Student_assessment_BSBSMB406-edited

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BSBSMB406

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Accounting

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Apr 3, 2024

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PreparationDate:AUG2020 ProposedReviewDate:AUG2021– VerifiedBy:trainingManager| Approvedby CEO RTO No: 31250 | CRICOS Provider Code: 03579K Assessment Resource Summary Unit Details BSBSMB406 - Manage small business finances Assessment Type This is a summative assessment , which requires each student to have adequate practice prior to undertaking this assessment This assessment has been contextualised for Building and Construction, and must be undertaken in a real or simulated Building and Construction environment Assessment Written reports etc. Assessment 1 - 4 Written assessment Assessment 5 (Written Assessment attached) Last Modification Date AUG2020 Verified By: Training Manager Proposed Review Date AUG2021 Approved by: CEO Version no. UED- 001

PreparationDate:AUG2020 ProposedReviewDate:AUG2021– VerifiedBy:trainingManager| Approvedby CEO RTO No: 31250 | CRICOS Provider Code: 03579K Unit Summary This unit describes the skills and knowledge required to implement and review financial management strategies on a regular basis. It applies to individuals who operate a small business that stands alone, or is part of a department within a larger organisation. Individuals in this role interpret financial reports and other numerical data to develop financial management strategies.

PreparationDate:AUG2020 ProposedReviewDate:AUG2021– VerifiedBy:trainingManager| Approvedby CEO RTO No: 31250 | CRICOS Provider Code: 03579K ASSESSMENT SUMMARY / COVERSHEET This form is to be completed by the assessor and used a final record of student competency. All student submissions including any associated checklists (outlined below) are to be attached to this cover sheet before placing on the students file. Student results are not to be entered onto the Student Database unless all relevant paperwork is completed and attached to this form. Student Name: Student ID No: Final Completion Date: Unit Code: BSBSMB406 Unit Title: Manage small business finances Please attach the following documentation to this form: Result S = Satisfactory NS = Not Satisfactory Assessment 1  Explanatory memorandum attached S | NS Assessment 2  Updated cash flow statement attached  List of a minimum of two people  Business letter to the sales manager S | NS Assessment 3  Proposal document for equipment purchase  Calculation of the debt ratio S | NS Assessment 4  Copy of profit and loss account with calculated gross and net profit amount attached  Financial performance analysis and 3 marketing strategies S | NS Assessment 5  Written assessment attached S | NS Final Assessment Result for this unit C / NYC Student Feedback: ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________

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PreparationDate:AUG2020 ProposedReviewDate:AUG2021– VerifiedBy:trainingManager| Approvedby CEO RTO No: 31250 | CRICOS Provider Code: 03579K ________________________________________________________________________________ ________________________________________________________________________________ Student Declaration: I declare that I have been assessed in this unit, and I have been advised of my result. I also am aware of my appeal rights. Name: ________________________________ Signature: ____________________________ Date: ____/_____/_____ Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback Name: ________________________________ Signature: ____________________________ Date: ____/_____/_____ Administrative use only Entered onto Student Management Database  ________________ Date Initials Student Instructions BSBSMB406 - Manage small business finances Metharom Construction (MC) plans to become a leading provider of housing construction and renovation services in the South-East Melbourne area. The company's overall strategy will be based on a continuing improvement process of setting objectives, measuring results, and providing feedback to facilitate further growth and progress. They have been involved in large scale construction for 3 years and are now branching out to residential housing. During this unit, you will need to take on the role of an administration manager. Your responsibilities are to: lodge payments from clients, reconcile departmental finances, accounts payable, assist in resolving financial disputes, prepare pricing of subcontractors, analyse expenses, and provide supporting documentation for financial records, financial analysis. For more information regarding Metharom Construction, please see the appendices and

PreparationDate:AUG2020 ProposedReviewDate:AUG2021– VerifiedBy:trainingManager| Approvedby CEO RTO No: 31250 | CRICOS Provider Code: 03579K company policy documentation. Assessment 1: Prepare an explanatory memorandum about financial performance and record keeping requirements. (Maximum of 500 words) The operations manager of Metharom Construction has asked you to prepare an explanatory memorandum for the accounting staff. They have requested that you include the following information: A) a description of a minimum of 5 financial records that the company must maintain METHROM ACCOUNTING Staff  employment records — hours of work, overtime, remuneration or other benefits, leave, superannuation benefits, termination of employment, type of employment, personal details of workers, employee personal contact and employment details  sales records — invoice books, receipt books, cash register tapes, credit card documentation, credit notes for goods returned and a record of goods used by the business owner personally  proof of purchases — cheque butts (larger purchases), petty cash system (smaller cash purchases), receipts, credit card statements, invoices, any other documents relating to purchases including copies of agreements or leases  a cash book or financial accounting program — that records cash receipts and cash payments  bank accounts — cheque books, deposit books and bank statements B) any three factors while selecting software that could assist with finance management for small business  User-Friendly Software The ease of use is a prime factor to consider when buying accounting system. The user- friendly software provides you with a dashboard that shows charts giving the financial status of your company.  Secure Data The market trend is to use web-based accounting software. You should also invest in such tool and not in the desktop-based ones. The heydays of desktop-based software tools are

PreparationDate:AUG2020 ProposedReviewDate:AUG2021– VerifiedBy:trainingManager| Approvedby CEO RTO No: 31250 | CRICOS Provider Code: 03579K fading fast.  Customer Support Switching to new accounting software, however, user-friendly or advanced, is a bit uncomfortable to everyone involved. Be sure that from time to time you or the staff are going to need support from an expert. The product’s user manual is not going to have all the answers. C) list any 5 regulatory requirements for lodgement and payment of statutory obligations staff salaries and awards conditions When a business has a registered agreement in place and it covers the work that the employee does, then the minimum pay and conditions in the agreement will apply. If there’s no registered agreement that applies and an award covers the employer and the work the employee does, then the minimum pay and conditions in the award will apply. income tax return The company reports its taxable income, tax offsets and credits, PAYG instalments and the amount of tax it is liable to pay on that income or the amount that is refundable. workers compensation insurance Workers compensation is payable to a worker who suffers an injury or disease arising out of or in the course of their employment. Inventory Costs These are all the direct and indirect costs that are associated with keeping inventory. They include taxes, storage costs, insurance and shortage costs. Inventory is divided into 3 categories; raw materials, work in progress and the finished product. Utility expenses Normally, business expenditure should be separated from personal and capital expenses and all the overheads used in figuring the cost of goods sold. Business owners can also claim immediate deductions for capital assets like computers, plant and equipment and any vehicles that cost them less than $20,000 each. D) a set of policies for progress payment (minimum 3) all agreement more than $20000 in esteem should have an advancement installment plan the policy should include dispute resolutions and contingency plans progress instalment should coordinate with the work completed and, for cost in addition to contracts, be upheld by receipts or other confirming records. E) explain how financial performance will be monitored (include a minimum of 2 key performance indicators)

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PreparationDate:AUG2020 ProposedReviewDate:AUG2021– VerifiedBy:trainingManager| Approvedby CEO RTO No: 31250 | CRICOS Provider Code: 03579K profitability ratios Profitability ratios are financial metrics used by analysts and investors to measure and evaluate the ability of a company to generate income (profit) relative to revenue, balance sheet assets, operating costs, and shareholders’ equity during a specific period of time. They show how well a company utilizes its assets to produce profit and value to shareholders. interest cover ratio The interest coverage ratio is a debt and profitability ratio used to determine how easily a company can pay interest on its outstanding debt. The interest coverage ratio may be calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense during a given period. F) set of minimum 6 written financial procedures for Metharom which will help in financial health check for stakeholders expenditure is approved correctly An employee who has been assigned budget in the financial system and therefore has signing authority to make expenditures within the amounts and scope of his/her budget and within maximum limits. reporting and decision-making task In fact, financial analysis and reporting are one of the bedrocks of modern business. Financial analysis and reporting offer a level of insight that helps businesses remain compliant while streamlining their income or expenditure-centric initiatives across the board. Legitimate expenses to be covered Operating expenses are the expenses you incur in the everyday running of your business. Examples include office stationery, renting premises and purchase of trading stock. These expenses are sometimes called working or revenue expenses. Analyze the Balance Sheet The balance sheet is a statement that shows a company’s financial position at a specific point in time. It provides a snapshot of its assets, liabilities, and owners’ equity. Analyze the Income Statement The income statement shows a company’s financial position and performance over a period by looking at revenue, expenses, and profits earned. It can be created for any period using a trial balance of transactions from any two points in time. Analyze the Cash Flow Statement The cash flow statement provides detailed insights into how a company used its cash during an accounting period. It shows the sources of cash flow and different areas where money was spent, categorized into operations, investing, and financing activities. Finally, it reconciles the beginning and ending cash balance over the period. G) This document must then be sent electronically to the Operations Manager (your assessor)

PreparationDate:AUG2020 ProposedReviewDate:AUG2021– VerifiedBy:trainingManager| Approvedby CEO RTO No: 31250 | CRICOS Provider Code: 03579K as well as submitted in hard copy. from Buddhika Assessment 2: Record anticipated payments, and communicate with relevant personnel. (Maximum of 300 words) Metharom is expecting payments from a number of clients. Invoices relating to these payments have been provided in appendix A. The cash flow statement does not include this amount. A) You are required to calculate the total cash receipts and enter into the cash flow statement (appendices). All the outstanding balance from the invoices is received. Update the cash flow statement for the period ended October 31, 2016.The total amount for cash and cash equivalents at the end of period will change accordingly. B) Create a list of a minimum of two people within Metharom Construction that must be informed when the payments arrive and send it to relevant people. when we received the payment site supervisor & builder need to be informed. In total, this assessment must be no more than 300 words. Write a business letter to the sales manager that recommends a minimum of two other documents that could be automated, and explains the benefits of automation. 2B) Sales manager Metharom constructions Dear sir, hope you had a good weekend I just want you to heads up bit important fact regarding automated documents such as invoices and bank statements. If we can get those important documents as automated it will reduce human error and will be issue on time without any problem. And also, we can save lots of money as we don’t need to print each and every document. We can access all document online or cloud base. Let me know your thought Thanks

PreparationDate:AUG2020 ProposedReviewDate:AUG2021– VerifiedBy:trainingManager| Approvedby CEO RTO No: 31250 | CRICOS Provider Code: 03579K Buddhika You will need to submit both a hard and soft copy of the template as well as the test document to your assessor. Assessment 3: Create a proposal for equipment purchasing. (Maximum of 300 words) Financing is needed to fund new equipment for the build sites. A)You are required to create a business proposal to buy a truck (Tipper Trucks) suitable for Rubbish removal, sand and soil delivery, demolition clearing work, and this proposal will be discussed during the shareholders meeting. The proposal should include how buying the vehicle will help reduce long-term costs for Metharom. To Management Dear Faheem business proposal to buy a truck As we discussed in the meeting last week, I want to suggest you buy a truck for our building sites as we are getting more sites than last year My suggestion is tipper truck that will be suitable for rubbish removal, sand and soil delivery, demolition work and other small deliveries Now we are hiring The Glenorchy truck hire company for our daily jobs and we are spending almost $5000 per week, but if we buy our own truck, it will be less expensive and very convenient as well. Reason is most of the time we order a truck from an outside company and the waiting time is very long and sometimes we cannot get it done on time. But if we have our own truck then we can make our own schedule and do our business accurately. My other opinion is, as we are spending some money to rent a truck, we can use that money for our own truck. once that loan finish then truck will be ours and it will be our asset and also, when our truck is free then we can hire the truck to other contractors as well. Hop you will think about my proposal and get back to me ASAP Thanks Buddhika B) Refer the balance sheet and calculate the debt ratio for Metharom which will help the

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PreparationDate:AUG2020 ProposedReviewDate:AUG2021– VerifiedBy:trainingManager| Approvedby CEO RTO No: 31250 | CRICOS Provider Code: 03579K shareholders in decision making. debt ratio = total liabilities/ total assets Debt ratio = 320000/ 955000 Debt Ratio is 0.335 In total, this assessment must be no more than 300 words. Appendices B Assessment 4: Prepare a report that compares financial performance. (Maximum of 700 words) Using the profit and loss statement provided in the appendices, compare and analyse the gross profit from 2014 (which was recorded as $53450), with the 2015 figures. You will need to consider: a) Gross profit calculations Gross profit = sales – cost of goods sold = 100000 – 42620. = 57380 b) Net profit calculations Net profit = gross profit – expenses = 57380 – 50780 = 6600 percentage of sales increased = 57380 – 53450 X 100 53450 = 7.35 % Submit a print of the updated profit and loss account Based on your analysis, prepare a brief report that includes a suggestion of a minimum of three marketing strategies to help achieve the company goals for 2016. Your strategy should take into account the activities that are relevant for the business. Remember to consider digital strategy, which

PreparationDate:AUG2020 ProposedReviewDate:AUG2021– VerifiedBy:trainingManager| Approvedby CEO RTO No: 31250 | CRICOS Provider Code: 03579K focuses on achieving online objectives. Your strategy should aim to differentiate from your competitors and encourage customers to choose Metharom’s business first. Social Media Brands, associations, and organizations utilize online media stages each and every day to interface with their crowds, bring issues to light, and drive leads and business. With a drew in after on at least one of the significant informal organizations, brands can viably get the news out about crusades, new drives, and new items and administrations. Be that as it may, essentially having 1,000 Facebook fans or 200 Twitter adherents isn't the best pointer of online media achievement. It's feasible to have a great many adherents who never read your posts or snap on your connections. The key is to fabricate a flourishing on the web local area of your optimal fans, the ones who'll effectively draw in with your substance, share it with their organizations, and at last, become paying clients. It takes work to set up such, yet that exertion can pay off, for sure. Hoping to become your web-based media crowd? In this post, we'll take a gander at eleven straightforward manners by which you can become your web-based media following. Evaluate your existing digital channels and assets While looking into your current advanced promoting channels and resources for figure out what to join in your methodology, it's useful to initially think about the big view — this will keep you from feeling overpowered or befuddled. Assemble what you have, and arrange every vehicle or resource in a bookkeeping page, so you have a reasonable image of your current claimed, owned, earned, and paid media.  owned Media This alludes to the computerized resources your image or organization claims — regardless of whether that is your site, web-based media profiles, blog substance, or symbolism. Claimed channels are the what your business has unlimited oversight over. This can likewise incorporate some off-webpage content you own that isn't facilitated on your site  Earned Media Earned media alludes to the openness you procure through informal showcasing. Regardless of whether that is content you've appropriated on different sites (for example visitor posts), PR work you've been doing, or the client experience you've conveyed. Acquired media is the acknowledgment you get because of these efforts. You can procure media by getting press notices and positive surveys just as by individuals sharing your substance by means of their organizations (for example; social media channels).

PreparationDate:AUG2020 ProposedReviewDate:AUG2021– VerifiedBy:trainingManager| Approvedby CEO RTO No: 31250 | CRICOS Provider Code: 03579K  Paid Media Paid media alludes to any vehicle or channel you burn through cash on to grab the eye of your purchaser personas. Recognize holes in your current content based on last year sales, identify gaps in content you have, then start working on those loop holes Being one of the most effective approaches to developing the online presence for brands, building and nurturing target audience engagement, and increasing sales, content marketing has become a must for online businesses. Audit and plan your earned media campaigns Assessing your past procured media against your present objectives can assist you with finding out about where to center your time. Take a gander at where your traffic and leads are coming from (if that is your objective) and rank each procured media source from best to least compelling. sign boards A sign board ad is one of the important features to increase sales. It helps create awareness and creates an impression on potential customers. It is often the first interaction of the customers with your business. If your sign board advertisement is well designed, it will impress your customers and in turn increase sales. If you have started your business and you do not know how to attract customers easily and in a cost- effective manner, you should consider sign board advertisement. Sign board advertisement is not only a cheap way of marketing your products but it also gives great results and helps to increase sales. This assessment must not exceed 700 words. Note: The work you submit must be your own. St uden t s have the responsibility to maintain the highest ethical standards of academic integrity in their w or k. Academic misconduct by students in examinations or in other forms of assessment is un a cc ep t ab le . Prior to submitting an assessment, each student will be required to complete an a ssessmen t cover sheet which will ask them to sign a declaration to say they have not plagiarised and t h at they have read and understood the UEDT plagiarism po lic y. All work submitted will be checked to ensure authenticity. Students found to have plagiarised will be forced to re-submit the assessment and be required to pay the re-submission fee of $350 per unit of competency and may be subject to disciplinary action.

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