BSBFIM601 Financial Analysis and Budget Report Assignment

BSBFIM601 Manage Finances – Assessment 1: Houzit Budgeting Project (2026)

Assessment overview

Unit code and title: BSBFIM601 – Manage Finances
Qualification: BSB60215 – Advanced Diploma of Business (or current replacement)
Assessment title: Assessment 1 – Manage finances for Houzit Pty Ltd
Assessment type: Practical project (case study, report, spreadsheets and short-answer questions)
Weighting: As per unit outline (typically 30–40%)
Duration: To be completed over approximately fifteen (15) scheduled sessions
Due date: As specified in your class/unit schedule
Submission: Electronic submission via LMS (PDF/Word plus Excel) and any supporting evidence as required

Assessment instructions for students

1. This assessment consists of four tasks based on the Houzit Pty Ltd case study.

2. You will complete the assessment over approximately fifteen sessions in a simulated or real business environment.

3. If you need clarification, ask your assessor early. Do not wait until the due date.

4. You must achieve a satisfactory result in all four tasks to be deemed competent for this assessment.

5. Plagiarism, collusion and cheating are prohibited and will be managed under the provider Academic Integrity Policy.

6. Students with approved learning support plans should discuss adjustments with their trainer or assessor before starting.

7. Check grammar and spelling before submission using appropriate tools.

8. Submit on or before the due date and retain a personal copy.

9. Assessments that do not meet academic or formatting standards may be returned for resubmission.

Assessment formatting requirements

1. Header on every page

   • Unit code and title

   • Assessment 1 – Manage finances (Houzit)

2. Footer on every page

   • Student full name

   • Student ID

   • Page number

3. Font: Times New Roman

4. Font size: 12 pt

5. Headings: Bold

6. Line spacing: 1.5

7. File naming: StudentID_BSBFIM601_Assessment1

Required resources and tools

• Houzit Business Scenario information (Appendix 1 and 2 or provider version)

• Houzit financial templates (spreadsheets and reporting templates)

• Computer access, spreadsheet software, word processing, internet

• Current Australian taxation and Corporations Act information (ATO, ASIC)

• Organisational budgeting and financial management policies

Assessment description

In this assessment you will determine requirements for budgeting, forecasting and financial reporting for Houzit Pty Ltd, a fictional homewares retail chain. You will analyse historical financial data and business plans, prepare annual budgets and notes, implement budgets through scenario responses, and review performance using variance analysis. You must demonstrate technical financial skills and compliance with legislation and probity standards.

Assessment tasks

Task 1: Financial analysis report (1,000–1,200 words)

Purpose: Analyse Houzit financial performance to inform budget development.

Instructions

Prepare a financial analysis report including:

a) Financial ratio analysis

• Net profit margin

• Gross profit margin

• Return on assets

• Current ratio

• Debtor ageing indicators

• Creditor ageing indicators

• Inventory turnover

• Sales and gross profit growth rates

Comment on trends and link to case factors.

b) Business plan link

Outline timelines, marketing initiatives, staffing changes and operational activities relevant to budgeting.

c) Statutory and taxation requirements

Identify at least four requirements affecting budgets such as income tax, GST, PAYG, superannuation, Fair Work obligations, Corporations Act reporting.

d) Financial management software review

Compare at least two systems suitable for multi-store retail operations such as MYOB, Xero or QuickBooks and recommend the most suitable option.

Submit the report as a single PDF.

Task 2: Develop annual budget

Purpose: Prepare a quarterly annual budget.

Include worksheets for

• Sales budget

• Profit budget

• GST cash flow budget

• Debtor ageing summary

Budgets must:

• Be quarterly

• Use realistic growth and cost assumptions

• Align with policy and statutory requirements

Budget notes must

• Explain prior profit or loss drivers

• Evaluate financial management effectiveness

• State assumptions

• Outline monitoring and authorisation controls

Upload workbook and notes.

Task 3: Implement budgets

Purpose: Demonstrate applied budgeting capability.

Respond to CEO Jim Schneider questions.

Q1: Tax compliance and liabilities
Q2: Corporations Act compliance
Q3: Financial probity implications
Q4: Accounting principles application

• Matching

• Account groups

• Time periods

Q5: Internal controls evidence
Q6: Audit trail evidence

Upload responses and supporting documents.

Task 4: Review budgets (1,000–1,200 words)

Purpose: Evaluate performance using variance analysis.

Variance report

Compare budget versus actual for:

• Sales

• Gross profit

• Expenses

• Cash flow

• Debtors

Written review must cover

Issues
Identify and prioritise variances and causes.

Performance
Benchmark against retail industry metrics and analyse debtor days.

Recommendations
Provide viability strategies and revised budget actions.

Evaluation
Review financial management processes and recommend improvements.

Upload variance spreadsheet and review report.

Marking rubric – BSBFIM601 Assessment 1 (Houzit)

1. Financial analysis report
HD: Comprehensive ratios, deep interpretation, strong statutory coverage, detailed software evaluation.
D: Accurate ratios, sound interpretation, mostly correct statutory discussion.
C: Mostly correct ratios, basic interpretation.
P: Limited interpretation, partial statutory coverage.
F: Incorrect or missing analysis.

2. Budget development
HD: Complete, realistic, internally consistent budgets with strong notes.
D: Mostly consistent budgets with clear assumptions.
C: Minor inconsistencies.
P: Incomplete budgets.
F: Not submitted or incorrect.

3. Implementation and compliance
HD: Excellent tax, probity and control understanding.
D: Strong understanding with minor gaps.
C: Adequate but limited depth.
P: Superficial responses.
F: Incorrect or missing.

4. Variance review
HD: Accurate analysis, prioritised issues, strong recommendations.
D: Mostly accurate with sound recommendations.
C: Some errors, limited prioritisation.
P: Weak analysis.
F: Not completed.

5. Presentation
HD: Professional, error-free, well referenced.
D: Minor issues.
C: Some formatting errors.
P: Difficult to read.
F: Unprofessional.

Effective financial management in multi-store retail environments requires integration between budgeting systems, real-time reporting and compliance monitoring. Organisations that align operational budgets with strategic growth plans achieve stronger cost control and improved liquidity forecasting. Embedding variance monitoring within monthly reporting cycles enables earlier corrective action and strengthens accountability across departmental managers (Atrill and McLaney, 2022).

Houzit financial statements show steady sales growth but tightening margins, indicating discounting pressure and rising cost of goods. Operating expenses have increased faster than revenue, requiring tighter expense controls in the 2026/27 budget. An 8 percent revenue increase is projected based on trend data, supported by marketing initiatives and store refurbishments. Fixed costs are inflated moderately while discretionary costs remain stable. Debtor balances are aligned to 20 percent of quarterly sales to maintain credit stability while improving collections. Integrated systems such as Xero or MYOB support monitoring, reporting and audit trails across retail sites.

References (Harvard style)

Australian Taxation Office (2024) Small business benchmarks and tax essentials.

Kaplan, R.S. and Atkinson, A.A. (2018) Advanced management accounting.

Uyar, A. and Kuzey, C. (2019) Advances in Accounting, 45, 100407.

Warren, C.S., Reeve, J.M. and Duchac, J. (2020) Financial and managerial accounting.

ASIC (2023) Running a company: Your obligations.

Atrill, P. and McLaney, E. (2022) Accounting and finance for non-specialists. Pearson.

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