Assessment 1: Manage finances of Houzit
Unit and Assessment Details
Assessment Title Assessment - Manage Finances
Unit/Cluster Code BSBFIM601
Unit/Cluster Title Manage Finances
Course Code - Title BSB60215 –Advanced Diploma of Business
Assessor Name Namita/Amelia
Assessment Date/Due Date As mentioned in Unit Outline
Assessment Instructions for Students
1. This assessment involves FOUR (4) tasks.
2. This assessment is to be completed over a period of fifteen (15) sessions in a business environment.
3. If you require any clarification or support to complete this assessment, ask your assessor.
4. For a satisfactory result in this assessment, you must successfully complete ALL tasks to a satisfactory standard.
5. Your assessor will assess you individually for each assessment task in this assessment. Plagiarism, collusion and cheating are strictly prohibited [see NIT Student Handbook Section 13.10].
6. Support is available for students with special needs or learning difficulties. If you require any support or modified equipment to complete this assessment, please ask your assessor.
7. Make sure you check grammar and spellings in your assessment before submission, specifically using tools such as Grammarly or spellcheck.
8. You must submit the completed assessment to your assessor by the above specified assessment due date.
9. You must keep a copy of all submitted work.
10. Assessments will not be considered for marking unless they are correctly formatted to academic standards (please see below criteria).
Assessment Formatting
Please ensure all assessments are formatted using the criteria below:
1. Header:
a. Unit Code Unit Name
b. Assessment Number
2. Footer:
a. Student Name
b. Student ID
c. Page Numbers
3. Font: Times New Roman
4. Font Size: 12
5. Headings: Bold (to distinguish from the rest of the document).
6. Spacing: 1.5
7. Please use the following naming convention when saving and submitting your assessments:
a. Student ID_Unit Code_Assessment Number
Required Resources and Tools
The following resources and tools are required to complete this assessment and will be made available to you at the time of assessment:
1. Houzit Business Scenario Information (Appendix 1 and 2)
2. Houzit templates
3. Computer Lab (Computers, Word processing software, Internet access)
Assessment Description
This assessment requires you to determine the requirements to undertake budgeting, financial forecasting and reporting requirements for a fictional organisation. You will need to review the case study provided and prepare a budget (in electronic spreadsheet format) and budget notes for distribution and implementation in the organisation.
You are also required to implement the budget and report on the variances, trends and performance of the established budget for a business and provide recommendations for ongoing financial viability.
Assessment Tasks
Read and analyse the case study provided (See appendix 1) and carry out the following assessment tasks.
Task 1: Report on financial analysis
Prepare a financial analysis report that will assist you in developing and implementing financial budgets for next financial year 2017/18. The Financial report that you prepare must include:
a) financial analysis of past two financial year data. This must include:
i. Profitability ratio
ii. Current ratio
iii. Debtor aging and Creditor aging ratios
iv. Inventory turnover
v. Growth rate (Sales and gross profits)
Based on this analysis indicate possible reasons for previous profit/loss.
b) Outline information from Business Plan that indicates all timelines and initiatives that are required to create budgets for next financial year 2017/18.
c) Outline any applicable (at least four) statutory and taxation requirements that will be essential in preparing budgets for next financial year 2017/18.
d) Review commercially available financial management software to select the most suitable software for Houzit Pty Ltd. Ensure you diagnose software options by comparing two commercially available software titles against the capabilities of the existing technology for the organisation and against the prioritised requirements, and outline the reasons that lead you to this recommendation.
Insert your report here as an object (Pdf file only).
Task 2: Develop annual budget
Develop an annual budget (divided into quarterly periods) in a single electronic spreadsheet (See Appendix 3 - Houzit Financial Templates). Use previous financial data to determine allocation for resources and make informed estimates of new items for inclusion in budget. The budget that you prepare must include:
a. Sales budget
b. Profit budget
c. GST Cash flow budget
d. Debtor ageing summary
Ensure each budget you prepare complies with the organisational and statutory requirements.
You must provide explanations of any assumptions, reporting requirements and financial delegations considered in developing this budget.
Insert your budget here as an object (Pdf or Excel file ).
Task 3: Implement budgets
Based on the information provided in the case study and the following scenario answer the following questions in the space provided below:
Scenario
The CEO of Houzit Pty Ltd, Jim Schnieder explained that he prefers to discuss the budgets with all senior managers prior to their distribution in order to ensure a corporate view of the strategic plans. He then meets with each group separately to answer questions and concerns about their particular area. Eventually the budgets will be printed in hard copy and bound as well distributed as an electronic spreadsheet.
Upon completion of the budgets you meet with Jim to provide an overview of the information contained within the budgets, the budget notes and recommendations regarding the internal controls to prepare him for the meetings with the senior managers. To clarify his understanding of the information, Jim asks you a series of questions (listed below, which you will complete written questions, which will be further validated through verbal questioning by your assessor).
Q1: Identify the current statutory requirements for tax compliance and list and calculate the tax liabilities for Houzit Pty Ltd under taxation legislation.
Write your answer here
Q2: Identify the current compliance requirements and liabilities for this organisation under the Corporations Act 2001
Write your answer here

Q3: Explain and discuss the implications of probity when preparing and revising budgets.
Write your answer here
Q4: Explain how you can apply the following principles of accounting in developing the budgets required for this task:
i. matching principle
Write your answer here
ii. account groups
Write your answer here
iii. time periods
Write your answer here
Q5 Provide an evidence of the mechanism(s) that you have implemented to ensure that:
i. there are no opportunities for misappropriation of funds,
ii. required systems are in place to properly record all financial transactions
iii. all regulatory and legal requirements are being met.
Insert your evidences here
Q6. Provide an evidence of at least two audit trails that you implemented to ensure accurate tracking and to identify discrepancies between agreed and actual allocations.
Insert your evidences here
Task 4: Review budgets
a) Refer to the case study (Appendix 1 and 2) and develop a variance report based on the format and template provided by Houzit. (Houzit Financial Templates).
Insert your report here (Excel or PDF file)
b) Develop a report by examining the sales budget, profit budget, cash flow budget and debtor ageing summary to identify the following:
I. Issues:
i. Identify, describe and prioritise significant issues that are evidenced in the provided case study information and describe reasons or causes of these issues.
II. Performance:
i. Compare financial performance of the organisation (according to financial information provided) to industry benchmarks for this organisation in line with the retail trade sector.
ii. Determine a trend of the average debtor days and the impact to the cash flow of Houzit.
III. Recommendations:
i. Outline your recommendations for ongoing financial viability for the organisation, based on your assessment of the issues, reasons for variances and organisational performance you have identified.
ii. Include in this section your plans for a revised budget, effectively managing contingencies and issues that have been identified in feedback and monitoring of the budgets.
IV. Evaluation:
i. Provide a summary review of the financial management processes in place for the organisation, in light of your assessment of the issues, reasons for variances and organisational performance you have identified. Include in this section any recommendations you have for modifying management processes.
Ensure that the structure and format of reports are clear and conform to organisational requirements
Insert your report here (Word or PDF file)
End of assessment.