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Elements and Performance Criteria

1. Implement financial strategy
   • Identify financial information requirements and obtain specialist services, as required
   • Produce financial budgets or projections for each forward period, and distribute to required people according to legal requirements and workplace procedures
   • Develop a plan to negotiate and manage business capital to best enable implementation of the business plan
   • Develop and maintain strategies and enable adequate financial provision for taxation according to legal requirements
   • Develop, monitor and maintain client credit policies to maximise cash flow
   • Select key performance indicators (KPIs) to enable ongoing monitoring of financial performance in line with business plan
   • Record and communicate financial procedures to required personnel to facilitate implementation of business plan according to workplace procedures
2. Monitor financial performance
   • Use available systems to monitor and report on financial performance targets, and analyse data to establish extent to which financial goals have been met
   • Monitor marketing and operational strategies for their effects on financial goals
   • Calculate and evaluate financial ratios according to own business and/or industry benchmarks
3. Review financial performance
   • Assess financial strategy to determine whether variations or alternative plans are needed according to workplace procedures, and change as required
   • Research and implement, with relevant personnel, new and emerging digital technologies to boost business profitability according to business plan

Performance Evidence

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

implement a financial strategy for at least one business or new business venture according to business plan and goals.

In the course of the above, the candidate must:

adhere to legal requirements

produce financial projections, including cash flow estimates

develop a plan to negotiate and manage business assets and financial capital

define strategies for debt collection and contingencies for debtors

manage cash flow

define key indicators for financial performance

communicate with required people

seek specialist services, where required

monitor the financial performance of the business and make changes to strategy as required

identify opportunities to implement new and emerging digital technologies to support the financial management of the business.

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Knowledge Evidence

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

legislative and regulatory financial requirements that apply to new business venture described in performance evidence

key purposes of financial reports

components of financial budgets or projections, including cash flow estimates

workplace procedures for:

recording and communicating financial procedures to required personnel

distributing financial budgets and projections

using digital technologies to monitor and report on financial performance targets and analyse data

assessing and changing financial plan

forms, channels and modes of communication used in relation to managing business finances

key features of business and industry benchmarking used to evaluate financial ratios

key features of financial decision-making relevant to the business, including:

strategies that enable adequate financial provision for taxation

components of client credit policies, including contingencies for debtors in default

key features of significant financial indicators

key features of balance sheet preparation and interpretation

key features of debt collection procedures and strategies

key features of profit and loss statement preparation and interpretation

key features of stock records and stock control relevant to the business.

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