BSBSMB402

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:

  1. Identify costs, calculate prices and prepare profit statement
  2. Develop a financial plan
  3. 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