Unit of competency Outline
Date retreived
22/07/2026 1:55 PM AWST
22/07/2026 1:55 PM 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 financial operations
Manage financial operations
Unit of competency
National Code
SITXFIN008A
SITXFIN008A
State Code
S6527
S6527
TGA Status
Deleted
Deleted
DTWD Status
Deleted
Deleted
State Implementation and Classification
Approved Date
03/12/2010
Field of Education
080101 - Accounting
Original Release Date
03/12/2010
Nominal Hours
75
Description
This unit describes the performance outcomes, skills and knowledge required to manage day-to-day financial operations of a small organisation, a department within a larger organisation or a complex project.The unit is not intended to cover detailed specialist accounting skills that are undertaken by qualified accountants or financial controllers, but does include the awareness of accounting issues and concepts needed by managers for effective communication with accountants or other specialists on financial matters.
Notes
Elements and Performance Criteria
1 Develop approaches to financial management.
- 1.1 Assess scope of financial management requirements for a given organisation or project.
- 1.2 Identify need for and organise specialist accounting assistance where appropriate.
- 1.3 Develop approaches to financial management based on overall direction and goals of the organisation or project.
- 1.4 Develop financial management systems and procedures according to organisation needs.
2 Develop and monitor financial procedures and systems.
- 2.1 Develop financial procedures and systems to meet relevant statutory and internal control requirements.
- 2.2 Communicate importance of financial objectives, management controls and systems to all staff.
- 2.3 Develop practical procedures and systems for monitoring income and ensuring payment of accounts.
- 2.4 Research and integrate the use of current industry practices and technology into systems where appropriate.
- 2.5 Check compliance with procedures and systems on a regular basis.
- 2.6 Monitor the flow of financial information within the organisation in terms of currency, accuracy, level of detail and relevance.
- 2.7 Review financial management systems regularly and make adjustments according to organisation needs.
3 Make pricing decisions.
- 3.1 Make pricing decisions based on current, sufficient, accurate and relevant financial and marketplace data.
- 3.2 Identify fixed, variable and semi-variable costs.
- 3.3 Perform and interpret simple cost-volume-profit analysis.
- 3.4 Set appropriate profit margins according to organisation policy and calculate prices correctly.
4 Monitor financial performance.
- 4.1 Monitor budgets against performance targets on a regular basis.
- 4.2 Negotiate corrective budgets to maximise business performance.
- 4.3 Take remedial action to address financial performance problems where appropriate.
- 4.4 Prepare and interpret profit and loss statements accurately with appropriate level of detail.
- 4.5 Conduct financial ratio analysis and apply the findings to financial management and reporting as appropriate.
- 4.6 Communicate feedback on positive and negative performance to appropriate colleagues in an appropriate manner.
5 Prepare financial reports.
- 5.1 Prepare accurate, concise, relevant and sufficiently detailed financial reports to schedule, in a format appropriate to the audience and according to organisation and statutory requirements.
- 5.2 Identify the need for and access specialist advice on reporting requirements where appropriate.
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 in the performance criteria is detailed below.
Scope of financial management requirements for different projects or organisations will vary and may relate to differing requirements for:
budgeting and forecasting
reporting, including depth, regularity and nature of reports
control mechanisms
specialist financial skills.
Financial procedures and systems:
must address:
transaction recording
checking and reconciliation processes
banking procedures
invoicing
accounts payable and receivable
cash management and security measures
cash flow management
budget management
reporting requirements
GST and other taxation requirements
statutory requirements that apply to the specific business structure
sector specific requirements, such as the Travel Compensation Fund in retail travel
may cover:
stock control
financial responsibilities within an organisation or department.
Financial reports must include:
GST reports and business activity statements
cash flow statements
profit and loss statements
balance sheets
reconciliations.
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 in the performance criteria is detailed below.
Scope of financial management requirements for different projects or organisations will vary and may relate to differing requirements for:
budgeting and forecasting
reporting, including depth, regularity and nature of reports
control mechanisms
specialist financial skills.
Financial procedures and systems:
must address:
transaction recording
checking and reconciliation processes
banking procedures
invoicing
accounts payable and receivable
cash management and security measures
cash flow management
budget management
reporting requirements
GST and other taxation requirements
statutory requirements that apply to the specific business structure
sector specific requirements, such as the Travel Compensation Fund in retail travel
may cover:
stock control
financial responsibilities within an organisation or department.
Financial reports must include:
GST reports and business activity statements
cash flow statements
profit and loss statements
balance sheets
reconciliations.
EVIDENCE GUIDE
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
understanding of the total financial management process within a business
ability to integrate the financial management activities of a business into overall business operations
knowledge of financial control, reporting and monitoring systems
establishment and management of financial systems over a period of time so that the monitoring and implementation aspects of the unit can be assessed.
Context of and specific resources for assessment
Assessment must ensure:
project or work activities that include the use of figures and data that reflect the financial operating conditions of industry
use of industry-current technology for financial management.
Methods of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
evaluation of financial reports detailing financial performance of projects or activities conducted by the candidate
evaluation of financial management strategies produced by the candidate detailing systems and procedures for the management of given business operations or situations
case studies and problem-solving to assess application of financial management strategies to particular situations
review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate.
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.
Assessing employability skills
Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors. How these skills are applied varies between occupations and qualifications due to the different work functions and contexts.
Employability skills embedded in this unit should be assessed holistically with other relevant units that make up the skill set or qualification and in the context of the job role.
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
understanding of the total financial management process within a business
ability to integrate the financial management activities of a business into overall business operations
knowledge of financial control, reporting and monitoring systems
establishment and management of financial systems over a period of time so that the monitoring and implementation aspects of the unit can be assessed.
Context of and specific resources for assessment
Assessment must ensure:
project or work activities that include the use of figures and data that reflect the financial operating conditions of industry
use of industry-current technology for financial management.
Methods of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
evaluation of financial reports detailing financial performance of projects or activities conducted by the candidate
evaluation of financial management strategies produced by the candidate detailing systems and procedures for the management of given business operations or situations
case studies and problem-solving to assess application of financial management strategies to particular situations
review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate.
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.
Assessing employability skills
Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors. How these skills are applied varies between occupations and qualifications due to the different work functions and contexts.
Employability skills embedded in this unit should be assessed holistically with other relevant units that make up the skill set or qualification and in the context of the job role.
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| E2017 | THHGLE15B | Manage financial operations | Unit of competency |
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|---|---|---|---|
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