the Commissioner of Taxation
allows by a published notice.

Q15: What are the main responsibilities of the Australian Tax Office (ATO)? Answer in 70-120 words

The ATO is the government's principal revenue collection agency. The ATO's role is to
effectively manage and shape the tax, excise and superannuation systems that support and
fund services for Australians. Its main responsibilities are:
main revenue collection agency of the Australian Government - administrator of the goods and
services tax (GST) on behalf of the Australian states and territories - administrator of a range
of programs that result in transfers and benefits back to the community - administrator of
major aspects of Australia's superannuation system - custodian of the Australian Business
Register (ABR).

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ASSESSMENT 1 – Knowledge Test Checklist
Student’s Name VARTESH CHAUDHARY

Assessor’s name:

Satisfactory response: Yes No

Described profit and loss statements £ £

Described process to establish and review profits and losses from
1
financial statements £ £
Discussed importance of reviewing profits and losses from financial
statements £ £
Discussed the importance of reviewing profits and losses from financial
2
statements £ £
Explained the processes/ methods of analysing financial statements: £ £
Vertical analysis £ £
3 Horizontal Analysis £ £
Ratio Analysis £ £
Trend Analysis £ £
Defined financial probity £ £
4
Discussed why it is necessary in organisations £ £
5 Discussed requirements for financial probity £ £
6 Discussed 4 principles of accounting and financial systems £ £
Explained need for complying with accounting principles and financial
7
systems £ £
8 Explained 3 key functions of financial management software £ £
9 Explained 3 benefits of financial management software £ £
10 Explained 4 key components of a financial budget £ £
Explained 3 essential parts of developing a budget
11 £ £
Described the legislation relevant to financial management in the
organisation £ £
12
Described the conventions relevant to financial management in the
organisation £ £
Explained the Competition and Consumer Act 2010 £ £
13 Explained the Privacy Act 1988 £ £
Explained the National Employment Standards under the Fair Work Act
2009 £ £
Identified the Australian Tax Office (ATO) requirements for the Goods and
14
Services Tax £ £

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 Identified the Australian Tax Office (ATO) requirements for Company Tax £ £
Identified the Australian Tax Office (ATO) requirements for Pay As You Go
(PAYG). £ £
15 Defined the main responsibilities of the Australian Tax Office (ATO) £ £
Feedback to Student:

Result o Satisfactory o Not Yet Satisfactory

Assessor’s Signature: Date:

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Assessment Task 2: Project

Assessment Task Instructions

 This assessment is to be submitted individually.
 This assessment involves a role play, which must be completed in class. If you do not complete this role
play, you cannot complete and submit your assessment and cannot be assessed as competent.
 This assessment requires you to deliver a presentation in class. If you do not complete this presentation, you
cannot complete and submit your assessment and cannot be assessed as competent.
 To ensure your responses are satisfactory you should consult a range of learning resources and other
information such as handouts, textbooks, learner resources etc.
 You must document your responses in the provided template.
 You must be concise, to the point and write answers according to the given word limit to each question and not
provide irrelevant information.
 You must write your responses in your own words.
 You will be required to complete all parts of this assessment task.

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Assessment Task 2: Project

This assessment task requires you to take on the role of Finance Manager in Online Media Solutions.

This assessment task requires you to demonstrate the skills and knowledge required to manage the
finances of the organisation given in the case study. It includes contributing to the review of financial
information, analysing financial risks, preparing a budget, and reporting on financial activity.

To do so, you are required to complete the following activities:

● Activity 1: Prepare for financial management

● Activity 2: Develop budget from previous financial data and notes from the
accountant

● Activity 3: Circulate budgets

● Activity 4: Prepare budget variance report

● Activity 5: Prepare a report on the effectiveness of existing financial-management

approaches

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Case study:
Introduction

“Online Media Solutions” is a marketing and web development business based in Melbourne, Australia.
The business started in operations in 2015 and has seen exponential growth since its establishment.

The business operates in the web service industry to offer superior and unique services to small
businesses and institutions (B2B business model). Our experience and expertise in web sales and e-
commerce give us the backing to provide solutions that are currently lacking in the market.

There is an all-time high demand for web development and marketing for small businesses, with signs
of rising further. Interestingly, few web developers have taken advantage of this opportunity, leaving
the industry with no dominant participants.

The projects’ high costs and the focus on more prominent companies and institutions could contribute
to why this market remains untapped. We will have a system that will reduce the project costs
dramatically, allowing us to offer quality services at reduced costs.

Business plan

Business plan excerpt

Company details:

Company name: Online Media Solutions, Pty. Ltd

Company address: 2/10 Lawn court, Craigieburn, 3064, VIC

Mission

 Provide best-in-class design services

 Make a positive impact on our customer businesses

 Be respected and admired by peers

Our vision

To provide best-in-class web design and development services in a simple, effective, and cost-
effective manner to the target audience.

Objectives

The objectives of Online Media Solutions are as follow:

 To exceed customer expectations.

 To provide cost-effective and quality services to our clients.

 Build and maintain long-term relationships with the clients.

 To increase operational efficiency.

 To venture into new markets based on the opportunities identified.

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 Keys to Success

 We will offer quality web services to small businesses and institutions at affordable prices.

 To build and tailor our services to small businesses.

 Positioning as a viable solution alternate to more established brands

Services

We currently offer the following services to our clients:

 Interface and Web Design

 Graphics design

 Website development

 Domain and web hosting

 Video editing

 Blog development

 Search engine optimisation

 E-commerce

Values

 Quality service to our clients

 Integrity & Accountability

 Reliability

 Quality

 Innovation

 Respect

Strategic directions

The strategic direction of ONLINE MEDIA SOLUTIONS is to achieve its mission and vision is through:

● Increasing operational efficiency

● Engaging with customers through quality research and understanding supported by marketing
techniques.

● Establishing a reputation for exceptional customer service and end to end solutions

● Supporting people to perform via training and performance management

● Controlling costs through operational efficiency

Business model

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 “Online Media Solutions” is a full-service web solutions provider for businesses. The company offers
services through the mode of its B2B engagements.

B2B services:

“Online Media Solutions” service portfolio includes Web Design, Graphics design, Website
development, Domain and web hosting, 2d & 3d animation, Blog development, Search engine
optimisation and E-commerce. The project cost will be estimated by the appropriate number of hours
needed to complete the project.

The sales team will aggressively track prospective clients and sell the services provided for
businesses.

Operational model and strategies

B2B engagements

Lead generation – Lead generation refers to creating and generating prospective consumer interest
or inquiry into a business’s products or services. This will be done by building a database of
prospective customers using social networks, business listings, internet search etc.

Sales pitch – A sales pitch is a line of talk that attempts to persuade someone or something with a
planned sales presentation strategy of a product or service designed to initiate and close a product
and service sale. Sales professionals prepare and give a sales pitch using the following methods:

 Face to face meetings

 E-mailing marketing contacts from the leads

Financial summary

1. Sales are expected to grow to $18,000,000 in the next financial year.

2. Expenses will be the same as the previous year. Though, some of the expenses will increase.
Some expenses will increase by a direct amount, and other expenses will be accounted for with
the inflation rate. Information on expenses that will have increase by direct amount is given in
meeting notes.

3. The inflation rate for expenses is given below. The expenses that will be impacted by inflation
are as follow: (further information on expenses is given in meeting notes with an accountant)

a. Cleaning, repair and maintenance expenses (3%)

b. Electricity (3%)

c. Wages and salaries (10%)

d. Fringe benefits tax (5%)

e. Website and marketing expense (10%)

4. Profits will be built by making a secure customer base. Loyalty cards will be given at the stores.
The total cost to do so will be $12,000 to be included in advertising expenses.

5. To reduce the principle of loan amount by $80,000 from the current year profits generated.

6. Manage debtors more efficiently and reducing the amount in trade debtor account by $200,000.

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Financial statements for the last two years (Online Media Solutions)

Profit and Loss statement

Online Media Solutions Pty LTD.

For 12 months ended

Profit & Loss Actuals 2019/20 2020/21

Revenue

Sales 12,600,000 14,260,000

– Cost of Goods Sold 5,200,000 6,100,000

Gross Profit 7,400,000 8,160,000

Expenses

– Interest Expense 90,000 88,000

– Depreciation expenses 160,000 160,000

– Insurance expenses 24,000 24,600

– Store Supplies - 4,300

– Advertising 246,000 260,000

– Cleaning, Repairs & Maintenance 82,000 84,000

– Rent 2,500,000 2,750,000

– Website marketing expenses 14,000 16,000

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 – Electricity Expense 30,000 32,000

– Fringe Benefits Tax 34,000 38,000

– Wages & Salaries 2,200,000 2,400,000

– Superannuation 209,000 228,000

– Workers’ Compensation 44,000 48,000

Total Expenses 5,633,000 6,132,900

Net Profit (Before Tax) 1,767,000 2,027,100

Income Tax 530,100 608,130

Net Profit 1,236,900 1,418,970

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Balance Sheet

Statement of financial position

Online Media Solutions Pty LTD.

Statement of Financial Position

As at 30 June 2019/20 2020/21

Assets

Current Assets

– Cash on Hand 90,000 98,000

– Cheque Account 180,000 220,000

– Deposits Paid 1,200,000 1,200,000

– Trade Debtors 1,115,000 1,230,000

– Merchandise Inventory 1,600,000 1,720,000

Total Current Assets 4,185,000 4,468,000

Fixed Assets

– Cost of motor vehicle 600,000 600,000

– Accumulated Dep (120,000) (120,000)

– Cost of Furniture & Fixtures 2,400,000 2,600,000

– Furniture & Fixtures Accumulated Dep (720,000) (780,000)

– Cost of Office Equip 500,000 500,000

– Office Equip Accumulated Dep (100,000) (120,000)

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Total Fixed Assets 2,560,000 2,680,000

Total Assets 6,745,000 7,148,000

Liabilities

Current Liabilities

– Credit card 32,000 36,000

– Trade Creditors 700,000 730,000

– GST Collected 1,260,000 1,426,000

– GST Paid (840,000) (890,000)

– Superannuation Payable 209,000 228,000

– income Tax Payable 530,100 608,130

Total Current Liabilities 1,891,100 2,138,130

Long-Term Liabilities -

– Bank Loans 1,800,000 1,600,000

Total Liabilities 3,691,100 3,738,130

Equity

– Owner/Shareholder’s Equity 700,000 700,000

– Retained Earnings 1,000,000 1,200,000

– Dividends Paid (397,100) (497,230)

– Current Year Earnings 1,767,000 2,027,100

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Total Equity 3,053,900 3,409,870

Notes from meeting with Accountant:

Notes from meeting with Accountant:

 The sales target for the year 2021/2022 set in the business plan is 18,000,000. The proportion
expected from the analysis of the previous study for each quarter is as follow:

Quarter 1: 22%

Quarter 2: 30%

Quarter 3: 21%

Quarter 4: 27%

 The cost of goods sold will be in the same proportion as 2020/21.

 Rent expense will increase by 10% this year.

 Store supplies will be the same as the previous year.

 Interest expense for the current year will decrease by the amount of $6,000.

 A new expense is to be included in the new budget that will be under the name of cleaning and
maintenance labour charges. 60% of the amount from cleaning and maintenance expenses will
be included in this expense. Only 40% will be accounted for in cleaning and maintenance
expense.

 Depreciation will be the same as the previous year.

 An expected increase in expenses: (inflation rate given in business plan summary)

o Cleaning, repair and maintenance expenses

o Electricity

o Wages and salaries

o Fringe benefit tax

o Website and marketing expense

 The following expenses will be paid in equal amount for each quarter:

o Rent expense

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 o Interest expense

o Insurance expense

o Website marketing expense

o Depreciation expense

o Advertising expense

 Store supplies expense will be paid in the third quarter.

 Other expenses will be distributed based on the proportion of sales made in each quarter.

 Statutory requirements

o Superannuation: 9.5%

o Company tax: 30%.

o Workers compensation: 2%

 Based on the analysis of historical data, it is expected that the debtor's balance at the end of
each quarter is expected to be 15% of the sales made. Furthermore, it is expected that 1% of
the debtor balance will be overdue for 90 days, 4% overdue for 60 days and 10% for 30 days.

For GST cash flow budget:

 Statutory requirements: 10% of recorded sales. No capital purchase is recorded for this year.
However, the expenses where the GST will be paid include.

o Insurance expense

o Store supplies

o Advertising expense

o Cleaning, Repairs & Maintenance

o Electricity expense

o Website marketing expense

 GST cash flow is to be maintained to maintain audit trial. This will ensure that there are
discrepancies between agreed and actual allocations for cash flow analysis for GST are
identified.

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Online Media Solutions Budgeting policy and procedures

Budget Development Process

The standard process for developing budgets will follow the following steps:

1. Identify budget objectives

2. Gather previous years financial data.

3. Gather anticipated changes in the budget from the stakeholders.

4. Incorporate identified trends.

5. Develop a budget based on the formats provided in MS excel.

6. Final approval.

Budget Objectives

Online Media Solutions prepares budgets to meet various company objectives. Budgets are prepared:

● To have more realistic figures on the company’s future growth and profit.

● To predict cash flow.

● To comply with the statutory and legislative requirements.

● To allocate funds.

● To have a birds-eye view on the trade debtors.

Guidelines for the preparation of budget

● Conduct a detailed analysis of previous financial data to identify different quarters of the financial
year that have generated a profit or loss and accurately determine resources allocation for each
quarter of the budget.

● Ensure that you critically review the ‘Business plan’ given in the case study to establish critical
dates of the transactions and allocate the same in the budget for the next financial year.

● Make informed estimates of new items given in ‘Business plan for inclusion in the budget.

● Review statutory requirements given in the case study to prepare a budget that is compliant and
correctly documents the company’s liabilities for tax.

Budget Variances and Schedules

● KPI’s that should be monitored:

 Variance in sales

 Variance in gross profit

 Variance in total expenses as a percentage of the sale

● Budget variance is to be calculated for each quarter. It should be completed within the last week

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 of the quarter.

● Reports on variance are to be provided to the General Manager of the organisation.

● Priorities in an investigation of the variances.”

 Identifying the primary cause of the variance.

 Identify the reasons that led to this cause.

● The accountant has the responsibility to manage compliance due dates.

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Your role and responsibilities

You are working as Finance Manager in ‘Online Media Solutions’. You report to the General Manager
of the organisation.

The General Manager wants you to manage finances of Online Media Solutions’. This includes
contributing to reviewing financial information, analysing financial risks, preparing a budget and
reporting on financial activity.

As part of your job role, you have the following responsibilities:

 Analyse critical dates and initiatives in the business plan and cash flow trends

 Assess reasons for losses or profits identified in previous financial reports

 Examine statutory compliance requirements and tax liabilities.

 Examine existing software to determine its suitability for financial management.

 Create a budget based on previous financial data in accordance with compliance, organisational,
and statutory requirements.

 Distribute budgets and ensure managers and supervisors are aware of budgets, reporting
requirements, and financial delegations.

 Ensure that there are no opportunities for funds to be misappropriated.

 Examine and revise profit and loss statements, cash flows, and ageing summaries as needed.

 Using audit trails, identify discrepancies between agreed-upon and actual allocations.

 Determine the requirements for organisational and statutory financial reporting.

 Identify and prioritise key issues in statements for review and decision-making.

 Make financial recommendations.

 Examine the efficiency of financial management processes.

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Project
This assessment task requires you to take on the role of Finance Manager in Online Media Solutions.

This assessment task requires you to demonstrate the skills and knowledge required to manage the
finances of the organisation given in the case study. It includes contributing to the review of financial
information, analysing financial risks, preparing a budget, and reporting on financial activity.

To do so, you are required to complete the following activities:

● Activity 1: Prepare for financial management

● Activity 2: Develop budget from previous financial data and notes from the
accountant

● Activity 3: Circulate budgets

● Activity 4: Prepare budget variance report

● Activity 5: Prepare a report on the effectiveness of existing financial-management

approaches

The roles and their responsibilities: Relationships with stakeholders such as External
financial advisers and General manager

The assessment task requires you to communicate with a number of organisational stakeholders. The
main roles applicable to the assessment task includes:

Role number 1: General Manager: The General Manager is the individual who supervises or is in
charge of the organisation. They belong to a higher rank or status. Their job role and responsibilities
are:

 Assign a team to you to complete the project.

 Assist you in understanding the task requirements.

 Provide you with information about job roles and responsibilities.

 Supervise you in completing the assessment task and requirements.

 Participate in meetings based on the Script provided.

Role number 2: Managers and supervisors: The managers and supervisors are the student’s co-
worker or workfellow. They are associates that the candidate works with. Their job role and
responsibilities are:

 Assist you in completing the project on time.

 Participate in a healthy and open discussion.

 Participate in meetings based on the Script provided.

Note:

 The trainer/assessor will take on the role of General Manager.

 The trainer/assessor will assign the roles of stakeholders for each activity.
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  Each student will be assessed individually for all assessment activities.

Task requirements

 You will be assessed on your technical knowledge and skills to complete this project

 You will be assessed on working in a team environment and meeting your job role and
responsibilities.

 You must follow the instructions provided by the General Manager.

 All individuals must complete their role and assigned responsibilities and meet the specified
deadlines.

 The task must be completed in the specified timeframe.



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Activity 2.1: Prepare for financial management
This activity requires you to prepare for the financial management of Online Media Solutions.

To do so, you must follow the steps given below and documents the outcomes using Template 1.

 Step 1: Evaluate reasons for profits identified from the financial reports of the
previous year.

 Analyse the financial statements of the Online Media Solution given in the case study.

 Determine and document reasons for profits identified from the financial reports.

 Document the following using Template 1.

 Profits of Online Media Solutions in the last two (2) years.

 Two (2) reasons for profits earned by the Online Media Solutions.

 An explanation of each reason.

 Step 2: Analyse critical dates and initiatives in the business plan and cash flow
trends.

 Analyse the financial statements and business plan summary of the Online Media
Solution given in the case study.

 Determine the critical dates and initiatives that will require or generate resources for
Online Media Solution Pty LTD. in the next financial cycle and document using
Template 1.

 Step 3: Examine statutory compliance requirements and tax liabilities.

 Assess the operations of the Online Media Solutions, conduct online research,
examine and document the following using Template 1.

 Statutory requirements

 Compliance requirements

 Tax liabilities

 Step 4: Examine existing software to determine its suitability for financial

management.

 Determine the operations of the training organisation based on the information

given in the case study.

 Conduct online research, examine two (2) existing software packages in the
market and determine their suitability for the financial management of Online
Media Solutions.

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  Document the following using Template 1.

 Two (2) existing software in the market.

 Features of each software and their suitability for the financial management of the
Online Media Solutions.

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Template 1: Prepare for financial management

Prepare for financial management (800-1000 words)

Reasons for the profits identified from the financial reports of the previous year

 Profits of Online Media Solutions in the last two (2) years.

 Two (2) reasons for profits earned by the Online Media Solutions.

 An explanation of each reason.

Online Media Solutions has experienced steady financial growth over the past two years, as reflected
in the net profit figures:

 2019/20 Net Profit: $1,236,900

 2020/21 Net Profit: $1,418,970

This increase in profitability demonstrates the company's ability to manage expenses while increasing
revenue through effective business strategies.

Two Reasons for Profits Earned by Online Media Solutions

1. Increase in Sales Revenue

o Online Media Solutions experienced a significant rise in revenue from $12.6 million
(2019/20) to $14.26 million (2020/21).

o This increase was driven by a strategic sales and marketing plan, improved digital
advertising, and an expanding client base.

o The company successfully leveraged online platforms to attract new customers and
retain existing ones, leading to higher contract values and recurring revenue streams.

2. Efficient Cost Management

o Despite an increase in revenue, the company maintained a controlled approach to

expenses, ensuring higher profit margins.

o Interest expenses slightly declined, and depreciation costs remained stable, preventing
unnecessary financial strain.

o By implementing better financial planning and negotiation strategies, the company

optimized operational costs without compromising service quality.

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 Critical dates and initiatives that will require or generate resources for Online Media Solution Pty LTD.
in the next financial cycle

 Key Dates and Financial Events

 Q1 (July - September 2021): 22% of total revenue expected; marketing campaigns launch.

 Q2 (October - December 2021): 30% of total revenue expected; peak sales season.

 Q3 (January - March 2022): 21% of total revenue expected; budget review and cost control
measures.

 Q4 (April - June 2022): 27% of total revenue expected; evaluation of financial performance.

 Planned Financial Initiatives

 Sales Growth Target: The company aims to generate $18 million in revenue for the next
financial year.

 Expense Adjustments:

o Rent increase: 10%

o Wages & salaries increase: 10%

o Fringe benefits tax increase: 5%

o Marketing & website expenses increase: 10%

 Debt Reduction: The company plans to reduce the loan principal by $80,000.

 Trade Debtor Reduction: Strategy to reduce trade debtors by $200,000 through better
credit management.

 New Loyalty Program: A $12,000 budget allocated under advertising to improve customer
retention.

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 Statutory compliance requirements and tax liabilities

1. Corporate Tax Obligations

o Online Media Solutions is subject to 30% corporate tax on its taxable income.

o The company must ensure timely tax filings and payments to avoid penalties.

2. GST Compliance

o As a business with an annual turnover exceeding the GST threshold, Online Media
Solutions must file quarterly BAS (Business Activity Statements).

3. Payroll Tax and Superannuation

o The company is required to contribute 10% of employee earnings toward the

superannuation guarantee.

o Payroll tax compliance must be ensured if wages exceed the state-specific threshold.

4. Fringe Benefits Tax (FBT)

o FBT applies to certain employee benefits, requiring accurate record-keeping and

reporting.

Examination of existing software

 Two (2) existing software in the market.

 Features of each software and their suitability for the financial management of the Online
Media Solutions.

1. Two Existing Software Solutions in the Market

2. Xero

o Features:

 Cloud-based accounting system

 Automated bank reconciliations

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  Real-time financial reporting

 Payroll management and tax compliance

o Suitability for Online Media Solutions:

 Ideal for small-to-medium businesses requiring efficient financial management.

 User-friendly interface, enabling the finance team to generate reports easily.

 Seamless integration with various payment gateways and CRM systems.

3. MYOB Advanced

o Features:

 Enterprise-level accounting software

 Advanced budgeting and forecasting tools

 Payroll and HR management capabilities

 Customizable reporting dashboards

o Suitability for Online Media Solutions:

 Suitable for businesses with complex financial operations and large-scale

transactions.

 Provides enhanced financial control with automated compliance tracking.

 Scalable for future business expansion and financial planning.

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Activity 2.2: Develop budget from previous financial data and
notes from the accountant
This activity is a continuation of Activity 1.

This activity requires you to conduct an analysis of the past outcomes and prepare the following
budgets based on this analysed information and the budget plan summary.

 Sales and profit budget

 GST Cash flow budget

 Debtor ageing summary

The budgets must be prepared on a quarterly basis.

When preparing the budgets, you must ensure that you:

 Conduct a detailed analysis of previous financial data to identify different quarters of the
financial year that have generated a profit or loss and to accurately determine the allocation of
resources for each quarter of the budget.

 Ensure that you critically review the ‘Business plan summary’ given in the case study to
establish critical dates of the transactions and allocate the same in the budget for the next
financial year.

 Make informed estimates of new items given in ‘Business plan summary’ for inclusion in the
budget

 Review statutory requirements given in the case study to prepare a budget that is compliant and
correctly documents the company’s liabilities for tax.

The following formats will be used when preparing Online Media Solutions budgets.

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Sales and Profit Budgets:

PROFIT BUDGET 2021/22 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4

Revenue - % % % %

Sales x,xxx x,xxx x,xxx x,xxx x,xxx

– Cost of Goods Sold x,xxx x,xxx x,xxx x,xxx x,xxx

Gross Profit Calculation Calculation Calculation Calculation Calculation

Calculation Calculation Calculation Calculation Calculation

Expenses

– Interest Expense x,xxx x,xxx x,xxx x,xxx x,xxx

– Depreciation expenses x,xxx x,xxx x,xxx x,xxx x,xxx

– Insurance expenses x,xxx x,xxx x,xxx x,xxx x,xxx

– Store Supplies x,xxx x,xxx x,xxx x,xxx x,xxx

– Advertising x,xxx x,xxx x,xxx x,xxx x,xxx

– Cleaning, Repairs & Maintenance x,xxx x,xxx x,xxx x,xxx x,xxx

– Cleaning and maintenance labour x,xxx x,xxx x,xxx x,xxx x,xxx

charge

– Rent x,xxx x,xxx x,xxx x,xxx x,xxx

– Website marketing expenses x,xxx x,xxx x,xxx x,xxx x,xxx

– Electricity Expense x,xxx x,xxx x,xxx x,xxx x,xxx

– Fringe Benefits Tax x,xxx x,xxx x,xxx x,xxx x,xxx

– Wages & Salaries x,xxx x,xxx x,xxx x,xxx x,xxx

– Superannuation x,xxx x,xxx x,xxx x,xxx x,xxx

– Workers’ Compensation x,xxx x,xxx x,xxx x,xxx x,xxx

Total Expenses x,xxx x,xxx x,xxx x,xxx x,xxx

Net Profit (Before Tax) x,xxx x,xxx x,xxx x,xxx x,xxx

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 PROFIT BUDGET 2021/22 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4

Income Tax x,xxx x,xxx x,xxx x,xxx x,xxx

Net Profit x,xxx x,xxx x,xxx x,xxx x,xxx

GST Cash Flow Budget

CASH FLOW ANALYSIS –

GST 2021/22 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4

GST Collected x,xxx x,xxx x,xxx x,xxx x,xxx

Less GST Paid x,xxx x,xxx x,xxx x,xxx x,xxx

GST Payable Calculation Calculation Calculation Calculation Calculation

Aged Debtors

AGED DEBTORS BUDGET TOTAL Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4

Total Debtors x,xxx x,xxx x,xxx x,xxx x,xxx

Current % % % %

30 Days % Calculation Calculation Calculation Calculation

60 Days % Calculation Calculation Calculation Calculation

90 Days % Calculation Calculation Calculation Calculation

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Aged Debtors

AGED DEBTORS BUDGET TOTAL Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4

Total Debtors x,xxx x,xxx x,xxx x,xxx x,xxx

Current % % % %

30 Days % Calculation Calculation Calculation Calculation

60 Days % Calculation Calculation Calculation Calculation

90 Days % Calculation Calculation Calculation Calculation

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Activity 2.3: Circulate budgets

 Your role will be to act as Finance Manager.

 Your trainer will act as Chris (CEO of the business)

 Your trainer/assessor will allocate the role of Senior Managers and Supervisors (2 each) to the
staff members.

 You will first document the budgetary notes and distribute them to the senior managers and
supervisors.

 You will then deliver a presentation on the budgets prepared in Activity 2 of this assessment
task.

 At last, you will engage in discussion with the stakeholders (Senior Managers, Supervisors and
General Manager) to address their issues.

Activity context:

You have successfully prepared the budget for the financial year 2021/2022. As per the company’s
procedures, the budget must be approved by the stakeholders before its implementation.

So, the General Manager of Online Media Solutions Pty LTD has called a meeting with you, senior
managers and the supervisors. The CEO also provided you with the information that he wants to discuss
the best option for the new accounting system based on the company guidelines of selecting the
accounting software (provided in the case study) in this meeting.

Description:

The General Manager of the organisation has asked you to prepare and deliver a presentation to
provide an overview of the information contained within the budget.

Before delivering the presentation, he wants you to prepare keynotes from the budget and
disseminate them to the stakeholders (Senior Manager, Supervisors and General Manager of the
company).

The key points that the notes must include are as follow:

 Major reasons for the previous profits and losses.

 Assumptions made within the budget.

 Notes to implement and monitor the budget expenditure on a regular basis.

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Task 2.3a Now, write an email to the stakeholders (as listed above). Share the key notes and copy
of the budget you prepared.

[Senior Managers, Supervisors, General Manager]

To:
[CEO - Chris]
Cc:
Circulation of Budget and Key Notes for Financial Year 2021/2022
Subject:
Dear Team,
I hope you are doing well. Please find attached the budget for the financial year 2021/2022. As part of the company’s financial
management process, we will be discussing the budget in our upcoming stakeholder meeting. Kindly review the document in
preparation for our discussion.
Below are the key notes summarizing the budget:
1. Major Reasons for Previous Profits and Losses:
 Increased Revenue Streams: Growth in online advertising and digital services contributed significantly to revenue.
 Cost Efficiency Measures: Reduction in marketing and operational expenses led to improved profit margins.
 Economic Challenges: Market fluctuations and increased competition impacted revenue generation in certain quarters.
2. Assumptions Made Within the Budget:
 Sales projections are based on historical data trends and anticipated market growth.
 Expense estimates include adjustments for inflation and planned operational improvements.
 Statutory compliance and tax liabilities are incorporated as per regulatory guidelines.
3. Notes on Implementing and Monitoring Budget Expenditure:
 Quarterly Review: Regular financial reviews will be conducted to ensure alignment with projections.
 Cost Control Measures: Continuous monitoring of overheads and operational costs.
 Stakeholder Reporting: Periodic updates will be provided to senior management and relevant departments.
Additionally, the CEO has requested a discussion on selecting a new accounting system based on company guidelines. Please be
prepared to provide your input on this during our meeting.
Looking forward to your feedback. Please let me know if you have any questions before the meeting.
Best regards,
[Vartesh]
Finance Manager
Online Media Solutions Pty Ltd

Task 2.3b After distributing the budget notes to the stakeholders (Senior Managers, Supervisors and
General Manager), he wants you to prepare a presentation that must include the
following:

 Overview of the following budgets:

 Sales and profit budget

 GST cash flow budget

 Debtor ageing summary

Note: You can use screenshots of budgets you prepared in the spreadsheets in your presentation.

 Reporting requirements for each quarter.

 Financial delegations of Senior managers, managers and supervisor for budget

implementation.

 Reasons for previous profit and loss for each quarter.

Attach PowerPoint presentation as a separate file.

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Task 2.3c After delivering the presentation, you will be required to address the concerns of the
stakeholder’s present during the meeting.

To do so, you must answer the questions asked by the stakeholders and document your
response using Template 2.

The following questions are to be asked by the stakeholders (Senior Managers and
Supervisors)

Questions

Senior Manager 1:

1. What are the current statutory requirements for tax compliance?

2. How can we avoid misappropriation of funds?

Senior manager 2:

3. Which is the most suitable commercially available financial-management accounting

software for Online Media Solutions, and why?

Supervisor 1:

4. What are the implications of probity in the preparation and revision of budgets?

5. What are the critical dates and initiatives that will require or generate resources for Online
Media Solutions Pty LTD. in the next financial cycle?

Supervisor 2:

6. What other items do you think should be included in the budgets for the company?

7. What internal controls should be implemented to improve risk management for maintaining
audit trials?

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Template 2: Record answers to the questions asked by the stakeholders

Answer to the questions asked by the stakeholders (300-400 words)

Senior Manager 1:

1. What are the current statutory requirements for tax compliance?

 Online Media Solutions must comply with the following statutory tax requirements:

 Goods and Services Tax (GST): The company must register for GST and submit quarterly
Business Activity Statements (BAS) to the Australian Taxation Office (ATO).

 Income Tax: Corporate tax must be paid on net profits, and instalments should be planned as
per ATO guidelines.

 Payroll Tax: The company must adhere to state-based payroll tax requirements if wages
exceed the threshold.

 Superannuation Guarantee: Employers must contribute 11% (subject to changes) of an

employee’s ordinary earnings to their super fund.

 Fringe Benefits Tax (FBT): The company must declare any non-cash benefits provided to
employees and pay the applicable tax.

3. How can we avoid misappropriation of funds?

 To prevent fund misappropriation, Online Media Solutions should implement the following
measures:
 Segregation of Duties: Ensuring that financial responsibilities are divided among different
employees.
 Regular Audits: Conducting internal and external audits to identify discrepancies.
 Strict Approval Processes: Requiring multiple approvals for significant transactions.
 Automated Accounting Systems: Using software with built-in fraud detection and real-time
tracking.
 Clear Expense Policies: Defining acceptable expenses and monitoring spending.

Senior manager 2:

1. Which is the most suitable commercially available financial-management accounting software for
Online Media Solutions, and why?

 The most suitable software options include:

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  Xero: Ideal for small to mid-sized businesses, cloud-based, integrates with banking, invoicing,
and payroll systems.

 MYOB Advanced: Comprehensive enterprise-level software with financial reporting and tax
compliance features.

 Recommendation: Xero is preferred for its ease of use, real-time financial tracking, and
automated tax compliance capabilities.

Supervisor 1:

1. What are the implications of probity in the preparation and revision of budgets?

 Ensures transparency and accountability in financial planning.

 Maintains compliance with regulatory frameworks and ethical financial management.

 Prevents financial misstatements and fraud.

 Enhances stakeholder confidence in budget accuracy.

2. What are the critical dates and initiatives that will require or generate resources for Online
Media Solutions Pty LTD. in the next financial cycle?
 Quarterly BAS Filing: Submission due at the end of each quarter.
 Annual Tax Returns: Corporate tax filing deadline.
 End of Financial Year Reporting: Preparation of financial statements.
 Software Upgrade Initiative: Implementation of new accounting software.
 Marketing Campaigns: Scheduled ad spends for customer acquisition.

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 Supervisor 2:

1. What other items do you think should be included in the budgets for the company?

 Training & Development: Allocating funds for employee upskilling.

 IT Infrastructure: Investment in security and data protection.

 Legal & Compliance Fees: Ensuring regulatory adherence.

 Customer Support Expansion: Resources for enhancing customer service.

3. What internal controls should be implemented to improve risk management for maintaining
audit trials?
1.
o Automated Record-Keeping: Using accounting software that tracks every
transaction.
o Access Control: Restricting financial data to authorized personnel.
o Regular Reconciliation: Ensuring financial records match bank statements.
o Audit Log Maintenance: Keeping track of system changes and financial entries.
o Whistleblower Policies: Encouraging reporting of fraudulent activities.

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Activity 2.4: Prepare budget variance report
Activity context:

After the end of the first quarter of the financial year, the General Manager of the company called up a
meeting to discuss the analysis report provided to him by the accountant of the organisation.

This analysis report includes the outcomes of the actual budget analysis for the first quarter budget.
The outcomes of the analysis report outcomes are not as expected. Following are some of the vital
outcomes:

 Sales are 3% less than budgeted.

 Gross profits have been impacted as the expenses are the same, but sales have gone down.

 The company had most part of their loan on variable interest rates. The interest rates have
increased, and that has impacted the interest expenses. The interest expense for this quarter is
increase by $4500.

 To maintain the sales the stores had to further give discounts of 5% on each item. That has
impacted the budget.

 Other actual expenses were the same as allocated.

 Total debtor sale decreased by 40,000.

 2% of debtor balance will be overdue for 90 days, 6% overdue for 60 days and 13% for 30 days.

You had a discussion with the General Manager. You both have agreed that this is largely due to the
following reasons:

 The economy overall is in a recession that is impacting the sales in the retail sector.

 The first quarter is generally impacted by the factors relating to public and school holidays.

The General Manager is also concerned about the outcomes of the audit trial conducted by one of the
internal auditors. Some of the outcomes are as follow:

 Cash record books not maintained properly.

 Some of the times, the company books and third-party bank statements were not reconciled
appropriately.

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Description of the activity:

Considering the outcomes of the analysis report, the General Manager of the company wants you to
prepare a budget variance report to manage risks that may occur in the organisation in case of
misappropriation of the funds.

This is also to be done to maintain audit trails for accurate tracking and identification of discrepancies
between agreed and actual allocations.

To do so, you are required to:

 Prepare the actual budget based on the outcomes of the analysis report.

 Compare the outcomes of the actual budget with the outcomes of the allocated
budget (Outcomes of Activity 2).

 Prepare budget variance report, GST Cash Flow Budget variance report and debtor
ageing variance report in MS excel by following the structure of templates provided.

You must make sure that when conducting an audit trail, you comply with due diligence in reviewing
financial statements.

Sales and Profit Budgets variance report:

PROFIT BUDGET Allocated Qtr. 1 Actual Qtr. 1

Revenue X - 3%
X
Sales X X - 3%

– Cost of Goods Sold X X

Gross Profit X X - 3%

Expenses

– Interest Expense X X + $4500

– Depreciation expenses X X

– Insurance expenses X X

– Advertising X X

– Cleaning, Repairs & Maintenance X X

– Cleaning and maintenance labour charge X X

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 PROFIT BUDGET Allocated Qtr. 1 Actual Qtr. 1

– Rent X X

– Website marketing expenses X X

– Electricity Expense X X

– Fringe Benefits Tax X X

– Discount provided X + 5% +5%

– Wages & Salaries X X

– Superannuation X X

– Workers’ Compensation X X

Total Expenses X X + 4500 + 5%

Net Profit (Before Tax) X X - Impacted

Income Tax X X - Impacted

Net Profit X X - Impacted

GST Cash Flow Budget variance report:

CASH FLOW ANALYSIS – GST Allocated Qtr. 1 Actual Qtr. 1

GST Collected X X - 3%

Less GST Paid X X

GST Payable X X - Impacted

Aged Debtors variance report:

AGED DEBTORS BUDGET

Allocated Qtr. 1 Actual Qtr. 1

Sales X X - 40,000

% Debtors Sales X% X%

Total Debtors X X - 40,000

Current X X

30 Days X X + 13%
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 AGED DEBTORS BUDGET
Allocated Qtr. 1 Actual Qtr. 1

60 Days X X + 6%

90 Days X X + 2%

Summary of Key Variances and Recommendations:

 Sales Decline (-3%): The economic recession and seasonal trends impacted sales. Additional marketing and
strategic pricing adjustments may be needed.
 Increased Interest Expense (+$4500): Due to variable interest rates, the company should consider
renegotiating loan terms or fixing the rate.
 Higher Discounts (5%): Discounting affected profit margins. A targeted promotional strategy should be
developed to sustain sales without excessive markdowns.
 Debtor Sales Decreased (-$40,000): Credit policies need reviewing to ensure timely collections and reduce
overdue accounts.
 Audit Trail Concerns:
o Improve cash record-keeping.
o Ensure reconciliation of company books with bank statements.
o Implement stronger internal controls to prevent fund mismanagement.

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Activity 2.5: Prepare a report on the effectiveness of existing
financial management approaches
This activity is a continuation of previous activities.

After preparing the budget variance report, the CEO of the organisation wants you to analyse and
prepare a report on the effectiveness of existing financial-management approaches.

To do so, you are required to:

 Analyse budget variance report, GST Cash Flow Budget variance report and debtor
ageing variance report:

 Identify the issues based on the information provided within the case study.

 Present views on how these issues can be resolved.

 Analyse the “Sales and Profit Budgets variance report” identify and prioritise the
significant issues, including the financial performance.

 Identify variances.

 Provide reasons for the variance.

 Document the steps that should be taken to maintain gross profit margins after
increasing expenses and a downturn in the number of sales.

 Conduct cash flow analysis to identify the debtor days. The analysis is to be conducted
based on the information provided in Activity 2.

 Check the financial viability of the company by comparing the performance of the company
with the industry benchmarks for the retail trade sector.

Present recommendations about the financial viability for the organisation based on the
analysis of the issues given in the case study, the identified reasons and the organisational
performance.

 Provide recommendation to manage such contingencies in the future.

 Review the financial management process based on your assessment of the issues, reasons and
organisational performance. Also, provide recommendations for improvement in improving
financial management processes.

 Identify and document some of the risks that the company can face in future based on the
outcomes of the audit trial conducted. Also, identify the risk of misappropriation of funds and
document a risk management approach.

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Instructions for preparing the report:
 The report must be prepared using Template 3.

 Minimum Word-limit is 1000 words.

 The report must include the following (use each of the dot point as heading):

 Report on the effectiveness of existing financial-management approaches/finances

 Issues

 Steps to resolve these issues

 Variances

 Reason for variances

 Steps to maintain gross profit margins

 Debtor days

 Financial viability of the company

 Your recommendations on the viability of the company

 Your recommendations for managing contingencies

 Recommendations for improvement in improving financial management processes.

 Risks that company can face in future based on the outcomes audit trial

 Risk of misappropriation of funds

 Risk management approach

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Template 3: Report
Executive Summary

This report evaluates the effectiveness of the existing financial management approaches of Online
Media Solutions Pty Ltd. It analyses the budget variance report, GST cash flow budget variance
report, and debtor aging variance report to identify key financial issues. It also provides
recommendations to improve financial management processes, maintain profitability, and mitigate
future risks.

Effectiveness of existing financial-management approaches/finances

The current financial management system has been effective in tracking revenue and expenses;
however, some inefficiencies have been identified. Budget allocations did not account for economic
downturns, interest rate fluctuations, and seasonal impacts. Furthermore, audit findings indicate gaps
in cash book maintenance and bank reconciliations, increasing the risk of financial mismanagement.

Issues

1. Sales decline by 3% due to economic recession and seasonal fluctuations.

2. Increased expenses without corresponding sales growth affected profit margins.

3. Interest rate increase raised expenses by $4,500.

4. Additional 5% discounting reduced revenue.

5. Poorly maintained cash records and reconciliation discrepancies.

6. Increased overdue debtor balances.

Steps to resolve these issues

1. Implement strategic pricing models to reduce dependency on discounts.

2. Improve financial forecasting to better account for economic changes.

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 3. Renegotiate loan terms to secure lower fixed interest rates.

4. Enhance sales strategies, including digital marketing and promotions.

5. Strengthen internal controls for cash book management and reconciliation.

6. Revise credit policies to improve debt collection and reduce overdue balances.

Variances

 Sales revenue fell by 3% compared to budgeted expectations.

 Increased interest expenses of $4,500.

 5% discounting led to reduced profit margins.

 Debtor sales dropped by $40,000.

Reason for variances

 Economic downturn impacting consumer spending.

 Seasonal factors leading to reduced sales.

 Variable interest rate increases.

 Higher discount rates reducing gross profit.

 Inefficiencies in debtor management.

Steps to maintain gross profit margins

1. Reduce dependency on heavy discounting.

2. Improve marketing efforts to increase sales volume.

3. Implement cost-control measures for operational expenses.

4. Introduce dynamic pricing models to maintain revenue.

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 5. Enhance debtor collection processes to improve cash flow.

Debtor days

 2% of debtors overdue for 90 days.

 6% overdue for 60 days.

 13% overdue for 30 days.

Financial viability of the company

Despite the short-term challenges, the company remains financially viable. Cash flow remains
positive, and long-term growth strategies can be adjusted to improve financial performance.

Your recommendations on the viability of the company

 Diversify revenue streams to reduce reliance on single income sources.

 Implement stricter credit policies to manage debtors.

 Improve financial planning and forecasting models.

 Enhance internal controls and risk mitigation measures.

Your recommendations for managing contingencies

1. Establish an emergency fund for financial downturns.

2. Develop alternative revenue generation strategies.

3. Implement cost-control mechanisms to offset revenue losses.

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 4. Secure fixed interest rates to reduce exposure to rate fluctuations.

Recommendations for improvement in improving financial management processes

 Conduct regular financial audits to ensure compliance.

 Improve cash flow tracking and bank reconciliation practices.

 Enhance budgeting methods to account for economic uncertainties.

 Train staff on financial risk management and internal controls.

Risks that company can face in future based on the outcomes audit trial

1. Poor cash book maintenance leading to financial discrepancies.

2. Non-reconciliation of accounts affecting accuracy of financial reports.

3. Increased risk of fraud due to weak internal controls.

Risk of misappropriation of funds

 Inadequate oversight on financial transactions.

 Lack of transparency in expense tracking.

 Weak audit trail increasing vulnerability to fraud.

Risk management approach

1. Strengthen internal financial controls.

2. Implement real-time financial monitoring systems.
3. Conduct regular staff training on financial compliance.
4. Ensure independent audits are conducted periodically.

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Version Number: 10.1 | Reviewed 7/6/24 Unit Code: BSBFIN601 Page 64 of 70
Activity 2.6: Financial Bids and Estimates

You have received an email from Zoe Lee, Customer Relations Manager, Zenith Tech Solutions, a
growing software company based at 730 Bourke St, Docklands. They are planning to revamp their office
pantry and snack options for their employees to enhance productivity and well-being. The company has
requested a comprehensive quote for providing a range of snack packages.

There are 300 employees in the company, and they are looking for at least two different snack package
options to cater to diverse preferences.

Using the provided template, prepare a detailed quote. Your proposal should include at least two
distinct snack packages/options.

Instructions:

1. Develop two comprehensive snack packages:

- Each package should include a description of the snacks, the quantity provided, and any additional
services (e.g., regular replenishment, special dietary options, packaging).
- Clearly itemise the cost for each component of the package.

2. Consider the following:

- Your prices need to be competitive as Zenith Tech Solutions is also seeking quotes from other
vendors.
- Ensure your proposal balances competitive pricing with high-quality products and a reasonable profit
margin.

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Template 4: Quote
QUOTE No. 8764
Online Media Solutions
ABN: 99 999 999 999 Date: _____25-03-2025______________

33 High Point Shopping Centre, Maribyrnong Expiry date ____30-03-2025_______________

Ph: 03 9999 9999

E: [email protected]

Contact name VARTESH CHAUDHARY

To Company name Zoe Lee Zenith Tech Solutions St,

Street address 730 Bourke

City, County/Region, Postcode Docklands Melbourne,
VIC 3008
Phone number 897867587768
Customer IDNo. 1234

salesperson JOB PAYMENT TERMS DUE DATE

Office Pantry Snack Supply 50% Deposit Required

ROHIT 25-03-2025

QTY DESCRIPTION UNIT PRICE LINE TOTAL

Classic Assorted Snacks

$750.0
(50g per pack) Mixed Nuts | $2.50 |
0 300

Granola Bars (assorted $600.0

1 | $2.00 |
0 300
flavors)

$660.0
(50g per pack) Dried Fruit Packs | $2.20 |
0 300 |

$1,050.
Protein Cookies (gluten-free | $3.50 | 00 300
option available) |

Assorted Herbal Teas $300.0

| $1.00 |
(individual sachets) 0|

|
Regular replenishment service | $200.00 | $200.0
(weekly refill) |
0

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 $3,560.
SUBTOTAL
00

(10%):
GST

TOTAL $3,916 .00

Quotation prepared by: _____VARTESH CHAUDHARY____________________________

 The prices are valid for 30 days only.

 50% of the total price will be required as part of the order confirmation.

To accept this quotation, sign here and return: ___________________________________

Thank you for your business!

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BSBFIN601 Manage organisational finances

Activity 2 – Project Checklist

Student’s Name _____VARTESH CHAUDHARY

Assessor’s name:

Satisfactory response: Yes No

Activity 2.1 – Prepare for financial management

Review the case study information and analyse the organisation’s

mission, visions, values and goals/objectives £ £
Create an agenda for the meeting containing the key points relating to: £ £
 Business vision, mission, values and objectives for input into the
business plan. £ £
 Performance objectives and key performance indicators to assess the
achievement of the objectives of the business plan. £ £
Discuss and explore the business vision, mission, values and objectives
for input into the business plan. £ £
Used listening and questioning to elicit feedback and opinions from the
Senior Management £ £
Provided opportunity for discussion £ £
Consulted and sought advice from the Senior Management regarding the
business plan’s key performance objectives and measures. £ £
Summarise the agreed outcomes using the meeting minutes template
provided £ £
Activity 2.2 – Develop budget from previous financial data and notes from the accountant
Examined advancements in learning practise in a specific vocational,
training, educational, or content field £ £
Reviewed the existing learning and assessment practices £ £
Explained how existing learning practices are developed, tested and
improved £ £
Taken into consideration the interests, abilities, relationships and the
contextual needs of relevant individual learners. £ £
Taken into consideration the interests, abilities, relationships and the
contextual needs of relevant individual learners. £ £
Research on a range of appropriate learning theories and instructional
design principles £ £
Explored how different relevant learning theories and instructional
design principles can improve learning practise. £ £
Ensured the learning practice reflects the qualification requirements for
nominated qualification/s. £ £
Discussed the need to ensure learning practice reflects the qualification
requirements for nominated qualification/s. £ £

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 Activity 2.3 – Circulate budgets
Prepared and delivered a presentation to provide an overview of
information provided in the budget £ £
Prepared keynotes prior to presentation, including £ £
Major reasons for the previous profits and losses. £ £
Assumptions made within the budget. £ £
Notes to implement and monitor the budget expenditure on a regular
basis. £ £
Overview of sales and profit budget £ £
Overview of GST cashflow budget £ £
Debtor ageing summary £ £
Answers to stakeholder questions: £ £
What are the current statutory requirements for tax compliance? £ £
Which is the most suitable commercially available financial-management
accounting software for Online Media Solutions Pty LTD.? £ £
What are the implications of probity in the preparation and revision of
budgets? £ £
What are the critical dates and initiatives that will require or generate
resources for Online Media Solutions Pty LTD. in the next financial cycle? £ £
What other items do you think should be included in the budgets for the
company? £ £
What internal controls should be implemented to improve risk
management for maintaining audit trials? £ £
Activity 2.4 – Prepare budget variance report

Prepare the actual budget based on the outcomes of the analysis report. £ £
Compare the outcomes of the actual budget with the outcomes of the
allocated budget (Outcomes of Activity 2). £ £
Prepare budget variance report using MS excel by following the structure
of templates provided £ £
Prepare the GST Cash Flow Budget variance report using MS excel by
following the structure of templates provided £ £
Prepare the debtor ageing variance report using MS excel by following
the structure of templates provided £ £
Activity 2.5 – Prepare a report on the effectiveness of existing financial management
approaches
Analyse budget variance report, GST Cash Flow Budget variance report
and debtor ageing variance report: £ £
Identify the issues based on the information provided within
£ £
Present views on how these issues can be resolved.
£ £
Analyse the “Sales and Profit Budgets variance report” identify and
prioritise the significant issues, including the financial performance. £ £

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 Identify variances. £ £
Provide reasons for the variance. £ £
Document the steps that should be taken to maintain gross profit
margins after increasing expenses and a downturn in the number of £ £
sales.
Conduct cash flow analysis to identify the debtor days. £ £
Check the financial viability of the company £ £
Present recommendations about the financial viability for the
organisation based on the analysis of the issues given in the case study, £ £
the identified reasons and the organisational performance.
Provide recommendation to manage such contingencies in the future. £ £
Review the financial management process based on your assessment of
the issues, reasons and organisational performance.
Provide recommendations for improvement in improving financial
management processes.
Identify and document some of the risks that the company can face in
future based on the outcomes of the audit trial conducted.
Identify the risk of misappropriation of funds and document a risk
management approach.
Report includes all sections required

Activity 2.6 – Created financial bid

Feedback to Student:

Result o Satisfactory o Not Yet Satisfactory

Assessor’s Signature: Date:

Version Number: 10.1 | Reviewed 7/6/24 Unit Code: BSBFIN601 Page 70 of 70