Hemant shah

6164036
BSBFIM601 Manage Finances

Task 1

1. Answer

The principles underpinning ethics and probity in Australian Government Procurement are:

o Times in undertaking procurement.

o Officials must not make improper use of their position.
o Officials should avoid placing themselves in a position where there is the potential for claims of
bias.
o Officials must not accept hospitality, gifts or benefits from any potential suppliers.
o Agencies must not seek to benefit from supplier practices that may be dishonest, unethical or
unsafe.
o All tenderers must be treated equitably. This means that all tenderers must be treated fairly
- it does not necessarily mean that they are treated equally.

2.Answer
Fraud can be defined as an intentional deception designed for either personal gain. Fraudulent
behavior constitutes criminal activity and can lead to significant consequences, including
imprisonment.

There are many types of fraudulent behavior connected to companies. They include:
 insider dealing and market abuse
 money laundering
 fraudulent and wrongful trading, and
 general criminal activity in the management of a company

3. Answer
Publicly run companies: Public companies sell their shares of stock to investors and must be audited by
independent auditors.
Also, should a company receive a governmental grant, the business needs to prove through an
audit that the company has used the money as defined by the grant's terms and conditions.

4. Answer
The main advantage of the accrual method is that it provides a more accurate picture of how a
business is performing over the long-term than the cash method. The main disadvantages are
that it is more complex than the cash basis, and that income taxes may be owed on revenue
before payment is received.
Another benefit of cash accounting is that it typically has the effect of deferring some taxes,
because it recognizes revenue more slowly and expenses more quickly than accrual systems.
5. Answer
Accrual accounting has several advantages, most of which are related to accurate income and
expense reporting: It provides an accurate picture of overall cash flow for the business. Many
business transactions occur over a period of several months and therefore several accounting
periods.
Accrual accounting involves stating revenues and expenses as they occur, not necessarily when
cash is received or paid out. In contrast, cash accounting systems do not report any income or
expenses until the cash changes hands.
 BSBFIM601 Manage finances Student Assessment Tasks

6. Answer
 Goods and services tax (GST)
GST is a broad-based tax of 10% imposed on most goods, services and other items
sold in Australia. Depending on your turnover or service, you may need to register
for GST.

 Business activity statement (BAS)

You must lodge activity statements with the ATO to report and pay your tax. You may do
this online through the ATO Business Portal. The portal also allows you to manage your
business's tax online.

 Pay as you go (PAYG)

PAYG is a system that allows you to pay an expected tax liability in instalments. The ATO
will notify you of your PAYG obligations.

 Fringe benefits tax (FBT)

If you (or a person on your behalf) provide certain benefits to your employees or to people
associated with your employees, you may be liable for FBT. If so, you must register for FBT
with the ATO, and lodge a return each year.

7. Answer
 Per generally accepted accounting principles (GAAP), companies are responsible for
providing reports on their cash flows, profit-making operations and overall financial
conditions.
 There are three major financial statements required under GAAP: the income
statement, the balance sheet and the cash flow statement.
 Audits: An audit is a thorough and comprehensive examination of a company's financial
records and internal controls by an independent auditor who will attest to the fairness and
accuracy of the content of the financial statements.
 A full audit is the highest and most credible analysis that an accountant can produce.

8.Answer
The requirements for registered foreign companies regarding preparing and lodging financial
reports.
Step 1 – Ensure the name you wish to register is available.
Step 2 – Complete Form 402.
Step 3 – Include supporting documents.
Step 4 – Lodge Form 402 with the fee and supporting documents.
Australian Training School trading as Southern Academy of Business and Technology
Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E BSBFIM601
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9. Answer
The Tax Cuts and Jobs Act of 2017 changed the top corporate tax rate from 35% to one flat rate
of 21%. This rate will be effective for corporations whose tax year begins after January 1, 2018,
and it is a permanent change. The corporate tax rate also applies to LLC's who have elected to
be taxed as corporations.
Second Commissioner Jeremy Hirschhorn said the corporate tax transparency report for 2016-17
includes certain tax information of around 2,100 large companies operating in Australia who paid
$45.7 billion, or almost two-thirds of total company income tax payable for that year.

10. Answer

Australian Training School trading as Southern Academy of Business and Technology

Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E BSBFIM601
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The Australian Tax Office (ATO) requires businesses to submit a business activity statement (BAS)
monthly, quarterly or annually (annual GST return, if eligible). It is used to report and pay goods and
services tax (GST), pay as you go (PAYG) instalments, PAYG withholding tax and other tax obligations.
GST is a tax of 10% on most goods, services and other items sold or consumed in Australia. You'll
need to register for GST if: Your business or enterprise has a GST turnover of $75,000. You provide
taxi or limousine travel for passengers in exchange for a fare as part of your business, regardless
of your GST turnover.

11. Answer
If the supplier does not provide an ABN and the total payment for goods and services is more
than $75 (excluding GST) you generally withhold the top rate of tax from the payment and pay it
to us. If a supplier has applied for an ABN you can offer to hold payment until they have obtained
and quoted their ABN. You need an ABN if you invoice businesses. However, you don't have to
withhold from payments if any of the following apply: Your supplier does not carry on business
in Australia and cannot obtain an ABN. The total payment you make to the supplier is $75 or less,
excluding goods and services tax (GST)

12. Answer
If your not-for-profit (NFP) organization’s turnover is $150,000 or more, you must register for GST.
You can choose to register even if your GST turnover is lower than this. Generally, organizations
registered for GST will: remit GST to the ATO for their sales of goods and services.
The threshold for registration for GST is $75,000 if you are not registered for GST your invoice must not
say Tax Invoice and just say Invoice. You do not charge an extra 10% on top of your services, that you
collect and pay onto the government and you cannot claim the GST paid on items you buy.

13. Answer
If you're an employer, PAYG withholding is your legal requirement to keep a portion of payments
made to your employees and other businesses, which you then pay to the ATO.PAYG instalments
are generally paid by business owners, investors and sub-contractors who earn a certain amount
of income.
As an employee, your employer is responsible for paying your tax. But things do not always go
according to plan the self-employed are responsible for paying their own tax and National
Insurance through self-Assessment. Employees pay tax and National Insurance via their employer
through PAYE.

Australian Training School trading as Southern Academy of Business and Technology

Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E BSBFIM601
Manage finances Student Assessment Tasks

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Task 2

1. Answer
Growth Management Consultants

Finance Report

Introduction
Outline purpose of the report.
Grow Management Consultants specializes in leadership consultancy. It has been operational for
five years. The company offers a range of services to assist companies to assess leadership behavior
of existing managers and performance metrics. They also design and implement customized
leadership programs based on the assessment. Services are offered Australia-wide. As set out in
the business plan, the company plans to run an annual conference each year starting in 2018.
The costs for the conference have been estimated by the Principal Consultant and are set
out in the Estimated Costs and Income document.

2016/17 Performance
Analysis of the previous year’s (2016/17) profit and loss statement for Grow Management
Consultant, including revenue generated, cost of sales, as well as gross profit/loss margin and net
profit/loss margin. In 2016 – 2017, the company ran a total of 36 workshops. The company has
also recently produced an E- book about leadership techniques.

Analysis of overall business performance, as well as performance of each of the income

streams for 2016/17.
The intention is to replace the workshops with the annual conference in the next financial
year, as the workshops were not well attended.

Outline the reasons for profit or loss based on your analysis of the data and research on
economic conditions and business trends.
Client feedback and continued business indicates a personalized, company focused approach in the
form of consulting services is the service of choice.

Strategic goals and priorities

Outline the goals and priorities for the upcoming financial year as documented in the Strategic
Business Plan and financial resources required to achieve these goals as per the estimated
conference and e-book costs. Include the dates by which these are to be achieved to information
Australian Training School trading as Southern Academy of Business and Technology
Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E BSBFIM601
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the budget forecasts.

As the General Manager for the company and with responsibility for finances, you are currently
completing the financial planning for the year ahead. This involves a review of the company’s
business plan, previous year’s profit and loss statement, the current business plan and strategic
directions and cash flow statements. Based on the review, you will be establishing budgets and
allocating funds.

Australian Training School trading as Southern Academy of Business and Technology

Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E BSBFIM601
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Cash flow statements analysis

Provide your analysis of cash flow trends as per the cash flow statements.
In developing the budget, you are to assume a 5% increase in cost of sales, as well as a 10%
increase in sales for consulting services and executive search.

Financial Software
Provide your review and analysis of at least three other financial software that the business
could use, including the advantages and disadvantages of each, as well as the advantages and
disadvantages of MYOB.
The Principal Consultant has also asked you to review the current accounting software used by
business. The company is currently using MYOB but as it has grown, the Principal Consultant
wishes to review whether this is the best accounting software available for their needs. He has
also requested that the software have a cloud feature.

2. Answer

Australian Training School trading as Southern Academy of Business and Technology

Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E BSBFIM601
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3 Answer
• GST reporting requirements (the company is required to report quarterly)
Answer
Annual GST reporting. You can elect to report and pay GST annually. You can only use
this method if you are voluntarily registered for GST. That is, you are registered for
GST and your turnover is under $75,000 (or $150,000 for not-for-profit bodies).

Australian Training School trading as Southern Academy of Business and Technology

Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E BSBFIM601
Manage finances Student Assessment Tasks

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• PAYG withholding obligations

Answer
If you're an employer, PAYG withholding is your legal requirement to keep a portion of
payments made to your employees and other businesses, which you then pay to the
ATO. You complete this on your employee's behalf by withholding some of their pay as
tax.

• PAYG income tax instalment

Answer
PAYG instalments. Pay as you go (PAYG) instalments is a system for making regular
payments towards your expected annual income tax liability. It only applies to you if you
earn business and/or investment income over a certain amount.

• Payroll tax obligations (state government)

Answer
Payroll Tax. Payroll Tax is a state tax on the wages paid by employers. It's calculated on
the amount of wages you pay per month and collected in each state or territory that
your employees are located in. However, not all businesses will have a tax obligation.

• Superannuation entitlements and requirement to comply with legislation

regarding frequency of payment, choice of fund and reporting to staff.
Answer
Your employer must pay 9.5% of the value of your 'ordinary time earnings' into your
super fund if: You're over 18 and earn more than $450 before tax in a calendar month.
You're under 18 and work more than 30 hours a week (and still earn more than $450 in
the calendar month)

4. Answer

Australian Training School trading as Southern Academy of Business and Technology

Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E BSBFIM601
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5. Prepare for meeting

The Principal Consultant has approved your budget for the upcoming financial year,
2017 – 2018. You are now required to meet with the Senior Managers to communicate
the budgets you have developed.

Print off a copy of the following to take with you to the meeting:
a. The budget that you have developed.
b. The Financial Policy and Procedures. You will be required to explain key
reporting requirements to the Managers attending the meeting, as well as
financial delegations.
Review this document and highlight the relevant passages.
c. Your report on key financial compliance requirements and liabilities for tax

At the meeting, you will need to:

d. Discuss the budget you have developed and the rationale for the budget figures.
e. Discuss the amounts allocated to activity, including the conference and the e-
book.
f. Explain that there will be no more workshops conducted.
g. Provide an outline of the financial policy and procedure. To ensure that
roles and responsibilities are understood and risks of misappropriation of
funds/incorrect recording of financial transactions is minimized.
h. Explain the company’s key financial compliance requirements and tax liabilities.
Australian Training School trading as Southern Academy of Business and Technology
Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E BSBFIM601
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6. Conduct meeting
Conduct the meeting as set out in the requirements above, making sure that you
provide the team with all the required documentation.

During the meeting, demonstrate effective communication skills including:

 Speaking clearly and concisely
 Using non-verbal communication to assist with understanding
 Asking questions to identify required information
 Responding to questions as required
 Using active listening techniques to confirm understanding
Answer
Meeting on The Principal Consultant has approved my budget for the upcoming financial year,
2017 – 2018. Developed
Held on:
Date:10/06/2020
Time: 1.30 pm – 3.00
pm

Agenda of meeting:
 The budget that I have developed.
 The Financial Policy and Procedures.
 My report on key financial compliance requirements and liabilities for tax

Conclusions of meeting: -
 The budget you have developed and the rationale for the budget figures.

Australian Training School trading as Southern Academy of Business and Technology

Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E BSBFIM601
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 The amounts allocated to activity, including the conference and the e-book.
 There will be no more workshops conducted.
 The financial policy and procedure. To ensure that roles and
responsibilities are understood and risks of misappropriation of
funds/incorrect recording of financial transactions is minimized.

Meeting attendees: -
Senior Managers
Company staffs

Task 3

1. Answer

Financial Performance Report

Review of overall performance and gross/net profit margins.

According to the profit and loss account of the year 2017-2018, we can find that the total income of
The year 17/18 was $144,000 and the total expenses that the company has made in that year was
$817,595. As we can see that the expenses have exceeded the income of the company so there is
Total loss of $673,595, which can be said that the only loss is also far greater than the actual income
Made by the company. After reviewing the profit and loss statement in the expenses section, the
Highest expenses that the company has made is on the salaries and the wages which includes PAYG
which figure is $529,200 and the lowest part of the expenses of the company is figured only $1200
which are expended on conference bags and marketing.

Recommendation
As we have seen a vast difference between the expected resulted and the actual result of the
company. The recommendation that could be given to the company is that company should be
doing a deep research on its performance as how it is doing in the present and the past situation of
accounting and only should be forecasting for the future with the appropriate resource as the profit
and loss accounts from the past years, cash flow statements, balance sheets and so on. Now the
company has also assumed that the 2018 conference could be attended by 70 people but the
company wants to make at least 20% of the profit so the company should also keep these things in
mind for the upcoming steps by the company.

Australian Training School trading as Southern Academy of Business and Technology

Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E BSBFIM601
Manage finances Student Assessment Tasks

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2. Answer

Australian Training School trading as Southern Academy of Business and Technology

Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E BSBFIM601
Manage finances Student Assessment Tasks

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Task 4

1. Answer
• A summary: an interpretation of the information in the aged debtor report.
Answer
a) An aged debtor report details a list of the customers that owe or will soon
owe your company money.
b) Simply put, the aged debtor report lists a detailed account of which customers
(debtors) owe your company money, how much they owe your company, and
when they are supposed to complete payment.

• Good practice debtor management

Answer
a) Effective management of your debtors (often referred to as credit management)
will help you get paid faster and prevent bad debts.
b) It will also help you maintain a healthy cash flow. Credit management
includes: Collecting debts on time.

• Develop at least 5 recommendations that could be adopted by the company in

response to your analysis. This will also be based on the debtor management
research you conducted.
Australian Training School trading as Southern Academy of Business and Technology
Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E BSBFIM601
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Answer
a) Empathy, patience and consistency. Some customers will be irate.
b) Adaptability. Every customer is different, and some may even seem to change
week-to- week.
c) Clear communication. Ensure you convey to customers exactly what you mean.
d) Work ethic.
e) Knowledge.

Australian Training School trading as Southern Academy of Business and Technology

Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E BSBFIM601
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2. Answer

Australian Training School trading as Southern Academy of Business and Technology

Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E BSBFIM601
Manage finances Student Assessment Tasks

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