BSBSMB406 Manage Small Business Finances Assessment Task 1
Assessment Task 1
BSBSMB406 Manage small business finances
The candidate must develop a cash flow estimate to inform business planning.
A cash flow estimate gives a clear picture of the amount of cash the business is likely to have available during the coming year, taking into account tax provisions and credit sales.
A cash flow estimate is useful for planning and also enables you to respond to issues promptly.
For this assessment task, you must develop a cash flow estimate that identifies income, expenses, estimated credit sales, and tax provisions for the coming 12 months.
This assessment will require the following file, which your assessor will provide:
Note: The file is a spreadsheet with three worksheets (Sophy, Bob sample, and Your business). Use the ‘Your business’ worksheet to complete this assessment task.
- Read your business plan to clarify the products/services offered.
- Group the products/services into eight categories for the purposes of this Assessment Task.
- Note the product/service categories in the relevant section at the top of the ‘Your business’ worksheet in the ‘Assessment-Task-1-Cash-Flow-Template’ file.
- Identify the applicable tax rate and note this on the worksheet.
- Calculate projected sales of the eight products/service categories for each month of the following year and enter these in the grey sections of the ‘Stock sales’ section of the worksheet.
- Calculate projected credit sales and repayments and enter these in the grey sections of the ‘Credit’ section of the worksheet.
- Identify and estimate other income sources for each month and enter these into the relevant section of the worksheet.
- Identify and estimate expenses for each month and enter these into the relevant section of the worksheet.
Adjustment for distance-based learners
- No variation to the procedure is required.
- Documentation can be submitted electronically or posted in the mail.
- A follow-up interview may be required (at the discretion of the assessor).
You must provide:
- a spreadsheet with a cash flow estimate, including tax provisions and credit sales, for the coming 12 months for the business.
Your assessor will be looking for:
- accurate and complete product/service categorization and pricing
- accurate and complete income identification and estimates
- accurate and complete expense identification and estimates
- an accurate tax margin expressed as a percentage
- a realistic projection of sales for each month
- a realistic projection of credit sales and repayment for each month.