This paper circulates around the core theme of financial reporting procedures and cycles together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Elements and Performance Criteria Elements describe the essential outcomes of a unit of competency. Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. 1. Prepare budget information. 1.1Determine and confirm scope and nature of required budgets. 1.2 Identify, access and interpret data and data sources required for budget preparation. 1.3Analyse internal and external factors for potential impact on budget. 1.4Provide opportunities for colleagues to contribute to the budget planning process. 2. Prepare budget. 2.1Draft budget, based on analysis of all available information. 2.2Estimate income and expenditure and support with valid, reliable and relevant information. 2.3Reflect organisational objectives within the draft budget. 2.4Assess and present options and recommendations in a clear format. 2.5Circulate the draft budget to colleagues and managers for input. 3. Finalise budget. 3.1Negotiate budget according to organisational policy and procedures. 3.2Agree on and incorporate modifications. 3.3Complete final budget in a clear format within designated timelines. 3.4 Inform colleagues of final budget decisions and their application within the relevant work area, including reporting and financial management responsibilities. 4. Monitor and review budget. 4.1Regularly review budget to assess actual performance against estimated performance and prepare accurate financial reports. 4.2 Incorporate all financial commitments into budget and all budget reports. 4.3 Investigate and take appropriate action on significant deviations. 4.4Analyse changes in the internal and external environment and make necessary adjustments. 4.5Collect and record relevant information to assist in future budget preparation. SITXFIN501 Prepare and monitor budgets Date this document was generated: 18 January 2013 Approved Page 4 of 8 © Commonwealth of Australia, 2013 Service Skills Australia Required Skills and Knowledge This section describes the skills and knowledge required for this unit. Required skills communication skills to liaise and negotiate with colleagues on potential complex and conflicting budget requirements critical thinking skills to analyse internal and external factors for potential impact on budget initiative and enterprise skills to draft budgets that meet organisational objectives literacy skills to: read and interpret information that deals with complex ideas and concepts research internal and external factors that may impact on budgetary performance write complex budget reports and recommendations numeracy skills to interpret and analyse financial information, including forecasts and previous performance data, and to develop financial estimates and scenarios using complex calculations planning and organising skills to access and sort all information required for budget preparation and to coordinate a timely, efficient and consultative budget development process problem-solving skills to: identify budgetary challenges and develop different options for their resolution identify budget deviations and deficiencies and develop options for meeting budgetary requirements self-management skills to take responsibility for budget development teamwork skills to invite and coordinate the input of others in the organisation, and provide direction on budget management technology skills to use accounting software packages. Required knowledge budget terminology for the specific industry sector and organisation: role and nature of budgets a range of budget formats, budget performance and financial reports financial reporting procedures and cycles features and functions of accounting software programs used to prepare and monitor budgets budget preparation and monitoring practices and techniques, including: sources and contents of data required for budget preparation techniques for making budget estimates common reasons for deviations and budget deviation management
