Introduction to

financial management
BSBFIM601 Manage finances
Session 1
Purpose of this presentation
At the end of this session, you should know how
to:
Establish the key principals of accounting
Comply with the legislative requirements
established by the AASB and ASIC and the
Privacy Act
Explain the role of probity in financial
management
Evaluate financial management software

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Financial management
Financial management
Accounting principals
Probity/Ethics
Statutory
Statutory/internal requirements
Budgeting
requirements and financial
management
Organisationa
l requirements

Financial management
systems
Financial Financial Financial
Financial vs. management Management management
role Framework software
management
accounting

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Accounting principals
Matching Principal
Matches expenses with related revenues
Account Groups
Assets, Liabilities, Owners Equity, Revenue and
Expenses
Time Period
Regular and sequential accounting periods

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Financial probity
Principles
Integrity
Objectivity
Confidentiality
Competence
Professional associations
Codes of conduct

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Statutory requirements
Corporations
Taxation Privacy
law
• GST • Obligations • Records
• PAYG • Collecting compliance
• BAS and • Financial
• Reporting disclosing records
periods information • Statutory
returns

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Organisational requirements
Policies and procedures
Objectives
Standard documents
Financial delegations
Responsibl
Safeguard
Financial
e Organisational chart
statement
assets stewardshi
conformity
p Internal controls

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Financial vs. Management Accounting
Financial Accounting
To produce financial statements for external
stakeholders

Management Accounting
To inform managers and aid decision making

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Software
• Computer information systems Effective
CIS general controls
Accounting information systems Efficient
Spreadsheets
Confidential
Valid
Available
Compliant

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The next step
You should now:
Establish the key principals of accounting
Comply with the legislative requirements
established by the AASB and ASIC and the
Privacy Act
Explain the role of probity in financial
management
Evaluate financial management software

© Innovation & Business Industry Skills Council Ltd