SITXFIN009 Manage finances within a budget

SITXFIN009

manage finances
within a budget

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 1 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 2 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

ASSESSMENT COVERSHEET
This Assessment Coversheet MUST be filled up and submitted with each unit
assessment task submission.

Student Student
14071789
Name: Chanpreet Singh ID:

Course Certificate IV in commercial cookery

Unit SITXFIN009
Batch /
Assessment Due Date:
Group

1 4

2 5
Assessment
Tasks
3 6

 First Attempt  Second Attempt

Trainer Mevan Sooriyarachchi

Name

Plagiarism and collusion: Plagiarism is an academic dishonesty denoting the use of someone
else’s intellectual property as the form of one’s own work. This includes copying other’s work in
whole or part and/or citing information from various sources without standard referencing.
Disciplinary actions: A student found to have plagiarized or cheated the work or colluded with
any other student(s) will be subject to attend the meeting with the Academic team for
counselling, re-submission and /or undertaking examination. If the student denies the Academic
team’s decision, he/she will be referred to the TasCollege Disciplinary Committee for further
actions such as suspension from the course.
Student declaration
 I declare that all the assessment tasks’ answer(s) is my own work and is not plagiarised.
 I agree for providing the electronic copy of my assessment answers to be examined by
using a relevant plagiarism/collusion scan software.
 I have correctly referenced all in-texts and resources throughout the assessment tasks.
 I have made a copy of my assessment answers (print/electronic) that I can produce if the
original is misplaced.
 I am aware of TasCollege policy on plagiarism as stated in the TasCollege
Assessment Submission Guidelines and other relevant policy and procedures.
 I also understand that a Late Submission/Re-Sit Fee will apply if I fail to maintain my
course progress at the required level.

Student Signature: Chanpreet Singh Date Submitted: 05/8/2024

The Second Attempt will also be applied under compassionate and compelling
circumstances.

Trainer Declaration: I declare that I have reviewed the Trainer’s name:

submitted assessments properly and received them as a
form of complete submission. Signature:

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 3 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Date:

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 4 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Contents
Introduction 6
Assessment for this unit 6
Assessment Task 1: Knowledge questions 7
Information for students 7
Questions 8
Assessment Task 2: Project 15
Information for students 15
Activities 16

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 5 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Introduction
Welcome to the Student Assessment Tasks for SITXFIN009 Manage finances within a budget.
These tasks have been designed to help you demonstrate the skills and knowledge that you have
learnt during your course.
Please ensure that you read the instructions provided with these tasks carefully. You should also
follow the advice provided in the Hospitality Works Student User Guide. The Student User Guide
provides important information for you relating to completing assessment successfully.

Assessment for this unit

For you to be assessed as competent, you must successfully complete two assessment tasks:
 Assessment Task 1: Knowledge questions – You must answer all questions correctly.
 Assessment Task 2: Student Logbook – You must manage finances within a budget for a case
study organisation and then report on your findings.

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 6 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Assessment Task 1: Knowledge

questions
Information for students
Knowledge questions are designed to help you demonstrate the knowledge which you have
acquired during the learning phase of this unit. Ensure that you:
 review the advice to students regarding answering knowledge questions in the Hospitality
Works Student User Guide
 comply with the due date for assessment which your assessor will provide
 adhere with your RTO’s submission guidelines
 answer all questions completely and correctly
 submit work which is original and, where necessary, properly referenced
 submit a completed cover sheet with your work
 avoid sharing your answers with other students.

i Assessment information

Information about how you should complete this assessment can be found in Appendix A of the
Hospitality Works Student User Guide. Refer to the appendix for information on:
 where this task should be completed
 the maximum time allowed for completing this assessment task
 whether or not this task is open-book.
Note: You must complete and submit an assessment cover sheet with your work. A template is
provided in Appendix B of the Student User Guide. However, if your RTO has provided you with
an assessment cover sheet, please ensure that you use that.

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 7 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Questions
Provide answers to all of the questions below.

1. Provide a description of each of the types of financial records in the table.

Financial record type Description

Bank deposit slip A document provided by a bank to record the details of a

cash or check deposit made into a bank account. It includes
information such as the depositor's name, account number,
date, amount of the deposit, and a breakdown of checks
and cash. It serves as a receipt for the deposit and helps
ensure that the deposited amount is correctly credited to
the account

Bank statement A monthly record issued by a bank that summarizes all

transactions in a bank account over a specific period. It
includes details of deposits, withdrawals, checks, fees,
interest earned, and the opening and closing balance for
the account. Bank statements help individuals and
businesses track financial activities and reconcile their
accounts.

Business activity statement A form submitted to the Australian Taxation Office (ATO) by
registered businesses to report their tax obligations,
including Goods and Services Tax (GST), Pay As You Go
(PAYG) instalments, PAYG withholding, and other taxes. It
is used to calculate and pay the amount of tax owed to the
government.

Credit card statement A monthly summary provided by a credit card issuer,

detailing all transactions made using the credit card during
a billing cycle. It includes information such as purchases,
payments, interest charges, fees, credits, and the
outstanding balance. It serves as a tool for verifying
purchases and managing debt.

Invoice A commercial document issued by a seller to a buyer,

listing products or services provided and the amount owed.
It includes details such as the invoice number, date,
description of goods or services, quantity, price, payment
terms, and due date. Invoices are used for billing and
recording sales transactions.

Journal entry A record of financial transactions in an accounting journal

that affects a company's accounts. Each entry typically
includes the date, accounts involved, amounts debited and

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 8 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Financial record type Description

credited, and a brief description of the transaction. Journal

entries are fundamental for maintaining accurate financial
records and preparing financial statements.

Payroll / wages report A financial document that outlines the total compensation
paid to employees for a specific period. It includes
information on gross wages, deductions (such as taxes,
benefits, and retirement contributions), net pay, and
employer contributions. Payroll reports help businesses
comply with labor laws and tax regulations.

Merchant statement A monthly report provided by a payment processor to a

business, detailing transactions processed through credit
and debit card payments. It includes information on sales
volume, fees charged by the processor, chargebacks,
refunds, and other related data. Merchant statements help
businesses reconcile card transactions and evaluate
processing costs.

Transaction report A detailed listing of all transactions within a specific period

for a bank account, credit card, or business account. It
includes details such as transaction date, description,
amount, and type (debit or credit). Transaction reports are
used for financial analysis, tracking cash flow, and
identifying discrepancies.

2. Provide a description of each of the type of budgets in the table.

Budget type Description

Cash budget A cash budget estimates an organization's cash inflows and

outflows over a specific period, typically monthly or
quarterly. It helps ensure that the company has sufficient
liquidity to meet its short-term obligations and manage cash
shortages or surpluses.

Cash flow budget A cash flow budget projects the expected movement of
cash into and out of the business over a period. Unlike the
cash budget, which focuses solely on cash, the cash flow
budget includes both cash and non-cash items, providing a
comprehensive view of liquidity. It is essential for planning
and analyzing the company's ability to meet its financial
commitments.

Department budget A department budget allocates resources to specific

departments within an organization, such as marketing,

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 9 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Budget type Description

operations, or human resources. It outlines the expected

revenues, expenses, and resource needs for each
department, allowing managers to monitor performance and
control costs effectively.

Project budget A project budget estimates the costs associated with a

particular project, including labor, materials, equipment, and
other expenses. It helps in planning, executing, and
controlling project activities, ensuring that the project stays
within financial constraints and achieves its objectives.

Purchasing budget A purchasing budget forecasts the cost of acquiring goods

and services necessary for business operations. It
considers factors such as vendor pricing, order quantities,
and delivery schedules, helping businesses manage
procurement costs and maintain inventory levels.

Sales budget A sales budget estimates the expected revenue from sales
over a period, typically based on historical data, market
analysis, and sales forecasts. It is crucial for setting sales
targets, planning marketing strategies, and aligning
production with demand.

Wages budget A wages budget estimates the total payroll expenses for a
business, including salaries, wages, benefits, and taxes. It
helps manage staffing costs and ensures compliance with
labor laws and financial planning.

Master budget (i.e., A master budget is a comprehensive financial plan that

organisation wide budget) integrates all individual budgets within an organization,
such as sales, production, and finance. It provides an
overall view of the company's financial health and guides
strategic decision-making across the organization.

3. Explain each of the terms in the table that are factors to consider in preparing financial and
statistical reports for a business.

Term Explanation of the term

Cash flow Cash flow refers to the movement of money into and out of
a business. It includes all cash transactions, such as sales
revenue, operating expenses, taxes, and investments.
Positive cash flow indicates that a company can cover its
expenses, while negative cash flow may signal financial

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 10 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Term Explanation of the term

distress. Monitoring cash flow is essential for liquidity

management and strategic planning.

Covers In the hospitality industry, "covers" refer to the number of

customers served or the number of meals sold during a
specific period. It is a key metric for assessing restaurant
performance, staffing needs, and sales forecasts. A high
cover count generally indicates strong business
performance.

Expenditure Expenditure refers to the total amount of money spent by a

business on goods, services, labor, and other operational
costs. It includes both capital and operational expenses,
and managing expenditure is crucial for maintaining
profitability and financial health.

Occupancy rates Occupancy rates measure the percentage of available units

or rooms occupied during a given period, commonly used in
the hospitality industry. It indicates the success of sales
strategies and the demand for accommodations, playing a
vital role in revenue management and pricing decisions.

Sales performance Sales performance evaluates a company's sales activities

against set targets and goals. It analyzes metrics such as
revenue growth, sales volume, and market share to assess
effectiveness and efficiency in achieving sales objectives.
Strong sales performance contributes to profitability and
business success.

Stock (inventory) level Stock level refers to the quantity of goods or materials on
hand at any given time. Effective inventory management
ensures that stock levels align with demand, minimizing
costs related to overstocking or stockouts. It is critical for
maintaining smooth operations and meeting customer
needs.

Staff costs Staff costs encompass all expenses related to employing

personnel, including wages, salaries, benefits, and taxes.
They represent a significant portion of a business's
operational costs, particularly in labor-intensive industries
like hospitality. Effective management of staff costs is vital
for financial stability and workforce efficiency.

Variances Variances represent the difference between planned and

actual financial performance. They are used to identify
discrepancies in budgets, forecasts, or financial statements,

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 11 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Term Explanation of the term

helping management analyze underlying causes and take

corrective actions. Understanding variances is essential for
effective financial control and decision-making.

Wastage The loss or inefficiency in the use of resources, such as

food, materials, or time. In the hospitality industry, wastage
can significantly impact profitability, making it crucial to
implement measures for minimizing waste and optimizing
resource usage.

Yield A measure of profitability or efficiency, representing the

revenue generated relative to the capacity or resources
utilized. In hotels, yield management involves optimizing
room rates and occupancy to maximize revenue.

Income The total revenue earned by a business from its operations,

including sales, services, and other income sources.
Monitoring income is essential for assessing financial
performance and ensuring that the business meets its
revenue targets.

Commercial account activity Transactions and activities related to accounts held by

businesses with financial institutions, including deposits,
withdrawals, transfers, and other financial operations.

Commission earnings Income earned by sales staff or agents based on a

percentage of sales or deals closed. It incentivizes
performance and can significantly impact overall income.

Daily, weekly and monthly The regular tracking and reporting of financial transactions
transaction reporting over specific periods. These reports provide insights into
sales trends, cash flow, and financial stability, allowing for
timely decision-making and corrective actions.

4. Explain the importance of a budget and budget control for a business.

Importance of a Budget and Budget Control for a Business

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 12 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Importance of a Budget

1. Financial Planning and Forecasting:

- A budget helps in planning for future financial needs by estimating revenue and
expenses. It provides a roadmap for achieving financial goals and ensures that resources
are allocated effectively.

2. Resource Allocation:

- It allows a business to allocate resources to various departments or projects based on

priority and expected return on investment. This ensures that critical areas receive
adequate funding.

3. Performance Measurement:

- By comparing actual performance against the budget, a business can measure its
financial performance. This helps in identifying areas where the business is performing well
and areas that need improvement.

4. Cost Control:

- A budget helps in controlling costs by setting spending limits. It encourages managers to

find cost-effective ways to achieve their goals and avoid unnecessary expenditures.

5. Cash Flow Management:

- It aids in managing cash flow by predicting periods of surplus and shortfall. This allows
the business to take preemptive actions such as securing financing or adjusting expenses
to ensure liquidity.

6. Strategic Planning:

- Budgets are crucial for strategic planning. They provide a financial framework for
implementing business strategies and achieving long-term objectives.

7. Investor and Stakeholder Confidence:

- A well-prepared budget demonstrates financial discipline and foresight, which can

enhance the confidence of investors, creditors, and other stakeholders in the business.

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 13 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Importance of Budget Control

1. Ensuring Adherence to Financial Plans:

- Budget control mechanisms ensure that actual spending and revenue generation align
with the budgeted figures. This helps in maintaining financial discipline and avoiding
overspending.

2. Identifying Variances and Taking Corrective Actions:

- Budget control involves monitoring financial performance and identifying variances

between actual and budgeted figures. This enables the business to take timely corrective
actions to address any deviations.

3. Improving Efficiency and Productivity:

- By regularly reviewing and controlling the budget, a business can identify inefficiencies
and areas where productivity can be improved. This leads to better utilization of resources
and cost savings.

4. Supporting Decision Making:

- Budget control provides accurate and up-to-date financial information that is essential for
informed decision-making. It helps managers to make decisions that are aligned with the
business’s financial objectives.

5. Risk Management:

- Effective budget control helps in identifying potential financial risks early. This allows the
business to take proactive measures to mitigate these risks and avoid financial crises.

6. Enhancing Accountability:

- It promotes accountability by setting clear financial targets and responsibilities.

Managers and employees are held accountable for meeting budgetary goals, which
encourages prudent financial management.

7. Facilitating Performance Reviews:

- Regular budget reviews are a basis for performance evaluations. They provide a
benchmark against which the performance of departments, projects, and individuals can be
assessed.

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 14 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

8. Supporting Growth and Expansion:

- For businesses looking to grow and expand, budget control ensures that resources are
used efficiently and that the financial implications of growth initiatives are well-managed.

5. List two techniques a business can use for maximising budget performance.

Zero-Based Budgeting

Rolling Forecasts

6. Outline the term budget variance.

Definition:
Budget variance is the difference between the budgeted amount and the actual amount
spent or earned in a specific period. It measures the deviation from the planned financial
performance and provides insights into how well the business is adhering to its budget.
Types of Budget Variance:
1. Favorable Variance:
 Occurs when actual revenues are higher than budgeted or when actual
expenses are lower than budgeted.
 Indicates better-than-expected financial performance.
2. Unfavorable Variance:
 Occurs when actual revenues are lower than budgeted or when actual
expenses are higher than budgeted.
 Indicates worse-than-expected financial performance.
Causes of Budget Variance:
 Revenue Variance:
Changes in sales volume, price changes, market conditions, or customer
behavior.
 Cost Variance:
Variations in material costs, labor costs, overhead expenses, or operational
inefficiencies.
Importance of Budget Variance:
 Performance Evaluation:
Helps in evaluating the financial performance of different departments,
projects, or the overall business.

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 15 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

 Decision Making:
Provides critical information for making informed financial and operational
decisions.
 Cost Control:
Identifies areas where costs are exceeding expectations, allowing for
corrective measures to control expenses.
 Forecasting and Planning:
Enhances future budgeting accuracy by incorporating insights gained from
analyzing variances.
 Accountability:
Promotes accountability by holding managers and employees responsible
for meeting budgetary targets.
How to Address Budget Variance:
1. Analyze the Causes:
 Investigate the reasons behind the variance to understand its root causes.
2. Adjust Strategies:
 Implement changes in operations, sales strategies, or cost management to
address the identified issues.
3. Revise the Budget:
 Update the budget to reflect new information or changes in business
conditions if necessary.
4. Monitor Regularly:
 Conduct regular variance analysis to stay on top of financial performance
and make timely adjustments.

7. Document the reporting that is completed for the following cycles/periods and write down a
procedure for each that is relevant to a hospitality business.

Cycle What reporting should happen A relevant procedure

Monthly Income statement, cash flow 1. Collect financial data from

statement, bank reconciliations, accounting software and
sales performance report, and sales systems.
inventory levels.
2. Prepare and review the
income statement and
cash flow statement.
3. Reconcile bank
statements with internal

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 16 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

records.
4. Analyze sales
performance and inventory
levels.
5. Identify and investigate
any variances.
6. Compile the monthly
financial report and
distribute it to
management.
7. Discuss findings and
action items in a monthly
financial review meeting.

Quarterly Balance sheet, profit and loss 1. Gather financial data for
statement, business activity the quarter.
statement (BAS), and budget
2. Prepare the balance sheet
variance analysis.
and profit and loss
statement.
3. Complete the BAS for
submission to tax
authorities.
4. Conduct a detailed budget
variance analysis.
5. Review and adjust
budgets as necessary.
6. Compile the quarterly
financial report.
7. Present the report to
senior management and
stakeholders in a quarterly
review meeting.

Annually Annual financial statements 1. Collect and verify all

(income statement, balance sheet, financial data for the year.
cash flow statement), tax returns,
2. Prepare the annual
and performance review.
financial statements.
3. Conduct a comprehensive
audit of financial records.
4. Complete and file tax

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 17 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

returns.
5. Perform a thorough
performance review,
including year-end
variance analysis.
6. Compile the annual report,
including financial
performance, strategic
achievements, and future
goals.
7. Present the annual report
to shareholders,
management, and other
stakeholders at the annual
general meeting.

8. For two different accounting software programs of your choice, write down at least one
function and one feature of each and how these can help in monitoring budgets.

QuickBooks allows users to create detailed budgets and forecasts based on historical
data and projected financial performance.
QuickBooks provides customizable financial reports that can be tailored to show
budget vs. actual performance, enabling detailed variance analysis.

Xero offers real-time tracking of income and expenses, providing up-to-date insights
into financial performance.
Xero's dashboard provides a visual overview of key financial metrics, including budget
vs. actual performance, making it easy to monitor financial health at a glance

9. What information does an annual financial report contain and how should it be presented?

An annual financial report typically contains:

1. Income Statement: Shows revenues, expenses, and net profit or loss for the year.
2. Balance Sheet: Details assets, liabilities, and equity at year-end.
3. Cash Flow Statement: Summarizes cash inflows and outflows from operating,
investing, and financing activities.
4. Notes to Financial Statements: Provides additional details and explanations about
the financial statements.
5. Management Discussion and Analysis: Offers insights into financial

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 18 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

performance, key business developments, and future outlook.

Presentation:
 It should be clear, concise, and professionally formatted. Use charts and graphs for
visual clarity, and ensure it’s accessible to stakeholders, including investors and
regulatory bodies.

10. Discuss how a business will show the findings of the projected budget versus the actual
budget and how this might be presented.

To show the findings of the projected budget versus the actual budget, a business will
prepare a budget variance report. This report highlights differences between budgeted
figures and actual results, categorizing them into favorable or unfavorable variances.
Presentation:
 Tables and Charts: Use tables to list budgeted vs. actual amounts and charts
(e.g., bar or line graphs) to visualize variances.
 Variance Analysis: Include brief explanations for significant variances, detailing
reasons and implications.
 Executive Summary: Summarize key findings and recommended actions for
management to address deviations and adjust future budgets.

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 19 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Assessment Task 2: Project

Information for students
You are required to manage finances within a budget for a case study organisation and then report
on your findings.
You will need access to:
 your learning resources and other information for reference
 software such as an accounting program or Microsoft Excel or similar
 your Café Quarterly Budget
 your Budget Report Template.

Ensure that you:

 review the advice to students regarding responding to written tasks in the Hospitality Works
Student User Guide
 comply with the due date for assessment which your assessor will provide
 adhere with your RTO’s submission guidelines
 answer all questions completely and correctly
 submit work which is original and, where necessary, properly referenced
 submit a completed cover sheet with your work
 avoid sharing your answers with other students.

i Assessment information

Information about how you should complete this assessment can be found in Appendix A of the
Hospitality Works Student User Guide. Refer to the appendix for information on:
 where this task should be completed
 how your assessment should be submitted.
Note: You must complete and submit an assessment cover sheet with your work. A template is
provided in Appendix B of the Student User Guide. However, if your RTO has provided you with
an assessment cover sheet, please ensure that you use that.

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 20 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Activities
Complete the following activities.

1. Carefully read the following information.

Successful completion of this unit requires that you complete the range of tasks
listed above. It is important that you provide evidence that you have successfully
completed each task.
Below is a guide to the skills and knowledge you must demonstrate when you are
completing each activity step. We have provided several documents to assist you
and you will find these in the student resources.
You will need access to:
 your learning resources and other information for reference
 software such as an accounting program or Microsoft Excel or similar
 your Café Quarterly Budget
 your Budget Report Template.
 space for a meeting.

What do I need to demonstrate?

During this task, you will be required to demonstrate a range of the skills and
knowledge that you have developed during your course. These include:
 managing a budget for a business over a three-month period that meets the
specific business’ needs and including reviewing operating procedures and
sourcing new suppliers.
 Allocating budget resources including:
o allocating funds according to budget and agreed priorities.

o discussing changes to income and expenditure priorities with colleagues

prior to implementation.
o consulting with, as well as informing staff about resource decisions.

o promoting awareness of the importance of budget control.

o Maintaining resource allocation records.

 Monitoring financial activities against a budget over the three-month period

including:
o identifying and using financial records to check actual income and
expenditure against budget.
o making sure that the reference records used are accurate.

o Identifying and reporting significant deviations

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 21 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

o Investigating options for more effective management of deviations.

o advising colleagues of budget status in relation to targets.

 Identifying and evaluating options for improved budget performance including:

o Assessing existing costs and resources and proactively identifying areas
for improvement including:
 discussing desired budget outcomes with colleagues.
 undertaking research to investigate new approaches to budget
management.
 defining and communicating the benefits and disadvantages of new
approaches.
 factoring in the impacts on customer service levels and on
colleagues when developing new approaches.
 presenting clear and logical recommendations for budget
management.
 Completing financial reports relating to the budget including:
o completing the required financial and statistical reports according to
required timelines.
o preparing and presenting clear and concise information to enable
informed decision making.

How will I provide evidence?

Your assessor will provide you with templates to complete each task. You will find
some detailed information about providing evidence; this will include:
 a completed Café Quarterly Budget
 a completed Budget Report.
You will need to complete each activity and submit the completed templates at the
end of each step completed.

2. Carefully read the following scenario.

You are the café manager of a popular café within the Blue Healer Hotel and Spa.
The owner has provided you with the budget for the next quarter and it is part of
your responsibility to allocate resources and manage the finances within the
budget.
The budget has been increased in month three as this is a popular month where
lots of visitors stay at the Blue Healer and neighbouring guest houses as there is a
music festival on. As such, additional wait staff will be hired on a casual basis and
less private catering jobs will be booked in as the café will be at its peak.

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 22 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Additional information:
 The business uses local suppliers but due to a recent drought the cost of meat
with the usual supplier, Fresh Farms, went up by 7% last month.
 The café serves breakfast, light meals, light dinners and sharing plates,
smoothies, coffee, pastries and is a local favourite for its homemade iced tea.
 Due to the clientele of the hotel and health spa, and the area within which the
Blue Healer is located, there have been a number of requests for more
vegetarian and vegan options.
 Apart from you and the owner (you also cook and prepare food) there is full-
time chef named Navneet, two part-time kitchen porters and casual wait staff
employed.
 There has been a pattern of food wastage in the past two months with too
much fruit purchased that spoiled before it could be used as the iced tea
became so popular that not as many smoothies were made and sold.
 The food budget has blown out over the past three months, but the owner can’t
increase it as the profit from the café is being invested into building and
landscaping works to create an outside undercover area that will double the
capacity of the café.
 The business uses Wave Accounting free online software for recording income
and expenditure but makes use of Excel spreadsheets for budgeting and
planning purposes.

3. Review past information and future budget and plan fund allocation.

Review the following:

 Case study and additional information above
 Café Quarterly Budget – budget page
 Café Quarterly Budget – past information page
Look at the cost of sales figures related to food and beverage purchases which is
the food and beverage budget that is allocated to you.
Do some research and source some local meat suppliers in your area and check
out the costs of menu items you have planned for previously in the past, or meals
you are familiar with and see what that 7% could look like and the impact over a
three-month period. Bring this information with you to the meeting in the next
activity step to provide recommendations to the owner.
Think about how you can work effectively with the budget allocated to you and the
changes you could make to manage the finances more effectively.
Make notes on your research and findings for use in the following activity.
Answer:

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 23 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Visited the “teammates” cafe in Flemington

Checked the menu and varity of coffee and drinks is now sells at $5000

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 24 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

4. Have a meeting with the owner to discuss the budget and fund allocation.

Now that you have reviewed all the information, have a meeting with the manager
(your assessor) at the date and time advised to discuss any concerns, priorities and
changes you would like to make before you allocate the funds. Review the new
suppliers you have sourced with your assessor.
During the meeting, you will need to demonstrate effective communication skills
including:
 speaking clearly and concisely
 using non-verbal communication to assist with understanding
 asking questions to identify required information
 responding to questions as required.

Meeting Preparation:
 Recommendations:
 Switch to local suppliers for cost savings.
 Increase vegetarian menu offerings to cater to health-conscious
clientele.
 Implement waste reduction practices to manage budget better.
 Key Points:
 Highlight potential savings from supplier changes.
 Emphasize the need for budget control due to limited increase
options.
 Propose menu changes to align with customer preferences and
cost management.

5. Allocate funds.

Using the Café Quarterly Budget template – Fund allocation page, allocate the
funds for the quarter to the relevant areas and what you will purchase from existing
or new suppliers. Make notes in the relevant column to support your choice and
rationale. Add or delete rows as necessary and apply cell formatting and the use of
formula functions as necessary.
Submit to your assessor.

6. Meet with your team.

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 25 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Briefly meet with Navneet (your assessor) to discuss the resource allocations and
the planning for the next quarter in relation to fresh produce, reduction of wastage
and recipe variation.
Make sure that you discuss the importance of sticking to the budgeted allocations
and discuss ways that food wastage can be avoided to ensure the budget is met.
During the meeting, you will need to demonstrate effective communication skills
including:
 speaking clearly and concisely
 using non-verbal communication to assist with understanding
 asking questions to identify required information
 responding to questions as required.

Discussion Points:
 Resource Allocation:
 Explain supplier changes and cost-saving measures.
 Outline planned reductions in fruit wastage.
 Wastage Reduction:
 Implement inventory management practices.
 Encourage team collaboration to minimize spoilage.
 Team Involvement:
 Discuss potential new recipes and variations.
 Seek input on improving kitchen efficiency.

7. Monitor activities – month 1.

It is the end of month 1. You have kept to the budget and the funds have been
allocated as you planned for.
Using relevant software (such as an accounting program or Microsoft Excel or
similar) and the exact figures from your fund allocation document, enter the
expenses you have incurred over the first month exactly as they are represented in
your fund allocation page of your spreadsheet.
Print a report of the entries or take a screenshot and submit to your assessor.

8. Monitor activities – month 2.

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 26 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

It is the end of month 2. You have kept to the overall budget, but funds have had to
be rearranged in the following ways:
 There was an accident when unloading the vegetable crate one week and all
the produce was spoiled. You had to purchase a second crate which pushed
your amount spent with the vegetable supplier up by 10%.
 To accommodate for the overspend, you reduced the amount spent on cakes
and pastries by that same amount and baked inhouse.
Enter the expenditure figures into the software you are using as outlined in your
fund allocation document but consider the information above and work out the
variances.
Print a report of the entries or take a screenshot and submit to your assessor.

9. Monitor activities – month 3.

It is the end of month 3. The following has happened:

Due to recent environmental conditions, less people came to the local area than
planned for and many people cancelled their accommodation at Blue Healer. Some
of the food for the first week had already been ordered and as such – there was a
lot that went to waste. The figures have been calculated for the month based on 4
weeks. $6000 was spent on food in preparation for the increased numbers but
during the first week there was a total waste of 35%. Many items were able to be
frozen, and as such the budget can be amended for the next quarter to try and
recoup some of the losses. The following three weeks the same amount was spent
as budgeted for the two prior months, being $3,750 per week and a total of $6000
for the month was spent on beverages.
Enter the expenditure figures into the software you are using as outlined in your
fund allocation document but consider the information above and work out the
variances.
Print a report of the entries or take a screenshot and submit to your assessor.

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 27 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

10. Develop an actual budget from the past three months.

Develop an actual budget using the past information and your financial records you
complied and submitted in the previous activity steps. Make a new page in the Café
Quarterly Budget spreadsheet and name it ‘Actual Budget’.
Assume the following information:
 Variances of 10% are not considered unusual.
 The actual income is as follows:

Account Month 1 Month 2 Month 3

Income

Food sales 36,500 35,800 34,000

Beverage sales 23,000 24,500 21,000

Catering fees 10,000 10,200 7,200

Total income 69,500 70,500 62,200

 The operating expenses are all correct.

Submit to your assessor. Your assessor will provide you timelines for completing
this task which you must adhere to, and you will be assessed on this.

11. Conduct research and write a budget report.

Compile a report to the owner about what has occurred over the past three months.
You will also need to conduct some research when writing this report as outlined
below. Submit in the timeframe as provided to you by your assessor.
Include the following in your report:
 The status of the budget and the variations in relation to what was projected –
use percentages and figures to discuss a detailed account of what has
occurred in the overall actual budget in relation to projections.
 Lessons learned from what has occurred in the past quarter and ideas for how
you can prevent similar situations in the future by improvements that can be
made.
 Undertake research to investigate new or different approaches to budget
management and then outline the benefits and advantages of different
approaches you could take and how these approaches may impact on
customer service levels or staff.
 Provide recommendations for budget management for the next quarter and
provide estimates for this period.

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 28 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

Make sure you use correct budget terminology, and your report is neatly presented,
clear and concise with the use of statistical representations.
Use the Budget report template to guide your work.
Submit to your assessor. Your assessor will provide you timelines for completing
this task which you must adhere to, and you will be assessed on this.

Budget Report Template

1. Budget Status and Variations

 Projected vs. Actual:
o The overall budget variance for the quarter was 8%, which is
within the acceptable range.
o The main deviation occurred in Month 3, with a 12% variance
due to unforeseen wastage.
 Detailed Analysis:
o Food sales decreased by 6% in Month 3 due to lower visitor
numbers.
o Beverage sales remained consistent, with a slight 2% decrease
in the final month.
o Catering fees saw a significant drop of 20% in Month 3 due to
reduced bookings.
2. Lessons Learned
 Key Insights:
o Inventory management needs improvement to reduce wastage.

o Flexibility in menu offerings can help adapt to changing

customer demands.
o Regular communication with suppliers can lead to better cost
management.
 Proposed Improvements:
o Implement a real-time inventory tracking system to minimize
waste.
o Train staff on efficient stock management practices.

o Develop contingency plans for unexpected events impacting

visitor numbers.
3. Research on New Approaches
 Budget Management Strategies:
o Zero-Based Budgeting: Assess each budget item from scratch to

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 29 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K
SITXFIN009 Manage finances within a budget

justify expenses.
o Rolling Forecast: Continuously update forecasts based on actual
performance.
o Activity-Based Budgeting: Focus on activities that drive costs
and manage them efficiently.
 Benefits and Impacts:
o Zero-Based Budgeting ensures efficient resource allocation but
may increase staff workload.
o Rolling Forecast offers flexibility but requires accurate data
analysis.
o Activity-Based Budgeting improves cost control but may impact
customer service if not implemented carefully.
4. Recommendations for Next Quarter
 Budget Estimates:
o Allocate funds based on historical data and anticipated trends.

o Adjust allocations for food and beverage to align with visitor

projections.
 Suggestions:
o Increase focus on marketing efforts to attract more visitors
during off-peak periods.
o Enhance collaboration with suppliers to secure better pricing and
terms.
o Explore partnerships with local events to boost catering
bookings.

Student Assessment Tasks – SITXFIN009 Manage

finances within a budget | Page 30 of 30
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as:
TasCollege
RTO Code: 45352 | CRICOS Code: 03683K