Managing the finances are a ‘must-know’ for the business owner or manager to ensure its ongoing success. Core to the business are key reports – Profit and Loss, Balance Sheets, Cash Flow and Budgets. Think of them like a doctor’s report – you don’t just want your doctor to take your blood pressure to check if your healthy – you want a full report on your bloods, urine, heart and respiratory functions etc.
The combination of the above financial reports lets you know how healthy your business is and identify possible issues or areas to improve.
The core sections to this module are:
- Implement financial plan
- Monitor financial performance
This module covers the following key elements of learning:
- discuss benchmarking
- explain financial decision-making relevant to the business
- summarise significant financial indicators
- outline purposes of financial reports
- clarify preparation and interpretation of budget/actual reports
- identify principles for preparing balance sheets and their interpretation
- outline debt collection procedures or strategies
- characterise principles for preparing profit and loss statements and their interpretation
- discuss stock records and stock control relevant to the business.