BSBFIM601 Manage Finances - Prepare Budgets - Assignment Help

Performance objective

For this task you are required to respond to a range of questions that examine your understanding of key legislative and financial management requirements for a case study organisation. This assessment also requires you to review available financial information and establish a budget for the organisation. The assessment task is due on the date specified by your assessor.

Assessment description

This assessment requires you to determine the requirements to undertake budgeting, financial forecasting and reporting requirements for an organisation. You will also need to review the case study provided and prepare a budget (in electronic spreadsheet format).

Procedure

Part 1

1. Read the “case study – Houzit” provided on Moodle and complete the following.

• Review and analyse business plan summary and previous financial data to establish profit or loss areas.
• Use the spreadsheet template provided on Moodle “Templates for assessment 1”to to develop the following budgets and conform to organisational and statutory requirements
  1. Sales and profit budget,
  2. cash flow budget and
  3. debtor ageing summary

Note:

• Make sure each budget is divided into quarterly periods and that you use previous financial data to determine allocations for resources.
• Ensure each budget you prepare complies with the organisational and policies and procedures as provided.
• Provide budgets to ensure supervisors (assessor) are clear about budgets and reporting requirements

Part 2

Based on the information provided in the case study answer the following questions in the space provided below:

1. identify the reasons for previous profits and losses
2. Identify the current statutory requirements for tax compliance and list and calculate the tax liabilities for Houzit Pty Ltd under taxation legislation.
3. Review commercially available financial management software to select the most suitable software for Houzit Pty Ltd.

Ensure you diagnose software options by comparing two commercially available softwares and outline the reasons that lead you to this recommendation.

4. Explain and discuss the implications of probity when preparing and revising budgets.
5. List the critical dates and initiatives that will require or generate resources for Houzit Pty Ltd in the next financial cycle.
6. List the items you would recommend for inclusion in the budgets for Houzit Pty Ltd.
7. List the new or modified internal controls that could improve risk management for Houzit Pty Ltd including the maintenance of audit trails.

Submissions

You must submit:

• a completed annual budget in a single spread sheet with a separate sheet for each budget component using the template provided
• Question answers in a written format

Your assessor will be looking for:

• evidence you have reviewed the case study information provided by submitting an appropriate budget
• evidence that you understand, and can explain, the required legislative requirements of financial management (and outline statutory requirements of ATO, GST, company tax, PAYG)
• evidence that you can outline compliance requirements for the Corporations Act 2001
• evidence that you can identify and recommend use of suitable software for financial management
• evidence that you have clearly communicated information regarding the budget and correctly responded to a series of questions (e.g. describe the principles of accounting and financial systems)
• evidence that you can describe implications of financial probity
• evidence that you can outline the critical dates/initiatives that will require or generate resources
• evidence that you have provided for additional items (as necessary and appropriate) in the budget
• evidence that you have recommended new or modified internal controls that could improve risk management and maintenance of audit trails
• evidence that you have developed an annual budget, as appropriate