1. Read Course Material2. Answer Questions3. Reference all answers directly to course material only4. Use Assessment scaffold only to answer questions.
LEVERAGE SERVICES PTY LTD TRADING AS LEVERAGE ACADEMY ACN 160 441 010 NORWEST OFFICE LEVEL 1 | SUITE 105 | 2 BROOKHOLLOW AVE BAULKHAM HILLS | NSW | 2153 OFFICES IN SYDNEY CBD | MELBOURNE | BRISBANE POSTAL PO BOX 8166, BAULKHAM HILLS BC 2153 T 1300 438 538 | F 02 9659 4633 | E
[email protected] www.leveragegroup.com.au LEVERAGE ACADEMY PRINCIPALS Bailey Compton BA | LLB | LREA | Lic. Bus. Agent | TAE Lic. Strata Manager Vivien Compton LREA | Lic. Bus. Agent | Cert IV in Marketing (Business) | TAE | Justice of the Peace Thank you for choosing our Training Academy to assist you in this training and assessment phase of your career. All courses offered by Leverage Academy have been meticulously developed in accordance with the requirements of the Australian Qualifications Framework. Leverage Academy’s instructors and assessors are experienced, highly qualified and accredited both practically and theoretically in their chosen field. Please do not hesitate to approach them with any questions or concerns you may have about your course or associated assessment tasks. I trust that your learning experience with Leverage Australia will be positive, and that your career objectives are met and furthered through your experience with our Academy. Again, we welcome you to Leverage Academy and we hope you enjoy your stay! Welcome to Leverage Academy! Bailey Compton Director and Academy Principal © Bailey Compton 2014 - 2015 TABLE OF CONTENTS Introduction 5 Property Industry Licensing 6 Qualification to hold an Individual Licence 7 Eligibility for a Corporation Licence 7 Disqualified Persons 8 Currency of Licence 10 Forms of Business Structure 11 The Sole Trader 11 Corporate Entities 12 Companies Limited 13 Company Limited by Shares 14 Company Limited by Guarantee 14 No Liability Companies 15 Unlimited Companies 15 Holding Companies & Subsidiaries 15 Partnerships 16 Trusts 17 Decide on Your Business Structure 19 How To Register A Business Name 19 How To Register A Company 20 Registering for Taxation 21 Your Tax Obligations 23 Basic Bookkeeping 25 Financial Records 27 Financial Reporting 31 Insurance for Small Business 32 Responsibilities of Company Directors 33 Insolvency 36 External Administration 37 Voluntary Administration 37 Liquidation 38 Receivership 38 Business Finance 39 Types of Finance 39 Debt Finance 39 Equity Finance 39 Applying for Finance 40 Understanding the Profit and Loss Statements 41 Income 41 Expenses 41 Profit and Loss Appropriation Statement 41 Understanding the Balance Sheet 43 Current Assets 43 Non-Current Assets 43 Current Liabilities 43 © Bailey Compton 2014 - 2015 Non-Current Liabilities 44 Shareholders (Proprietorship) Equity 44 Financial Performance Analysis 46 Vertical Analysis 46 Horizontal Analysis 49 Financial Ratios 51 Liquidity Ratios 52 Activity Ratios 53 Profitability Ratios 54 Break Even Analysis 56 Future Cash Flows 57 Depreciation 58 Straight Line 58 Diminishing Value 59 Payback Period 59 Accounting Rate of Return 60 Net Present Value (NPV) 61 Internal Rate of Return (IRR) 62 Preparing a Financial Plan 63 Why Analyse Financial Reports? 64 Understanding Financial Information 64 Cash Flow 64 Identify Cash In-Flows 65 Identify Cash Out-Flows 65 Budgets 66 Analysis of Costs 67 Preparation of Budgets 67 Flexing the Budget 67 Continuous or Rolling Budgets 69 Risk Management 71 The Value of Audits 73 Internal Controls 73 Performance Measurement 74 Preparing a Business Plan 75 Anatomy of a Business Plan 76 Leverage Academy – Small Business Finance Version 1 –2014:01 Page 2 © Bailey Compton 2014 - 2015 CPPDSM4009A Interpret legislation to complete agency work CPPDSM4015A Minimise agency and consumer risk CPPDSM4005A Establish and build client-agency relationships BSBRKG304B Maintain business records BSBSMB406A Manage small business finances REAL ESTATE AGENCY MANAGEMENT This course is based on a national Unit of Competency from the CPP07 Property Services Training Package and is one of the areas required to gain the qualification of CPP40307 – Certificate IV in Property Services (Real Estate). This course describes the maintenance of records of a business or records system in good order on a day- to-day basis. It includes implementing, monitoring and reviewing strategies for the on-going management of the finances for a small business, and the day-to-day financial management of a small business. This manual of theoretical information is supplemented with assessment activities, which provide the course participant with the opportunity to demonstrate that they have a complete understanding of the concepts being studied as part of the successful completion of these five (5) Units of Competence. It should be remembered that being competent includes the demonstration of skills, knowledge and attitude ~ all three of these qualities will be assessed throughout this training program. Assessment Assessment for this unit includes tasks to be marked by your assessor, which may include multiple choice questions, short answer questions, case studies, projects, role-plays and / or demonstrations. Assessment activities for this unit are provided in a separate assessment document, which has been customised to meet the legislative requirements in your state or territory. You may apply for assessment through our recognition process whereby you demonstrate your current competence through prior learning (RPL) by compiling a portfolio of evidence to demonstrate your skills and knowledge. Your RPL will be supported by interview questions and / or third party reports to confirm your skills and abilities. Competency in this unit will be demonstrated when you are able to show that you can meet the elements and performance criteria, shown on the following page. These have been extracted from the full unit descriptor which is available upon request. Should you require help, assistance or tutorial support at any time during your study, a course facilitator is available to assist you. To request a support call back, please send an email to
[email protected] with a brief outline of your query. Leverage Academy – Small Business Finance Version 1 –2014:01 Page 3 © Bailey Compton 2014 - 2015 mailto:
[email protected] Tutorial Assistance Should you require assistance or tutorial support at any time during your study, a course facilitator is available to assist you. To request a support call, please send an email to
[email protected] with a brief outline of your query. INTRODUCTION In the conduct of any business, it is essential that the organisational structure and the cash flow management components of