Course Title: Manage finances

Part B: Course Detail

Teaching Period: Term1 2011

Course Code: BUSM6206C

Course Title: Manage finances

School: 350T Fashion & Textiles

Campus: Brunswick Campus

Program: C6082 - Advanced Diploma of Textile Design and Development

Course Contact : Julia Raath

Course Contact Phone: +61 3 9925 9201

Course Contact Email:julia.raath@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

mark.reid@rmit.edu.au

Nominal Hours: 50

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites

It is strongly advised that students complete all units in year 1 and 2 of the Advanced Diploma Textile Design and Development. 

Clustered subjects: Manage Finances + Develop & Implement a Sales or Marketing Plan + Complete a Business Plan. These are all Co-requisites and will be included in Term 2’s Business Plan.

Course are delivered over the course of 1 year at Advanced Diploma level.

Course Description

This unit covers the skills and knowledge required to assess and monitor the financial requirements, viability and performance of the business and prepare and review pricing policy, financial systems and control measures.

Determining an enterprise’s financial requirements and setting policies and strategies in place is critical to the short and long term financial viability of the business.

This unit is particularly suitable for those wishing to begin small and micro businesses in a variety of industries including retail, smallgoods & food service.


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

BSX02307A Manage finances

Element:

1. Translate financial plan into strategies

Performance Criteria:

1.1 The financial requirements are calculated to establish, profitably operate and extend the business.
1.2 Financial information requirements are fully identified and information obtained to guide the financial management of the business.
1.3 The capital, profitability and cash flow requirements are identified to enable the business to operate according to plan.

1.4 Adequate financial provision is made for taxation, superannuation and accruing staff leave.
1.5 Capital investment requirements are quantified for each operational period.
1.6 Sources of funding are identified and the cost of securing these funds on optimal terms is obtained.

1.7 Financial performance indicators and targets are selected to enable ongoing monitoring of financial performance.
1.8 Quality criteria and procedures in respect of administration and record keeping are developed.
1.9 The financial strategy is documented and relevant implications are communicated to staff and stakeholders to facilitate implementation.
1.10 Asset management strategies are developed to achieve maximum advantage for the business.

Element:

2. Implement financial strategies

Performance Criteria:

2.1 Essential books and records are established and maintained to ensure ongoing accessibility of financial records.
2.2 Legal and financial control systems are established and maintained to facilitate ongoing monitoring of financial activities.
2.3 Financial and statutory reporting is conducted in accordance with legal and administrative requirements.
2.4 Financial reports are produced in a clear and timely manner for distribution to relevant stakeholders.
2.5 Cash flow estimates are prepared for each forward period.

2.6 Financial projections are prepared and documented to indicate the required profitability, meet the needs of financiers/shareholder, provide reliable risk management information.

2.7 Appropriate action is taken to ensure the achievement of profit and return on investment targets.
2.8 Accrual accounting procedures are maintained in accordance with Australian Accounting Standards.
2.9 Financial ratios are maintained and evaluated according to own/industry benchmarks.
2.10 Business capital is negotiated/secured/managed to best enable implementation of the business plan and meet the requirements of financing bodies.

Element:

3. Monitor financial performance

Performance Criteria:

3.1 Data is gathered to establish the extent to which the financial plan has been realised.
3.2 Deviation from financial performance targets is regularly monitored and corrective action is decided upon and undertaken.
3.3 The content, assumptions and projections of the financial plan are assessed to determine whether variations or alternatives are indicated.
3.4 The financial plan is updated to incorporate corrective action when required.

Element:

4. Explore opportunities to improve financial performance

Performance Criteria:

4.1 Staff are encouraged to propose improvements and innovations to the financial operations, processes or control systems of the business.
4.2 The potential for change and improvement is identified following evaluation of financial performance in relation to the financial plan.
4.3 Proposed changes are clearly recorded to facilitate future planning and evaluation.
4.4 Relevant performance criteria are defined to monitor the effects of the proposed changes.


Learning Outcomes


As learning outcomes and  on completion the student should be able to:

• Apply financial concepts & principles to prepare a financial plan in standard format, consistent with the enterprise business plan
• Set financial targets within the context of the business plan
• Apply mathematical & financial concepts & skills to determine performance & current status of business/department
• Prepare cash-flow forecasts for the business
• Assess financial risks & prepare strategies to manage these risks
• Develop management strategies to meet tax requirements & obligations
• Formulate & implement contingency plans/corrective action to ensure financial viability
• Analyse, synthesize & apply a range of information, data, & own judgement to determine, prepare and inform budget & financial planning processes
• Negotiate changes in resource allocations to minimise negative impacts on the business and the enterprise
• Interpret enterprise financial trends & identify critical factors influencing performance
• Determine required return on investment
• Develop pricing policies & strategies which achieve short & long term sales profitability goals
• Authorise & monitor financial delegations & accountabilities

As learning outcomes the student will provide evidence of consistency in performance when:

• Organising work
• Completing tasks according to instructions
• Working systematically with attention to detail
• Identifying improvements & avoiding damage
• Using workplace & OHS practices
• Recording & reporting accidents & incidents
• Assessing operational readiness of equipment
• Recognising & adapting to cultural differences in the workplace, including modes of behaviour and interactions


Details of Learning Activities

In this course  students will learn methods to consider & manage small business finances.

Activities will include a series of investigation, recording & calculation tasks, according to ATO requirements.

All learning activities will be classroom & computer lab based.
The Assessment task is Managing Finances – Individual book-keeping activity & written report
As instructor and mentor I will work individually with each person to clarify issues that may arise


Teaching Schedule

NB Students should note that this weekly planner is offered in good faith and that suggested activities will be undertaken as planned. However due to the possibility of unforeseen circumstances some activities might of necessity need to be altered or postponed – all efforts for advance notice will be made

Week 1 Date: 07.02.11  Introduction to course objectives and overview
Define and translate financial plan into strategies
Defining personal business + direction
Identifying individual financial needs x 1 Establishing $rate per working hour 1. Translate financial plan into strategies
1.1 The financial requirements are calculated to establish, profitably operate and extend the business.
1.2 Financial information requirements are fully identified and information obtained to guide the financial management of the business.
1.3 The capital, profitability and cash flow requirements are identified to enable the business to operate according to plan.


Week 2 Date: 14.02.11 Introduction to Assessment Task 1: Individual book keeping activities - discussion
Identifying individual financial needs x 2
Bank & Credit card statements for tax are considered

1.4 Adequate financial provision is made for taxation, superannuation and accruing staff leave.
1.5 Capital investment requirements are quantified for each operational period.
1.6 Sources of funding are identified and the cost of securing these funds on optimal terms is obtained.


Week 3 Date: 21.02.11 Accounts maintenance & book-keeping records are reviewed
Australian Standards & ATO standards & requirements discussed
1.7 Financial performance indicators and targets are selected to enable ongoing monitoring of financial performance.
1.8 Quality criteria and procedures in respect of administration and record keeping are developed.
1.9 The financial strategy is documented and relevant implications are communicated to staff and stakeholders to facilitate implementation.
1.10 Asset management strategies are developed to achieve maximum advantage for the business.

Week 4 Date: 28.02.11 Assessing individual financial requirements and needs x 1
Analysing budgets - analysing yearly activities and performance
Cash flow estimates are considered & prepared 2. Implement financial strategies
2.1 Essential books and records are established and maintained to ensure ongoing accessibility of financial records.
2.2 Legal and financial control systems are established and maintained to facilitate ongoing monitoring of financial activities.
2.3 Financial and statutory reporting is conducted in accordance with legal and administrative requirements.
2.4 Financial reports are produced in a clear and timely manner for distribution to relevant stakeholders.
2.5 Cash flow estimates are prepared for each forward period.

 
Week 5 Date: 07.03.11 Assessing individual financial requirements and needs x 2
Analysing budgets - analysing yearly activities and performance
2.6 Financial projections are prepared and documented to indicate the required profitability, meet the needs of financiers/shareholder, provide reliable risk management information.
2.7 Appropriate action is taken to ensure the achievement of profit and return on investment targets.
2.8 Accrual accounting procedures are maintained in accordance with Australian Accounting Standards.
2.9 Financial ratios are maintained and evaluated according to own/industry benchmarks.
2.10 Business capital is negotiated/secured/managed to best enable implementation of the business plan and meet the requirements of financing bodies.


Labour Day Public Holiday - 14.03.11

Week 6 Date: 21.03.11 Invoices – regular book-keeping agreements and obligations – examples viewed & discussed
Contracts - book-keeping agreements and obligations – examples viewed & discussed
3. Monitor financial performance
3.1 Data is gathered to establish the extent to which the financial plan has been realised.
3.2 Deviation from financial performance targets is regularly monitored and corrective action is decided upon and undertaken.
3.3 The content, assumptions and projections of the financial plan are assessed to determine whether variations or alternatives are indicated.
3.4 The financial plan is updated to incorporate corrective action when required.

Week 7 Date: 28.03.11 Group discussion, reflection & review assessing individual financial requirements and needs:
what perceived or necessary improvements could be made
what financial institutions may be approached for help 4. Explore opportunities to improve financial performance
4.1 Staff are encouraged to propose improvements and innovations to the financial operations, processes or control systems of the business.
4.2 The potential for change and improvement is identified following evaluation of financial performance in relation to the financial plan.
4.3 Proposed changes are clearly recorded to facilitate future planning and evaluation.
4.4 Relevant performance criteria are defined to monitor the effects of the proposed changes.

Week 8 Date: 04.04.11 Non-contact maintainance for Task 1. Managing Finances – Individual book keeping activities prepared for assessment . Individual reviews if required and by appointment.

Week 9 Date: 11.04.11 Class review for Task 1. Managing Finances

Week 10 Date: 18.04.11 Task 1 submission for assessment.


Learning Resources

Prescribed Texts

There are no prescribed texts for this subject. Activities will be based on held receipts over a 3 month period. Participants may wish to refer to general library booklist reading on the subject.


References


Other Resources

Standard writing kit, notepad, presentation booklets, U.S.B. 4 gigabyte minimum.

Own transport to & from excursion sites for field trips  - please refer to Blackboard weekly planner.


Overview of Assessment

To achieve successful completion of this course students must demonstrate an understanding of all elements of the competency.

Assessment tasks have been designed to measure achievement of each competency in a flexible manner. In overview there is one assessment for the subject: Activities for this task will incorporate a variety of methods including: Individual data identification, analysis, review and reporting


Brief description: Manage Finances – Individual book-keeping activity relates to Elements 1 – 4.
Students will use mathematical ideas and techniques to present financial and costing information. They will also communicate ideas and information about the financial data, business and industry
Students will be awarded a grade only if competency has been demonstrated within the standard enrolment period on the first assessment attempt.

Units assessed as ‘not yet competent’ on a first assessment attempt and ‘competent’ on a second or subsequent attempt are to have results amended to competent but are not eligible for grading.

Students are advised that they are likely to be asked to personally demonstrate their assessment work to their teacher.
All work must be submitted by the due date.

Late submission will not be graded higher than a PASS.


Assessment Tasks

1. Managing Finances – Individual book-keeping activity.

Individual data identification, analysis, review and reporting  40%

All relevant task information posted on Blackboard and discussed in class-time.


Assessment Matrix

Element 1 Translate financial plan into strategies1.1, 1.2, 1.3, 1.4, 1.5, 1.6, 1.7, 1.8, 1.9, 1.10
Element 2 Implement financial strategies2.1, 2.2, 2.3, 2.4, 2.5, 2.6, 2.7, 2.8, 2.9, 2.10
Element 3 Monitor financial performance3.1, 3.2, 3.3, 3.4
Element 4 Explore opportunities to improve financial performance4.1, 4.2, 4.3, 4.4

Other Information

Textile Design and Development promotes  sustainable practice.

Please refer to Blackboard , your RMIT email postings for all other relevant comunication.

Please consider before printing

Information will also be discussed in class.

Course Overview: Access Course Overview