Running a new venture involves understanding and explaining the financial aspects, including applying cash flow management and implementing an accounting system to effectively manage finances. Analysing income and expenditure statements, evaluating balance sheets, and making informed financial decisions based on financial statements are crucial skills in ensuring the financial success and sustainability of a new business.
This unit standard is intended for learners who have to manage the finances of a business venture. Learners who achieve this unit standard are able to manage the income and expenditure of own business and base financial decision-making on financial data. Learners credited with this unit standard will be able to explain financial aspects involved in running new venture, apply cash flow management in the running of a new venture, apply an accounting system to manage a new venture, analyse an income and expenditure statement, analyse a balance sheet and make a financial decision based on financial statements.
Course Content
- The concepts of start-up capital and working capital are explained in relation to a business
- The relationship between cash flow and profit are explained with examples within a business
- An explanation is given of the difference between short-term finance and long-term debt finance with examples
- The difference between fixed and working capital is explained in terms of own business ventures
- The importance of cash flow management in a business is discussed in terms of the principles of a healthy business practice.
- An explanation is given of the use of cash flow forecast as a budgeting tool.
- A cash flow forecast is created in accordance with recognised processes and steps.
- A cash flow forecast is used in order to determine a working capital for a business.
- Bank statements are interpreted for reconciliation with the cash book.
- An explanation is given of how an accounting system is applied in a new venture.
- An accounting system is established for a new venture.
- The accounting system is monitored for effectiveness.
- Taxation requirements are catered for in the accounting system of the new venture.
- An explanation is given of how income and expenditure statements are applied in terms of their purpose.
- Sources of income and expenditure statements are identified for a new venture.
- Income and expenditure statements are evaluated to determine the financial viability of a new venture.
- An income and expenditure statement is created for a new venture.
- An explanation is given of the purpose of a balance sheet with reference to how often a balance sheet is necessary.
- The liabilities in a balance sheet are classified in terms of long-term and current liabilities.
- Assets and liabilities are determined in a new venture context.
- A balance sheet is evaluated in terms of equity and/or financial net worth.
- A balance sheet is drawn up for a new venture.
- Recommendations are made on how to improve the financial ratios of new ventures.
- The financial strengths and weaknesses of one’s own venture are analysed in order to make suggestions to improve income and reduce costs.
- Non-accredited: Short course only
- Duration: 1h 30m
- Delivery: Classroom/Online/Blended
- Access Period: 12 Months
