Assessment description

This assessment requires you to determine the requirements to undertake budgeting, financial forecasting and reporting requirements for an organisation. You will also need to review the case study provided and prepare a budget (in electronic spreadsheet format) and budget notes for distribution and implementation in the organisation.

Procedure

Part 1

1. Read and analyse the case study information (including business plan summary and previous financial data) and complete the following.

a. Develop a sales budget, profit budget, cash flow budget and debtor ageing summary using electronic spreadsheets (as separate worksheets) making sure each budget is divided into quarterly periods and that you use previous financial data to determine allocations for resources. 

i. Ensure each budget you prepare complies with the organisational and policies and procedures as provided.

b. Develop budget notes that include:

i. identification of reasons for previous profits and losses

ii. your comment on the effectiveness of existing financial management approaches

iii. all assumptions and bases that have been made or used to form budgets

iv. any relevant notes regarding implementation and monitoring of budget expenditure.

Part 2

1. Communicate information regarding the budget and answer a series of eight questions (see end of this task) in written or oral form as agreed with your assessor.

Task_1

budget-houzit