Chapter Name: Implement business financial systems
Description:This chapter discusses installing accounting software, setting up financial controls, budgeting, and cash flow management.
Purpuse:To establish robust financial management systems to track income, expenses, and ensure financial sustainability.
Rational:Sound financial systems are crucial for decision-making, reporting, and long-term viability.
Chapter Assessment
Expected Supporting Evidence:
Portfolio of Evidence 1: A banking scheme is selected which is most suitable to the new venture. - Selecting an appropriate banking scheme shows understanding of financial services and alignment with business goals.
Portfolio of Evidence 2: Financial systems are established to eliminate fraud and to ensure efficient control of money, debtors, creditors, cash flow and the budget. - Establishing financial controls demonstrates sound financial governance and risk management.
Portfolio of Evidence 3: Financial control and auditing systems are applied in the financial system. - This supports financial transparency and accountability in business operations.
Portfolio of Evidence 4: Screening procedures for debtors are established to ensure bad debts are eliminated or kept to a minimum. - Demonstrates credit risk assessment skills to maintain healthy cash flow.
Workplace Activities
Activity 1: Choose banking scheme
Select and open a business banking account
Activity 2: Set up financial control systems
Install and document financial systems
Activity 3: Apply auditing systems
Apply internal auditing and reporting tools
Activity 4: Screen debtors
Create a debtor evaluation and approval procedure