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BSBFIN501 Manage Budgets and Financial Plans

Assessment Resource Summary
Unit Details BSBFIN501 – Manage Budgets and Financial Plans
Assessment Type

This is a summative assessment, which requires each student to have adequate practice before undertaking this assessment.


Assessment Methods

Written Assessment (J) Assessment 1

(Written Assessment)

Project (C) Assessment 2

(Finance and Budgeting)

Last Modification Date
Unit Summary

This unit describes the skills and knowledge required to undertake financial management in an organisation or work area. It includes planning and implementing financial management approaches and supporting and evaluating the effectiveness of financial management processes.

The unit applies to managers in a wide range of organizations and sectors who have responsibility for the effective use of financial resources within work teams. They are responsible for ensuring that financial resources are managed in line with the financial objectives of the team and organisation.

No licensing, legislative, or certification requirements apply to this unit at the time of publication.

Prerequisite Units
There are no recommended pre-requisite units for this competency.

Co-requisite Units
There are no recommended co-requisite units for this competency.
Resources: Student Learner Guide, PowerPoint presentation, Sample Policies and Procedures and documents, Office equipment and resources, computer facilities with the internet,

including the “Student Resource Folder”, accessible for every student via Rhodes College intranet.

Business Plan Template & Guide tools/business-plan-template-and-guide

Business Balls

Australian Taxation Office (ATO)

Note: Students, currently employed, are encouraged to bring their current employer’s policies and procedures and or relevant documents (with their employer’s permission) to use in their course work. This material must be reviewed prior to use by the Institute’s Trainer/Assessor. For students who are unable to bring adequate policies and procedures, the Institute will provide a practice set of documents.


Student Name:                                                                                                                             Student ID No:                                                                                                                                           

Student Instructions:

  1. Your answers should be on a separate document using word processing software such as MS Word & or other software (handwritten submissions are only acceptable with prior approval from your Trainer/Assessor)

2.      Your document should be professionally formatted and include

  1. Your Name
  2. Your Student ID

c.      Unit Code

  1. Assessment Number (i.e. BSBFIN501 Assessment 1)
  2. Please refer to e question number and retype each question with your answers
  3. You must answer every question and provide enough information to demonstrate a sufficient understanding of what has been asked to achieve competency. Please ask your Trainer/Assessor if you are unsure what is sufficient detail for an answer
  4. Ask your trainer/assessor if you do not understand a question. Whist your trainer/assessor cannot tell you the answer, he/she may be able to re-word the question for you or provide further assistance based on the Institute’s “Reasonable Adjustment Policy”
  5. Answers should be your own work, in your own words, and not plagiarised, or copied. However, if an answer is cut & pasted (such as a definition), then the source should be referenced



Create definitions for the following financial terminology:

Accrual Accounting

It is the method that permits the organization for recording revenue before getting the paid for goods and services, expenditures or sold that are sustained and recorded before the organization is paid.

Ageing It is utilized by accountants and investors for evaluating and identifying any loopholes in the receivable accounts.
Ageing Summaries It refers to the summary related to the entire receivables that are due from the consumer at a given period.
ATO It refers to assembling to order and the strategy of a business in which the products are produced rapidly produced once from the parts of the components (Schiff & Lewin, 2019).


It refers to the resources that value the economy that corporations, countries, or individuals own that provide a future advantage.
Auditing It refers to the evaluation of the object and also the examination of financial statements to make sure that the records are accurate and provide a fair representation of the transaction.
Balance Sheet It refers to the financial statements that deal with reporting the equity of liabilities, shareholders, and assets that are related to the organization.
Budget It refers to the expenses estimation and the expenses that are identified over a future period.
Cash Accounting It refers to the method in which the transactions are recorded accurately at the time when they occur.

Cash Flow It refers to the net cash balance that generally moves in and out of business at a particular time period.
Costs It refers to the interest and some changes that are generally included with the borrowing of the money that is related to purchasing and building assets.
Cost Variations It refers to the variance the actual costs incurred and is the budget and planned cost that should have been sustained.
Contingency Plans It refers to the identification of situations that deal with the worst-case and its implications also presents some responses that are probable.
Expenses It refers to the operation cost that incurs in the organization that helps in generating revenue (Schiff & Lewin, 2019).
Expenditure It refers to the payments or liabilities that are made and suffered in the exchange of goods and services
Expenditure Overruns It refers to the amount that is used for definite expenses that surpasses the amount that is budgeted.
Financial Management It refers to directing, controlling, and organizing fiscal activities in a particular time period.
Financial Statements It refers to the records of financial activities that are related to the organization for a particular time period.
Financial Plans

It refers to the document that summarizes the present situations related to money. It can be for a long- duration and for individual monetary strategies and objectives of achieving the objectives.

Financial Objectives It refers to the objectives that are set by an organization for its success and growth.
Financial Reports It refers to the document that represents the financial condition of an organization at a particular time.
GAAP It is the collection of followed standards used for accounting and fiscal reporting.
GST It refers to the indirect tax imposed on the goods and services supply.
General Ledger  It refers to the numbered account that is utilized by the business in order to keep track of the financial transactions and prepare fiscal reports.
Ledger It refers to the book or digital record that contains the entries that are related to bookkeeping.
Liabilities It refers to something that is owned by the company or by the individual

It refers to the strategy that deals with the flow of cash that is utilized for safeguarding the funding that is related to the upcoming liabilities.

Owner’s equity  

It refers to the sum value related to an asset of a company that anytime can be claimed by the shareholders and the company owners.

Petty Cash It refers to the small amount of cash used by the company for paying the incidental expenditures of the employees.
Profit & Loss Statements It helps to describe the cost, expenses, and revenues that are generated in a period.
Resources It refers to the supplies that are drawn for executing the projects.

It refers to the sum of the amount that is brought into operation and is calculated over a time period.



When discussing budgets and financial plans, it is important to ensure that the documented outcomes are achievable, accurate and comprehensible. List the relevant personnel, within an organisation, that would need to be consulted.


1. Senior managers

2. Financial managers

3. Operational managers

4. Departmental managers.

 3  List and explain at least FIVE (5) of the basic accounting principles.

 1. Cost principle – recording assets at the time when the products are purchased.

 2. Matching principles – The expenditures needed to be matched to the revenues that are identified in an accounting period.

 3. Objectivity principle – The data related to accounting should be appropriate and need to be free from the personal point of view.

 4. Revenue Recognition – It refers to the information about the recorded business.

 5. Full disclosure principle – It refers to the data related to the financial statements that need to be completed to ensure that nothing is a misrepresented (Rondeau, et al., 2012).


Provide TWO (2) examples of business operational risk scenarios that could affect your budgets and financial plans.

 Examples of the business operational risk scenario that can affect the financial plans are:

1. Insufficient pressure related to testing

2. Operational risk related to fixed view.


If your initial financial plans need to be varied, what contingency planning strategies would you need to put in place?


 1. Strategic planning – It is mainly intended for the business in running the operation and marketing the brand, products, and services.

 2. Contingency planning – It helps to analyze alternate strategies used for getting prepared for an unexpected situation

    1- F   2- C   3-G
    4-D   5-E   6-A
    7- B   8-I   9-H


Job Descriptions:
A. Person who organises contract entitlements, approval from management, daily limits, timing and methods for reconciliation, producing

receipts for card use and procedures for lost cards.

B. Person responsible for petty cash, the petty cash limit, the process for replacing petty cash, record keeping, access to petty cash and security of petty cash and storage.
C. Person who is responsible for etiquette for recovering accounts and training in dealing with conflict and company procedures. D. Person who is responsible for the banking and safety and reconciliation procedures for banking and security.
E. Person responsible for software, MYOB or invoicing programs, managing accounts, professional communication and relationship management, data entry accuracy, program and computer use and the appropriate authority to invoice. F. Person responsible for using recognised accounting standards, follows company procedures for bookkeeping, reporting responsibilities, access to data, dissemination processes, reporting hierarchy, ATO and Legal responsibilities and they have the appropriate training.
G. Person responsible for ensuring standards, audit procedures, audit requirements by law, communication between departments, researching the latest financial techniques and ongoing staff training. H. Person responsible for pre-existing service agreements with suppliers, delivery procedures, software to track purchases, training required, ordering aligned with company supply needs, budgets for ordering and following established procedures
I. Person responsible for using timesheets, electronic recording of information, HR and payroll requirements in regard to format, timing, entitlements and paper work standards, using external sources for payroll management, using spreadsheets and tables for record keeping, communicating channels and establishing awards, contracts and pay rates.


Financial Management Roles:
1. Maintaining journals, ledgers and other record keeping systems 2. Ensuring security, accuracy and currency of financial operations
3. Debt collection 4. Banking
5. Invoicing clients, customers and consumers 6. Arranging for use of corporate credit cards
7. Maintaining petty cash systems 8. Wages, salary payments and record keeping
9. Purchasing and procurement



6 Match each of the following financial management roles with their respective job descriptions.



Outline at least FIVE (5) ways support could be provided to a finance team to ensure that they competently perform their roles?


1. Show care towards the team.

2. Always admit your flaws

3. Get straight on the significant points.

4. Help the employees to fit into a team

5. Never forget to follow up with the team.



List and describe at least THREE (3) of the main resources and/or systems thanance personnel may need to successfully manage financial management processes.


 1. Budgeting – It deals with computing expenditures, income, expenses, and also the income and also deals with analyzing the income and the expenditure for assuming the forecast for cash flow.

 2. Accounting – It refers to the way of representing the spent income and assisting the company in setting its objectives.

 3. Financial control – It is generally meant for giving enough security to the finances and assets of the company (Rondeau, et al., 2012).



As the finance manager, what processes would you implement to monitor actual expenditure and to control costs?


1. The actual expenditures would be compared with budget

2. For this there is a need to establish a definite position

3. There is a need to establish the variances for some particular reasons

4. As a responsible manager it is important to take significant actions for monitoring.



For each of the following types of source documents, categorise them according to whether you would access them to report on actual expenditure and to control costs or for information to include in your budgets and financial plans.


·         Bank statements                                              ·    Financial reports

·         Cash flow projections                                     ·    Operational plans

·         Spreadsheet-based financial                          ·    Logs projections

·         Invoices and receipts                                      ·    Long-term budgets/plans

·         Petty cash records                                           ·    Credit card statements

·         Short-term budgets/plans                               ·    Ledgers and journals

·         Targets or key performance                           ·    Spreadsheet-based records indicators for production,

productivity, wastage, sales, income and expenditure

Report on actual expenditure and control costs

Report on budgets and financial plans

 Bank statements               Spread-sheet based record
 Petty cash records                Ledgers and journals

Target or key performance indicators for production, productivity, wastage, sales, income, and expenditure.

               Short-term budget plans
 Invoices and receipts               Long term budget plan
  Logs   Spread sheet-based financial projections
  Operational plans

Credit card statement

Cash flow projections

Spreadsheet-based records.





As a finance manager, you would be expected to regularly collect and collate data and information on the effectiveness of financial management processes within the work

team. List at least EIGHT (8) documents where you could source such data and information.

Some of the documents are-

1.      Supplier invoice

2.      Sales order

3.      Time card

4.      Lockbox check images

5.      Packing slip

6.      Credit card receipt

7.      Bank statement

8.      Lockbox check images



 Outline the concept of GST and explain how the system operates in Australia.


It is a 10% tax on products, services, & other types of consumption or sale in Australia. The company should register for GST if its GST revenue is more than $75,000, according to the revenue (Walpole, 2020).

 13  Which Australian businesses have to register for GST?

An organisation which is having income of $75,000 or more than $ 75000 must be registered for Goods and Service Tax.


List the business records that must be kept for Payments made to employees.

Some of business records which should be kept are-

1.      Payroll records

2.      Salary slip

3.      Wages

4.       Taxes

 15  List the business records you must keep for Income Tax and GST purposes.
1.      Records of bank

2.      Income & sales record

3.       Purchase and expenses records (Walpole, 2020).


List all the business records you must keep for PAYG withholding for your business payments.

1.      Wages & payment records

2.      TFN & withholdings declarations

3.      Payment records of employment termination


List all the business records you must keep for PAYG withholding for Fuel tax credits.

Fuel card statements

Bank statement

Records of manufacturing

Importation records

Tax invoice


Outline at least THREE (3) of the ATO’s legal requirements or conditions for keeping business records.

1.      For the 5 years, all records should be kept which includes the tax invoices, wages records, and employee’s super contribution.

2.      Documents that are related to GST

3.        Sales and purchases proofs.




Using the link below, research the ATO requirements for keeping tax records electronically then describe and explain THREE (3) of these requirements.,-payments-and-records/getting- started/choosing-a-record-keeping-system/electronic-record-keeping/

1.      Sell or buy an asset – Maintain all records for specific 5 years, especially once it is certain that a CGST event could occur.

2.      Have previously claimed the deduction for the drop-in value and have kept pertinent records for at least five years following the specific date of the prior claim.

3.       Conflicts: Maintain all data for the forthcoming time


Outline which relevant personnel in the organisation would be consulted when implementing changes to the budget/financial plans?

When implementing the changes to the budget/ financial plan consultation can be done with the financial managers, accounting experts, or the CEO.


Outline the communication tools you would use to disseminate relevant details of agreed budget/financial plans to team members?

Some of communication tools which can be used are-

1.      Email can be sent

2.      The meeting can be conducted

3.      The budget can be prepared

4.      Reports can be prepared

5.       Business reports can be prepared (Armitage, et al., 2020).


Describe the factors that can be used to analyses data and information in order to measure the effectiveness of financial management.

Some of factors that can be used for analyzing the data are-

1.      Operating cash flow

2.      Current ratio

3.       Quick ratio

 23  How can improvements with financial objectives be implemented and monitored?

To implement improvements to the financial objectives a meeting can be conducted in which financial statements can be prepared. All the records of the inventory can be prepared.

Fund flow and cash flow statements can also be prepared to monitor the financial objectives (Baisden, et al., 2018).



What can you report on to monitor actual expenditure and to control costs across the work team?
The external stakeholder inputs can be taken and insist on the collaboration.

In the WBS statement, the whole scope can be captured.

Trust can be developed by the project management team (Webb, et al., 2020).


The effectiveness of financial management processes relies on data collected from what sources?

Some of sources are-

1.      Credit letters

2.      Retained earnings

3.      Equity

4.      Debentures

5.        Credit letters (Bartholomae, et al., 2018).


 What is a general ledger? List the five accounts that are included in the general ledger.

general leader is a ledger in which all the accounts and tractions of the organization are tracked of the organization and the general leader also serves as the accounting system foundation.

Some of the accounts that are included in general leader are-






 27  What items appear on a Balance Sheet?

On the balance sheet, the items which appear are the assets and liabilities of the organization. Based on the organization, it can include short-term assets for example accounts and cash receivable, or long-term assets like plant, equipment, and property (Kenno, et al., 2018).

 28  List the people that budget plans must be clarified with?
Some of the people with whom the budget plan should be clarified are-

1.      Supervisor

2.      Financial accountants

3.      CEO

4.        Financial managers


Which personnel need to be informed after budget/ financial plans have been agreed upon?

After budget plan is agreed the person who needs to be informed are-

1.      CEO

2.      BOD

3.      Team members




Explain the importance of a debt collection procedure for aged debts?

For the aged debts, the procedure of debt collection is important to lower the interest rates lending, for the individual’s credit score can be mended and for the small and larger businesses overall economy is also strengthened (Sanity, et al., 2018).

Assessor Use Only

Attempt 1: Assessor Comments


  • Satisfactory (S) ¨ Not Satisfactory (NS) Assessor Signature: Date:                                          
Attempt 2: Assessor Comments

  • Satisfactory (S) ¨ Not Satisfactory (NS) Assessor Signature: Date:                                          
Attempt 3: Assessor Comments

  • Satisfactory (S) ¨ Not Satisfactory (NS) Assessor Signature: Date:                                          


This information is to be handed to each student to outline the assessment requirements.

You will be required to undertake three Assessment tasks in order to successfully complete this Assessment. This Project Assessment will require you to demonstrate evidence of your ability to:

  • Use financial skills to work with and interpret budgets, aging summaries, cash flow, petty cash, Goods and Services Tax (GST), and profit and loss statements
  • Communicate with relevant people to clarify budget/financial plans, negotiate changes and disseminate information
  • Prepare, implement and modify financial contingency plans
  • Monitor expenditure and control costs
  • Support and monitor team members
  • Report on budget and expenditure
  • Review and make recommendations for improvements to financial processes
  • Meet record keeping requirements for the Australian Taxation Office (ATO) and for auditing purposes

For this project, you will be required to undertake financial management within a work team in an organisation or simulated organisation. It includes planning and implementing financial management approaches, and supporting team members.

  • You must complete the full project and provide enough information to demonstrate sufficient understanding of what has been asked to achieve competency
  • Ask your trainer/assessor if you do not understand the project, he/she may be able to re- word the requirements for you or provide further assistance based on the Institute’s “Reasonable Adjustment Policy”
  • Answers should be your own work, in your own words and not plagiarised, nor
  • However, if an answer is cut & pasted (such as a definition), then the source should be referenced


Consider the following financial plan for Maree’s Tax Return Business. It shows Maree’s projections for her new business over the first 18 months. She has worked out how many days in each month she can work and estimate the number of new clients she can attract in each month of the first year. In the second year, there will be repeat clients as well as new clients.


Payable 10%


  1. In what month will Maree first make a profit?


The 1st month’s profit made by the Maree will be in June month. The total profit earned by Maree is of dollar 148.50.

  1. In what month will Maree reach “break-even”?


In September month with $ 37.13 of total worth, Maree will reach break-even.

  1. What happened to Maree’s pricing at the end of the first full year?


Maree’s prices & the structure of pricing appeared to alter at the same time. According to reports, Marie’s price increased by 10%, from $50 to $55. Consequently, this is what happened to the prices for marriages as a result of these factors & in this manner (Prihartono & Asandimitra, 2018).

  1. Maree has projected her revenue inclusive of In the blank column above calculate the amount of GST payable to the government for each month and the total for the year. Remember the Revenue figure includes GST, so the correct answer will not be 10% of the revenue figure. (Refer to the table above)


budgeted Revenue per month      including the Goods and Service Tax (in $) Revenue per month excluding GST (in $) GST 10% (in $)
5000.00 4500 500
4800.00 4,320 480
6750.00 6,075 675
3525.00 3,172.5 352.5
6750.00 6,075 675
7500.00 6,750 750
10,800.00 9,720 1080
10,800.00 9,720 1080
9,100.00 8,190 910
10,800.00 9,720 1080
11,250.00 10,125 1125
15,600.00 14,040 1560
13,750.00 12,375 1375
15,840.00 14,256 1584
22,275.00 20,048 2227
15,510.00 13,959 1551
20,790.00 18,711 2079
20,625.00 18,562.5 2062.5
Total. 21146

  1. What relevant legislation and ATO requirements do Maree need to be aware of? State how many years Maree will need to keep GST records in order to satisfy ATO requirements? (Please use the ATO website to check your answer


Marry should be well aware of Australian financial regulations which are till the date prevailed. For satisfying the requirement of the ATO Maree must also have advised keeping all the records of GST for 5 years from the Logue date and tax returns date if they have claimed the deduction for declining value which is called description. It is also usually said as five years from the last claim date (Prihartono & Asandimitra, 2018).

  1. What 3 goals or KPIs would you set for Maree in relation to sales, costs, and expenses to maximise income for her business?


Concerning the costs, sales, & expenses to increase income of the business for her some of the goals and KPIs which will be set are-

1) By 3% cost can be increased.

2) By 5% expenses can be reduced.

3) By 10% increase the sales (Barr & McClellan, 2018).

  1. Maree’s business is in the professional services/ administration sector. Please research and outline the operational, market, and financial risks that may impact Maree’s business and prevent her from achieving her desired Financial Key Performance Indicators (KPIs).


Maree’s business may face operational, market, and financial risks that help her from achieving needed KPIs. The risks she may face are related to her customers. Each client has high expectations for Maree’s service because she runs a professional business. In addition, Maree should pay attention to the service she provides and avoid complaints. Keeping up to date on all business requirements and complying with Australian legislation and regulation is important for her. Therefore, due to some of these factors, Maree’s business cannot achieve her Financial KPIs due to operational, market, & financial risks.

  1. Using the answers above, develop a Contingency Plan for Maree’s business which includes the probability of these risks occurring and action to implement in such an event? Students can use the Contingency Plan template Provided on the next

Contingency Plan

Risks Identified Risk

Acceptable Yes/ No

If No, additional strategies to be

implemented to plan for unforeseen circumstances (Contingencies)

There is no professionalism No

It must be ensured that professionalism must be shown by Maree and ensure the customer’s service delivery must be perfect.

Increase in the complaints Yes N/A
Requirements of the business No

To make sure the business is complying with all the requirements.

Comply with the regulations No

Review the rules and regulations in a timely and the latest version of regulation must be reviewed.

High customer service No

All the time high customer service must be provided and make sure customers are fully satisfied with the services.

Excess inventory Yes N/A
Lower margins and profits Yes N/A

 Contingency Plan template

  1. What are the implications for the continuation of Maree’s business if any of these risks occurring?


The implication for a continuation of the Maree business if any of these risks occur, for not losing the customers there is a need to prepare the recovery plan for every risk identified. If timely recovery plans are not prepared for the risk she might lose her customers.

  1. What approach should Maree take in developing the budget with her team? How often should they monitor budgets?


Maree must consider different approaches when developing an appropriate budget with the team members.  She can also use the zero-based budget approach. As per the observation, Maree should develop her budget based on the part of her business according to the approach she follows. For developing the budget Maree must review every voice of the budget and make adjustments accordingly. They must monitor the budgets every six months (Barr & McClellan, 2018).

  1. How will you communicate, support, monitor, and motivate staff towards achieving your countermeasure actions or achieving a revised


To communicate, support, motivate & monitor the staff towards achieving the countermeasure actions some of the strategies which can be used are-

1) In a week, a regular meeting will be conducted with the team members to discuss the progress.

2) To motivate the team member motivational seminar can be conducted and rewards and incentives can also be provided to them.

3) Attractive prizes can be provided to the team if they can achieve the set KPI.

4) Self-management team options will also be implemented to motivate the staff members.


Review the following Profit and Loss Statement. It contains actual figures for Year 1 and Budget figures for Years 2 & 3. Please answer the questions that follow.

Giuseppe’s pizza shop Profit and loss statement

Year 1                                                                    Year 2          Year 3               Year 4

Shop Sales 145,000 150000 -5,000
Phone Sales 165,000 150000 15,000
TOTAL INCOME 310,000 300,000 10,000
Wages – Full time 40000 38000 2,000
Wages Part-time 25,000 25,000 0
Wages – Casuals 70,000 60,000 10,000








TOTAL LABOUR 135,025 124,685 10,340
Food 51000 52000 -1,000
Drink 60000 52000 8,000


111,000 104,000 7,000
RENT 25000 25000 0
BANK LOAN 26000 26000 0
UTILITIES 1500 1200 300
MOTOR VEHICLES 5300 5200 100
OTHER EXPENSES 2500 2400 100
TOTAL EXPENSES 60,300 59,800 500


155,000 160,000 152,000
175,000 190,000 224,200
330,000 350,000 376,200
39,140 39,520 40,706
25,000 25,000 25,750
65,000 70,000 72,100




141,400 147,300 $151,718
54000 56000 57,120
54000 56000 62,720
108,000 112,000 119,840
25625 26265 27,316
26650 27315 27,315
1250 1300 1,352
1250 1300 1,300
2500 2600 2,704
500 500 600
57,775 59,280 60,587



310,000 300,000 0


330,000 350,000 376,200



Labour 135,025 124,685 10,340
Stock 111,000 104,000 7,000
Expenses 60,300 59,800 500


141,400 147,300 151,718
108,000 112,000 119,840
57,775 59,280 60,587



3,675 11,515
1,029 3,224
2,646 8,291


22,525 31,420 44,055
6,307 8,798 12,335
16,218 22,622 31,720



  1. What observations can you make about sales performance against budget in Year 1?


It has been observed from the sales performance of the organization in the first-year budget that sales are positive manner incurring and it also demonstrates that the pizza shop is performing well because clients are satisfied. As they can give order by doing a call and their delivery is also made on time.

  1. What are the main reasons why the business failed to meet its budgeted Net Profit in Year 1?


Some of the reasons are-

1) As compared to the budget the wages of the casual staff are high.

2) The cost of the drink is also high and $8,000 is considered more.

  1. What is the accumulated (total) budgeted net profit over the first 3 years of the business?


Over first 3 years of business accumulated budgeted net profit is:

$8291+ $22622+ $16218 = $47,131

The total budgeted net profit over the first 3 years is $47,131.

  1. At the end of Year 1 Giuseppe decides he wants to open a new shop at the end of Year 3 and will require $45,000 for this new business. Taking into account the actual net profit in Year 1 and the budgeted net profit in Years 2 and 3 should Giuseppe consider opening a new shop at the end of Year 3? Give reasons for your answer


In this case, taking into account the total net profit after year three, Giuseppe also stated to be capable of opening the new shop, although this justification is said to be based on the budget and not the actual data as well. In this situation, if I had to base my judgment on real data from Year 1, my advice to Giuseppe is to open a new store at end of 3rd year. Before considering building a new store and avoiding any debt, he is also believed to be able to track and change his sales, expenditures, and expenses (Simon, et al., 2019).

  1. What effect would a change in the tax rate to 25% have on the net profit in the Year 3 budget?


If tax rate is 25% then the effect would be on net profit in the 3 years budget would be:

= $31420 × 25%

= $7,855


$31420- $7,855

= $ 23,565 instead of $22,622
In other words, this is the impact that changing the tax rate to 25% would have on net profit for the 3 years budget.

  1. Design and develop a spreadsheet to capture budgeted figures for Year 4. Use previous financial data from the Year 3 budget to determine allocation for resources.
    1. Shop sales decrease by 5%
    2. Phone sales increase by 18%
    3. Labour costs increase by 3%
    4. Food stock increases by 2% and drinks by 12%
    5. Rent, Utilities and Other expenses all increase by 4%
    6. After Year 1, Giuseppe realized that it is easier to pay cash for some small purchases and expenses such as car washes for his delivery van and small rewards for his He included $500 as a petty cash expense in Years 2 and 3 in the Budget above. In Year 4 he believes this needs to be $600
    7. What is the budgeted net profit for Year 4?


For year 4 the budgeted net profit is $31,720

  1. Format for budgets and reports to include the following details:
    • name of the person who prepared it
    • name of the budget/report, e. sales, expenses, cash flow, budget variation report
    • period of the budget


GIUSEPPE’s Pizza shop

Profit & Loss statement.

Income Actual Budget Variance Budget Budget Budget Y4 Variance (in $)


$145,000 $150,000 $(5,000) $155,000 $160,000 $152,000 8,000




$150,000 $15,000 $175,000 $190,000 $224,200 34,200


$310,000 $300,000 $10,000 $330,000 $350,000 $376,200



Full times

$40,000 $38,000 $2,000 $39,140 $39,520 $40,706 1,186
Wages –

Part times

$25,000 $25,000 $25,000 $25,000 $25,750 750
Wages –


$70,000 $60,000 $10,000 $65,000 $70,000 $72,100 2,100
Super Annotation

n 9.50%

$12,825 $11,685 $1,140 $12,260 $12,779 $13,163
Total labor $135,025 $124,685 $10,340 $141,400 $147,229 $151,718 4419


Food $51,000 $52,000 $(1,000) $54,000 $56,000 $57,120 1,120
Drinks $60,000 $52,000 $8,000 $54,000 $56,000 $62,720 6,720
Total stock


$111,000 $104,000 $7,000 $108,000 $112,000 $119,840
Rents $25,000 $25,000 $25,625 $26,265 $27,316 1,051
Bank Loan $26,000 $26,000 $26,650 $27,315 $27,315
Utilities $1,500 $1,200 $300 $1250 $1,300 $1,352 52


$5,300 $5,200 $100 $1250 $1,300 $1,300


$2,500 $2,400 $100 $2500 $2,600 $2,704 104
Petty cash $500 $500 $600 100


$60,300 $59,800 $500 $57,775 $59,280 $60,587 -1,307


$310,000 $300,000 $330,000 $350,000 $376,200 -26,200
Labor $135,025 $124,685 $10,340 $141,400 $147,229 $151,718 -4,489
Costs $111,000 $104,000 $7,000 $108,000 $112,000 $119,840 -7,840

 Outline your recommendations to the organization’s stakeholders for ongoing financial viability for the organization, based on your assessment of the labor costs, stock costs, and expenses impacting organizational performance you have


Based on the assessment of the stock cost, labor costs, and expenses that are impacting the performance of the organization. Some of the recommendations are-

1) There is a need to reduce the labor cost of the organization.

2) Lessor workers must be employed at the stock cots.

3) Advice can be taken from the experts.

4) Marketing new methods can be adopted and for the payment also new methods can be used.

5) There is a need to increase the performance of the staff members.

6) The cost of drink and food must be also monitored.

7) The fixed costs and expenses amount must be maintained and monitored (Marques, et al., 2019).


Giuseppe has a number of corporate customers that wish to order pizza every Friday for their staff. They have asked to pay by invoice at the end of the month.

This was thought to be good for business as these customers placed large orders for lunchtime when the shop generally was not very busy.

However, not all of these customers pay their accounts on time. Below is a summary of the money that is owed to Giuseppe.

Giuseppe’s Ageing Debtors Report

Debtor’s Name Current Month Over 30 days Over 60 Days Over 90 Days
Mike’s Mechanical Services $120.00 $90.00
Jenny’s Junk Yard $85.00
Harry’s Timber Yard $65.00 $50.00 $240.00
Mandy’s Caryard $180.00


  1. Identify and describe the significant issues that are evidenced in the Ageing Debtors report


Here, based on the aging debtor’s report shown above, Giuseppe has to recover primarily in total $830.00. It is also pictured as being difficult when clients are unable to make timely payments because Giuseppe is believed to still owe money to his employees & other resources. Sales & expenses track must be kept by him, which is thought to be more difficult when the clients are not doing payments on time (Lan & Li, 2021).

  1. What is the total amount outstanding to Giuseppe?


To Giuseppe, the total outstanding amount is $ 830,00.

  1. Develop a Debt Collection Procedure for debt recovery used by the company, for aged debts. Please address the following:
    • Current Month;

For recovering the debts, a notice must be sent.

  • Over 30 days;

Invoices from this group should be added to a weekly contact list unless payment arrangements have been arranged between the parties.

  • Over 60 days;

If they are having established schedules of payment and are also abiding by the agreement prepared to recover their records in a favorable position.

  • Over 90

For handling the debt issues of the organization an accountant’s receivable manager can be hired. The accounts receivable manager as manage all the transaction of the organization (Lan & Li, 2021).

  1. Using the Debt Collection Procedure, what should Giuseppe do about the debt owed by Harry’s Timber Yard?


About the debt owned by the harry timber yard, Giuseppe must contact accounts receivable manager and for collecting and managing the debt the best way must be found (Debelle, 2020).

  1. Explain with reasons whether you would or would not continue to give credit to customers for


According to their analysis, Giuseppe would stop giving credit to customers who have previously used their debit or taken money from the business. The primary justification is that money ought to be regarded as outstanding. Giuseppe, therefore, stops giving credit for that reason (Chen & Metawa, 2020).

  1. Determine a trend of the average debtor days and the impact to the cash flow for


The trend for the average debtor days is 30 to 60 days. Giuseppe either has a significant negative impact on cash flow or is unable to properly close his books since he doesn’t receive his items on time. Additionally, he is unable to estimate future years’ revenues and expenses from current data, which makes it impossible for him to comprehend how his business is doing (Zakirova, et al.,  2020).

  1. Who are the major internal and external stakeholders Giuseppe would need to communicate with when preparing the budget?


1) Agencies

2) Suppliers

3) facilities supporter

4) Financial Advisor

5) Government (Debelle, 2020).

  1. What interest do they have in the development of the budgets for the company?


In the development of the company budget, the interest they have is the growth of the organization. budget development also allows for a better understanding of whether the organization is having sufficient revenue for paying its revenue (Zaharova, et al., 2020).

  1. What processes and resources could you put in place to monitor and control costs across the work team?


1) Budget must be planned

2) All expenses must be monitored

3) Change control system can be used

4) Earned value can be tracked (Chen & Metawa, 2020).

DOCUMENTATION TO BE SUBMITTED to complete this assessment

Part A

·         Questions 1-7

  • A Contingency Plan

·         Questions 9-11

Part B

·         Questions 1-5

  • Spreadsheet

·         Report – Recommendations to the Stakeholders

Part C

·         Questions 1-2

  • Debt Collection Procedure

·         Questions 4-7

Your submission should be prepared using business software such as MSWord, Excel, PowerPoint or similar software, with hard copies provided to your Assessor (Handwritten submissions are only acceptable with prior approval from your Trainer).

Your documents should be professionally formatted and include:

  1. Your Name
  2. Your Student ID

c.      Unit Code

  1. Assessment Number (i.e. BSBFIN501 Assessment 2)

Resources: Refer to the Resources section on Page 2.


This checklist is to be used when assessing the students in the associated task. This checklist is to be completed for each student. Please refer to separate mapping document for specific details relating to alignment of this task to the unit requirements.

Each task on this checklist must be found Satisfactory, to mark the assessment outcome as “Satisfactory”.

Please complete below

Student Name:
Student ID No:


PART A – Did the student

Attempt 1:



Attempt 2:



Attempt 3:



Correctly identify the month in which the first profit was made r Yes r No r Yes r No r Yes r No
Correctly identify the month in which break- even occurred r Yes r No r Yes r No r Yes r No

Identify the change in pricing


r Yes r No


r Yes r No


r Yes r No

Correctly calculate the GST for each month r Yes r No r Yes r No r Yes r No
Relevant legislation and ATO requirements r Yes r No r Yes r No r Yes r No
What advice or changes can you make to Maree r Yes r No r Yes r No r Yes r No
Prepare a contingency plan r Yes r No r Yes r No r Yes r No
What potential market, operational, and financial risks may exist r Yes r No r Yes r No r Yes r No
What approach should Maree take in developing the budget with her team r Yes r No r Yes r No r Yes r No
How will you communicate, support, monitor, and motivate staff r Yes r No r Yes r No r Yes r No
PART B – Did the student
Provide plausible observations on sales performance against budget in Year 1 r Yes r No r Yes r No r Yes r No
Explain why the business failed to meet budgeted profit in Year 1 r Yes r No r Yes r No r Yes r No
Calculate the accumulated budgeted net profit over the first 3 years r Yes r No r Yes r No r Yes r No
Explain whether Giuseppe should open a new business r Yes r No r Yes r No r Yes r No
What effect would a change in the tax rate to 25% have on the net profit r Yes r No r Yes r No r Yes r No
Prepare a Year 4 budget reflecting the following

·         Increase in Shop sales by 5%

·         Increase in Phone sales by 18%

·         Increase in Labour costs of 3%

·         Food stock increase of 3%

·         Drinks stock increase of 12%

·         Rent increase of 4%

·         utilities increase of 4%

·         Other Costs increase by 4%

·         Include $600 Petty cash in the Year 4 budget

·         Calculated the budgeted Nett Profit for Year 4



r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No



r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No



r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

r Yes r No

Outline your recommendations r Yes r No r Yes r No r Yes r No
PART C – Did the student
Identify and describe the significant issues r Yes r No r Yes r No r Yes r No
Calculate the total amount outstanding to Giuseppe r Yes r No r Yes r No r Yes r No
Provide a process for Giuseppe to handle outstanding debt r Yes r No r Yes r No r Yes r No
Provide reasons for continuing or discontinuing credit r Yes r No r Yes r No r Yes r No
Determine a trend of the average debtor days and the impact on the cash flow r Yes r No r Yes r No r Yes r No
Who are the major internal and external stakeholders r Yes r No r Yes r No r Yes r No
What processes could you put in place to monitor and control costs r Yes r No r Yes r No r Yes r No

Assessor Use Only

Attempt 1: Assessor Comments


  • Satisfactory (S) ¨ Not Satisfactory (NS) Assessor Signature: Date:                                          
Attempt 2: Assessor Comments

  • Satisfactory (S) ¨ Not Satisfactory (NS) Assessor Signature: Date:                                          
Attempt 3: Assessor Comments

  • Satisfactory (S) ¨ Not Satisfactory (NS) Assessor Signature: Date:                                          


Armitage, H. M., Lane, D., & Webb, A. (2020). Budget Development and Use in Small‐and Medium‐Sized Enterprises: A Field Investigation. Accounting Perspectives19(3), 205-240.

Baisden, E. D., Fox, J. J., & Bartholomae, S. (2018). Financial management and marital quality: A phenomenological inquiry. Journal of Financial Therapy.

Barr, M. J., & McClellan, G. S. (2018). Budgets and financial management in higher education. John Wiley & Sons.

Chen, X., & Metawa, N. (2020). Enterprise financial management information system based on cloud computing in big data environment. Journal of Intelligent & Fuzzy Systems39(4), 5223-5232.

Debelle, G. (2020). The Reserve Bank of Australia’s policy actions and balance sheet. Economic Analysis and Policy68, 285-295.

Kenno, S. A., Lau, M. C., & Sainty, B. J. (2018). In search of a theory of budgeting: A literature review. Accounting perspectives17(4), 507-553.

Lan, Y., & Li, X. (2021). A brief analysis of the application of enterprise’s internal accounting and financial management in computer. In E3S web of conferences (Vol. 235, p. 03087). EDP Sciences.

Marques, P., Bernardo, M., Presas, P., & Simon, A. (2019). Corporate social responsibility in a local subsidiary: internal and external stakeholders’ power. EuroMed Journal of Business.

Prihartono, M. R. D., & Asandimitra, N. (2018). Analysis factors influencing financial management behaviour. International Journal of Academic Research in Business and Social Sciences8(8), 308-326.

Rondeau, E. P., Brown, R. K., & Lapides, P. D. (2012). Facility management. John Wiley & Sons.

Schiff, M., & Lewin, A. Y. (2019). The impact of people on budgets. In Management Control Theory (pp. 209-218). Routledge.

Walpole, M. (2020). The Australian GST cross-border rules in a global context. eJTR18, 302. Tran-Nam, B. (2019). The Goods and Services Tax (GST): The public value of a contested reform. Successful Public Policy, 235.

Zakirova, A., Klychova, G., Ostaev, G., Zaugarova, E., Nigmetzyanov, A., & Zaharova, E. (2020). Organizational and methodological approach to managing financial flows of agricultural enterprises. In E3S Web of Conferences (Vol. 164, p. 10009). EDP Sciences.

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