TE18956 – Financial Management for Small Businesses
Module code
TE18956
Module title
Financial Management for Small Businesses
Prescription
People credited with this unit standard are able to explain: aspects of accounting; business records required to manage an entity; and business plans, cash forecasts, and budgets.
This unit standard is for people who are not financial specialists or experts but who need financial knowledge and skills in their workplace.
Programmes
- TE1010
- TE1101
NZQA Level
Level 3
NZQA Credits
5
Delivery method
- Not Web enabled
Learning hours
- Directed hours
- 25
- Self directed hours
- 25
- Total learning hours
- 50
Resources required
- Content
- Element 1
Explain aspects of accounting.
Performance criteria
1.1The explanation describes concepts of accounting.
Rangeaccounting entity, historical cost, continuity, accounting period, conservatism, realisation, disclosure, materialism, depreciation.
1.2The explanation describes types of accounting transactions and includes taxes payable.
Rangetypes of accounting transactions include but are not limited to - assets, liabilities, equity, revenue, expenses, wages of staff and/or owner, accounts receivable, accounts payable, debtors' master file, creditors' master file, insurance;
taxes payable include - pay as you earn (PAYE), goods and services (GST), fringe benefit (FBT), provisional, terminal.
1.3The explanation describes profit and loss account, turnover, and balance sheet.
1.4The explanation describes the role of a company accountant for compliance accounting and for business management.
Element 2
Explain business records required to manage an entity.
Performance criteria
2.1Business records are explained in terms of accounting purposes, and taxation and other legal requirements.
Rangemay include but is not limited to - bank statements, cheque books, invoices, hire purchase agreements, legal statements, cash books (computerised or manual), wages books, wage reconciliation, ACC levy statements.
Element 3
Explain business plans, cash forecasts, and budgets.
Performance criteria
3.1The content of a business plan is identified, and explained in terms of its purpose.
3.2Cash forecasts are explained in terms of benefits and means of operation.
3.3The content of a budget is identified, and explained in terms of its purpose.
3.4The explanation includes the development of a budget from a business plan.
3.5The explanation includes how income is forecast and discusses the relationship between forecast income and the budget. - Basic of Assessment
- The assessment methods for this module are shown in the attached assessment structure setup form.
- Learning and Teaching Resource
- A full set of resources will be issued for this module including printed course work and assessment materials. Additionally students will be encouraged to use the library and other resources that can be accessed at Wintec.
