Elements and Performance Criteria

The Range Statement provides advice to interpret the scope and context of this unit of competence, allowing for differences between enterprises and workplaces. It relates to the unit as a whole and facilitates holistic assessment. The following variables may be present for this particular unit:
Legislation, codes and national standards relevant to the workplace which may include:
award and enterprise agreements and relevant industrial instruments
national, State/Territory and Local Government legislative requirements affecting business operation, especially in regard to Occupational Health and Safety and environmental issues, EEO, industrial relations and anti-discrimination
relevant industry codes of practice
Financial information may include:
financial budgets
business capital
cash flow forecasts
statements/forecasts
bookkeeping/ accounting/ stock/ job costing records
asset registers
profit and loss statements
balance sheets
payroll records, superannuation entitlements
accrual of staff leave/entitlements
taxation returns including GST
business activity statements
ratios for profitability, liquidity/efficiency/financial structure
risk management
financial indicators may be short, medium and/or long term
asset management strategies which may include:
owning, leasing, sharing, syndicating
maintaining and deploying assets
Relevant accounting procedures may include:
accrual/ cash
single entry / double entry
manual / computerised
Specialist services may include:
accountants
lawyers and providers of legal advice
government agencies
industry/trade associations
online gateways
business brokers/business consultants
Relevant people may include:
owner/operator
partners
financial backers
family members
franchise agency
trade or industry associations
regulatory bodies
Legal requirements may include:
contractual arrangements (eg partnership agreements, trust deeds)
corporations law
industrial law (for payroll records)
taxation law
Financial bodies may include:
financiers/ banks/ lending institutions
shareholders/ partners/ owners
Credit policies may include:
debt collection
trading terms
credit limits
payment options
credit references
Financial ratios may include:
Gross profit percentage
Net profit percentage
Expense percentages
Stockturn rates
Staff productivity measures
Return on investment / Return on total assets
Current ratio
Liquid ratio
Days stock on hand
Days debtors outstanding
Proprietary/ debt ratio
The Range Statement provides advice to interpret the scope and context of this unit of competence, allowing for differences between enterprises and workplaces. It relates to the unit as a whole and facilitates holistic assessment. The following variables may be present for this particular unit:
Legislation, codes and national standards relevant to the workplace which may include:
award and enterprise agreements and relevant industrial instruments
national, State/Territory and Local Government legislative requirements affecting business operation, especially in regard to Occupational Health and Safety and environmental issues, EEO, industrial relations and anti-discrimination
relevant industry codes of practice
Financial information may include:
financial budgets
business capital
cash flow forecasts
statements/forecasts
bookkeeping/ accounting/ stock/ job costing records
asset registers
profit and loss statements
balance sheets
payroll records, superannuation entitlements
accrual of staff leave/entitlements
taxation returns including GST
business activity statements
ratios for profitability, liquidity/efficiency/financial structure
risk management
financial indicators may be short, medium and/or long term
asset management strategies which may include:
owning, leasing, sharing, syndicating
maintaining and deploying assets
Relevant accounting procedures may include:
accrual/ cash
single entry / double entry
manual / computerised
Specialist services may include:
accountants
lawyers and providers of legal advice
government agencies
industry/trade associations
online gateways
business brokers/business consultants
Relevant people may include:
owner/operator
partners
financial backers
family members
franchise agency
trade or industry associations
regulatory bodies
Legal requirements may include:
contractual arrangements (eg partnership agreements, trust deeds)
corporations law
industrial law (for payroll records)
taxation law
Financial bodies may include:
financiers/ banks/ lending institutions
shareholders/ partners/ owners
Credit policies may include:
debt collection
trading terms
credit limits
payment options
credit references
Financial ratios may include:
Gross profit percentage
Net profit percentage
Expense percentages
Stockturn rates
Staff productivity measures
Return on investment / Return on total assets
Current ratio
Liquid ratio
Days stock on hand
Days debtors outstanding
Proprietary/ debt ratio

The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competence for this unit. This is an integral part of the assessment of competence and should be read in conjunction with the Range of Variables.
Critical Aspects of Evidence
Ability to develop, implement and review strategies for the ongoing management of finance and
To maintain day-to-day financial management of the business as well as implementation of broad financial strategies.
Underpinning Knowledge*
* At this level the learner must demonstrate understanding of a broad knowledge base incorporating some theoretical
concepts.
National, State/Territory and Local Government legislative requirements affecting business operation, especially in regard to Occupational Health and Safety and environmental issues, EEO, industrial relations and anti-discrimination
Financial decision making relevant to the business
Basic knowledge of specific tax requirements relevant to the individual industry
Legal obligations for record keeping
Processing financial transactions
Basic accounting principles (single entry/double entry)
Purpose of financial reports
Financial ratios
Interpretation of comparative profit and loss statements
Interpretation of comparative balance sheets
Preparation and interpretation of budget/actual reports
Stock records/stock control relevant to the business
Benchmarking
Methods and relative costs of obtaining finance
Underpinning Skills
Literacy skills to interpret legal requirements, company policies and procedures
Communication including reporting
Numeracy skills to undertake financial calculations
Ability to relate to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities
Resource Implications
The learner and trainer should have access to appropriate documentation and resources normally used in the workplace
Consistency of Performance
In order to achieve consistency of performance, evidence should be collected over a set period of time which is sufficient to include dealings with an appropriate range and variety of situations
Context/s of Assessment
Competency is demonstrated by performance of all stated criteria, including paying particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide, and within the scope as defined by the Range of Variables
Assessment must take account of the endorsed assessment guidelines in the Business Services Training Package
Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment
Assessment should reinforce the integration of the key competencies and the business services common competencies for the particular AQF level. Refer to the Key Competency Levels at the end of this unit
Key Competency Levels
Collecting, analysing and organising information (Level 3) - to acquire and manage finances
Communicating ideas and information (Level 2) - to obtain and convey financial information
Planning and organising activities (Level 2)- to comply with legal requirements and manage finances
Working with teams and others (Level 2)- to obtain financial information
Using mathematical ideas and techniques (Level 2)- to plan and maintain finances
Solving problems (Level 3) - to maximise business financial viability
Using technology (Level 3) - to optimise business performance
Please refer to the Assessment Guidelines for advice on how to use the Key Competencies
The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competence for this unit. This is an integral part of the assessment of competence and should be read in conjunction with the Range of Variables.
Critical Aspects of Evidence
Ability to develop, implement and review strategies for the ongoing management of finance and
To maintain day-to-day financial management of the business as well as implementation of broad financial strategies.
Underpinning Knowledge*
* At this level the learner must demonstrate understanding of a broad knowledge base incorporating some theoretical
concepts.
National, State/Territory and Local Government legislative requirements affecting business operation, especially in regard to Occupational Health and Safety and environmental issues, EEO, industrial relations and anti-discrimination
Financial decision making relevant to the business
Basic knowledge of specific tax requirements relevant to the individual industry
Legal obligations for record keeping
Processing financial transactions
Basic accounting principles (single entry/double entry)
Purpose of financial reports
Financial ratios
Interpretation of comparative profit and loss statements
Interpretation of comparative balance sheets
Preparation and interpretation of budget/actual reports
Stock records/stock control relevant to the business
Benchmarking
Methods and relative costs of obtaining finance
Underpinning Skills
Literacy skills to interpret legal requirements, company policies and procedures
Communication including reporting
Numeracy skills to undertake financial calculations
Ability to relate to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities
Resource Implications
The learner and trainer should have access to appropriate documentation and resources normally used in the workplace
Consistency of Performance
In order to achieve consistency of performance, evidence should be collected over a set period of time which is sufficient to include dealings with an appropriate range and variety of situations
Context/s of Assessment
Competency is demonstrated by performance of all stated criteria, including paying particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide, and within the scope as defined by the Range of Variables
Assessment must take account of the endorsed assessment guidelines in the Business Services Training Package
Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment
Assessment should reinforce the integration of the key competencies and the business services common competencies for the particular AQF level. Refer to the Key Competency Levels at the end of this unit
Key Competency Levels
Collecting, analysing and organising information (Level 3) - to acquire and manage finances
Communicating ideas and information (Level 2) - to obtain and convey financial information
Planning and organising activities (Level 2)- to comply with legal requirements and manage finances
Working with teams and others (Level 2)- to obtain financial information
Using mathematical ideas and techniques (Level 2)- to plan and maintain finances
Solving problems (Level 3) - to maximise business financial viability
Using technology (Level 3) - to optimise business performance
Please refer to the Assessment Guidelines for advice on how to use the Key Competencies