课 bsbrkg304 bsbsmb406 maintain business records

____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

BSBRKG304 (Elective) Maintain Business Records BSBSMB406 (Elective) Manage Small Business Finances

Learner Guide © The Australian Salesmasters Training Co

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

Contact Page

Australian Salesmasters Training Co P/L Registered Training Organisation #6854

Phone:

(02) 9700 9333

Fax:

(02) 9700 8988

Email:

Info@thesalesmasters.com.au

Mail:

PO BOX 638, Rosebery, NSW 2018

www.thesalesmasters.com.au

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

Š Australian Salesmasters Training Co P/L (ASTC) ASTC believes that the content of these notes and checklists are accurate and current at the time of printing. ASTC does not make any warranty of any kind, what so ever expressed or implied, with respect to the contents. It is the responsibility of the real estate professional using the notes and checklist to verify any information before relying on it.

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

TABLE OF CONTENTS CONTENTS COURSE DESCRIPTION ................................................................................. 5 LEARNER ACTIVITIES ....................................... Error! Bookmark not defined.

BSBRKG304 MAINTAIN BUSINESS RECORDS ................................................ 7 ELEMENT 1 - Collate business records ......................................................... 7 ELEMENT 2- Update business or records system ....................................... 23 ELEMENT 3-Prepare reports from the business or records system ............ 29 BSBSMB406 MANAGE SMALL BUSINESS FINANCES ................................... 31 ELEMENT 1- Implement financial plan ....................................................... 31 ELEMENT 2- Monitor financial performance .............................................. 33 CONCLUSION ............................................................................................. 34 ACTS LEGISLATIONS AND FORMS ............................................................... 35 OUR MOST SOUGHT AFTER PRODUCTS AND SERVICES .............................. 36

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

BSBRKG304 MAINTAIN BUSINESS RECORDS COURSE DESCRIPTION This unit describes the skills and knowledge required to maintain the records of a business or records system in good order on a day-to-day basis.

It applies to individuals who follow established guidelines and processes to assist them to carry out their work. They work under supervision or in consultation with more senior staff or system users to support effective recordkeeping and governance practices across the organisation.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

BSBSMB406 MANAGE SMALL BUSINESS FINANCES COURSE DESCRIPTION This unit describes the skills and knowledge required to implement and review financial management strategies on a regular basis.

It applies to individuals who operate a small business that stands alone, or is part of a department within a larger organisation. Individuals in this role interpret financial reports and other numerical data to develop financial management strategies.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

BSBRKG304 MAINTAIN BUSINESS RECORDS ELEMENT 1 - COLLATE BUSINESS RECORDS 1.1 Identify individual records or information which should be incorporated into business or records system according to organisational criteria 1.2 Sort records in accordance with workplace requirements 1.3 Follow security and access requirements in accordance with organisational procedures

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

BSBRKG304 MAINTAIN BUSINESS RECORDS ELEMENT 1 - COLLATE BUSINESS RECORDS Financial information may include: •

accrual of staff leave/entitlements

•

asset management strategies which may include: o

owning, leasing, sharing, syndicating

o

maintaining and deploying assets

•

asset registers

•

balance sheets

•

bookkeeping/accounting/stock/job costing records

•

business activity statements

•

business capital

•

cash book

•

cash flow forecasts

•

financial budgets

•

financial indicators, which may be short-, medium- and/or long-term

•

payroll records, superannuation entitlements

•

profit and loss statements

•

ratios for profitability, liquidity/efficiency/financial structure

•

risk management

•

statements/forecasts

•

taxation returns including goods and services tax

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

How do I maintain daily financial records for reporting purposes 1. Enter cash transactions into cash journals • • • •

Transactions are entered into cash journals and totaled Cash journal entries are checked against individual documents Cash journals are cross checked and proofed Cash journal errors are noted and reported to nominated person/section for resolution within designated timelines

2. Prepare bank reconciliations • • • •

Cash receipts and payment summaries are checked for accuracy against bank statements Direct debits and credits are entered into cash journals Discrepancies are noted and resolved Regular reconciliation reports are produced within designated timelines

3. Enter credit transactions into journals • • • •

Credit transactions are entered into journals Discrepancies between transaction documentation and account entries are identified Journals are cross checked and proofed Errors in documentation are rectified

4. Maintain creditors and debtors systems • • • •

Transactions are entered into individual debtor and creditor accounts Discrepancies are identified in individual debtor and creditor accounts Errors in documentation are rectified or referred to the nominated person for action Schedule of debtors and creditors is prepared and reconciled within designated timelines

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

What is a financial plan?

A financial plan is essential for the effective and effective management of a business such as a real estate agency. It allows an operator to plan and to profitably operate and extend the business in accordance with the business plan.

A financial plan may include: •

analysis of sales by product/service, identifying where they were sold and to whom

•

cash flow estimates for each forward period

•

current financial state of the enterprise (or owner/operator)

•

estimates of profit and loss projections for each forward period

•

financial performance to date (if applicable)

•

likely return on investment

•

monthly, quarterly or annual returns

•

non-recurrent assets calculations

•

profit, turnover, capital and equity targets

•

projected profit targets, pricing strategies, margins

•

projections of likely financial results (budgeting)

•

projections, which may vary depending on the importance of such information and the stage in the life of the business

•

resources required to implement the proposed marketing and production strategies (staff, materials, plant and equipment)

•

review of financial inputs required (sources and forms of finance)

•

risks and measures to manage or minimise risks

•

working, fixed, debt and equity capital

•

working in conjunction with external consultants e.g. investment analysts, accountants, financiers

Should a financial performance be monitored?

A financial performance should be regularly monitored and reported with regard to financial performance targets and analyse data to establish the extent to which the financial plan has been met Monitoring allows you to assess the financial plan to determine whether variations or alternative plans are needed, and to change as required

What may financial ratios may include?

•

current ratio

•

days debtors outstanding

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate) •

days stock on hand

•

expense percentages

•

gross profit percentage

•

liquid ratio

•

net profit percentage

•

proprietary/debt ratio

•

return on investment/return on total assets

•

staff productivity measures

•

stock turn rates

What is cash flow?

A cash flow is the money that comes in and out of a business in the form of: • anticipated payments •

anticipated receipts

•

customer credit policy/debt recovery

•

taxation provisions

What is accounting?

In order for a business to thrive the management of the business needs to know the financial aspects of the business at all times.

Accounting is a general term for the method used to keep financial data in order to provide financial information regarding the business.

The data can be in many forms: •

Written in a book

•

In a computer programme

•

In a cardboard box containing all the receipts and other financial documents

What is accounting used for?

• • • • •

Profit/loss details Knowing how much money is owed to the business Knowing how much money is owed by the business Planning future business expansion Tax forms

What is a debtor?

A debtor is a person, or business, that owes you money for goods supplied or services rendered.

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

What is a Receivables report?

Sometimes known as a Customer’s Aged Balance report, a Receivables report details all the money that is owed to you by your customers and for how long it has been owed.

What is a creditor?

A creditor is a person, or business, to whom you owe money for goods supplied or services rendered.

What is a Payables report?

Sometimes known as a Supplier’s Aged Balance report, a Payables report details all the money that is owed by you by your suppliers and for how long it has been owed.

What is a journal?

A record in which transactions are kept. There are six specialist journals and one General journal for miscellaneous entries.

Double entry accounting For every entry made into an accounting system there must be another entry to balance the books.

It is not possible to make a transaction that will only affect one account in the general ledger.

The rules To a beginner, the most confusing aspect of accounting is working out on which side of a ledger a transaction should be recorded.

Of course there are rules that must be applied, and if you follow the rules then there will be no problems.

Type of account

By Default

Increase

Decrease

Asset Liability Revenue Expense

Debit Credit Credit Debit

Debit Credit Credit Debit

Credit Debit Debit Credit

Owner’s equity

Credit

Credit

Debit

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

GST Goods and services tax. Introduced into Australia in July 2000, GST is a tax of 10% on most goods and services consumed in Australia. GST replaced the wholesale tax system, which was a very complicated and unwieldy tax of varying rates.

GST is paid at each step as the goods go from the manufacturer through various entities (wholesale, retail etc) to finally the retail customer. However all, except the retail customer, can claim back the GST that they have paid as a credit.

GST liability is reported to the Australian taxation office on either a monthly or a quarterly basis in the form of a Business Activity Statement (BAS).

GST Calculation It is easy to calculate GST when the cost of the goods/service in known: Cost of Goods/Service (Ex GST) GST Total Cost

$540.00 $540 x 10% = 54.00 $594.00

It is not quite so easy when the total price including GST is known and the GST content has to be calculated. The calculation is not do be done using 10% The GST content can be calculated by dividing the GST inclusive figure by eleven: Cost of Goods/Service including GST GST

594.00 594.00 / 11 =

54.00

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

There are two systems by which a business may account and pay GST: 1. The Cash system.

GST is payable in the period that you receive payment for goods and services rendered by your business. This is regardless of when the goods or services were invoiced.

Tax credits can be claimed on your purchases for actual payments made for goods or services received. This is regardless of when the goods or services were invoiced.

2. The Accrual system GST is payable in the period that you invoice for goods and services rendered by your business. This is regardless of when the goods or services are actually paid for or not.

Tax credits can be claimed on your purchases for invoices received for goods or services. This is regardless of the invoice payments being made.

Example: Jane sells a round tuit to Mary for $110.00 and Mary asks for the money to be placed on her account (90 days).

The BAS statement is completed before Mary actually pays the bill.

If Jane is on the GST Accrual system she will have to pay $10.00 to the tax office even though she has not yet received the money from Mary. This is because the invoice has been issued.

If Jane is on the GST Cash system she will not have to pay the $10.00 to the tax office because she has not yet received the money from Mary.

This module will presume that the ACCRUAL system for GST is in use.

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

The source documents In any business financial transactions will occur and paperwork will be generated to suit the transactions.

Paperwork can be in the form of: • Receipts to clients •

Receipts from suppliers

•

Invoices or statements to customers

•

Invoices from suppliers

•

Credit notes to customers

•

Credit notes from suppliers

•

Petty cash vouchers

•

Cheque butts

•

Bank deposit sheets

•

Bank statements

The volume of paperwork generated can be quite large. The general ledger, which is a summary of all the journals, can be completed from the original paperwork but the task would be enormous and prone to error.

To simplify matters the paperwork is summarised on a daily basis into books. For example 100 invoices to customers generated in only one day could be difficult to manage on a monthly basis.(About 2000 invoices) However the total of the invoices can be taken for the day and entered into a journal. This entry is called posting.

The books used to summarise the transactions are called journals There are six specialist journals available for you to use: 1. Cash receipts journal 2. Cash payments journal 3. Sales journal 4. Sales returns journal 5. Purchases journal 6. Purchases returns journal

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

For any transactions that do not fit into the above journals you have a General journal available for your use.

At the end of the month the journals are totaled and further summarised into general ledger accounts and a generated Trial Balance confirms the accuracy of your double entry accounting.

1. Cash receipts journal The cash receipts journal is a summary of monies received from all sources: • • • •

Receipts from account customers Money from the sales of goods and/or services Rent received Commission received

You work for a supplier of good to the medical industry. You make the following transactions during your trading.

July 4 2001 Frank Enstein paid $1000.00 off his account for last month.

Sales through cash register $250.00 July 5 Drak Ular paid $500.00 off his account for last month July 7 Sales through cash register $550.00 Rent received from S. K. Ellerton $750.00 When these transactions are summarised into the cash receipts journal the following will result.

Date 4 July 5 July 7 July

Details Frank Enstein Sales Drak Ular Sales Rent (S.K.Ellerton) Totals

Receipt No

Cash Sales

127

A/C Rec

Sundries

GST

Amount Banked

1000.00 227.27

128

22.73 500.00

500.00 129 727.27

1500.00

1250.00Dr 500.00 Dr

681.82

50.00 68.18

1300.00 Dr

681.82

140.91

3050.00

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

There are some things that should be noted from the above journal. Frank Enstein and Drak Ular have paid monies due to their account. Because you are using the ACCRUAL system for GST accounting, the GST became a liability at the time of the sale, regardless of when money changed hands.

At the end of the month the totals will be posted into the relevant ledgers: Debit Debtors Bank Rent Sales GST Collected GST Paid

Credit

$ (1,500.00) $ 3,050.00 $ 681.82 $ 727.27 $ 140.91

Money owed to you by customers is usually in the Debit column. In this circumstance the total would drop by $1500.00

This is the GST liability It is quite acceptable to show the above as: Debit Debtors Bank Rent Sales GST Collected GST Paid

Credit $ 1,500.00

$

3,050.00

This is the major difference. $ $ $

681.82 727.27 140.91

Some systems never show a minus figure in a column. In this case rather than go to a minus figure the column has changed. This system is often referred to as the swing system.

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

2. Cash payments journal The cash payments journal is a summary of all monies paid out by a business: • • • • •

Payments to suppliers for goods bought by cash or on account Rent Electricity Wages Owner withdrawals

Most business pay such bills using cheques. The cheque stub becomes the primary transaction docket and can easily be verified using the bank statement.

You work for a supplier of good to the medical industry. You make the following transactions during your trading.

July 4 2001 Paid $1500.00 off your account with the Red Cross.

Paid $150.00 off your account with Snake Oil Co Ltd Paid telephone account $500.00 July 5 Paid wages to staff $1200.00 Boss paid herself $750.00 July 7 Purchased water damaged stock from Dodgy Goods Pty Ltd for $1000.00 cash Paid rent to owner $350.00 When these transactions are summarised into the cash payments journal the following will result.

Date

Details

4 July

Red Cross Snake Oil Telephone Wages Owner withdrawal Purchases Rent Totals

5 July

7 July

Cash Purchase

A/C Pay

Sundries

GST Dr

Bank

1500.00 150.00 454.55 1200.00

45.45

2150.00

90.91 31.82 168.18

1950.00 1000.00 350.00 5450.00

750.00 909.09 909.09

1650.00

318.18 2722.73

There are some things that should be noted from the above journal that you have paid monies due from your account. Because you are using the ACCRUAL system for Doc ID: BSBRKG304 & BSBSMB406 - Workbook (L) eLearning Date: 28/03/2018 Developed by: SL Version: 45 Approved by: CEO P a g e | 17 File Location: S:\Learning & Assessment Resources\Real Estate\CPP40307 Certificate IV in Property Services (Real Estate) NSW\Assessment Tools\20. BSBRKG304\BSBRKG304 & BSBSMB406 - Workbook (L) eLearning.doc

____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

GST accounting, the GST became eligible to be claimed as a GST tax credit on invoice regardless of when it is actually paid At the end of the month the totals will be posted into the relevant ledgers: Debit Creditors Bank Rent Purchases GST Paid Telephone Owner Draw

Credit $ (1,650.00)

$ (5,450.00) $ 318.18 $ 909.09 $ 168.18 $ 454.55 $ 750.00

Money owed to suppliers is usually a credit amount. The total would drop by this amount Money in the bank is usually a Debit and would drop by the amount paid out.

The GST will be claimed back from the Australian tax office It is quite acceptable to show the above as: Debit Creditors Bank Rent Purchases GST Paid Telephone Owner Draw

$

1,650.00

$ $ $ $ $

318.18 909.09 168.18 454.55 750.00

Credit

$

5,450.00

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3. Bank reconciliation Every month the bank will send a statement of your bank account to you. The statement is basically a copy of the debtor’s ledger that the bank has in the name of your business. It must be kept in mind that because of this it will be a mirror image of your accounts. This means that a balance in the bank will be a credit and not a debit, as you would normally expect.

Reconciling the statement to your ledgers should always be done as a priority.

Quack industries Date Details 30-Jun Balance brought forward 04-Jul Deposit Cheque 1231 Cheque 1232 Cheque 1233 05-Jul Deposit Cheque 1234 Cheque 1235 07-Jul Deposit Cheque 1236

Debit

Credit $

1,250.00

$

500.00

$

1,300.00

$

3,050.00

$ 1,500.00 $ 150.00 $ 500.00 $ 1,200.00 $ 750.00 $

350.00

$ 4,450.00

Balance 10000.00cr 11250.00cr 9750.00cr 9600.00cr 9100.00cr 9600.00cr 8400.00cr 7650.00cr 8950.00cr 8600.00cr

This statement can easily be balanced to the cash receipts journal $3050.00 and the cash purchases journal $5450.00. Or can it? The Statement as shown above only has a Debit total of $4450.00.

It now become necessary to tick off the statement against the Cash purchases journal. Of course it will soon be noted that cheque number 1237 does not show on the statement and is unpresented.

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The balance now becomes Balance as per bank statement Less unpresented cheques

1000.00

8600.00 7600.00

Balance as per Ledgers Add cash receipts Less cash payment

3050.00 5450.00

10000.00 13050.00 7600.00

There will also be figures on the bank statement that you have not taken into account in your journals. This should be done before you attempt to balance.

Various charges will be seen such as: • • • • •

Interest Various bank charges Government duties Charges for a new cheque-book Direct deposits

Entries for these items should be entered in the general journal if you have posted the cash receipts journal and the cash payments journal. Otherwise enter them in the journals before the posting to the general ledger.

What Risks must be monitored and assessed?

The following risks should be discussed and incorporated in the delivery of the unit objectives: ▪ ▪ ▪ ▪

Failure of Agent/ Principal to adequately meet fiduciary obligations and reporting requirements.

Failure to account for monies held on behalf of the purchaser and the principal.

Failure to account for monies held on behalf of landlords and tenants.

Misrepresentation, false representation and failure to identify and disclose a material fact.

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

BSBRKG304 MAINTAIN BUSINESS RECORDS ELEMENT 2- UPDATE BUSINESS OR RECORDS SYSTEM 2.1 Identify and record control information for describing new records to be incorporated into business or records system 2.2 Update control information describing movement or use of records within business or records system 2.3 Accurately record and update control information in business or records system 2.4 Identify and remove records of completed business activities from current system for disposal

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____________________________________ CPP40307 Certificate IV in Property Services (Real Estate)

ELEMENT 2- UPDATE BUSINESS OR RECORDS SYSTEM Maintain business records Risks Sec 32, Property, Stock and Business Agents Act 2002 and Regulations 2003(NSW) refers to the regular use, maintenance and review system of required documentation within a real estate agency – the Supervision Guidelines.

All agency businesses should be effectively controlled and managed, including appropriate business records management.

Proper management and supervision is vital, particularly where client records and trust accounts are involved. Proper supervision also helps promote ethical conduct in employees.

Poor records management can cause distress and financial loss for consumers and leave the agency open to audit and penalty. It also leaves the door wide open for some employees to adopt unethical practices in their dealings with consumers, and can lead to negligence, misleading conduct and fraudulent use of trust money.

The following risks should therefore be recognised and monitored un the management and conduct of a real estate agency: •

Inadequate record keeping practices.

•

Failure to use postage books.

•

No policy and procedures for staff to follow regarding monies, keys, enquiries.

•

Inadequate WH & S policy and procedures for in the office and outside of the office.

•

Inadequate records and or procedures for Trust Account requirements.

•

Failure to keep files in a fireproof lockable cabinet.

•

Failure to provide security regarding personal information of clients and staff.

•

Inadequate records of property inspections.

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Collate business records A range of records and information are available which may be incorporated into a real estate business systems such as: • • • • • • • • • • • • • • • • • •

Customer profiles.

Expenditure.

Asset registers.

Research data.

Human resources records such as staff profiles.

Invoicing/sales records.

Legislative/regulatory/licensing compliance.

Risk management records and plans.

Records of property for lease or sale.

Plans.

Regulatory and licensing records.

Taxation, superannuation and payroll.

Agency / client agreements.

Client instructions.

Rental monies.

Deposit monies.

Key registers.

Trust accounts.

To maintain and effective and efficient business strategies and procedures for sorting records in order of priority, usefulness, access control etc.should be developed and processes monitored This may be effected by identifying agency and key regulatory requirements for access to records and privacy requirements for different types of records such as: • Property, Stock and Business Agents Act 2002 and Regulations 2003 (NSW) – supervision guidelines.

• Trade Practices Act 1974 (Commonwealth).

• Privacy Act 1988 (Commonwealth).

• AS ISO 15489:2004 Records management.

• AS ISO 23081.1:2006 Information and documentation - Records management.

• Ethical principles.

• Codes of practice.

• Privacy and freedom of information.

• Occupational health and safety.

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Also, there should exist the application of general principles and processes of records management and records management systems, such as: • • • • •

Policy and procedure manuals and systems of control.

Records continuum theory.

Mandate and ownership of business process.

Environmental context.

Records characteristics.

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Update business or records system Record systems should be monitored and updated on a regular and systematic basis.

Such a schedule should include: •

Identifying and recording control information for describing new records to be incorporated into the business or records system.

• Updating control information describing movement or use of records within business or records system.

• Accurately recording and updating control information in business or records system.

• Identifying and removing records of completed business activities from current system for disposal Record management should include the development and implementation of systems for control of records such as: • • • • • • • • • • • • • • •

Financial records including trust accounts.

Sales records.

Property management records.

Payroll records.

Enquiries from potential buyers/tenants.

Enquiries from potential landlords/ vendors.

Records at different stages of use e.g. active, archival Develop and implement systems for continual update of records: Financial records including trust accounts.

Sales records.

Property management records.

Payroll records.

Enquiries from potential buyers/tenants.

Enquiries from potential landlords/ vendors.

Records at different stages of use e.g. active, archival.

Doc ID: BSBRKG304 & BSBSMB406 - Workbook (L) eLearning Date: 28/03/2018 Developed by: SL Version: 45 Approved by: CEO P a g e | 26 File Location: S:\Learning & Assessment Resources\Real Estate\CPP40307 Certificate IV in Property Services (Real Estate) NSW\Assessment Tools\20. BSBRKG304\BSBRKG304 & BSBSMB406 - Workbook (L) eLearning.doc

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Identify the procedures required to update and control record systems such as: Digital: •

Remote drives, servers, CDs, DVDs, imaging systems.

•

PC-based applications.

•

Mainframe.

Physical: •

Audio-visual or multimedia.

•

Graphic.

•

Microform.

•

Paper-based (acid free or multiple copies) from a variety of sources:

Already in the custody of the organisation.

In the process of being transferred between organisations.

•

Identifying a range of access control mechanisms for confidential and sensitive records that contain information about individuals or positions of individuals:

•

Protection of privacy.

•

Security restrictions.

•

Trade secrets or commercial-in-confidence information.

•

Trust accounts.

•

Key records.

•

Identifying and removing records of completed business activities from current systems for storage and disposal.

•

Identifying secure storage systems for a range of business records and information.

•

Identify a range of disposal options for confidential or sensitive records

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BSBRKG304 MAINTAIN BUSINESS RECORDS ELEMENT 3-PREPARE REPORTS FROM THE BUSINESS OR RECORDS SYSTEM 3.1 Interpret requests for reports and clarify the content and frequency sought, where necessary 3.2 Prepare reports from business or records system in accordance with instructions or request 3.3 Prepare reports in accordance with organisational security and access procedures

Doc ID: BSBRKG304 & BSBSMB406 - Workbook (L) eLearning Date: 28/03/2018 Developed by: SL Version: 45 Approved by: CEO P a g e | 28 File Location: S:\Learning & Assessment Resources\Real Estate\CPP40307 Certificate IV in Property Services (Real Estate) NSW\Assessment Tools\20. BSBRKG304\BSBRKG304 & BSBSMB406 - Workbook (L) eLearning.doc

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ELEMENT 3-PREPARE REPORTS FROM THE BUSINESS OR RECORDS SYSTEM Prepare reports from the business or records system Develop and present reports relevant to agency operations such as: • Financial reports.

• Market trends.

• Risks.

• Sales budgets and Property management figures and budgets.

• Commissions and fees paid.

• Marketing.

• Professional development.

• Personnel records and payroll.

Doc ID: BSBRKG304 & BSBSMB406 - Workbook (L) eLearning Date: 28/03/2018 Developed by: SL Version: 45 Approved by: CEO P a g e | 29 File Location: S:\Learning & Assessment Resources\Real Estate\CPP40307 Certificate IV in Property Services (Real Estate) NSW\Assessment Tools\20. BSBRKG304\BSBRKG304 & BSBSMB406 - Workbook (L) eLearning.doc

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BSBSMB406 MANAGE SMALL BUSINESS FINANCES

ELEMENT 1- IMPLEMENT FINANCIAL PLAN 1.1 Identify financial information requirements and obtain specialist services, as required, to profitably operate the business in accordance with the business plan 1.2 Produce financial budgets or projections, including cash flow estimates, as required for each forward period, and distribute to relevant people in accordance with legal requirements 1.3 Negotiate, secure and manage business capital to best enable implementation of the business plan and to meet requirements of financial backers 1.4 Develop and maintain strategies to enable adequate financial provision for taxation in accordance with legal requirements 1.5 Develop, monitor and maintain client credit policies, including contingencies for debtors in default, to maximise cash flow 1.6 Select key performance indicators to enable ongoing monitoring of financial performance 1.7 Record and communicate financial procedures to relevant people to facilitate implementation of the business plan

Doc ID: BSBRKG304 & BSBSMB406 - Workbook (L) eLearning Date: 28/03/2018 Developed by: SL Version: 45 Approved by: CEO P a g e | 30 File Location: S:\Learning & Assessment Resources\Real Estate\CPP40307 Certificate IV in Property Services (Real Estate) NSW\Assessment Tools\20. BSBRKG304\BSBRKG304 & BSBSMB406 - Workbook (L) eLearning.doc

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BSBSMB406 MANAGE SMALL BUSINESS FINANCES ELEMENT 1- IMPLEMENT FINANCIAL PLAN

Doc ID: BSBRKG304 & BSBSMB406 - Workbook (L) eLearning Date: 28/03/2018 Developed by: SL Version: 45 Approved by: CEO P a g e | 31 File Location: S:\Learning & Assessment Resources\Real Estate\CPP40307 Certificate IV in Property Services (Real Estate) NSW\Assessment Tools\20. BSBRKG304\BSBRKG304 & BSBSMB406 - Workbook (L) eLearning.doc

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BSBSMB406 MANAGE SMALL BUSINESS FINANCES ELEMENT 2- MONITOR FINANCIAL PERFORMANCE 2.1 Regularly monitor and report on financial performance targets, and analyse data to establish extent to which the financial plan has been met 2.2 Monitor marketing and operational strategies for their effects on the financial plan 2.3 Calculate and evaluate financial ratios according to own or industry benchmarks 2.4 Assess financial plan to determine whether variations or alternative plans are needed, and change as required

Doc ID: BSBRKG304 & BSBSMB406 - Workbook (L) eLearning Date: 28/03/2018 Developed by: SL Version: 45 Approved by: CEO P a g e | 32 File Location: S:\Learning & Assessment Resources\Real Estate\CPP40307 Certificate IV in Property Services (Real Estate) NSW\Assessment Tools\20. BSBRKG304\BSBRKG304 & BSBSMB406 - Workbook (L) eLearning.doc

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ELEMENT 2- MONITOR FINANCIAL PERFORMANCE

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CONCLUSION Congratulations! You have now completed the activities and assessments for BSBRKG304 Maintain business records and BSBSMB406 Manage small business finances.

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ACTS LEGISLATION S AND FORMS

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Doc ID: BSBRKG304 & BSBSMB406 - Workbook (L) eLearning Date: 28/03/2018 Developed by: SL Version: 45 Approved by: CEO P a g e | 36 File Location: S:\Learning & Assessment Resources\Real Estate\CPP40307 Certificate IV in Property Services (Real Estate) NSW\Assessment Tools\20. BSBRKG304\BSBRKG304 & BSBSMB406 - Workbook (L) eLearning.doc