Overview
Assessment Guidance
Portfolio of evidence
Aim
The aim of this unit is to help learners understand the importance of cash flow and the impact of efficient management of money in a business.
Portfolio of evidence
The aim of this unit is to help learners understand the importance of cash flow and the impact of efficient management of money in a business.
Know key costs and expenditure for businesses.
Key costs of running a business may include:
Types of expenditure may include:
Identify the key costs associated with running a business.
Identify different types of expenditure associated with running a business.
Know about key records needed to manage finance in a business context.
Examples of financial records that may be kept include:
Importance of financial records may include:
Define key business terms, for example, income, expenditure, turnover, cash flow, gross and net profit.
Describe the financial records that a business needs to keep.
Explain why financial records are important, including legal requirements.
Know why managing cash flow is important to businesses.
The role and importance of cash flow may include:
Factors that affect cash flow may include:
How cash flow problems can lead to business failure:
Ways to monitor and manage cash flow may include:
Explain the role and importance of cash to the operation of a business.
Describe factors that affect cash flow in a business.
Explain how cash flow problems can lead to business failure.
Describe how to monitor and manage cash flow.
Be able to interpret financial documents.
Learners must provide sufficient and valid evidence to achieve this outcome.
Interpret a basic spreadsheet showing income and expenditure.
Interpret simple accounts over a specified period.