Unit of competency Outline
Date retreived
22/07/2026 7:48 AM AWST
22/07/2026 7:48 AM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Manage budgets and forecasts
Manage budgets and forecasts
Unit of competency
National Code
FNSACC503A
FNSACC503A
State Code
D4041
D4041
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
15/10/2014
Field of Education
080101 - Accounting
Original Release Date
15/10/2014
Nominal Hours
50
Description
This unit describes the performance outcomes, skills and knowledge required to prepare, document and manage budgets and forecasts, and encompasses forecasting estimates and monitoring budgeted outcomes.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Prepare budget
- 1.1. Cash, expenditure and revenue items are clearly defined and relevant to identified objectives of the budget
- 1.2. Budget objectives are clear and consistent with organisational aims and projects
- 1.3. Discussions and negotiations with stakeholders are conducted in a manner that promotes understanding, goodwill and ongoing cooperation
- 1.4. Milestones and performance indicators are identified and included in budgets to monitor financial performance with annual budgets are broken down into seasonal periods in accordance with operating trends
2. Forecast estimates
- 2.1. Estimates of future cash flow, costs and revenues are realistic and attainable and supported by verifiable evidence and source documentation
- 2.2. Relevant data for forecasts are identified and changes in circumstances anticipated
- 2.3. Assumptions and parameters are established and reviewed for accuracy, relevance and compliance with organisational procedures and policies
- 2.4. Financial risks are identified and protection strategies initiated in accordance with organisational procedures and policies
3. Document budget
- 3.1. Data are presented in a format that is easily understood and appropriate to budget reporting
- 3.2. Reports are completed within timelines and distributed for specified periods and projects
- 3.3. Trends, issues and comparisons are identified and reported in a structured format to ensure transparency and validity of analysis
- 3.4. Feasibility is identified by comparison of projections with market growth and development
4. Monitor budget outcomes
- 4.1. Budget variances are analysed in accordance with organisational procedures and recommendations based on the analysis made to the client or designated person
- 4.2. Budget processes are reviewed and implemented as required
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Expenditure and revenue items may include:
capital expenditure
client and supplier payments such as:
sales
commissions
community service obligation expenditure
discretionary expenditure
fees and charges
occasional expenditures
other revenues
revenue producing expenditures
sales
service fees.
Budgets may include:
cash budgets
labour budgets
manufacturing budgets
production budgets
purchase budgets
sales budgets
statements of financial performance
statements of financial position.
Budget objectives may include:
annual planning
business expansion and growth
cost reduction
debt reduction
rolling forecasts:
next period
monthly
next year
solvency
strategic review for the long term
Stakeholders may include:
chief executive and financial officers
clients
employees
financial institutions
managers and company officers such as:
company directors
boards of management
government ministers
suppliers
Milestones and performance indicators may include:
compliance with scheduled payment dates
debt reduction targets
profits and losses
reports
quarterly
half yearly
annually
unit costs.
Verifiable evidence and source documentation may include:
financial institution statements
invoices and receipts
order and supplier documentation
taxation and statutory returns.
Data may include:
cash flow projections
fixed costs
sales records and projections
variable business costs.
Assumptions and parameters may include:
cash and business returns
competitors' behaviour
expenditure limits
market share growth
productivity levels
regulatory stability.
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Expenditure and revenue items may include:
capital expenditure
client and supplier payments such as:
sales
commissions
community service obligation expenditure
discretionary expenditure
fees and charges
occasional expenditures
other revenues
revenue producing expenditures
sales
service fees.
Budgets may include:
cash budgets
labour budgets
manufacturing budgets
production budgets
purchase budgets
sales budgets
statements of financial performance
statements of financial position.
Budget objectives may include:
annual planning
business expansion and growth
cost reduction
debt reduction
rolling forecasts:
next period
monthly
next year
solvency
strategic review for the long term
Stakeholders may include:
chief executive and financial officers
clients
employees
financial institutions
managers and company officers such as:
company directors
boards of management
government ministers
suppliers
Milestones and performance indicators may include:
compliance with scheduled payment dates
debt reduction targets
profits and losses
reports
quarterly
half yearly
annually
unit costs.
Verifiable evidence and source documentation may include:
financial institution statements
invoices and receipts
order and supplier documentation
taxation and statutory returns.
Data may include:
cash flow projections
fixed costs
sales records and projections
variable business costs.
Assumptions and parameters may include:
cash and business returns
competitors' behaviour
expenditure limits
market share growth
productivity levels
regulatory stability.
EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
prepare and document budgets and forecasting estimates
monitor budget outcomes periodically
apply accounting principles and practices and organisational policies and procedures
use an organisational chart of accounts.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills which may include formal examinations
setting and reviewing workplace projects and business simulations
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
prepare and document budgets and forecasting estimates
monitor budget outcomes periodically
apply accounting principles and practices and organisational policies and procedures
use an organisational chart of accounts.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills which may include formal examinations
setting and reviewing workplace projects and business simulations
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C9603 | FNSACCT503B | Manage budgets and forecasts | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUQ12 | FNSACC503 | Manage budgets and forecasts | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S718 | FNS50210 | Diploma of Accounting | Qualification |
| J304 | PSP50512 | Diploma of Government (Financial Services) | Qualification |
| J513 | SIS50512 | Diploma of Sport Coaching | Qualification |
| J514 | SIS50612 | Diploma of Sport Development | Qualification |