BSBSMB406 Manage Small Business Finances Assessment Task 3

Assessment Task 3

BSBSMB406 Manage small business finances

Performance objective

An effective small business operator must be able to summarise the financial health of the business for presentation to others. The operator should be able to present this information so that it encourages the interest of potential or actual supporters of the business.

Assessment description

Small business operators often need to approach others to seek financial support from them. For this assessment task, you will develop and present a financial report of your business to others.

Procedure

1. Identify the financial targets and performance measures of the business.
2. Calculate the financial performance measures and analyze whether the targets were met.
3. Analyze the effect of the marketing and operational strategies of the business on the achievement of its financial plan.
4. Calculate five relevant financial ratios and compare these with the industry average to gain an understanding of the financial health of the business.
5. Assess the financial plan of the business in the light of these measures and suggest at least two appropriate amendments that could aid the financial health of the business.
6. Use the information from the previous points to develop a presentation that reports on the financial health of the business.
7. Deliver the presentation in a manner that encourages further interest from potential supporters of the business.

Note: The audience for this presentation could be a simulated group of potential supporters, e.g. fellow learners.

Adjustment for distance-based learners:

The presentation can be adjusted for distance learners.

• No variation to the procedure is required.
• The presentation can be presented via video conferencing tools:

○ Option 1: Assessor observing.

○ Option2: Video recording of the presentation.

• Documentation can be submitted electronically or posted in the mail.
• A follow-up interview may be required (at the discretion of the assessor)

Specifications

You must provide:

• a presentation about the financial health of the business (e.g. PowerPoint presentation, whiteboard presentation with handouts)

Plan the presentation for delivery to a group of people who are interested in the growth of the business. The presentation should include:

• a comparison of the results of financial performance measures with the financial targets mentioned in the financial plan of the business to determine the extent to which the financial plan has been met
• an analysis of the impact of the marketing and operational strategies on the achievement of the financial plan
• calculation of five relevant financial ratios and comparison with industry benchmarks for these ratios
• analysis of the financial health of the business in the light of the comparison of these ratios and the benchmarks
• assessment of the financial plan in the light of the previous comments and suggestion of at least two appropriate amendments to aid the financial health of the business
• indication of adequate financial provision for taxation
• contingencies for debtors in default
• a discussion on stock control relevant to the business.

Your assessor will be looking for:

• correct identification of financial targets and financial performance measures
• correct calculation of financial performance measures
• clear and complete analysis of the marketing and operational strategies of the business which leads to comment about the impact of these strategies on the achievement of the financial plan
• selection of five relevant financial ratios
• correct calculation of five financial ratios and comparison with industry benchmarks for each of them
• correct analysis of the financial health of the business in the light of the comparison of the financial ratio results with the industry benchmarks
• clear and complete assessment of the financial plan in the light of the measures undertaken with the proposal of at least two amendments which will aid the financial health of the business
• presentation of the data in a manner relevant to the audience
• clear, readable information in the presentation and any handouts
• allowance of time for questions and encouragement of discussion.