BSBSMB406 - Manage small business finances

Assessment Task 2 – Observations / Demonstrations

The assessment task is due on the date specified in your timetable which is the last date of the unit. Any variations
to this arrangement must be approved in writing by your assessor.

This assessment is to be completed in the classroom / workshop / simulation setting at Harward International
College. The required submission should be done by completing the work within the scheduled period for unit in
accordance with instructions given below.

This assessment requires you to demonstrate your ability to manage construction work by completing a
significant work assignment. The assessor may provide the response, based on the observation (direct / indirect
/ supplementary) in the checklist (marking guide) given in this task.

• Direct – such as an observation of workplace performance by an assessor

• Indirect – such as a portfolio of evidence
• Supplementary – such as supervisor reports.

The task has assessment activities, designed to assess your skills, knowledge and performance, as required to
show competency in this unit. You should complete these as stated below and as instructed by your trainer /
assessor.

Skills, knowledge and performance may be termed as:

• Skills – skill requirements, required skills, essential skills, foundation skills

• Knowledge – knowledge requirements, required knowledge, essential knowledge, knowledge evidence
• Performance – evidence requirements, critical aspects of assessment, performance evidence.

Section A: Skills Activity

The Skills Activity is designed to be a series of demonstrative tasks that should be assessed by observation. It
will demonstrate all of the skills required for this unit of competency – your assessor will provide further
instructions to you, if necessary.

Section B: Knowledge Activity (Q & A)

The Knowledge Activity, in addition to task 1, is designed to be a verbal questionnaire where the assessor asks
you a series of questions to confirm your competency for all of the required knowledge in the unit of competency.

Section C: Performance Activity

The Performance Activity is designed to be a practical activity performed either in the workplace or a simulated
environment. You should demonstrate the required practical tasks for the unit of competency and be observed by
the assessor.

If necessary, for the activities, you should attach completed written answers, portfolios or any evidence of
competency.

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Section A: Skills Activity

Objective: To provide you with an opportunity to show you have the required skills for this unit.

This activity will enable you to demonstrate the following skills:

• Reading
• Writing
• Oral communication
• Numeracy
• Navigate the world of work
• Interact with others
• Get the work done

Answer the activity in as much detail as possible, considering your organisational requirements.

1. Read a text covering legislative, regulatory or workplace requirements that is relevant to your area of
business or your state/territory.

Write a report to summarise your organisation’s responsibilities (or your business industry’s responsibilities) to
comply with it.

2. Explain how you would present this information to a group of colleagues in a spoken communication.

You should include:

• How you would structure and disclose the information
• The type of language and approach you would use to communicate this
• How you would explain complex text and meanings
• How you would engage with others to ensure they understand what is being said.

3. Read and interpret one financial document with numerical information; this may be one that is given
to you by the assessor, or from your own place of work. Explain the relevant financial information
that it shows.

4. For your business (or an example business), develop a plan for conducting financial business and
say how you would implement this.

This should include:

• How financial activities would be planned, scheduled, implemented and monitored
• How and when financial reporting would be done
• How records and reports would be made
• Formal and informal monitoring processes that may be used
• How decisions regarding financial and business plans would be made and why these would be
made.

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Section B: Knowledge Activity (Q & A)

Objective: To provide you with an opportunity to show you have the required knowledge for this unit.

The answers to the following questions will enable you to demonstrate your knowledge of:

• Key features of benchmarking

• Key features of financial decision-making relevant to the business
• Key features of significant financial indicators
• Key purposes of financial reports
• Key features of balance sheet preparation and interpretation
• Key features of debt collection procedures or strategies
• Key features of profit and loss statement preparation and interpretation
• Key features of stock records and stock control relevant to the business.

Answer each question in as much detail as possible, considering your organisational requirements for
each one. You may use Response Guide provided in Task 1.

1. What is benchmarking and its key features?

2. What do you need to do to make financial decisions in business?

3. What are financial indicators and what do the following provide you with?
• Operating cash flow
• Working capital
• Stock turnover ratio
• Debt turnover ratio
• Current ratio

4. Why are financial reports necessary?

5. How would you prepare balance sheets and what would you use these for?

6. What do debt collection procedures and strategies provide?

7. What are profit and loss statements and what do they include?

8. Why would you have stock records and stock control?

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Section C: Performance Activity

Objective: To provide you with an opportunity to demonstrate the required performance elements for this unit.

This activity will enable you to demonstrate the following performance evidence:
• Manage the business according to financial goals, including:
o adhering to legal requirements
o produce relevant financial projections, including cash flow estimates
o secure and manage business capital
o defining strategies for debt collection and contingencies for debtors
o managing cash flow
o defining key performance indicators
o communicating with relevant people
o seeking specialist services where required
• Monitor the business against financial plan and make changes as required
• Identify opportunities to implement new and emerging digital technologies to support the financial
management of the business.

Answer the activity in as much detail as possible, considering your organisational requirements.

1. As a simulated workplace activity directed by the assessor, you must manage and monitor
business to achieve the stated financial goals of the business.

Your completed portfolio of work must be submitted to the assessor upon completion.

Managing the business to meet financial goals must include:

• Adhering to legal requirements in all aspects of financial operations and business
• Producing relevant financial projections, including cash flow estimates
• Securing and managing business capital for the business
• Defining strategies for debt collection and contingencies for debtors
• Managing cash flow
• Defining key performance indicators to assist in the achievement of financial goals
• Communicating with relevant people during the course of all business activities
• Seeking specialist services where required
• Monitor financial and business activities to determine progress to meet the financial plan
• Make changes to the financial plan to achieve financial goals, if needed.

2. Research new and emerging technologies that can be beneficial to support the financial
management of the business. This research should include explanations of technologies and
reasons as to why these will be of benefit to the business. This should also be included in your
portfolio of work.

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Marking Guide - Assessment Task 2: Observations /

Demonstration

Student’s name Student ID.

Assessor’s name

Outcomes
Satisfactory

Did the candidate: Yes No

Implement financial plan?

Monitor financial performance?

Performance indicators
Satisfactory

Did the candidate performed following? Yes No

Identify financial information requirements and obtain specialist services, as

required, to profitably operate the business in accordance with the business plan

Produce financial budgets or projections, including cash flow estimates, as

required for each forward period, and distribute to relevant people in accordance
with legal requirements

Negotiate, secure and manage business capital to best enable implementation of

the business plan and to meet requirements of financial backers

Develop and maintain strategies to enable adequate financial provision for

taxation in accordance with legal requirements

Develop, monitor and maintain client credit policies, including contingencies for
debtors in default, to maximise cash flow

Select key performance indicators to enable ongoing monitoring of financial

performance

Record and communicate financial procedures to relevant people to facilitate

implementation of the business plan

Regularly monitor and report on financial performance targets, and analyse data to
establish extent to which the financial plan has been met

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Satisfactory

Did the candidate performed following? Yes No

Monitor marketing and operational strategies for their effects on the financial plan

Calculate and evaluate financial ratios according to own or industry benchmarks

Assess financial plan to determine whether variations or alternative plans are

needed, and change as required

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