This unit describes the skills and knowledge required to identify financial requirements of a business, including profit targets, cash flow projections and strategies to garner financial support.
It applies to individuals who operate a small business or work within an existing micro or small businesses and interpret financial data.
Topics:
- Identify costs, calculate prices and prepare profit statement
- Develop a financial plan
- Acquire finance
Upon successful completion of this unit, you will:
- develop a financial plan which identifies financial requirements of the business, including cash flow projections and a projected profit statement
- follow the financial plan, including:
- demonstrating an awareness of appropriate legal requirements
- implementing strategies to monitor financial performance
Demonstrate knowledge of:
- break-even analysis
- costing for the business, including margin or mark-up, hourly charge-out rates and unit costs
- financial decision-making relevant to the business
- methods and relative costs of obtaining finance
- principles for preparing balance sheets
- principles for preparation of cash flow forecasts
- principles for preparation of profit and loss statements
- purpose of financial reports
- relevant accounting terminology
- working capital cycles
Nominal Hours: 50
