- FNSACCT403B - Prepare operational budgets
FNSACCT403B
Prepare operational budgets
Application
This unit requires the application of skills and knowledge required to prepare operational budgets. The unit encompasses preparing budgets and documenting budgets. The unit can be applied across all sectors of the financial services industry. The unit has application to those job functions that have responsibility for preparing budgets, these may include accountant and divisional managers.
This unit requires the application of skills and knowledge required to prepare operational budgets. The unit encompasses preparing budgets and documenting budgets. The unit can be applied across all sectors of the financial services industry. The unit has application to those job functions that have responsibility for preparing budgets, these may include accountant and divisional managers.
Prerequisites
Not applicable.
Elements and Performance Criteria
Elements and Performance Criteria | |||
Element | Performance Criteria | ||
1 | Prepare budget | 1.1 | Cash, expenditure and revenue items are clearly defined and relevant to identified objectives of the budget |
1.2 | Budget objectives are clear and consistent with organisational aims and projects and with forecasts | ||
1.3 | Discussions and negotiations with stakeholders are conducted in a manner that promotes goodwill and ongoing cooperation | ||
1.4 | Milestones and performance indicators are identified and included in budgets | ||
1.5 | Annual budgets are broken down into seasonal periods in accordance with operating trends | ||
2 | Document budget | 2.1 | Data is presented in a format that is easily understood and appropriate to budget reporting |
2.2 | Reports are completed within timelines and distributed for specified periods and projects |
Required Skills
REQUIRED KNOWLEDGE&SKILLS |
Knowledge requirements include: principles of budgetary control forecasting techniques principles of double entry bookkeeping principles of statistical analysis and measures of variance organisational procedures and policies |
Skills requirements include: interpersonal skills and communications (eg liaising, listening, consulting) information technology use for the set up and analysis of spreadsheets estimating, forecasting and analysis skills reading, interpreting financial statements and reports writing skills for reports and recommendations numeracy for financial calculations and analysis recording, gathering and classifying financial information adjusting budgets in response to changing operational requirements managing own time and organisational priorities |
Evidence Required
EVIDENCE GUIDE | |
Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace. | |
Overview of assessment requirements | |
To achieve competency in this unit, a person must be able to demonstrate: knowledge of organisational policies and procedures knowledge of established milestones and performance indicators ability to prepare budgets ability to document budgets | |
Critical aspects of evidence | |
Evidence required for demonstration of consistent performance: | Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment. |
Delivery/assessment relationship to other units: | This unit may be assessed on its own or it may be assessed with other units that cover related skills and knowledge. Evidence is most relevant when provided through an integrated activity, which combines the elements of competency for the unit, or a cluster of units of competency. |
Assessment requirements | |
Method of assessment: | For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance. Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required. |
Context of assessment: | Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability. Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements. |
Resources required for assessment: | Assessment of this unit of competence requires access to suitable resources to demonstrate competence. Assessment instruments, including personal planner and assessment record book. Access to registered provider of assessment services. |
Range Statement
The Range Statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance. The following variables may be present with training and assessment depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement. | |
Expenditure and revenue items may include: | sales revenue producing expenditures other expenditures client and supplier payments (eg sales and commissions) fees and charges capital expenditure Goods and Services Tax (GST) and other taxes Pay As You Go (PAYG) |
Budget objectives may include: | annual planning rolling forecasts (next period, monthly, next year) cost reduction |
Stakeholders may include: | clients financial institutions suppliers directors chief executive officers |
Milestones and performance indicators may include: | reports (quarterly, half yearly, annual) compliance with scheduled payment dates profits and losses |
Datamay include: | cash flow projections fixed costs variable business costs sales records and projections |
Presentation methods and formats may include: | tables graphics estimates and projections calculations explanatory notes |
Reports may include: | sales budgets purchase budgets statement of financial performance statement of financial position cash budgets |
Sectors
Not applicable.
Employability Skills
The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary for the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.
The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary for the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.
Licensing Information
Not applicable.