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Advanced Diplomas of Leadership & Management,

Marketing and Business


BSBFIM601 - Manage Finances Assessment
Further Instructions

Section 1 Part A Nature of the business and business structure


Section 1 Part B Show the link between Strategic goals, Business and
Marketing objectives
Strategic Goal
Market leader by 2019

Business Objective
Increase sales

Marketing Objective
Implement a brand and
sales campaign

Considerations:
1. SMART Rule
Section 1 Part C Financial goals
Strategic Goal
Market leader by 2019

Business Objective
Increase sales

Marketing Objective
Implement a brand and
sales campaign

Financial Terms long term


budget
$200bn sales
OR
% market share x average cost
of a tablet

Financial Terms short term


budget
10% increase

Financial Terms short term


budget
$2m expense

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Section 2 Part A - Which budgets are required?


List the budgets required, considering the following and how these budgets are
aligned to the accounting system

Must align with the business structure eg: Strategic Business Units (SBU)
each SBU is considered a cost centre

Eg: Seqwater
Business Structure 4 SBUs:
1. Water Delivery which included a budget for:
a. Water quality budget
b. Water operations budget
c. Dam operations budget
2. Business services which includes a budget for:
a. Marketing budget
b. IT budget
c. Research and Development budget

Section 2 Part A Who will be involved in the budget?


Budget
Water quality
Dam Operations

Responsible
Water Quality Manager
Dam Operations Managers

Section 2 Part A Timeline of activity and approval process?


April 2016

May 2016

June2016

Meeting
Distribute
budget
templates

Budgets to
be
completed

Budgets
distributed

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Section 2 Part B Prepare 1 income and 1 expense budget


Consider the Chart of accounts for your organisation, for example:
1.

Revenue / Income Budget

Chart of Accounts for


Income
Govt. subsidy

Budget $

Connection Fees
generation

$xxx,xxx

Interest received

$xxx,xxx

$xxx,xxx

Assumptions /
Justification
Govt providing
subsidy to ensure
water quality
Number of customers
with a water
connection
Based on cash in bank

Another example: domestic application


Chart of Accounts for
Income
Household (roof top) and
Commercial
Large utility providers
Interest received

Budget $

Assumptions /
Justification

$xxx,xxx
$xxx,xxx
$xxx,xxx

2. Expense Budget Marketing


Chart of Accounts for
Expense
Advertising
Web and online
Print
Staff costs for marketing
team

Budget $

Assumptions /
Justification

$xxx,xxx
$xxx,xxx
$xxx,xxx
$xxx,xxx

Assumptions should include:

Market conditions
Supplier relationships
Objectives

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Section 2 Part C Capital Expense Budget (CAPEX) or asset in a


business case format
Section:
Name:
Contact Details:

Introduction

Description of requirement or need

Options investigated
1.
2.
3.

Option recommended and justification link back to Strategic Goals

Cost

Timeline

Section 3 Draft 2016 Financial Reports


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Part A Profit and Loss and statement


Refer to your organisations annual report
Research the AASB Format, basic format is:
Revenue
- Sales
Less Cost of Goods Sold
= GROSS PROFIT
Less Operational expenses
= Net Profit

Note 1*

$
$
$
$

*Note 1 sales from all our products including Product A, Product B, Product C

Part B Balance Sheet


Assets
- Current Assets
- Non-current Assets
Liabilities
- Current Liabilities
- Non-current Liabilities
= NET ASSETS
Owners Equity

Note #*

$
$

Part C Cashflow Statement


Operational Cash Inflow
Operational Cash Outflow
Net Operational Cash
Investment Cash Inflow
Investment Cash Outflow
Net Investment Cash
Financial Cash Inflow
Financial Cash Outflow
Net Financial Cash

$
$
$
$
$
$
$
$
$

Note #*

Section 4 Financial management review and analysis


Part A Analysis tools (will be discussed in class)
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Break-even analysis
Ratio analysis

Part B Discuss the budget review process

Variance reporting (check the learner resources)

Eg: Sales monthly variance report


o
January
Actual
$

o
o

Format of the report including the type of information (no figures


required)
January
Budget
$

Variance

% Variance

Comments

Favourable
Unfavourabl
e

Frequency of the report


Audience of the report

Discuss how you will monitor the budgets performance and success in
achieving the organisations goals and objectives (no figures required)

Contingency plan

Issue / Risk
Income under budget

Cause the issue


Sales down due to
competition

Contingency
Advertising plan

Part C Recommendations
You need to justify your answers using the analysis tools
Other analysis tools you can use include:
1.
2.
3.
4.
5.

Boston Consulting Group Matrix


Porters generic strategies
Ansoffs product market expansion grid (intensive growth strategy)
Integrative growth strategy
Diversification growth strategy

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