Monitor/check and control finances

Submission details

The assessment task is due on the date your assessor has told you. Any changes to this arrangement must be approved in writing by your assessor.

Submit this document with any required evidence attached. See specifications below for details.

Performance objective

The student will show skill and knowledge to monitor/check and control finances.

Assessment description

In reply to the situation provided, you will create a simple spreadsheet budget to show monitoring/checking information. Using information provided to you by your assessor, you will then use the budget spreadsheet to produce a report on expenditure/expenses in line with organizational/company policies and procedures. You will also adjust any backup/ contingency plans.


  • Read through the scenario provided in Appendix 1 to this assessment task and tasks A and B.
  • Design and develop a spreadsheet to record budgeted/planned and actual/real figures to produce a variance/report on differences report.
  • Get real budget/financial plan figures from relevant/appropriate managers and accounting systems (assessor).
  • Monitor/check and record actual/real figures.
  • Consider feedback from team members.
  • Produce a variance/differences report as per organisational requirements.
  • Consider the scenario information and contingency/backup plan provided and analyse/study the variance/differences report.
  • Modify/adjust the contingency/backup and implementation/completion plans provided in the scenario to improve effectiveness/response.
  • Submit all documents required in the specifications below to your assessor. Ensure you keep a copy of all work submitted for your records.
  • Specifications

    You must provide:

  • a budget variance report (i.e a report showing any differences from the actual budget figures)
  • a modified contingency plan and modified implementation plan (i.e backup and completion plans)
  • your notes on procedures.
  • Your assessor will be looking for:

    numeracy skills (reading and understanding figures) to read and understand a budget and to produce a variance report

    technology skills to use software associated with financial recordkeeping. (i.e computer skills)

    knowledge of basic accounting principles to identify and use account balances (understanding accounting basics to do account pluses and minuses)


    Last updated: Feb 2024

    Page 1

    basic accounting principles to identify and use account balances (understanding accounting basics to do account pluses and minuses)

    knowledge of organisational requirements related to financial management (i.e what the company wants in relation to moniey/finances)

    knowledge of organisational requirements for records and reports

    knowledge of principles and techniques (basics and ways) involved in budgeting, profit and loss (making or losing money) statements, electronic spreadsheets (i.e computer software files).

    Appendix 1 – Scenario

    Big Red Bicycle Pty Ltd is a bicycle manufacturer based in Bendigo, Victoria. The company produces bicycles which it sells to retailers in the domestic Australian market.

    The senior management structure of the company appears below.

    According to company strategic/goals plans, the company aims to achieve a net profit before tax of $1,000,000. The chief risks to this goal are:

  • poor sales due to economic downturn (the business (economy) is not doing well)
  • increases in expenses such as wage expenses.
  • In addition to Australian operations, the company is considering manufacturing overseas as it is cheaper to manufacture. The company is also thinking of expanding into different products and not to have risk of poor sales of one product.


    You are the Senior Accountant at Big Red Bicycle. A major component/part of your role is setting budgets and monitoring budgetary performance for the organisation. (i.e how well the company is doing financially)

    Task A

    The Managing Director, Tom Copeland, has asked you to implement/put together a process/method to monitor/check expenditure/expenses and income/sales revenue. He has asked you to prepare a spreadsheet to capture/record and compare/check against actual/real income and expenditure to what is recorded in the budget (i.e budgeted figures). Your spreadsheet must contain columns for each of the four quarters of the financial year. You are required to gather data from the relevant managers (your assessor) to complete a budget variance/adjustment-differences report.

    The report should conform to organisational requirements in policies and procedures and contain:

    columns to show actual account values

    absolute variance (the actual/real change)

    percentage variance (how much of the total amount, ie. percentage changed)

    Task B

    It has come to the attention of the Managing Director, Tom Copeland, that due to the current economic climate (i.e the state of business in the country or state is not all that good), sales volume may be 20% below target this financial year. Tom is worried that this may affect the planned profit (profit projections). The company can accept as much as a 10% variance/change in profit projections; however, more than this could make it difficult for company to pay its bills and put money into other areas and departments. Correct information…


    Last updated: Feb 2024

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