Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

BSBSMB303 Mapping and Delivery Guide
Organise finances for the micro business

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency BSBSMB303 - Organise finances for the micro business
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to estimate start-up costs, financial viability and projected cash flow for a micro business with reference to candidates’ personal financial situation.It applies to individuals who are establishing or operating a micro business providing self-employment.No licensing, legislative or certification requirements apply to this unit at the time of publication.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the Management and Leadership – Small and Micro Business field of work and include access to:

business technology including internet access

specialist accounting software

relevant workplace documentation and resources

case studies, or where possible, real situations

interaction with others.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Ascertain own financial position and ability to provide capital/equity for the business
  • Realistically detail personal, family or community financial situation showing funds available and commitments already incurred
  • Determine equity finance and assets available for micro business from personal, family or community sources
       
Element: Determine projected cash flow for the business
  • Determine level of forecast business activity over a year and the business mix
  • Estimate establishment costs for the business and repayment schedule for borrowings
  • Calculate monthly variable and fixed costs needed to conduct business activity over a year
  • Estimate personal drawings needed from the business
  • Estimate monthly income generated by the business for a year, based on price per unit item or hourly charge rate for labour
  • Develop a cash flow budget for the first year of business operation
  • Seek professional advice to estimate goods and services tax and operating finance required for the business
       
Element: Source required funds to establish the business
  • Estimate required funding to establish and run the business based on expected sales and activity levels, available finances and commitments
  • Investigate methods of accessing alternative sources of finance
  • Identify strategies for meeting financial obligations
  • Implement plans to access available funds as required
       
Element: Monitor business profitability
  • Maintain and review monthly expenditure and income records
  • Compare equity at beginning and end of a year to estimate business performance
  • Assess financial viability of the business after a year of operation
  • Seek professional advice on depreciation, insurance and tax implications of the business
       
Element: Ascertain own financial position and ability to provide capital or equity for the business
  • Realistically detail personal, family or community financial situation showing funds available and commitments already incurred
  • Determine equity finance and assets available for micro business from personal, family or community sources
       


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Ascertain own financial position and ability to provide capital or equity for the business

1.1 Realistically detail personal, family or community financial situation showing funds available and commitments already incurred

1.2 Determine equity finance and assets available for micro business from personal, family or community sources

2. Determine projected cash flow for the business

2.1 Determine level of forecast business activity over a year and the business mix

2.2 Estimate establishment costs for the business and repayment schedule for borrowings

2.3 Calculate monthly variable and fixed costs needed to conduct business activity over a year

2.4 Estimate personal drawings needed from the business

2.5 Estimate monthly income generated by the business for a year, based on price per unit item or hourly charge rate for labour

2.6 Develop a cash flow budget for the first year of business operation

2.7 Seek professional advice to estimate goods and services tax and operating finance required for the business

3. Source required funds to establish the business

3.1 Estimate required funding to establish and run the business based on expected sales and activity levels, available finances and commitments

3.2 Investigate methods of accessing alternative sources of finance

3.3 Identify strategies for meeting financial obligations

3.4 Implement plans to access available funds as required

4. Monitor business profitability

4.1 Maintain and review monthly expenditure and income records

4.2 Compare equity at beginning and end of a year to estimate business performance

4.3 Assess financial viability of the business after a year of operation

4.4 Seek professional advice on depreciation, insurance and tax implications of the business

Evidence of the ability to:

conduct an investigation of own financial position, commitments and needs

determine projected cash flow for the business

estimate the funding needed to establish and operate the business

assess the financial viability of the business.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

identify sources of specialist financial advice for micro business operators

describe appropriate accounting software for use in the business

locate the Australia Taxation office (ATO) website and summarise data for operating a micro business

explain key financial terminology relevant to micro business

describe the relationship between finances and business sales and marketing strategies

describe methods of costing or pricing and preparation of financial forecasts

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Ascertain own financial position and ability to provide capital or equity for the business

1.1 Realistically detail personal, family or community financial situation showing funds available and commitments already incurred

1.2 Determine equity finance and assets available for micro business from personal, family or community sources

2. Determine projected cash flow for the business

2.1 Determine level of forecast business activity over a year and the business mix

2.2 Estimate establishment costs for the business and repayment schedule for borrowings

2.3 Calculate monthly variable and fixed costs needed to conduct business activity over a year

2.4 Estimate personal drawings needed from the business

2.5 Estimate monthly income generated by the business for a year, based on price per unit item or hourly charge rate for labour

2.6 Develop a cash flow budget for the first year of business operation

2.7 Seek professional advice to estimate goods and services tax and operating finance required for the business

3. Source required funds to establish the business

3.1 Estimate required funding to establish and run the business based on expected sales and activity levels, available finances and commitments

3.2 Investigate methods of accessing alternative sources of finance

3.3 Identify strategies for meeting financial obligations

3.4 Implement plans to access available funds as required

4. Monitor business profitability

4.1 Maintain and review monthly expenditure and income records

4.2 Compare equity at beginning and end of a year to estimate business performance

4.3 Assess financial viability of the business after a year of operation

4.4 Seek professional advice on depreciation, insurance and tax implications of the business

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Realistically detail personal, family or community financial situation showing funds available and commitments already incurred 
Determine equity finance and assets available for micro business from personal, family or community sources 
Determine level of forecast business activity over a year and the business mix 
Estimate establishment costs for the business and repayment schedule for borrowings 
Calculate monthly variable and fixed costs needed to conduct business activity over a year 
Estimate personal drawings needed from the business 
Estimate monthly income generated by the business for a year, based on price per unit item or hourly charge rate for labour 
Develop a cash flow budget for the first year of business operation 
Seek professional advice to estimate goods and services tax and operating finance required for the business 
Estimate required funding to establish and run the business based on expected sales and activity levels, available finances and commitments 
Investigate methods of accessing alternative sources of finance 
Identify strategies for meeting financial obligations 
Implement plans to access available funds as required 
Maintain and review monthly expenditure and income records 
Compare equity at beginning and end of a year to estimate business performance 
Assess financial viability of the business after a year of operation 
Seek professional advice on depreciation, insurance and tax implications of the business 
Realistically detail personal, family or community financial situation showing funds available and commitments already incurred 
Determine equity finance and assets available for micro business from personal, family or community sources 

Forms

Assessment Cover Sheet

BSBSMB303 - Organise finances for the micro business
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

BSBSMB303 - Organise finances for the micro business

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: