Step-by-Step Planning of BSBFIM601 Financial Management 

 

BSBFIM601 is the major unit in finance assignment. Students who pursue this course have to ensure that they plan the assessment effectively. Being an academic student, you have to understand that planning assessment answers beforehand take your documents to the seventh sky. You can write the content smoothly and get the best grades from the university professor. To make it more clear, here are the steps that you must keep in mind before planning the BSBFIM601 financial management assessment answers.

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• Identify

Being a finance student, you have to identify all the accounting principles and standards. It will help you to manage the books of accounts and every transaction. While identifying the principles and standards, you have to cover all the possible aspects including all your accounting and finance strategy. To grow your business, you have to make operational and financial reports according to the reporting cycle. This cycle is determined by identifying the needs for strategy development and implementation, along with the statutory requirements. 

• Determine

After identifying all the principles and standards, you have to determine all the possible areas of profit and loss. It needs to be portrayed by all the books such as cashbooks, journals, ledgers, and every single transaction that takes place within the organization. You have to recheck that the net profit and gross profit are accurate or not. If they are not correct, then you have to determine how you can create a strategy to grow and develop the company by implementing a new and innovative approach. 

• Manage

After determining the profit and loss, you are required to gather the resources for organizational strategy implementation. To manage it effectively, you have to see the organizational activities. Also, review the plans that need to be executed. Make sure that the plans do not reflect the budget. Identify the plans and budget accordingly within the financial cycle. Determine the financial cycle and check what exactly they are asking for. After doing it, you have to analyze the cash flow of the company regularly. 

• Review 

After managing the strategy, you have to review the requirements and tax liabilities of the company. It will help in filing the  income tax return (ITR) and other miscellaneous expenses. By doing so, you can save the amount on taxation. You have to go through all the books and check the amount of your tax. Ensure that you plan something better to prepare your budget and increase your profit in the next financial year. 

How to Establish a Budget in BSBFIM601? 

In the planning process of BSBFIM601 financial management, you have to make sure not to make any blunders. After planning, you have to establish a budget and allocate funds to the organization. It helps to calculate the financial performance of the company. You have to manage all the activities and aspects of a particular operation within the financial year. By doing so, it helps the manager to allocate funds accordingly. Also, it is easier to decide the finances by daily analysis of the budget. It gives a rough idea about the actual performance. Therefore, it minimizes the financial risk of the organization. Well, there are some key points that you have to learn to establish the budget accurately. 

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• Set Budgets

To establish a budget, first, you have to set it according to the organization’s guidelines. It will help you in allocating financial resources. By setting the budget, you will get an idea about how much you have to spend on the particular expense or event. It will help you save the amount for future use and also, your profit will increase in the books of accounts. You can invest in stock to make more profits instead of doing miscellaneous expenses. 

• Fix the Cash Budget

After setting the budget in the organization, you have to fix the cash budget. Being a finance student, you have to make sure that you spend cash accordingly; it will lead you not to take a bank loan or overdraft. Many marketing companies prefer cash instead of the loan. It is an easier way to trade with other organization or large scale businesses. Managers sometimes lack the knowledge and spend all the cash and it leads that their books show negative balance at the end of the financial year. 

• Prepare P&L and Balance Sheet

After fixing the cash budget, you have to prepare a profit and loss account and match the balance sheet accurately. It will help you to