Student Resource Book 2020

NEIS Program
BSB42618
CERTIFICATE IV NEW
SMALL BUSINESS
Student Resource
Book
Updated JUNE 2020
1
Preparation of Business Plan
All text in green can be removed when submitting your final business plan.
Ensure all your written text is in black to safeguard your own work from being deleted.
Word counts indicated provide a guide as to the level of detail required in each
section. If presented in a table, please note that the existing headings and black text
have already been factored into the total word count for that table.
Please note, the template has been formatted in Landscape. If you do intend to print
the final document for presentation purposes, please keep this in mind.
NEIS Business Plan Template

UNCLASSIFIED Holmesglen: beu 15-Jan-2020 Q:\Business Development\BDU\Curriculum\BSB42618 - 2020\BUSINESS PLAN DOCUMENTS\NEIS Business Plan Template NEIS.docx Page 1 of 46
This book contains guidelines for the preparation of the Business Plan.
Writing Style
Write your business plan in a factual and concise manner, with adequate detail but avoid including irrelevant information, in other words, avoid waffle.
Use the headings of the Business Plan template, in the same order, to facilitate ease of reading.
Please note that the business plan must be written to indicate that the business is new, and has never operated on a full-time basis.
Front Cover
Business Name:
ABN:
Proprietors/Owners Details:
(include partners)
Business Address:
Phone Number(s):
Email:
Website:
Social Media:
This document is the Non Cert IV Business Plan version and cannot be used as a standalone
document to assess competency for the Certificate IV in New Small Business (BSB42618)
Contents
1 Executive Summary 8
1.1 Business Description 8
1.2 Background to Business 8
1.3 Target Market 8
1.4 Financial Summary 9
1.5 Key Success Factors 9
2 Company and Management 10
2.1 Business Objectives 10
2.2 Qualifications and Skills of Owners 11
2.3 Legal Issues 11
2.3.1 Government Regulations 11
2.3.2 Taxation and Business Structure Obligations 13
2.3.3 Contracts 14
2.3.4 Licenses, Permits, Registrations and Special Requirements 14
2.3.5 Insurance 15
2.3.6 Monitoring of Legal Requirements 16
2.4 Trading Name 17
2.5 Legal Structure 17
3 Research and Analysis 18
3.1 Industry 18
3.2 Customers - Target Market 19
3.3 Primary Market Research 22
3.4 Competition 23
3.4.1 Competitors 23
3.4.2 Comparative Evaluation 23
3.5 Competitive Advantage 24
3.6 SWOT Analysis 24
4 Marketing Plan 27
4.1 Marketing Mix 27
4.2 Market Position – Image 31
4.3 Sales Objectives and Sales Mix 31
4.4 Customer Service 32
4.5 Potential Customers Who Have Expressed Interest 33
5 Operational Plan 34
5.1 Business Premises 34
5.2 Raw Materials and Supplies 35
5.3 Production/Provision Process 35
5.4 Physical Resources 36
5.5 Contingency Plans 37
5.6 Work Health and Safety 38
5.7 Monitoring Business Performance 40
5.8 Records for the Business 41
5.9 Action Plan 41
5.10 Business Travel 42
6 Financial Plan 42
7 Appendices 43
Refer to the excel spreadsheet “Copy of Holmesglen_Finance_blank” in your resources

Tips for collating your Business Plan
The Cover
Should introduce the reader to you so it must include:
Your name, business address, telephone, mobile phone number, and email address
Be creative, but be professional, and remember, less says more!
Table of contents
Is crucial for ease of reading, and must match page numbering.
Sales projection
Keep it conservative, even though you know you’re going to make a fortune
Consider seasonal influences which may impact on sales
Make sure it matches your total cash receipts on your cash flow projection
Business structure
If you have a NEIS partner, you will need to include the duties of each partner in this section
Analysis of market research questionnaire

Both the questionnaire and the analysis of the questionnaire must be included in your business plan
Proof of qualifications
This is necessary particularly if you are in a professional practice which relies heavily on your being qualified e.g.:
Plumber, electrician or tradesperson
Accountant, solicitor or engineer
Medical practitioner, counsellor
However, we still like to see qualifications that are relevant to your business activity in your plan

Proof of Insurance (Quote only)
All businesses must have Public Liability insurance (as part of the NEIS requirements), but there may be other appropriate business insurances
required, relevant to your industry, that you will also need to obtain.
Examples include Goods in Transit, Professional Indemnity, and Comprehensive Car Insurance etc.
You only require a quotation for Advisory Committee Panel, but you must provide proof of currency of insurance from the commencement date of
your NEIS contract (Agreement), if applicable
Proof of Australian Business Number (ABN)

You must provide proof that you have obtained your ABN. If you have already had a registered ABN you will need to update it to show your current
trading name. You can use ABNlookup (http://abr.business.gov.au/) to gain an official record of your ABN.
Proof of Registration of Business Name

ASIC will issue a Certificate of Registration of Business Name.
You do not need to register your business name if trading in your own name, but you must keep it to your name only.
For Example:
Acceptable Not Acceptable
James Smith James Smith Landscaping
Proof of Finance
If you need start-up capital, and this capital shows in your Cash Flow Projections, you must provide proof of finance. A bank statement or proof of
bank balance will suffice, but please ensure that your name appears on the proof and that it is a current statement.
If a loan or overdraft is required, documentation is necessary to prove that the loan has been approved. If a friend or relative is lending the money, a
note or letter from him/her will suffice as proof.
Premises
If you are leasing a commercial premise you must provide a copy of the relevant part of the lease e.g. the page which shows the length of the lease
along with your signature and the landlord’s signature.
If you are operating from a home you rent, you must provide a letter from the landlord/real estate agent stating that he/she is happy for you to
conduct business from that premises. If you are living with relatives, you will need a letter confirming their permission to operate the business from
that premises.

Partnership Agreement
All partners must fill one out, and submit as an appendix. If your partner is a NEIS participant, you can split the controlling interest in the business
equally – 50% each. If your partner is not a NEIS participant, you must hold at least 51% controlling interest in the business and the partner’s share
49%.
Business in New
If your registered business name and/or ABN has been registered for some time (6mths or more), you will need to prove that the business is new.
This can be done by filling out a statutory declaration, declaring that you have never operated the business before on a commercial basis.
This document must be signed by a Justice of the Peace. A chemist, police officer etc. is also able to sign a Statutory Declaration.
Collating your business plan

We will accept a business plan which is neatly written, but if possible, it is more professional if typed.
You will need to provide one (1) electronic copy of your business plan.
The business plan must be handed in by the due time and date as per the timetable.
NO extensions will be given.

1 Executive Summary
1.1 Business Description
Briefly and clearly describe the business you propose to start. Consider this as your elevator pitch.
 What is it called?
 What are its main activities (retailing, service, manufacturing, wholesale - or a combination)?
 What product(s) or service(s) does it provide?
 What problems do you solve / how do you help people (customers)?
(approx 50 - 100 words)
1.2 Background to Business

What encouraged you to create this particular
business?
Summarise keys aspects of your background which

will assist you in running this business?
1.3 Target Market

Briefly describe who your customers are? In other words, identify each of your target market(s)?
Include how you intend to reach each of these customers groups through your marketing effort.

1.4 Financial Summary
Summarise the estimated sales of your products/services for year 1 & 2, including the expected contribution (%) of each. If the scope of your
products is very large you may group them into sub-categories. This information required is summarised in your sales forecasts year 1 & 2
and on the Dashboard tab in your Financials (spreadsheets).
(Only complete once finances are finalised. Do not attempt until you have completed Day 1-3 Finance. It must also be reviewed
after your one on one financial session - Day 4 Finance, and just before final submission)
Product/Service Total Year 1 $ % Yr 1 Total Year 2 $ % Yr 2
$ % $ %
$ % $ %
$ % $ %
Total $ 100% $ 100%
% Growth in Turnover Yr2 %
Cash year end Yr1 $ Yr2 $
Profit for NEIS Yr1 $ Yr2 $

Funds/loan(s), if $
applicable
Purpose of Will they be used to cover expenses or to expand the business activity,
funds/loans and in what way?
Source of Funds Explain where the funds will come from. For example, personal savings,
a financial institution, family/ friends, crowd funding, etc.
1.5 Key Success Factors

Briefly explain why you believe your business will be successful. Essentially, why do you consider this to be a viable business opportunity?
Include such things as a significant competitive advantage, key opportunities and/or future developments?
(50 - 150 words)

2 Company and Management
2.1 Business Objectives
What are the business objectives you are striving to achieve in order to see your business succeed? Remember objectives should be
S.M.A.R.T - Specific, Measurable, Achievable, Realistic and Timed
Year one state a minimum of 3-6 objectives – with corresponding strategies for each
Each year must include a financial and marketing objective
YEAR 1 STRATEGIES
What you will achieve How will you achieve these objectives
1. Marketing Objective 1.
2.
3.
2. Financial Objective 1.
2.
3.
3. Operational Objective / Other 1.
2.
3.

2.2 Qualifications and Skills of Owners
Describe the relevant qualifications, experience, and skills, which will enable you to successfully manage the business.
Experience Number of Years
(industry/business)
Skills
(to assist you to operate/manage the business)
Qualifications
(relevant to the business activity)
Ensure that you include details of any partners in this section, if applicable. Copies of relevant qualifications and resume(s) for non NEIS
partners must be attached in your appendices.
2.3 Legal Issues
2.3.1 Government Regulations

Identify relevant Local, State and/or Federal legislation (and/or Industry Codes of Practice or Standards) that affect your business. Provide a
summary of their relevance to the business.
Essential: For information on relevant state, territory, local and Australian government licences, permits, approvals,
regulations and codes of practice, contact the business license centre in your state or visit ABLIS:
https://ablis.business.gov.au/pages/home.aspx
Ensure that you read the customised report. You can add URL links to the tables below if relevant. Downloaded files should
be kept for your reference and may be added to your appendices where applicable.

Please also refer to pages 44-45 of this template for a list of potentially relevant Federal and State Government Acts.
Common laws and regulations impacting on new small businesses include:
 Registration of business name
 Competition and Consumer Law (warranties and guarantees, refunds and returns)
o Competition & Consumer Law - https://www.accc.gov.au/about-us/tools-resources/cca-education-programs/small-business-education-program?source=cca
 Privacy (collection and storage of information)
Work Health and Safety (note more detailed information is required in section 5.6)
 Council requirements (zoning, permits & approvals, trading hours, parking, signage & flyer distribution, environmental regulations -
noise, discharge of waste)
Federal / State Laws Briefly explain the relevance to your business/what will you need to
comply with?
Competition & Consumer Act 2010 (eg: unsolicited selling, misrepresentation)
Privacy (insert Relevant state-based law)
WHS (insert relevant state-based law)
Business Names Registration Act 2011 (Cth)
Copyright Act 1968 (Cth)
Local Laws Insert relevant council name
Local Regulations What aspects will you need to comply with?
Only include those that are relevant

zoning
noise
health and safety/food handling
building approvals/zoning
environmental regulations
trading hour

operating a business from home
parking requirements
waste
Some industries also have codes of practice and/or standards which you need to comply with.
Relevant Industry Codes of Practice (if applicable) What will you need to comply with?
Only include those that are relevant, if any.

Examples:
 ASIC codes for Insurance
 Financial advice
 Food standards
 Packaging codes, Labelling Standards
 Health Practitioner codes
2.3.2 Taxation and Business Structure Obligations

Identify what the legal and tax obligations are for your ownership structure.
Legal and Tax Obligations

ABN registration (include number):
GST registration: ☐ YES ☐ NO
Business Activity Statement (BAS): ☐ YES ☐ NO If Yes, when will they be submitted?
PAYG (you/employees): ☐ YES ☐ NO Detail requirements:
Tax return Detail requirements related to this submission:
Maintenance of Taxation Records Number of years held:

2.3.3 Contracts
Outline what legal contracts/agreements you require for your business to ensure legal compliance, and to assist in managing business risk?
Ensure you include copies of any existing or proposed contracts in your appendices, where possible
Please note: all businesses will enter into some form of contract, verbal or written, you cannot state ‘Not Applicable’.
Required Documents
Include those that are relevant
Terms and Conditions
Partnership agreements
Customer Contracts
Lease agreements
Confidentiality agreements
Consignment agreements
Employment agreement
Supplier agreements
Quotation forms
Payment policies
Insurance Policy
Other:
2.3.4 Licenses, Permits, Registrations and Special Requirements

List any relevant registrations, licenses and permits that your business will require. Remember to include costs in your cash flow forecast.

License/Permit/Registration Renewal Date
Examples:
 Industry Membership
 Specialist Qualifications
 Food Handlers Certificate
 Handbill & A-frame Permits
 Health & Safety Permits
 Working with Children Check
 Police Check
 Trademark, Patent, Design
 APRA
Are you required to have Police checks or Working with Children (Vulnerable People) checks? If completing work in Nursing/Retirement homes,
schools or working with the infirmed or children you are required to have a police check. You may also choose to apply for a police check to instil
trust in the minds of your customers, but this is not a requirement of the Department of Employment (NEIS) unless you fit the criteria as detailed
above.
http://www.workingwithchildren.vic.gov.au/ (Victoria)
https://www.accesscanberra.act.gov.au/app/answers/detail/a_id/1804/~/working-with-vulnerable-people-%28wwvp%29-registration (ACT)
https://www.sa.gov.au/topics/rights-and-law/rights-and-responsibilities/screening-checks (SA
2.3.5 Insurance
Using the table below identify what risks the business is exposed to what insurance cover will be required by the business.
Risk Relevant Insurance Cover Insurer & cost
(What can go wrong?) Eg: professional indemnity
Provide proof of insurance quote/s in the appendices, and ensure all insurances are detailed in the Cash Flow Budgets.
Appropriate insurance will depend on the nature of the Business and/or the relevant industry standard. Insurance cover may include (although
this list is not exhaustive):
 third party bodily injury;  directors and officers liability;  home and contents
 workers compensation;  personal accident/sickness;  machinery breakdown;
 public liability;  motor vehicle  theft;
 product liability;  electronic equipment insurance for  money;
 professional indemnity; computers;  fidelity guarantee;
 travel;  marine (goods in transit)
Business Insurance: https://www.business.gov.au/Risk-management/Insurance/

NEIS businesses must have public liability insurance at the commencement of their NEIS Agreement as well as any other
insurance coverage appropriate to their business and industry. Appropriate insurance is what a reasonable, informed person
would consider appropriate based on the particular industry you will be operating within.
2.3.6 Monitoring of Legal Requirements

Using the table provided, and following the completion of the above sections identify what information resources and sources of advice you
used, will continue to use or plan to use in the future to assess your obligations, risks and compliance requirements.
Sources of information Contact details / websites
ABLIS https://ablis.business.gov.au/pages/home.aspx
 Examples
 Taxation
 Work Health & Safety
 Local Council
 Industry Association
 Government Bodies
 Business Advisors / Specialists

2.4 Trading Name
Business Name
Is it registered? ☐ Yes ☐ No
If yes, what is the renewal date
Domain Name, if applicable
Is it registered? ☐ Yes ☐ No
If yes, what is the renewal date?
Include a copy of the Certificate(s) of Registration in your appendices.

Note: If your business name has been registered for 6 months or more you must provide proof (Statutory Declaration) that the business is new.
Additional information is available under General NEIS Student Resources (Useful Forms folder).
2.5 Legal Structure
☐ Sole trader
Legal Structure Chosen (tick) ☐ Partnership – list partners
☐ Company
☐ Other:______
For example, easy to manage, less administration, tax advantages, low cost, more professional etc.
Why is this the most appropriate
Include no less than 2 reasons.
structure to operate under?
Setting up a business structure - https://asic.gov.au/for-business/small-business/starting-a-small-business/setting-up-a-business-structure/
Attach copies of relevant documentation in your appendices e.g.: your Company Registration (including shareholder distribution) / Partnership
Agreement.
3 Research and Analysis
3.1 Industry
To gather information on your industry, the following may be useful:
 IBISWorld (https://holmesglen.edu.au/Students/Library/Electronic-Resources/Databases/)
 ABS (https://www.abs.gov.au/)
 Industry Association
 Talking to people who are operating in your industry-, business owners, employees, suppliers, competitors, agents, authoritative
people/training colleges
 Relevant publications – newsletters, articles
 Reflecting on your own personal knowledge of the industry
Use the information you have gained in your research to write about the current state of your industry.
Indicate the present state of the industry and future prospects for the industry.
How big is the industry? Is the industry growing, static or declining?
Who are the major players in your industry?
Are there key success factors necessary to be successful in this industry?
What are the potential barriers to entry?
What are the future prospects for the industry?
Form a conclusion: What has this information told you? How does this information support the viability of your business idea?
(300 - 1000 words)

3.2 Customers - Target Market
Target Market 1: (name)
DEMOGRAPHIC GEOGRAPHIC SIZE BEHAVIOURAL

Consumers  what is their geographical  how many of these  what influences the customer
 describe their characteristics location or the geographic customers exist in the area to buy (e.g.: price, quality,
– age, gender, occupation, location you will target you plan to service reliability, convenience,
nationality, education, prompt efficient and friendly
income level service, expert advice);
 how often do they purchase
OR these types of
products/services
Businesses  Are they likely to be repeat or
 describe their characteristics one-off customers
- industry they operate in,
size of the business, staff
numbers, level of sales,
length of operation
Examples:
What are the main reasons
Size, lack of competition, ease of access, ability to spend, purchasing levels and so on.
you have chosen to focus on
this group of customers?

Target Market 2: (name)

Consumers  what is their geographical  how many of these  what influences the customer
 describe their characteristics location or the geographic customers exist in the area to buy (e.g.: price, quality,
– age, gender, occupation, location you will target you plan to service reliability, convenience,
nationality, education, income prompt efficient and friendly
level service, expert advice);
 how often do they purchase
OR these types of
products/services
Businesses  Are they likely to be repeat or
 describe their characteristics one-off customers
- industry they operate in,
length of operation
Examples:

Target Market 3: (name) OPTIONAL

Consumers what is their geographical  how many of these  what influences the
 describe their characteristics location or the geographic customers exist in the area customer to buy (e.g.: price,
– age, gender, occupation, location you will target you plan to service quality, reliability,
nationality, education, income convenience, prompt
level efficient and friendly
service, expert advice);
OR  how often do they purchase
these types of
Businesses products/services
 describe their characteristics  Are they likely to be repeat
- industry they operate in, or one-off customers
length of operation
Examples:

3.3 Primary Market Research
Market research is a crucial element of your business plan and could make or break your business. Remember the best results will be
achieved by conducting one on one interviews at a venue used by a potential target market, but this will also be quite time-consuming. If
possible, it is a good idea to have a sample of your product on display while conducting market research. Take the name and address of the
respondent, to start building your business database.
The minimum numbers (we encourage you to do more) of questionnaires which must be completed are:
25 – business to consumer
10 – business to business
25 – if completing a mix of both business & consumer then you will be required to complete 7 business to business and 18 business to
consumer
How many surveys were completed?

Who did you survey? Describe the key characteristics of
the sample?
What method of questioning did you use EG: Face to face, online (self-completion), telephone
What was the purpose of your primary market research? EG: e.g. what products/services do the customers want, How, when and where do they
Detail what information you were trying to gain? wish to access your products/services. How much are the customers willing to pay for
your products/services etc.? What advertising will be most effective at attracting
customers to purchase, and so on?
Conclusion: Using the table below outline what the data told you?
What were the major findings/significant pieces of

information you discovered? Identify no less than 4 key
findings.
Based on this information what is the likely demand for
your products/services?
What negative findings were there, if any? How will you
address these issues?
Outline the key information which assists in
demonstrating the potential viability of your business
idea?
A copy of all compiled data can be included in this section or in your appendices. You may like to present data in tables or graphs.
3.4 Competition
3.4.1 Competitors
Describe the extent of competition in the market, are there a large or small amount of competitors? How easy will it be to enter the market,
and remain competitive? Are there likely to be barriers to entry based on existing and changing competition levels?
(50 - 150 words)
3.4.2 Comparative Evaluation

Identify and compare your most direct competitors. It is recommended that you narrow this to 2 or 3 at most. Ensure that you identify 3
factors that you discovered were important to your competitor’s success and compare yourself to these.
Identify areas
Competitor 1 Competitor 2 Your Business of key strength
Name ☐
Size of business ☐
Years of operation ☐
Reputation ☐
Range of products offered ☐
Quality of
☐
products/services
Flexibility (capacity to ☐
customise, delivery methods)
Accessibility/Location (ease ☐
of access and contact)
Trading hours ☐
Prices charged ☐
Service levels offered ☐
(quality & consistency of service)
Specialist staff / skills &
☐
knowledge available
Major advertising &
☐
promotional activities
Other……. ☐
Other…….

3.5 Competitive Advantage
Clearly identify your competitive advantage. What will make your business different and give you an edge over your competitors? What
customer benefits or solutions will you offer that your competitors fail to provide e.g.: extended hours of trade, reusable or disposable
packaging, delivery options, ease or purchasing process, extended credit terms, after-hours service, ongoing communication throughout the
project?
The areas identified as key strengths in the table above should assist you in developing a competitive advantage.
(approx 100 words)
3.6 SWOT Analysis

List your business strengths and weaknesses. Think about what your customers (&/or competitors) may see as strengths or weaknesses.
Remember this is about the business, not you as an individual. ** You should identify no less than 3 strengths and weaknesses.
Be specific about identifying the strategies you will implement to minimise or overcome weaknesses and threats, and to take advantage of
the businesses strengths and opportunities.
Ensure you have developed strategies for each point identified.
BUSINESS STRENGTHS:
factors within the business
INTERNAL (micro):
How will you address these to reduce their negative

BUSINESS WEAKNESSES:
impact on the business?
EXTERNAL
OPPORTUNITIES: Identify the relevant trends (Political, What strategies will you use to ensure you get the best
outside the
(macro):
business
factors
Economic, Social and Technological must be addressed) result from these positive external factors?
Political/Legal
(government subsidies, incentives, policies, laws, regulation, deregulation)

Economic
(unemployment, interest and exchange rates, household expenditure, inflation,
overseas trade)
Social/Cultural
(attitudes, preferences, beliefs, values)
Technological
(developments in digital technology, communication, e-commerce, social media)
Environmental/Seasonal
(weather, climate change, available natural resources, seasonal changes)
Competitors
(levels of competition, behaviour, offerings)
THREATS: Identify the relevant trends (Political, Economic, What strategies will you use to ensure you reduce or
Social and Technological must be addressed) eliminate the impact of these negative external factors?
Political/Legal
(government subsidies, incentives, policies, laws, regulation, deregulation)
Economic
(unemployment, interest and exchange rates, household expenditure, inflation,
overseas trade)
Social/Cultural
(attitudes, preferences, beliefs, values)
Technological
(developments in digital technology, communication, e-commerce, social media)
Environmental/Seasonal
(weather, climate change, available natural resources, seasonal changes)
Competitors
(levels of competition, behaviour, offerings)

3.7 Ongoing Research
Identify the secondary sources of information used for your market research.
Name of Report / Article Source of Information Date of publication

Catering Services in Australia IBISWorld 2017
What resources can you use to keep up to date with changes and developments within your industry, with your competitors and your customers in
the future? Tick which ones are relevant, and provide additional information IE names of resources.
Industry
☐Trade/Professional Associations:
☐Business Networks:
☐Government Bodies:
Strategies ☐Publications:
☐Websites:
☐Experts:
☐Other:_________________________________
Competitors
☐Industry/Business Networks:
☐Publications:
Strategies ☐Websites:
☐Experts:
☐Other:_________________________________
Customers
☐Industry/Business Networks:
☐Publications:
Strategies ☐Surveys:
☐Websites:
☐Other:__________________________________

4 Marketing Plan
4.1 Marketing Mix
Product
Tangible Features Intangible Benefits
Target markets (describe the key elements of the (describe the key benefits of the
Product/Service Description attracted to purchase the products product/service) product/service for the customer)
/service Include no less than 3 features per Include no less than 3 benefits per
product or service product or service
Busy Families  Nothing artificial  Convenient

People losing weight  Special diet meals available  Saves time
Pre-cooked dinners Retirees / Mobility Impaired  Pick up & Delivery Services  Stress-free
 Fresh & Healthy meals  Healthy choice
 Qualified chef  Flexible
 Variety

Price
Using the table below provide the following information:
Actual price to be charged

Product / Service Name (if your product/service range is extensive provide an overview of price ranges for
various items and enclose a full price list in your appendices)
Precooked dinners for two $ 11-15 individual

$15-22 for two
$16-25 small family
$28-36 large family
In addition, provide the following information:
How will invoices & receipts be issued?

Identify the system or process for issuing invoices &/or receipts.
What are your terms of payment?
Example:
 Cash on delivery,
 Staggered payments/installments (explain)
 Deposit e.g.: Cost of materials up front, etc.
 Terms of Trade: 7 days, 30 days
How can payments be made?

Examples: EFTPOS, Cash, Square Reader, Direct Deposit, PayPal
What debt control strategies will you put in place?

Place
Using the table below indicate the methods of distribution you will use to sell your products or services.
Product / Service Location / Distribution Method Access & Availability

(only list separately if location / distribution / How will customers purchase and receive the Identify hours of operation and other factors
access / accessibility will vary for individual product/service? Remember location/distribution creating convenience to your customers
products or services ) may include online, mobile, through a retail/market
store, consulting rooms, via external retailers,
wholesalers, agents, subcontractors, alliances, etc.
Pre-cooked Meals Online Store & Phone orders Ordering available 24/7
Mobile Delivery Deliveries offered 8-6pm M-F & 9-12pm Sat
Promotion
Using the table provided below outline the advertising and promotional methods you will use to enhance customer awareness, and
acceptance of your products/service.

Marketing activity/ Why have you What outcome do Person(s) Target Market Frequency of Anticipated
Promotional chosen this you expect it will Responsible (Which target market Activity / By Cost(s)
Material method? achieve? (including any are you aiming this at) When? $
external service
providers)
Google Ad words Because it reaches a Build awareness of Carol – Owner Residential 4 week campaign
wide audience and services and households every 2 months.
market research encourage initial
indicated that this purchase with a
would be where my promotional offer
target market would
look

4.2 Market Position – Image
What sort of image do you want to create?

When your customers think of you what do you
want them to think EG: luxury, reliable,
trustworthy, value for money, fun, caring,
upmarket, unique, professional etc.
What marketing tools will assist you to Include images, or briefly describe what they will look like.
convey this message?
Select those that are relevant
☐ Logo
☐ Website
☐ Signage
☐ Business Stationery
☐ Social Media
☐ Packaging
☐ Uniform
☐ Brochures & other promotional material
☐ Other: ____________________________
4.3 Sales Objectives and Sales Mix

When developing your sales forecast what factors did you take into consideration? Factors to consider may include:
 time needed to establish the business and develop products/services ready for sale
 effects of your marketing strategy over time e.g. greater exposure, market acceptance
 industry benchmarks for performance
 market forces EG: seasonal peaks and troughs, growth in a population, product lifecycle, level of competition.

4.4 Customer Service
Communications Tools
Select those that are relevant
☐ Phone
☐ Social Media
☐ Email
☐ Text
☐ Website
☐ Other: ____________________________
Key Customer Service Area Keys aspects/processes to be included

Complaints amongst other aspects ensure you outline key parts of the process in addressing customer complaints (an example
complaints policy can be found on in your Brightspace resources BSBSMB403 Market the Small Business - Day 3)
Privacy Ensure you outline what information you will collect and retain, and how you will meet legal and ethical obligations with
regard to maintaining/storing customer information?
Refunds/Returns In addition to any legal obligations, what policies will you have in place to ensure that the customer experience is positive
and there is consistency in the way such matters are handled.
Repair, replace, refund (Consumer rights) https://www.accc.gov.au/consumers/consumer-rights-guarantees/repair-replace-
refund
Others you may wish to include:
 Communication
 Courtesy
 Product knowledge
 Grooming/Housekeeping
** Complaints, Customer Privacy and Refunds/Returns must be addressed in the above table.
(approx 100 words)

4.5 Potential Customers Who Have Expressed Interest
If, during your market research activities, you have received a positive response provide the details below. Only complete what is relevant to
your business.
Number of people leaving contact

details (e.g. Survey)
Type of Sale/Nature of job Value $

Number of Actual Sales made
Type of Sale/Nature of job Potential Value $

Number of Enquiries achieved
Type of Sale/Nature of job Value $

Number of Bookings/Orders made
Type of Sale/Nature of job Potential Value $

Number of Quotes given

5 Operational Plan
5.1 Business Premises
Business Address
Business Premises Describe the business premises – eg: type of property, size, facilities and workspace
Customer Access Details access requirements of clients or delivery vehicles to the business premises
Advantages Detail the advantages of this location. IE access to customers, suppliers, transport,
amenities/facilities, workspace, security, storage, overall suitability and so on.
Disadvantages Detail the disadvantages of this location. IE lack of access to customers, suppliers,
transport, amenities/facilities, workspace, security, storage, overall suitability and so on.
Costs for modifications, upgrades or

renovations, if required
If you plan to set up your business in leased or rented premises you must provide a letter from the owner/agent confirming the availability of
the premises, and their consent for you to operate your business from the premises.
Attach a copy of the letter from the owner/agent in the appendices. If it is a commercial lease include details of the lease agreement

5.2 Raw Materials and Supplies
Strategies to
Lead Times for manage perishable
Storage items, if applicable
Supplier Name Contact Details Materials Supplied ordering and
Requirements
delivery (chemicals, food, inks
etc)
Ensure you include details of back up suppliers, where supply may be an issue.
5.3 Production/Provision Process

Using the table provide details of each step involved in the production/provision process. Ideally, identify the time taken to complete each
step, and the physical resources required.
Example of a Work Flow Table:

Tables are able to provide more detailed instructions and timeframes.
Action / stage Specific details involved in this step /stage Time to complete
Sign up and payment Client signs payment agreement 10 mins
Pre-Exercise Screening Client fills out Pre-exercise Questionnaire and Disclaimer form 15 mins
Fitness Testing Variety of fitness tests are performed based on the clients’ needs and fitness level 20 to 30 mins
Evaluation of Fitness Test Results Discussion of results with clients and the most appropriate program to meet their goals 10 mins
Provision of program Done between sessions 30 to 60 mins
Training Sessions and monitoring 1 on 1 training sessions. All information weight, times etc recorded each time 1 hour
Presentation of Results Presentation of graphical representation of results and discussion of each aspect 15 mins
Customer Feedback Verbally – throughout session plus 5 Minutes

Email short survey after first training session and every 3 months 5 minutes
(approx 100 words)

5.4 Physical Resources
Using the table provided a list all the major physical resources required to allow the business to operate and the production/provision of
services to occur.
This list may be quite simple, many businesses may only require simple resources like a laptop, mobile phone, car, internet, and themselves
to run a business.
Indicate if the resources listed are currently owned or are required to be purchased, and the costs of making such purchases. Ensure any
costs associated with the purchase of resource are included in your financial plan.
Physical Resource Owned To be purchased, including Cost

when
Mobile phone 
Computer 
Delivery Van × Purchase April 2018 $25,000
Human Acquired Type of Resource Cost

Resource  Permanent/fixed-term
 Casual
 Apprentice/trainee
 Labour hire
 Contractors/sub-contractors
Kitchen hand  Subcontractors to be used as $20 p/hr
work demands increase
IE You, and staff/contractors
Useful resource: https://www.business.vic.gov.au/hiring-and-managing-staff/employment-types

Using the table below detail a maintenance plan for your physical resources, as required.
MAINTENANCE PLAN
Resource What When By Whom
Computer System/software updates Monthly (as required) Carol – Owner
Virus/Malware Scan Daily scan
Delivery Van Check tyre pressure & oil Each week Carol – Owner
General service Mechanic service every 3 months Local Mechanic
Cooking Staff Rostering / Workload Ongoing Carol - Owner
5.5 Contingency Plans

Outline strategies to reduce the negative impact the following may have on the business:
Event / Problem Strategy to reduce impact

Sudden increase in demand
Sudden decrease in demand
Significant unexpected expenditure
Absence of key personnel (illness/injury)
Equipment breakdowns (be specific)
Examples: Car, computer, phone and so on
Loss of Data
Negative online customer feedback (poor
reviews, ratings, comments)
Location/Business Premises issues (damage,
unavailable)
Supply issues (lack of/delay of stock/raw
materials)

5.6 Work Health and Safety
Detail your WHS responsibilities by completing the table below:
Identify specific: Consider some of the following:
 Regulations  fire and emergency procedures,
 Compliance codes/codes of practice  incident/accident control and reporting
 Standards  maintenance and inspection of equipment, machinery and premises (including
relevant to your industry or business electrical testing and tagging, fire equipment testing, workplace inspections)
 first aid

Using the table below identify the current and potential hazards in your business from highest risk to lowest risk. Identify how will you control,
reduce or eliminate these hazards. Consider all the places in which business activities may take place.
Some examples of hazards and risks may include:
 manual handling,
 storage and disposal of chemicals and hazardous materials,
 noise, lighting, ventilation
 ergonomics standards of office equipment (consider Occupational Overuse Syndrome /Repetitive Stress Injury)
 general housekeeping.
Useful reference: https://www.worksafe.vic.gov.au/resources/officewise-guide-health-and-safety-office-
Officewise – a guide to health and safety in the office handbook

This table is an example only – Please complete for your business
SAFETY ACTION PLAN
Identified Hazard or Risk Potential Negative Outcome Action to Reduce/ Person responsible
Control/
Eliminate
Using sharp equipment (knives & slicers) Cuts Use PPE Carol
Finger injuries Ensure safeguard on machines
Full training of all staff on equipment use
Bench space and work tasks to be laid out to
ensure adequate space and minimal movement of
materials
Electrical Supply (kitchen) Power cords – trips No power boards or extension cords in the kitchen Carol
Power surges/fire area
All power cords and equipment to be tested and
tagged at least annually
Using cleaning chemicals Skin irritations Store in labelled cupboard Carol

Breathing difficulties Labels and safety info on display (MSDS)
Prolonged exposure causing skin Wear PPE – glove
conditions Ensure ventilation fans in use when cleaning
Workstation Ergonomics Fatigue Ensure workstation is set up correctly Carol

Muscle aches Ensure regular work breaks – complete non static
Eye and back strain tasks
Clear of unnecessary clutter
Housekeeping (Office) Clutter – causing trips and falls Rubbish emptied daily Carol
Boxes stored on shelving
Filing cabinets closed when not in use
Manual Handling Strains and sprains Ensure trolley available to move heavy items Carol
Store heavy items on lower shelves
Do not lift more than 10kg without assistance

5.7 Monitoring Business Performance
Using the table below identify no less than 2 aspects (per area) of your business operations and performance that will be monitored on an
ongoing basis.
Aspect of business operations and performance When will they be reviewed Person Responsible
to be monitored
Marketing
☐ Advertising & Promotion Weekly Carol (owner)
☐ Products & Services
☐ Target Markets/Customer Base
☐ Competitors
☐ Customer Feedback / Satisfaction
Finance
☐ Sales Monthly Carol (owner)
☐ Costs of production
☐ Overall Expenses / Outgoings
☐ Loans & repayments
☐ Profit
☐ Record Keeping
☐ Taxation Compliance
Business Development
☐ Business Plan / Strategies Every 6 months Carol (owner)
☐ Legal Compliance
☐ Business Structure
Operations / Production
☐ Production capacity Quarterly Carol (owner)
☐ Quality
☐ Cost of productions
☐ Suppliers
☐ Location
☐ Equipment
☐ Human Resources

5.8 Records for the Business
What record keeping documents will you need?

E.g. Purchase receipts, invoices, vehicle logbook, stock
register, tax returns, bank statements, employee record
books etc.
What record keeping system will you be using?
If you plan to maintain a manual system yourself will it be
a spreadsheet or printed workbooks? If you are using an
electronic system. Which one will you use? (MYOB, Zero,
QuickBooks online, Reckon, Sassu, Wave or another)
What Legal documents and other documents will
you need to keep/maintain?
E.g. Contracts, Employee records, Rosters, Policies,
WHS records, other.
5.9 Action Plan

List all the specific tasks that will be necessary in order to implement the business plan, include time frames. This is your “To-do List” for
the first 1 - 3 months of business operations. Each area detailed in the table must include no less than 1 task to be completed within no
more than 3 months of the business commencing.
Major Task Required Actions required for completion Completion Completed by

date/timeframe
Marketing/Promotions/Sales
Organise business cards 1. create brief 31st January Carol
2. get quotes from graphic designer Graphic Designer
3. finalise design Carol & Graphic designer
4. source printer or submit order Graphic designer/printer
Customer Service
Set up professional greetings on phone and 1. Create script and get feedback 15th January Carol – owner
arrange auto prompt response on incoming emails 2. Record greeting and set up email
options
3. Test and check working correctly
Financial Management
Set up Wave accounting software 1. create subscription 8th February Carol – owner
2. complete online tutorials
3. organise document management
system (hard/softcopy documents)
Admin / Legal Management

Pay insurance 1. finalise quote & review insurance PDS At commencement Carol - owner
2. arrange payment through the insurer date of NEIS
3. Provide proof of payment and Agreement
Certificate of currency to NEIS office
Operations
Order packaging 1. Create brief and finalise design 31st January Graphic Designer
2. Source packaging quotes & access Carol – owner
samples
3. Confirm supplier and submit order
5.10 Business Travel

If you believe you may have to travel for the business purposes, provide a brief outline:
Has the trip

already been
Dates Length of trip booked?
Where / Location(s) Purpose of the trip (exact dates or (exact length or (ensure costs are
estimated dates) estimated length) included in your
cash flow
accordingly)
☐Yes ☐ No
Please note that completing this section does not automatically mean you will be approved to travel while on NEIS Assistance. Please ensure that
you communicate any intended travel with the NEIS office as soon as possible. An example Travel Schedule (Overseas or Domestic) is included on
page 46.
6 Financial Plan
Refer to the excel spreadsheet “Copy of Holmesglen_Finance_blank” in your resource

7 Appendices
You will need to also submit the following documentation with your business plan and appendix them as required (e.g., Appendix 13 Business
Name Registration etc.)
 Evidence of certificate of business name registration or company certification
 Australian business number (ABN)
 Statutory Declaration if the Business Name &/or ABN have been registered for 6 months or more
 Evidence of appropriate insurance (quote only – must be paid if approved to commence NEIS). All Insurance types must be listed where
more than one type of insurance is required
 Proof of finance (if you are borrowing money, or drawing from your bank account to start your business)
 Evidence of your qualifications (especially if relevant to your business)
 Partnership agreement (if relevant)
 Photocopy of your driver’s license (if you will be using a vehicle for business purposes)
 Evidence of relevant licenses (e.g. trade certificate, working with children check etc.)
 Proof of ability to operate on premises (commercial lease or permission from the landlord, if you are renting)
 Market research questionnaire and a compiled set of results
Please think carefully about the appendices you attach. The list above is what we require if you wish to add additional documents consider
whether they are necessary for the business plan submission. There may be documents that will be valuable reference materials for you but
would not be necessary for someone reviewing your business plan to see. Or you may be able to include links/URL’s in your business plan
rather than submitting the entire document as an appendix item.

Federal and State Government Acts may include (this list is not exhaustive):
Commonwealth:
Business Names Registration Act 2011 (Cth)
Competition & Consumer Act 2010 (Cth)
Copyright Act 1968 (Cth)
Corporations Act 2001 (Cth)
Fair Work Act 2009 (Cth)
Privacy Act 1988 (Cth)
Spam Act 2003 (Cth)
Do Not Call Register Act 2006 (Cth)
ACT specific: SA specific:

Agents Act 2003 (ACT) Building Work Contractors Act 1995 (SA)
Building Act 2004 (ACT) Children's Protection Act 1993 (SA)
Dangerous Substances Act 2004 (ACT) Conveyancers Act 1994 (SA)
Discrimination Act 1991 (ACT) Dangerous Substances Act 1979 (SA)
Electricity Safety Act 1971 (ACT) Electricity Act 1996 (SA)
Environment Protection Act 1997 (ACT) Environment Protection Act 1993 (SA)
Financial Sector Reform Act 1999 (ACT) Equal Opportunity Act 1984 (SA)
Food Act 2001 (ACT) Financial Sector Reform (South Australia) Act 1999 (SA)
Health Practitioner Regulation National Law (ACT) Food Act 2001 (SA)
Leases (Commercial and Retail) Act 2001 (ACT) Health Practitioner Regulation National Law (South
Partnership Act 1963 (ACT) Australia)
Pawnbrokers Act 1902 (ACT) Land Agents Act 1994 (SA)
Payroll Tax Act 2011 (ACT) Partnership Act 1891 (SA)
Residential Tenancies Act 1997 (ACT) Payroll Tax Act 2009 (SA)
Sale of Goods Act 1954 (ACT) Residential Tenancies Act 1995 (SA)
Sale of Motor Vehicles Act 1977 (ACT) Retail and Commercial Leases Act 1995 (SA)
Work Health & Safety Act 2011 (ACT) Return to Work Act 2014 (SA)
Workers Compensation Act 1951 (ACT) Sale of Goods Act 1895 (SA)
Working with Vulnerable People (Background Checking) Second-hand Dealers and Pawnbrokers Act 1996 (SA)
Act 2011 (ACT) Work Health & Safety Act 2012 (SA)
FOR OFFICIAL USE ONLY Holmesglen: sa 23-Jan-2019 Q:\Business Development\BDU\Curriculum\BSB42615\BUSINESS PLAN DOCUMENTS NEIS\Certificate Business Plan Template NEIS Assessment Task 1.docx
Certificae IV Business Plan Template (Assessment Task 1) Page 44 of 46

NSW specific: VIC specific:
Anti-Discrimination Act 1977 (NSW) Conveyancers Act 2006 (VIC)
Child Protection (Working with Children) Act 2012 (NSW) Dangerous Goods Act 1985 (VIC)
Conveyancers Licensing Act 2003 (NSW) Domestic Building Contracts Act 1995 (VIC)
Home Building Act 1989 (NSW) Electricity Safety Act 1998 (VIC)
Electricity (Consumer Safety) Act 2004 (NSW) Environment Protection Act 1970 (VIC)
Environmental Planning and Assessment Act 1979 (NSW) Equal Opportunity Act 2010 (VIC)
Financial Sector Reform (New South Wales) Act 1999 Estate Agents Act 1980 (VIC)
(NSW) Financial Sector Reform Act 1999 (VIC)
Food Act 2003 (NSW) Food Act 1984 (VIC)
Health Practitioner Regulation National Law (NSW) Goods Act 1958 (VIC)
Health Records and Information Privacy Act 2002 (NSW) Health Practitioner Regulation National Law (VIC)
Motor Dealers and Repairers Act 2013 (NSW) Health Professions Registration Act 2005 (VIC)
Partnership Act 1892 (NSW) Health Records Act 2001 (VIC)
Pawnbrokers and Second-hand Dealers Act 1996 (NSW) Privacy and Data Protection Act (VIC) 2014
Payroll Tax Act 2007 (NSW) Motor Car Traders Act 1986 (VIC)
Property, Stock and Business Agents Act 2002 (NSW) Occupational Health & Safety Act 2004 (VIC)
Residential Tenancies Act 2010 (NSW) Outworkers (Improved Protection) Act 2003
Retail Leases Act 1994 (NSW) Partnership Act 1958 (VIC)
Retail Trading Act 2008 (NSW) Payroll Tax Act 2007 (VIC)
Sale of Goods Act 1923 (NSW) Residential Tenancies Act 1997 (VIC)
Work Health & Safety Act 2011 (NSW) Retail Leases Act 2003 (VIC)
Workers Compensation Act 1987 (NSW) Second-Hand Dealers and Pawnbrokers Act 1989 (VIC)
Travel Agents Act 1986 (VIC)
Workers Compensation Act 1958 (VIC)
Working with Children Act 2005 (VIC)

Sample Travel Schedule (Overseas or Domestic)
Date Trip details Purpose of visit Cost

Mon 5th Feb 2018 8am departure from Melbourne to Sydney Flight $293 return
Meeting
AA Awesome Designs Meeting with suppliers to get samples made and assess
manufacturing process
Accommodation Lord Wolseley Hotel
$50 p/night
Tue 6th Feb 2018 Meeting Business presentation to potential customer
John Longmire Show samples
Owner
The Little Boutique
Meeting Business presentation to potential customer
Kathy Smith Show samples
Designer Corner
Accommodation Lord Wolseley Hotel $50 p/night

Wed 7th Feb 2018 Meeting Meeting with suppliers to get samples made and assess
Textile Emporium manufacturing process
Meeting Business presentation to potential customer

Ryan Jones Show samples
Absolutely Fabulous
Attend twilight market Source suppliers
Source potential alliances
Accommodation Lord Wolseley Hotel $50 p/night

Thu 8th Feb 2018 10am departure from Sydney to Melbourne
Business Expenses
Flights $293
Taxi/transport $120
Accommodation $150
Food & Bev $90
Other: ___________________________________
Total Cost of trip $ 653

Student Checklist Form
Full Name: Insert Name.
Group: Insert Group Name.
BY END OF WEEK 1 Insert Date Here Yes No N/A

Front Cover ☐ ☐ ☐
1.1 Business Description ☐ ☐ ☐
1.2 Background to Business ☐ ☐ ☐
1.5 Key Success Factors ☐ ☐ ☐
2.2 Qualifications and Skills of Owners ☐ ☐ ☐
Appendices
Proof of mandatory qualifications / memberships ☐ ☐ ☐
Proof of industry appropriate qualifications / memberships – demonstrates
competence, professionalism in non-regulated industries
☐ ☐ ☐

2.1 Business Objectives (are they SMART/Measurable) ☐ ☐ ☐
3.1 Industry Research (include reference sources): ☐ ☐ ☐
3.3 Draft of Questionnaire ☐ ☐ ☐
5.1 Business Premises ☐ ☐ ☐
5.10 Business Travel (if applicable) ☐ ☐ ☐
Appendices
Proof of Licenses / Authorities / Permits
 Proof of driver’s license if using a vehicle for business purposes
☐ ☐ ☐

1.3 Target Market ☐ ☐ ☐
3.2 Customer – Target Market ☐ ☐ ☐
3.3 Questionnaire finalised and sent to target market ☐ ☐ ☐
3.4.1 Competitors - Identified at least 2 direct competitors ☐ ☐ ☐
3.4.2 Comparative Evaluation ☐ ☐ ☐
FINANCIAL PLAN – Options ☐ ☐ ☐
FINANCIAL PLAN – 3 - Assets ☐ ☐ ☐
FINANCIAL PLAN – Household Budget 6A and 6B ☐ ☐ ☐
Appendices
Sample Market Research Questionnaire ☐ ☐ ☐
48
UNCLASSIFIED Holmesglen: NEIS 25-May-2020 Q:\Business Development\BDU\Curriculum\BSB42618 - 2020\BUSINESS PLAN DOCUMENTS\Student Weekly Business Plan Checklist.docx

2.4 Trading Name ☐ ☐ ☐
2.5 Business Structure identified (sole trader, partnership,company, trust) ☐ ☐ ☐
2.3.2 Taxation and Business Structure Obligations
☐ ☐ ☐
2.3.5 Insurance – Risk, Cover and Cost ☐ ☐ ☐
3.5 Competitive advantage ☐ ☐ ☐
3.6 Business SWOT ☐ ☐ ☐
3.7 Ongoing Research ☐ ☐ ☐
4.1 Marketing Strategies and Marketing Mix - commmenced ☐ ☐ ☐
4.4 Customer Service Policies ☐ ☐ ☐
FINANCIAL SPREADSHEET – Marketing Action Plan 1A AND 1B ☐ ☐ ☐
Appendices
Proof of Insurance
 Quote attached confirming type of cover (3 quotes) or Certificate of ☐ ☐ ☐
Currency if insurance currently held
Australian Business Number (ABN)
☐ ☐ ☐
 Proof of registration (from ABN Lookup)
 Stat Dec attached if registered more than 6 months ☐ ☐ ☐
Business Name Registration
☐ ☐ ☐
 Proof of registration from ASIC
 Stat Dec attached if registered more than 6 months ☐ ☐ ☐
 Proof of controlling interest
o Shareholder(s) if company ☐ ☐ ☐
o Partnership agreement
Partnership Agreement (if applicable) ☐ ☐ ☐
Proof of Ability to Operate
49

2.3.4 Licences, Permits, Registrations and Special Requirements ☐ ☐ ☐
3.3 Results from Questionnaire and drawn conclusions ☐ ☐ ☐
4.1 Marketing Strategies and Marketing Mix (completed)
☐ ☐ ☐
Marketing Action Plan – matches 4.1 Promotion
4.2 Market Position - Image ☐ ☐ ☐
4.3 Sales Objectives and Sales Mix ☐ ☐ ☐
FINANCIAL SPREADSHEET – Sales 7A and 7B ☐ ☐ ☐
FINANCIAL SPREADSHEET - 4 New Assets ☐ ☐ ☐
FINANCIAL PLAN – 5 LOANS (if applicable) ☐ ☐ ☐
Appendices
Proof of specialist licenses / permits
o Specialist vehicle licenses
o WWCC / WWVP check (if working directly with children or
vulnerable people)
o Police Checks / Security Clearances
☐ ☐ ☐
o White card – construction sites
o APRA registration
o A-frame / signage
o Other industry requirements (2.3.4)
Market Research Questionnaire Results
☐ ☐ ☐
50

2.3.1 Government regulations identified ☐ ☐ ☐
2.3.3 Contracts ☐ ☐ ☐
2.3.6 Monitoring of Legal Requirements ☐ ☐ ☐
5.3 Production/Provision Process ☐ ☐ ☐
5.4 Physical Resources ☐ ☐ ☐
5.5 Contingency Plans ☐ ☐ ☐
5.6 Work Health and Safety ☐ ☐ ☐
5.7 Monitoring Business Performance ☐ ☐ ☐
FINANCIAL SPREADSHEET – Cash Flow 8A and 8B ☐ ☐ ☐
FINANCIAL SPREADSHEET – Budget Notes 12A and 12B ☐ ☐ ☐
Appendices
Proof of Finance – if borrowing money or drawing from personal bank account ☐ ☐ ☐
and using as capital input

5.8 Records for the Business ☐ ☐ ☐
5.9 Action Plan ☐ ☐ ☐
Review Front Cover Information
Delete all green text (only retain your own content) ☐ ☐ ☐

1 Executive Summary completed – review and update (esp. 1.1, 1.3, 1.5) ☐ ☐ ☐
1.1 Business Description – review & update (your plan has likely evolved) ☐ ☐ ☐
1.5 Key Success Factors - review & update (your knowledge & understanding of ☐ ☐ ☐
the business opportunity will have developed further)
1.4 Financial Summary (check 7A and 7B Sales and 9A and 9B cash year end and ☐ ☐ ☐
profit after tax in Spreadsheet matches)
4.5 Potential Customers Who Have Expressed Interest ☐ ☐ ☐
Appendices
All collated ready for submission ☐ ☐ ☐
Once financials are finalized – review and update 1.4
51
BSB42618 Certificate IV New Small Business
Checkpoint 1 Units of Competency for assessment feedback Checkpoint 2 Units of Competency for assessment
purposes are (if applicable): feedback purposes are (if applicable): BSBSMB403
BSBRES411 BSBADM409 BSBSMB401
BSBSMB201 BSBWOR424 BSBSMB403 BSBRES411
BSBSMB301 BSBSMB404 BSBSMB421 BSBFIA412
BSBSMB401 BSBSMB301 BSBSMB404
Business Plan Guidelines CP1 CP2

Checklist Checklist
Executive Summary
1.1 Business Description (final review/update done before submission) 
1.2 Background to Business 
1.3 Target Market (final review/update done before submission) 
1.4 Financial Summary (final review/update done before submission) 
1.5 Key Success Factors (final review/update done before submission) 
Company & Management

2.1 Business Objectives (final review/update done before submission) 
2.2 Qualifications & Skills of Owners 
2.3 Legal Issues
2.3.1 Government Regulations 
2.3.2 Statutory Requirements 
2.3.3 Contracts 
2.3.4 Licenses, Permits, Registrations and Special Requirements 
2.3.5 Insurance 
2.3.6 Monitoring of Legal Requirements 
2.4 Trading Name 
2.5 Legal Structure 
Research & Analysis

3.1 Industry 
3.2 Customers - Target Market 
3.3 Market Research WIP 
3.4 Competition

3.4.1 Direct Competitors
3.4.2 Comparative Evaluation 
3.5 Competitive Advantage 
3.6 SWOT Analysis 
3.7 Ongoing Research 
52
Business Plan Guidelines CP1 CP2
Checklist Checklist
Marketing Plan
4.1 Marketing Mix  
4.2 Market Position  
4.3 Sales Objectives & Sales Mix 
4.4 Customer Relations 
4.5 Potential Customers (Expressions of Interest) 
Productions & Operational Plan

5.1 Business Premises 
5.2 Raw Materials and Supplies 

5.3 Production / Provision Process 
5.4 Physical Resources 
5.5 Contingency Plans 
5.6 Work Health and Safety 
5.7 Monitoring Business Performance 
5.8 Records of the Business 
5.9 Action Plan 
5.10 Business Travel - where applicable 
Financial Plan
Appendix 1A and 1B Marketing Action Plan Year 1 & 2 
Appendix 3 Assets and Liabilities & Business Financial Statements 
Appendix 4 Depreciation Schedule 
Appendix 5 Source of Funds 
Appendix 6A and 6B Household Budget Year 1 & 2 
Appendix 7A and 7B Sales Forecast Year 1 & 2 
Appendix 8A and 8B Cash Flow Budget Year 1 and Year 2 
Appendix 9A and 9B Anticipated Profit and Loss Statement Years 1 and 2 
Appendices 9C and 9D Reconciliation of Cash Year 1 & 2 
Appendices 10A,10B,10C and 10D Balance Sheet Years 1 and 2 

and Owners Equity
Appendix 11A and 11B Break Even Analysis Year 1 and 2 
Appendix 12A and 12B Assumptions (Notes to the cash flow) 
53
Appendices
Business Name Registration 
Australian Business Number (ABN) 
Proof of Controlling Interest


Shareholders / Partnership Agreement, if applicable
Statutory Declaration – Business is new (if applicable) 
Proof of Insurance (Quote) 

All insurances as stated in the Business Plan must be included 
Proof of Finance 
Evidence of Qualifications 
Evidence of Relevant Licenses – if applicable 
Copies of relevant Police Checks – where appropriate 
Photocopy of Driver’s License (s) 
Proof of Ability to Operate in Premises 
Sample Market Research Questionnaire 
Questionnaire Results (if all results were not included in 3.3) 
Supporting Documentation (Articles, Letters of Support) – if applicable  
54
BSBSMB201 Identify
Suitability for Micro
Business
55
Part A
1. If I had to work 50 hours a week I would:
A. Grumble and complain

B. Do it, if I had to
C. Tell people it was a light week
D. Get sick from stress and exhaustion
E. Do not know
2. If you called two hundred potential customers and were

rejected every time what would you do?
A. Call another two hundred

B. Try to get customers using a different method
C. Buy a new mobile phone
D. Ask somebody else to make the telephone calls
E. Do not know
3. If you noticed something that could make things more efficient in your job
would you:
A. Tell your friends how brilliant you are

B. Tell your direct supervisor about your ideas
C. Go ahead and make the changes yourself
D. Take a break until the idea goes away
E. Do not know
4. How would people describe you?
A. Optimistic and enthusiastic

B. Careful and reserved
C. Chatty and pleasant
D. Relaxed and a follower
E. Do not know
56
5. Before giving you a loan a bank asks you to write a business plan. You….
A. Go to another bank
B. Ask you family for the money you need
C. Go and research the competition and market potential
D. Find someone else to write it
E. Do not know
6. You have just had a good idea for a business – what do you do first?
A. Put a sign on your door
B. Start advertising the business
C. Go and research the market potential
D. Ask the bank for a loan
E. Do not know
7. How would you describe your work habits?
A. I work from 9-5, Monday to Friday, and have the weekend off
B. Relaxed
C. Hectic
D. I work on something until it is finished
E. Do not know
8. Late on Friday night you receive a big order from a customer to be filled by
Monday morning. You know it will take some time to prepare it. What do you
do?
A. Explain that you cannot do it

B. Call your assistant and delegate the job
C. Work overtime and finish the order by Monday
D. Pass the request on to a colleague
E. Do not know
57
Part B Yes No
When I believe in something, I can convince others of its merit.
Although I take other people’s opinion into account, I make the final
decision myself.
I enjoy giving my all to everything I do; successfully completing a job
gives me satisfaction.
I feel comfortable in managing other people, including telling them
what to do.
I am afraid of long hours and I prefer to do one thing at a time.
I find unexpected situations stimulating, especially when I know what I
am doing.
I find it hard to do nothing or sit still. The responsibility of getting
things done gives me energy.
I never think of what things I can do differently.
I am prepared to take some risk to achieve the required results.
I prefer to work alone.
I am willing to compromise when needed.
I am well organized, and self-motivated
I have a good sense of humour.
58
Self-Assessment Quiz
Step 1: Identify the relevant business needs in the left hand column
Step 2: Assess your current skills level using the scale provided in the right hand columns
Business Topics
Lacking Weak Capable Strong
Needs
Marketing
Can you conduct research and identify opportunities? ☐ ☐ ☐ ☐
Understand customers’ needs, and market trends? ☐ ☐ ☐ ☐
Can you forecast sales for customer demand? ☐ ☐ ☐ ☐
Understand pricing strategies for the business? ☐ ☐ ☐ ☐
Understand best distribution networks for the business? ☐ ☐ ☐ ☐
Be aware of all of the options to promote your business? ☐ ☐ ☐ ☐
Construct advertising that works? ☐ ☐ ☐ ☐
Have a good record in face to face selling? ☐ ☐ ☐ ☐
Prepare a marketing plan for your business? ☐ ☐ ☐ ☐
Use internet/social networks to promote/gain sales? ☐ ☐ ☐ ☐
Financial Management
Do you understand business accounting procedures? ☐ ☐ ☐ ☐
Do you know what capital you need to start? ☐ ☐ ☐ ☐
Set up and maintenance of finance books for the
☐ ☐ ☐ ☐
business?
Read and understand financial statements? ☐ ☐ ☐ ☐
Use financial information for decision making? ☐ ☐ ☐ ☐
Prepare and use budgets as a management tool? ☐ ☐ ☐ ☐
Monitor stock levels and have stock purchasing plans? ☐ ☐ ☐ ☐
Do you know the consequences of overstocking? ☐ ☐ ☐ ☐
Understand the difference: gross margin vs mark-up? ☐ ☐ ☐ ☐
Understand cost accounting practices? ☐ ☐ ☐ ☐
Calculate hourly rates for labour of staff? ☐ ☐ ☐ ☐
Prepare written quotes? ☐ ☐ ☐ ☐
59
Business Topics Lacking Weak Capable Strong
Needs
Legal Aspects of Business
Can you select your best business structure and explain
☐ ☐ ☐ ☐
why?
Can you obtain an ABN and register the business? ☐ ☐ ☐ ☐
What licences/permits are needed for the business? ☐ ☐ ☐ ☐
Can you understand contracts and the law behind them? ☐ ☐ ☐ ☐
Do you understand consumer law and your obligations? ☐ ☐ ☐ ☐
Have you heard of competition law and its application? ☐ ☐ ☐ ☐
Understand ACCC debt collection laws? ☐ ☐ ☐ ☐
Understand lease arrangements and law prevailing? ☐ ☐ ☐ ☐
Know how and when to consult a legal practitioner? ☐ ☐ ☐ ☐
Aware of your tax obligations - personal and business? ☐ ☐ ☐ ☐
Manage risk in the business? ☐ ☐ ☐ ☐
Understand the law of tort, duty of care, defamation? ☐ ☐ ☐ ☐
Understand 10 national employment standards? ☐ ☐ ☐ ☐
Understand OH&S laws? ☐ ☐ ☐ ☐
Managing Operations
Manage information systems required by the business? ☐ ☐ ☐ ☐
Define and document process procedures? ☐ ☐ ☐ ☐
Managing performance against KPIs? ☐ ☐ ☐ ☐
Understand ISO quality standards? ☐ ☐ ☐ ☐
Understand food regulations and their operational effect? ☐ ☐ ☐ ☐
Team performance capabilities? ☐ ☐ ☐ ☐
Managing suppliers and supply order systems? ☐ ☐ ☐ ☐
Managing People
Can you write a job description? ☐ ☐ ☐ ☐
Conduct an employment interview? ☐ ☐ ☐ ☐
Are you familiar with laws relating to EEO? ☐ ☐ ☐ ☐
Develop and write training manuals? ☐ ☐ ☐ ☐
Understand Australian Fair Work requirements? ☐ ☐ ☐ ☐
Taxation requirements as these relate to employees? ☐ ☐ ☐ ☐
Effectively supervise and motivate staff? ☐ ☐ ☐ ☐
Understand the lawful dismissal process? ☐ ☐ ☐ ☐
Have developed excellent leadership skills? ☐ ☐ ☐ ☐
Managing customer complaints? ☐ ☐ ☐ ☐
60
Business Topics Lacking Weak Capable Strong
Needs
Managing Yourself
Do you tend to procrastinate, which will affect your
☐ ☐ ☐ ☐
business?
Do you have good time management skills? ☐ ☐ ☐ ☐
Do you know your stress limits? ☐ ☐ ☐ ☐
Can you deal with stress? ☐ ☐ ☐ ☐
Do you set clear goals for yourself and the business? ☐ ☐ ☐ ☐
Are you motivated by the opportunity to start a business? ☐ ☐ ☐ ☐
Are you a good listener? ☐ ☐ ☐ ☐
Are you an experienced and competent communicator? ☐ ☐ ☐ ☐
Do you have good negotiation skills? ☐ ☐ ☐ ☐
Information Technology
Can you use a computer to meet the business needs? ☐ ☐ ☐ ☐
Can your accounting system cope with GST if required? ☐ ☐ ☐ ☐
Do you have the technology systems needed to operate? ☐ ☐ ☐ ☐
Do you use email, mobiles, and other electronic devices? ☐ ☐ ☐ ☐
Do you know how to surf the net? ☐ ☐ ☐ ☐
Are you keeping up to date with trends in E-commerce? ☐ ☐ ☐ ☐
Are you on social media? ☐ ☐ ☐ ☐
Original source published by Adelaide institute of TAFE
61
62
BSBRES411 Analyse
and Present Research
Information
63
A total of 62 surveys were conducted. Most were done face to face, although
approximately 20% were done by phone
Qu 1: Have you ever used the services of a house cleaner?

(go to question
Yes 25 No 37 2)
Qu 1a: If yes, how would you rate this service from 1 - 5 (1 being very satisfied, 5 being very
dissatisfied)
1 2 3 4 5
Promptness of service 11 8 3 2 1
Pricing of service 9 10 4 1 1
Quality of cleaning service 5 6 6 7 1
Quality of customer service 6 4 7 5 3
Qu 1b: Would you be willing to try a new cleaning service in the future?
Yes 16 64% (go to question 3) No 9 36%
Qu 1c: If no why not? (go to question 3)

Happy with current service
Prefer to do my own cleaning
Like the cleaner I use
Don't trust strangers in my home
Current cleaner was personally recommended
Happy with my cleaner
Like my cleaner
Have been using my cleaner for many years
My sister does my cleaning
Qu 2: If no, would you consider using a cleaning service in the future?

Yes 28 76% (go to question 3) No 9 24%
Qu 2a: If no, why not? (go to question 6)

Don’t like people in my house
Like doing my own cleaning
Can't justify the cost 44% stated cost concerns
Too expensive 44% happy to do cleaning themselves
Have got the time to do my own cleaning 12% don’t like strangers in their home
Costs too much
I enjoy cleaning
Cleaning doesn't worry me
Expensive
64
Qu 3: How often would you use a cleaning service?
Monthly 12 23%
Fortnightly 21 40%
Weekly 15 28%
Twice Weekly 4 7%
Other 1 (only for special occasions) 2%
Qu 4: How much would you expect to pay per hour for this service?
$20-24 10
$25-30 14
$31-35 14
$36-40 7
$41-45 4
Qu 5: Where would you be most likely to look to find a cleaning service?

Local Paper 16 30%
Flyer 7 13%
Yellow Pages 5 9%
Internet 10 19%
Word of Mouth 15 28%
Other 0 0%
Qu 6: What age group best describes you?

18-25 8
26-35 12
36-45 14
46-55 10
56-64 11
64+ 7
Qu 7: Are you?
Male 26 42% Female 36 58%
Qu 8: Do you have children living at home?

Yes 24 39% No 38 61%
Qu 9: Do you?
Rent 21 34% Own your own home 41 66%
Qu 10: What suburb do you live in?

3166 13 21%
3163 19 31%
3148 11 18%
3145 19 30%
65
GENDER
MALE FEMALE
26 36
1. Have you ever used the services of a

house cleaner? Y = 27% N= 73% Y = 50% N= 50%
1a. Satisfaction with Promptness 43% 28% 29% 34% 44% 22%
1a. Satisfaction with Price 57% 43% 22% 34% 33% 11%
1a. Satisfaction with Quality of Clean 43% 57% 11% 27% 39% 12% 11%
1a. Satisfaction with Customer Service 43% 29% 28% 22% 22% 34% 16% 6%
1b. Would you try a new cleaner in the
future? Y = 71% N= 29% Y = 38% N= 62%
2. If you have not used a cleaner would
you consider using one in the future? Y = 68% N= 32% Y = 83% N= 17%
3. How often would you use a cleaning
service? 40% 15% 35% 10% 13% 49% 27% 7% 4%
4. How much would you expect to pay
per hour? 15% 25% 30% 10% 20% 24% 35% 25% 16%
5. Where would you be most likely to
look for a cleaner? 40% 15% 10% 20% 15% 22% 25% 9% 9% 35%
6. What age group best describes you? 15% 13% 15% 27% 30% 11% 25% 28% 8% 28%
8. Do you have children living at home? 31% 69% 50% 50%
9. Do you rent/own your home? 38% 62% 31% 69%
10. What suburb do you live in? 17% 32% 19% 32% 24% 20% 14% 42%
Results Summary:
66
BSBSMB403 Market the
Small Business
67
Demographic
Initially by industry type:  Age
 Agriculture, Forestry, Fisheries  Gender
 Construction, Manufacturing  Marital status
 Education and Training  Home ownership
 Health Care and Social Assistance  Stage of family life cycle
 Accommodation and Food Services  Number of children
 Arts and Recreational Services  Occupation
Then by industry sub-groups. EG: Accommodation, Cafés,  Education status
Catering, Pubs, Taverns and Bars, Restaurants, Take Away Food  Income
 Race/nationality
Additional characteristics could include:  Religion
 Number of establishments  Pet ownership
 Number of employees  Type of dwelling
 Volume of shipments  Languages spoken
 Annual sales volume  Vehicle ownership and type of vehicle
 Primary product/services  and the list goes on……..
 Primary customers
 Structure: sole trader, franchise, company
 Decision making: board of directors, departments,
owner/manager
 Budgets: operating costs, expenditure
 Years of operation
 Market share
Geographic
 Global Regions – Asia Pacific, Europe
 Nations or Countries – United Kingdom (UK), Australia, Germany
 Regions – Southern China, Northern Queensland
 States – Victoria, Adelaide, Florida
 Cities – Melbourne, Sydney, New York
 Communities – Local government regions
 Suburbs – Glen Waverley, Niddrie, Braddon
 Climate/Terrain – dry arid, tropical
 Population density – urban, rural, inner city, major cities, remote areas
 Distance from the business – within 25kms
Psychographic
 Activity – main activities or focus  Lifestyle - Activities, hobbies and interests
 Daily operating environment (busy stressful, social)  Values, attitudes, emotions and opinions –
 Attitudes and values of the business environmentally conscious
 Intangibles – factors that influence their desire to  Social status or social class – background, income and
purchase eg: to save time, to make more profit spending habits
 Personality type – extroverted, introverted, adventurous
 Intangibles – factors that influence their desire to
purchase e.g.: to create a better lifestyle, to receive
personal recognition
Behavioural
 User status – non-users, potential users, first time users, ex-users, regular or irregular
 Occasions when it is used
 Usage rates – irregular, regular, heavy, medium light
 When it is purchased or thought about
 How it is used
 Volume of purchase
 Loyalty status – Extremely loyal to the product, medium levels of loyalty; in other words, they will purchase other
products/services on occasion, 'Switchers' will simply purchase what is available at the time/offers better benefits – sale
 Types of purchases – wholesale, trade, retail, online
 Purchase criteria - quality, time frames/promptness, levels of service, value for money/price, durability, safety, appearance,
reliability, convenience, expertise
 Awareness and Intentions - readiness to purchase (unaware, aware, informed, interested, intending to buy), will buy
anywhere, anytime, or requires careful consideration
 Type of buying - minimum effort, comparison buying, special effort buying
 Events/occasions: what stimulates buying (time, season, fashion, status (keeping up with the Joneses) 68
BSBSMB401 Establish Legal
& Risk Requirements of Small
Business
69
Structure Definition Key Elements
A person trading as  Most common legal structure
the individual.  Legally responsible for all aspects of the business
 Simple and inexpensive to establish and operate
 Generally, make all the decisions about the business
 Can employ people
 Paid a distribution of the profit (drawings) not wages
Sole Trader  Superannuation is voluntary
 Must keep financial records for at least 5 years.
 Relatively easy to change business structure if the business
grows
Involves a number  Up to 20 partners

of people (more  Not a separate entity
than one) who carry  Shared control and management of the business
on a business  Shared legal responsibility
together.  TFN for partnership & separate individual TFN for partners
Partnership
o Complete partnership and individual tax returns each
(unincorporated)
financial year
 Superannuation is voluntary
 Must keep financial records for at least 5 years.
Company Is a separate legal  Business operations are controlled by directors and owned by
entity. the shareholders.
 May have multiple owners
 Needs to be register with the Australian Securities and
Investments Commission (ASIC).
 Money the business earns belongs to the company
 Has the same rights as a natural person and can incur debt, sue
and be sued
 Separate an annual company tax return to be lodged with the
ATO, plus individual tax returns required.
 Proprietary Limited Companies cannot offer shares
 Public Companies offer shares to the public
 If a company goes into liquidation, creditors are not entitled to
ask the directors or shareholders to repay the debts of the
company.
o Unless they allowed the company to keep trading, knowing
it can’t pay.
o Have acted fraudulently
o Have given guarantees for loans/contracts
Trust Obligation imposed  Profits distributed annually to beneficiaries (pay tax individually)
on a person  Trusts do not pay tax, provided all profits are distributed
(trustee) to hold  Formal trust deed outlining operations required
property or assets
for the benefit of
others
(beneficiaries) 70
Benefits Disadvantages
 Low cost, quick & simple to set up  Unlimited liability - all your personal assets
 Full control of the business (assets and business are at risk if things go wrong.
decisions)  Has a limited life span (ceases to exist when
 Fewer reporting requirements the owner dies)
 Doesn’t require a separate business account  Limited access to finance – may be limited to
(recommend) owners’ resources
 Minimal Tax formalities involved:  Cannot get workers' compensation insurance
o only one tax return to be lodged using  Limited opportunities to sharing the workload
individual TFN  You can't split business profits or losses
 Same tax rates as employees (plus small business  Tax can become disadvantageous when profit
concession) increases, taking you to higher tax brackets
 Receive full benefit of profits
 Keep all the gains if business is sold
 Relatively easy to wind things up (close business)
 Low cost and easy to establish  Divided authority may lead to conflict
 Additional personnel & capital available to run the  Selling the business or a partner wanting to
business leave may be problematic
 Tax advantages - the partnership doesn't pay  Ownership of Intellectual property maybe
income tax. Each partner pays tax on their share of contentious
the net partnership income  Partners are individually liable for the
 Doesn’t require a separate business account business (including business activities of your
(recommend) partners) 'Joint & several liability'
 Cannot get workers' compensation insurance
ALWAYS set out the partnership
parameters/responsibilities from the beginning
 The company’s owners (the shareholders) can limit  Directors can be liable to pay the debts from
their personal liability and are generally not liable their personal assets where
for company debts. o they acted inappropriately
 Selling the business is potentially easier than as a o they made personal guarantees
sole trader  Complex business structure, and may need
 If director/owner dies the company continues professional support
 Company tax rate only 27.5% - may be lower than o Decide what operational rules -
personal tax rate 'replaceable rules'
 Owners pay themselves a wage - or your own Constitution
 Workers compensation insurance available - or a combination of both
 Superannuation contributions available - or special operational rules (only the
 Other businesses may prefer to deal with a one director and shareholder)
company structure  Higher set-up and administrative costs due to
additional reporting requirements
o lodge share holdings with ASIC
o lodge company tax return
 Need to understand directors’ responsibilities
- officers and directors must comply with
legal obligations under the Corporations Act
2001.
 Can limit personal liability for debts if trustee is a  Higher admin & levels of compliance
company  Higher setup and ongoing costs
 Flexibility in distributing profits to beneficiaries – tax  Must distribute profit/income each year, even if
minimisation no physical money paid
 Easy to pass on or sell ownership  Possible reluctance to deal with trusts
71
72
BSBSMB421 Manage
Small Business
Finances
73
Activity 1
Classify the following items as:
Assets (A), Liabilities (L), Owner’s Equity (OE), Revenue (R) or Expenses (E) as per the first
example
Example:
Accounts Payable (creditors) L
Cleaning
Loan from bank
Capital
Sales
Land and buildings
Bank overdraft
Furniture
J Green (an accounts receivable)
Cash in bank
Loan to J Jones
Purchases
Mortgage
Motor vehicle
Wages
Inventories (stock)
Premises
Activity 2
Complete the following table as per the first two examples:
Account name Account type: Reported in:

Asset, Liability, Owner’s Balance Sheet or Profit
Equity, Revenue, Expense and Loss
Purchases Expense Profit and Loss
Motor Vehicle Asset Balance Sheet
Wages
Rent Paid
Sales
Loan from ANZ Bank
A/C Payable
Electricity
Printer
Capital
Interest Received
Drawings
74
Account name Account type: Reported in:
Asset, Liability, Owner’s Balance Sheet or Profit
Equity, Revenue, Expense and Loss
Motor vehicle expenses
A/C Receivable
Loan to B Smith
Computer
Telephone
Advertising
Goods and Services Tax (GST)

In order to complete a Business Activity Statement, a record must be kept of the GST paid and
collected.
A tax invoice will need to be in an approved form. It must show the price of the supply and the
supplier’s Australian Business number (ABN). If an ABN number is not supplied and the invoice
exceeds $75 exclusive of GST, 49% must be withheld from the supplier’s payment, and remitted
to the ATO on the next Business Activity Statement (BAS).
There are some sales on which GST is not charged. These are called GST free supplies - basic
food items are the most common example. Others include international postage, exports,
sewerage and water. GST does not apply to the payment of salaries or wages. When the owner
of a business contributes an asset to the business without it being paid for, GST does not apply.
Calculating the GST

To calculate the amount of GST to be charged, multiply the value of the sale by 10%
$100.00 x 10% = $10.00
Therefore total cost of item: $100.00+ $10.00 (GST) = $110.00
To calculate the amount of GST that has been charged, divide the total by 11.
$110.00/11 = $10.00
Total amount of GST paid = $10.00
To calculate the GST exclusive amount divide the total by 1.1

$110.00/1.1 = $100.00
75
Activity 3
Calculate the missing amounts in the following table
GST Exclusive GST 10% GST Inclusive
1450.00 a. b.
c. d. 2750.00
e. f. 3300.00
675.00 g. h.
2025.00 i. j.
k. 600.00 l.
When to register for GST?

Go to the ATO website at www.ato.gov.au and look up the legislation in regards to calculating
sales turnover to determine when to register for GST. What penalties apply if you register
after the threshold has been met? The link below will provide useful information on GST
registration:
https://www.ato.gov.au/business/gst/registering-for-gst/
The reality is that taxpayers who choose not to comply with their GST obligations may face
serious consequences, including interest, penalties and potential prosecution.
Business Expenses
Business expenses are categorized in two ways: fixed expenses and variable expenses. Fixed
expenses or costs are those that do not fluctuate with changes in production levels or sales
volume. They include such expenses as rent, insurance, electricity, telephone etc.
Variable costs are those that respond directly and proportionately to changes in sales levels
and include expenses such as costs of raw materials, inventory, packaging supplies, and
shipping costs. In contrast to fixed costs, which have to be paid regardless of the amount of
sales, variable costs can increase with increased sales and obviously decrease with decreased
sales.
76
Illustration of the concept of fixed and variable costs:
Cost of operating a car which has been driven 20,000 km over the past 12 months:
Costs $ Cents/km
Depreciation 900 4.5 ($900 / 20,000km = 4.5c/km)
Interest on loan 500 2.5
Insurance 400 2.0
Maintenance 300 1.5
Registration 300 1.5
Petrol 600 3.0
Totals $3000 15.0 c/km for the year
The above only applies if exactly 20,000 km are travelled during the year. A more accurate
method of estimating/calculating costs is to split the fixed and variable costs:
Fixed costs $
Depreciation 900
Interest on loan 500
Insurance 400
Maintenance 300
Registration 300
Total fixed costs $2400 Variable costs = Petrol @ 3 cents/km
Therefore, total costs are $2,400 + 3cents/km
Break Even Analysis

Calculation of break even point
The contribution margin (CM) or gross margin (GM) method is one way of calculating the
break even point of a business. Break-even point is the point at which the business makes
neither a profit or a loss. The contribution margin is found by deducting all the variable costs
from sales.
The contribution margin per unit can be used to estimate the break even point.
Example Contribution margin per unit

Selling price $20 per unit
Less Variable cost $5 per unit
Contribution margin $15 per unit
The contribution margin of $15 is the additional contribution from each unit sold towards the
recovery of fixed costs. Assume total fixed costs are $10,000.
77
The following formula will determine the number of items required to break even
Break even point in units = Total Fixed Costs 10,000
Contribution margin per unit $15 = 667 units
Therefore sales required to break even = 667 units x $20 Selling Price = $13,340
Proof:
Sales (667 x $20) $13,340
Less Variable costs (667 x $5) $3,335
Contribution margin (667 x $15) $10,005 ($5 rounding)
Less Fixed costs $10,000
Profit nil (break-even)
Note: Once sales exceed $13,340, the business will start to earn a profit
Activity 4
From the following information, calculate the break even point in units and do the workings
to prove your answer.
a) Selling price $45 per unit

Variable costs $15 per unit
Fixed costs $18,000
Contribution margin ratio

Some businesses will sell multiple products (sales mix) which have varying contribution
margins. In this case, the break even point is determined by using the contribution margin
ratio (rather than contribution margin per unit). This is calculated by dividing the contribution
margin by sales.
Example: Contribution margin ratio

A company provides you with the following information. What would the break even level of
sales in dollars be?
Sales 1,600,000
Less Variable costs 1,040,000
Contribution margin 560,000
Less Fixed costs 220,000
Profit 340,000
Using the above information, the following formulas will determine the value of sales
required to break even, using the contribution margin ratio.
78
1. Calculate the contribution margin ratio
Contribution margin ratio = Total contribution margin 560,000
Total sales revenue = 1,600,000 = 35%
2. Calculate break even point in sales $

Break even point in sales $ = Total fixed costs 220,000
Contribution margin ratio % = 35% = $628571
Proof:
Sales $628,571 (100%)
Less Variable costs $408,571 (65%)
Contribution margin $220,000 (35%)
Less Fixed costs $220,000
Profit nil (break even)
Break even point – Service Industry

The service industry is mainly based on labour hours charged. Therefore, if we assume total
fixed costs are $18,000 and the charge out rate is $35 per hour, break even can be calculated
as follows:
$18,200 = 520 hrs per year / 52 weeks = 10 chargeable hrs per week required to break even
$35
Any material costs purchased to be used on each job would be passed on to the customer.
Activity 5
a. A product costing $25.50 will be marked up by 45% - what will the selling price be?
b. The gross margin on a product is $25.00. The selling price was $75.00. What is the
mark up percentage?
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Case study – Retailer
Sophie has decided to leave her job in a gift shop and open her own business selling arts and
crafts, some of which she will import from overseas. She has savings of $15,000 which she will
use as capital in the business, and would like to see a return of 10% on this investment. She
estimates she will take drawings of $40,000, and would like to keep $2,500 in the business as
retained profits.
She will also have to borrow some extra funds at start up, with the repayment of principal per
year of $4,000. She also estimates overhead expenses (including interest) of $15,000 and has
allowed for an income tax liability of $6,000.
Sophie’s research for her industry indicates she could apply a mark up of 100% to the cost
price of her products.
Required
1. What Net Profit (Before Tax) target should Sophie aim for, based on the above figures?
2. What contribution margin ratio should Sophie’s business earn?
3. How much would Sophie have to sell to break even?
4. What sales target should Sophie aim for if she wishes to cover all of her costs and earn
the Net Profit (Before Tax) calculated in Q1?
5. Prepare a simplified Projected Profit and Loss Statement targeting the Net Profit (After
Tax) applicable to the scenario at Q1?
1. DESIRED NET INCOME (BEFORE TAX)
Desired – Drawings of Owner $40,000
Desired – Retained Profits $ 2,500
Desired – Return on Capital Investment ($15,000 X 10%) $ 1,500
Loan - Principal Repayments $ 4,000
Allowance - Income Tax $ 6,000
Total Desired Income / Net Profit (Before Tax) $54,000
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Service Industry – calculate a charge out rate
Case study – Service Provider
Bill is a sole trader motor mechanic, who rents a small workshop. Opening hours are 8 am to 6
pm Monday to Friday, and 8 am to 12 pm Saturdays. He spends two hours per day on breaks
and admin tasks and no breaks on Saturdays. He has planned to take ten days of public
holidays, and has allowed himself a total of eight days’ annual leave for the year.
Bill estimates he will have the following fixed costs (overheads) for the year:
Accounting fees 300
Advertising 500
Bookkeeping fees 600
Depreciation 450
Insurance 550
Light & power 1800
Loan interest 1200
M.V. running costs: 900
Rent 4500
Postage, printing & stationery 350
Telephone & internet 750
Total fixed costs $11,900
At the start of business, Bill contributed $5,000 of capital and would like to see a 20% return
on his investment. Additionally, he would like to have retained profit of $2,500 left in the
business at the end of the year.
He also has a loan for the motor vehicle, with a repayment of the loan principal being $3,000
per year. His income tax payment has been estimated at $12,000, and he wishes to take out
$40,000 in Drawings.
Taking into account the above information, a calculation can be made to determine what Bill’s
hourly charge out rate should be. Refer to the following example:
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Worksheet - Service Industry
Calculation of hourly charge out rate

for one person business
1 Determine available hours:
No. weeks in trading period 52

No. days open per week 5.5
Total available days (52 weeks x 5.5 days) 286
Less: Public holidays 10

Annual leave 8
Total available working days (286 – 10 – 8) 268
Charge out hours achievable per day 8

(Allowing for unproductive time)
Total productive labour hours (268 x 8) 2,144

2 Determine sums to be recouped:
Overhead (indirect) costs of the business 11,900

Desired drawings of owner 40,000
Return on investment ($5,000 x 20%) 1,000
Loan repayments 3,000
Retained profit 2,500
Allowance for income tax 12,000
Total sums to be recovered: 70,400
3 Calculate hourly charge out rate:
Total sums to be recovered $70,400

Divided by total productive labour hours 2,144
Required hourly rate: ($70,400/2,144 hrs) $32.84
The calculated hourly rate of $32.84 is the minimum required to cover Bill’s costs. If
mechanics charge around $40 per hour, Bill may wish to increase his hourly rate and add to
his profit margin.
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Working below full capacity
The above hourly rate has been calculated on the assumption that Bill will work at full
capacity, being the calculated eight hours per day. What about idle time if he has quiet days
and is not working at his full capacity – therefore not charging out the full eight hours every
productive working day?
Assume a charge out rate of $35 has been decided.
Desired income $70,400/52 weeks = $1,354/week
$1,354 per week/$35 per hour = 38 hours per week charge out required
The above is working at full capacity – if hours worked are less per week then charge
out rate must be increased. What if only 25 hours per week are achieved?
$1,354 per week/25 hours = $54 per hour charge out required to meet desired return.
Break even analysis

Know the break even point to determine how many hours are required to cover costs.
How many charge out hours are required to break even – that is, to cover the expenses that
must be paid?
Overhead expenses $11,900 pa = $229 per week (11,900/52 weeks)
Loan repayments $3,000 pa = $58 per week (3,000/52 weeks)
Must pay out $287 per week
$287 per week/$35 per hour = 8 hours per week charge out required to break even.
Anything over this contributes to the desired net income. As income increases, tax would also
need to be paid.
The charge out rate

Charge out rate also needs to consider the market place and competition. If maximum hours
are worked, the only way to increase income is to increase hourly rate, reduce costs, open
longer hours.
Costs must be reviewed constantly, and the charge out rate be adjusted accordingly. If
registered for GST, 10% must also be added on to the total charge. The direct materials and
number of labour hours used on a job need to be determined to prepare a quote or invoice.
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Example
Bill’s Auto Repairs Date: 21/5/XXXX
ABN: 34 200 156 979 Invoice 32
Details Amount
Service and check motor vehicle
Parts used
3 litres of oil 15.00
Oil filter 20.00
Brake fluid 12.00 $47.00
Labour
1.5 hours x $35 $52.50
$99.50
Note: Not registered for GST
Projected profit statement

Bill can now prepare a Projected Profit Statement. If the material costs on jobs are
unpredictable, the projected profit statement will be calculated only taking labour income
into account and not the cost of the materials. (This cost will still be passed on to the
customer).
Bill’s Auto Repairs

Projected Profit Statement for year ended 30/6/XXXX
$ $
Total income from labour 70,400
Less Overhead Expenses
Accounting fees 300
Advertising 500
Depreciation 450
Insurance 550
Light & power 1800
Loan interest 1200
Rent 4500
Telephone & internet 750 11,900
Net Profit $58,500
To cover:
Drawings 40,000
Return on investment 1,000
Loan repayment 3,000
Retained profit 2,500
Income tax 12,000
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Sometimes, a mark up may be added to the cost price of the materials to further increase the
profit. Assume that Bill gets trade discount on the materials he purchases. He decides to mark
them up by 20% to make extra profit. This will result in a gross margin of 16.7%. Let’s also
assume total materials for the year cost Bill $20,000 and he marked them up by 20%.
$20,000 x 20% = $4,000 Mark-up. Sales $20,000 + Mark-up $4,000 = $24,000
Sales 24,000
Less cost of sales 20,000 (83.3%)
Gross Profit 4,000 (16.7%)
New Projected Profit Statement would show a gross margin as follows:

Bills Auto Repairs
Projected Profit Statement for year ended 30/6/XXXX
Income $ $
Total income from labour 70,400
Total income from sales 24,000 94,400
Less cost of materials

Materials used on jobs 20,000 20,000
Gross Profit 74,400
Less Overhead Expenses

Accounting fees 300
Advertising 500
Depreciation 450
Insurance 550
Light & power 1800
Loan interest 1200
Rent 4500
Telephone & internet 750 11,900
Net Profit $62,500
An extra $4,000 has been made for the year by marking up the materials
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Activity 6
Business Risk
Use with excel file Finance Activities, sheet 6.
Start with a very low number of tax returns per month, and compare the profit of both
businesses.
Increase beyond breakeven point and see which business benefits when growth happens.
Imagine 2 tax return businesses
The selling price of a tax return processing is $100 for both businesses.
Rent is $1000 a month for both businesses.
Business 1 employs subcontractors & pays per return.
Business 2 employs full time staff regardless of load.
Which is the better business?
What is the break-even for both businesses?
See spreadsheet.
Variable costs and risk
A business with a higher gross margin probably has more fixed costs.
It is a riskier business.
Getting more benefit from upturn, but more detriment from low sales
You can change the risk profile of a business by moving costs from fixed to variable (or the
other way)
What are signs that a business is ready for more risk?
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Activity 7A
Business Cases & Decision Making

Use with excel file Finance Activities, sheet 7A.
Case study: investing in a marketing program
This business case uses variable costs.
Fixed costs: rent $1000 a month, wages $1000 a month
Variable costs: for every $4 milkshake, there are $1 of costs (milk, syrup, ice-creams, take
away cups).
Sales average at 1500 milkshakes per month.
You get a proposal for a marketing program:
Spend $5000 in advertising to increase your sales by 25%, which lasts for the next four
months.
Is this a good deal?
Answer skeleton
What choice do we face?
What are the relevant cash outs if we decide “yes”
What are the relevant cash ins if we decide “yes”
Activity 7B
Use with excel file Finance Activities, sheet 7B.
Decision Time Frames
We open a café, with rent of $24,000 a year.
We aim to sell coffee for $4 a cup. We have variable costs of $1. We plan 10,000 cups a year,
which is a gross margin of 10,000 * $3.
So we expect to make $6000 profit.
Sales are very low due to backpackers in the same street now selling coffee. We decide we
need to drop the price of coffee to $3 a cup.
Should we renew the lease?
Should we drop the price?
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88
BSBFIA412 Report
on Financial Activity
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Report on Financial Activity – Activities 1 - 7
Example Information Documents
Tax invoices for sales of less than $1,000 must include clear information, including seven
details:
1. Clearly read ‘Tax Invoice’

2. Seller's name clearly identified
3. Seller's Australian Business Number (ABN)
4. Date invoice was issued
5. Brief description of goods sold, quantity (where applicable) and price
6. GST amount (if any) payable – can be shown separately or, if the GST amount is
included in the total price (exactly 1/11th) when indicated 'Total price includes GST'
7. Indicating the total sale includes GST
1. Example 1 words 'total price including GST'
2. Example 2 shows the GST in each line (see GST column), the sale is identified as
being taxable by the words 'the total price including GST'.
Tax invoices for sales of $1,000 or more need to also show:
8. the buyer's details or ABN
If your tax invoice meets the requirements for sales of $1,000 or more, you can also use them
for sales of lesser amounts.
Example 1: Tax or a sale lower than $1,000

❶TAX INVOICE NUMBER XXXX
❷Fresh Foody
ABN: 32 456 123 435❸
18 Saddle Rd
Scoresby VIC 3179
Phone: 03 796 5555
❹Date: 6 March 2016
To: Cedar & Associates P/L

Canberra Rd
Rowville VIC 3179
PROD DESCRIPTION QTY UNIT TOTAL

CODE PRICE
FR05 Corporate Luncheon ❺ 4 80.00 $320.00
TOTAL PRICE INCLUDING GST❼ $320.00❻
Trading Terms 30 days EOM
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Example 2: Tax invoice for a sale greater than $1,000
❶TAX INVOICE NUMBER XXXX
❷Fresh Foody
ABN: 32 456 123 435❸
18 Saddle Rd
Scoresby VIC 3179
Phone: 03 796 5555
❹Date: 6 March 2016
To: ❽Cedar & Associates P/L

Canberra Rd
Rowville VIC 3179
PROD DESCRIPTION QTY UNIT GST TOTAL

CODE PRICE
FR05 Corporate Luncheon 4 72.73 7.27 320.00
❺FE10 Juice bottles 250 ml 15 3.64 0.36 60.00
SS10 Sushi Platter 8 100.00 10.00 880.00
❻
TOTAL PRICE INCLUDING GST $1260.00❼
Purchase Order
Purchase Orders are authorisations used when dealing with suppliers to indicate types,
quantities and agreed prices for products and services ordered. They can also assist in
controlling your spending. They should include the following information:
 Clearly read ‘Purchase Order’

 Seller's name clearly identified
 Seller's Australian Business Number (ABN)
 Customer name and details
 Customer delivery details
 Date and purchase order number
 Brief description of goods to be purchased
 Quantity and price negotiated
 Authorising officer’s signature verifying the order
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PURCHASE ORDER
NUMBER XXXX
Fresh Foody
ABN: 32 456 123 435
18 Saddle Rd
Scoresby VIC 3179
Phone: 03 796 5555
TO: SHIP TO:
Date: Purchase Order:
Qty Description Unit Amount

Price
TOTAL
Authorising Signature…………………………………………………
Account Statement
Account Statements are mainly used when customers purchase multiple sales; they also keep
track of all payments received from your customers. They are useful to keep customers on
track with their accounts by alerting them when missed payments are due, and should be sent
out at the end of each month. They should contain the following information:
 Clearly read ‘Account Statement’

 Seller's name clearly identified
 Seller's Australian business number (ABN)
 End of month date
 Opening balance (closing balance from previous month)
 Details of transaction identified (current invoices and any payments since previous
statement)
 Identify outstanding amounts
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ACCOUNT STATEMENT
Fresh foody
ABN: 32 456 123 435
18 Saddle Rd
Scoresby VIC 3179
Phone: 03 796 5555
Date:
To:
DATE REF DESCRIPTION AMOUNT BAL

NUMBER TOTAL
OUTSTANDING
CURRENT 30 DAYS 60DAYS 90+DAYS
Delivery Docket
Delivery dockets are issued with the supply of goods, and are used as proof when requiring a
signature to verify who took possession of the delivery.
It is useful for ticking off the contents of the delivery, according to the goods received, eg:
quantity, correct address when multiple delivery points are requested. When there may be a
discrepancy with the delivery, it allows you to make contact with the supplier to discuss a
resolution.
A delivery docket should contain the following information:
 Clearly read ‘Delivery Docket’ and the number

 Seller name, ABN and details
 Shipping address when it differs from account address
 Date
 Customer’s order number identified
 Description of goods delivered
 Provision for signature of person receiving the good/s
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Fresh Foody DELIVERY DOCKET
ABN: 32 456 123 435
18 Saddle Rd No: XXXX
Scoresby VIC 3179
Phone: 03 796 5555
TO: SHIP TO:
Date: Order Number
Qty Description
GOODS RECEIVED SIGNATURE……………………………………
Cheque Butt
Cheques are issued when making payments, allowing you to document brief details of the
payment to the payee on the cheque butt. They require the signature of the person writing
the cheque for the bank to verify the withdrawal of the money from your bank account. Note
that the sequence of numbers beneath the signature line identify the cheque number
(identical to cheque butt number), the BSB and the Account Number, working from left to
right.
Cheque butts will contain the following information:

 Date cheque issued
 Name of business or person cheque is made payable to
 Identifying the purchase: eg Stock or Invoice Number
 $ Amount
 Balance is generally not known and left blank
Date……………………… Peoples Bank Date………………….

To ……………………… Pay___________________________________
For:……………………….. The sum of_____________________________
Amount: $ ……………….
______________________________________ $
Other: $.........................
Fresh Foody
BAL…………………
A/C XXXXX Signature……………………………………………………..
400595 062 795 956872

400595
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Reconciliation of daily sale
When operating a cash register, the reconciliation of daily sales assists you in maintaining the
end of day’s takings to balance. It allows you to record and identify the daily transactions, and
can be used in conjunction with the cash register tape as a cross reference when verifying any
discrepancies.
RECONCILIATION OF DAILY SALES Day: Date:
SALES
Takings per cash register tape $ Sales per Z-total 1 $XXXX
GST free sales
Input taxed sales
Taxable sales
Cash & Cheques in Cash
Register
Notes
Coins
Cheques Total cash & cheques 2 $XXXX
Other Sales
Credit Card
EFTPOS
Other Total other sales 3 $XXXX
Cash payments from cash register
Business purchases with GST
Business purchases with no GST
in the Price (including GST free)
Purchases for making input
taxed sales
Cash payments to workers
Private cash drawings Total outgoings $XXXX
Refund to customer (taxable)

Refund to customer (GST free) Total refunds
Total cash from cash 4 $XXXX

register = (Total outgoings
+ total refunds)
Beginning float 5 $XXXX
Additional float 6
TOTAL SALES 7 $XXXX
(=2+3+4-5-6)
Sales Reconciliation *Explanation

Cash register tape (Z-total) $XXXX
Less total Sales $XXXX
Variation (1 minus 7)*
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Petty Cash Voucher
Petty Cash vouchers are used when operating a petty cash system. When an item is
purchased, the receipt is exchanged for the cash, held by the petty cash cashier. The receipt is
attached to the petty cash voucher, and the details of the receipt are recorded on the
voucher. Both parties sign the voucher - the person requesting the reimbursement, and the
petty cash cashier authorising the transaction.
Date………………………….
Being for…………………………………………………………….
Amount (in words) ………………………….....................
…………………………………………………………………………….
Amount of GST………………………………
Total ………………………………..
Petty Cash Voucher No XX

Signature…………………….Authorised by…………………
Adjustment Note
Adjustment Notes are required to keep track of all credits or refunds issued. They record all
details of the adjustment, identifying the previous transaction, what error occurred, date,
name of claimant claiming the credit/refund, and the amount difference of the claim where
applicable. An adjustment note is also required when registered for GST and making GST
adjustments.
Reasons for using

Fresh Foody ADJUSTMENT NOTE NUMBER
ABN: 32 456 123 435
Adjustment Notes
XXXX
18 Saddle Rd can include:
Scoresby VIC 3179
Phone: 03 796 5555 Over payment of an
invoice
Date: 6 March 2016
Goods returned
To: Sandy Bay Corporates
Mellow Rd
Rowville VIC 3179 Over charged for
goods and services
PROD DESCRIPTION QTY UNIT GST TOTAL
CODE PRICE
SS10 Sushi Platter 1 100.00 10.00 110.00
Incorrect pricing
issued on invoice
Invoice issued twice
Refer invoice no: 7622
and 7625 dated
26/2/16
REFUNDED AMOUNT $110.00

TOTAL PRICE INCLUDING GST
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Bank Deposit Slip
Used to verify all money deposited into the bank, whether they are cheques,
Visa/MasterCard, notes and coins; banks usually issue deposit books when requested.
Deposit books are used to verify all deposits when cross checked against the cash receipts
book and the bank statement.
Peoples Bank DEPOSIT
For Credit of: Date:
ACCOUNT NUMBER: DEPOSITED BY:
BRANCH:
CHEQUE DETAILS: NOTE PROCEEDS OF CHEQUES ETC, WILL NOT BE MADE AVAILABLE
UNTIL CLEARED
DRAWER BANK BRANCH AMOUNT
BANK USE ONLY NOTES

COINS
VISA/MASTERCARD
TELLER STAMP CHEQUES
TOTAL
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Activity 1 - SOURCE DOCUMENTS
Using the example information documents to assist you, identify and insert the correct name
in the following documents.
Fresh Foody
ABN: 32 456 123 435
18 Saddle Rd
Scoresby VIC 3179
Phone: 03 796 5555
TO: Wholesome Foods

SHIP
234 Lee TO:
Rd
Port Melbourne VIC 3207
Date: 6 March 2016 Purchase Order: 4445
Qty Description Unit Amount

Price
5 ctns Assorted paleo goods 50.00 250.00
TOTAL 250.00
Authorising Signature I.Dea
Date: 1/3/16
Date 6/3/2016
To: Meat Boys P/L
Being for Postage For: Stock Inv # 7634
Amount (in words) Six dollars and sixty cents Amount: $ 222.00
Other: $20.18
Amount of GST $.60
BAL…………………
Total $ 6.60
400595
Signature S. Gallery Authorised by I.Dea
No 14
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Activity 2 - CASH RECEIPTS BOOK
Cash Receipts Book

Fresh Foody is a wholesome café, offering catering services to corporate clients, whom are
account customers, they receive invoices and have 30 days to pay (end of month). Fresh
Foody also offers over the counter sales for takeaway and sit down customers, for which they
use a cash register and reconcile the cash register daily. This requires them to use a
reconciliation of daily sales form to balance their daily takings. Fresh Foody has two streams
of income; account, and over the counter paying customers.
Fresh Foody has fallen behind in their bookkeeping and require the cash receipts book entries
to be up to date, so they can track the GST and monitor their business sales.
DATE DETAILS TOTAL GST SALE CAPITAL GST REFUNDS INTEREST BANK
Amount (excluding FREE &
the GST) SALES DIVIDENDS
 First - take the time to acquaint yourself with the cash receipts book
 Familiarise yourself with the headings
 They are identified according to the business activities (some businesses will have
additional headings, to separate different components of their income – eg sales, service
etc)
 Preparation of your paperwork is essential, before entering the transaction into the cash
receipts book
 All invoices and reconciliation of daily sales have the GST included in the information
documents; you will need to calculate the GST before entering the information into the
cash receipts book
 When the invoice indicates total price including GST, we simply divide the total amount of
the invoice by 11, eg: $260.00 ÷ 11 = $23.64 GST amount; you may find at this stage that
we also have to round up or down accordingly: when the last digit is 5 and up, we increase
the digit to the next digit up eg 23.636, rounded up 23.64 or when the last digit is 5 and
under we reduce the last digit to the next digit down eg: 23.634, rounded down 23.63 (see
first invoice in the activity to verify amount in example). Having established the GST $,
subtract from the Total $ to get the excluding GST $ amount. Eg - $23.64 – $260.00 =
$236.36
 Reconciliation of daily sales also has the GST included in the sale, and will require you to
calculate the GST amount. This is done exactly the same way as the invoice.
 On the left side of the Reconciliation of Daily Sales (RDS), the words Taxable Sales appear;
divide the taxable sales $ amount by 11 to calculate the GST $ amount (see the first
Reconciliation of Daily Sales to verify the amount in example), you may find at this stage
that we also have to round up or down accordingly: when the last digit is 5 and up, we
increase the digit to the next digit up eg 94.536, rounded up 94.54 or when the last digit is
5 and under we reduce the last digit to the next digit down eg: 94.543, rounded down
94.94 eg: $1039.90 ÷ 11 = $94.54, once established the GST $ subtract from the Taxable
Sale $ to get the excluding GST $ amount e.g.: $94.54 – $1039.90 = $945.36
 For all tax invoices and reconciliation of daily sales sheets, record the GST amount on each
document, ready to transfer into the ‘cash receipts book’
100
When recording each transaction into the ‘cash receipts book’, the basic steps involved are
according to the corresponding numbers indicated at the top of the ‘cash book’ and the steps
below:
1. Date: identified on invoice
2. Details: customer name or the name of the form where the information is recorded.
Eg: RDS (Reconciliation of Daily Sales)
3. Total: total amount invoiced or taxable amount on RDS
4. GST: Amount of GST (calculated by you)
5. Sale (excluding the GST): amount with GST deducted from total
6. 7. 8. 9. - if applicable
10. Bank: carrying the total across to balance
 Once all transactions are entered, add all columns down and across to balance
 Should your book not balance, cross check each transaction to identify the
discrepancy, and when identified, make the adjustment accordingly.
TAX INVOICE NUMBER 3535

Fresh Foody
ABN: 32 456 123 435
18 Saddle Rd
Scoresby VIC 3179
Phone: 03 796 5555
Date: 04 March 2016
To: Can Do P/L

Narbo Rd
Wantirna VIC 3152
PROD DESCRIPTION QTY UNIT TOTAL
CODE PRICE
SS15 Corporate Luncheon 1 260.00 $260.00
TOTAL PRICE INCLUDING GST $260.00
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Activity 3 - CASH PAYMENTS BOOK
Cash Payments Book
The Cash Payment Book records all the expenses paid out from the business; take the time to
familiarise yourself with the headings from the cash payments book (as displayed below).
DATE DETAILS CHEQUE TOTAL AMOUNT STOCK UTILITIES MOTOR RENT SUNDRY BANK
NO AMOUNT OF GST
There are many expenses in the day to day running of a business and the easiest way to do this is to
group them into categories. Each receipt is recorded individually and the $ amount is entered,
according to the categories identified, eg all motor expenses are entered into the motor column, all
gas/electricity/water entered into the utilities, all stock into the stock column, etc.
The steps involved in recording these can include:
 Sort and prepare all transactions, preferably in date order when entering on a weekly basis
 All internet transactions should be cross checked against your bank statement, verifying that
payments have been made and entered into the cash payments book (if applicable)
 When using a cash register, and a cash payment is made from the register, you will need to
record this in the reconciliation of daily sales (RDS) and then transfer the information from
the receipt into the cash payments book (you will enter these in the next step)
Recording Cash from the RDS:
(1) Date RDS was completed
(2) Details of payment ie: wages/drawings/stock
(3) RDS (identifying where the cash payment was drawn from)
(4) Total $ Amount from RDS Section 4 - Total cash from cash register (= Total outgoings +
total refunds)
(5) Amount of GST (if Applicable) - No GST on Wages or Drawings
(6 – 12) enter $ amounts, excluding GST and GST free into specific category (if applicable,
and when multiple transactions are presented in one payment, they should be identified
separately using the same line, identifying each payment according to the specific category)
Note: When wages are identified they should also be recorded in your wages record
keeping book for cross referencing and to maintain all relevant records for the ATO
(13) Banking (same as total amount)
 Where utilising cheques, all information from the cheque butts are to be entered according
to the following sequence of steps:
Recording Cheques:
(1) Date (according to the date recorded)
(2) Name of supplier
(3) Cheque number
(4) Total $ Amount of payment
(5) Amount of GST (if applicable)
(6 – 12) enter $ amounts, excluding GST and GST free into specific category (if applicable,
and when multiple transactions are presented in one payment, they should be identified
separately using the same line, identifying each payment according to the specific category)
(13) Banking (same as total amount)
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 Once all transactions (RDS and Cheques Transactions) are entered into the ‘cash payments
book’, we need to cross check each entry; we do this by ticking each entry in the cash book
and on the bank statement, verifying each transaction is correct according to the bank and
our cash book entries.
 Cross checking assists in identifying any discrepancies queries or unusual features, these
being: data entry errors or bank errors, bank fees and charges, incorrect deposits from
clients. Once identified, the discrepancy, query or unusual feature should be acted upon
immediately, making the adjustments where possible and notifying others eg bank,
bookkeeper, or the person who will be affected by the error.
 Now we are ready to add all $ amounts down and across, verifying that all totals balance.
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108
Date 15/3/16 Date 16/3/16 Date 17/3/16
To Meat Boys P/L To Salad Girls P/L To I.T. Repair Com P/L
For: Stock Inv # 7634 For: Stock Inv # 999 For: Sundry
Amount: $ 220.00 Amount: $ 325.00 Amount: $ 330.00
Other: $20.00 GST Other: GST Free Other: $30.00 GST
BAL………………… BAL………………… BAL…………………
400595 400596 400597
Date 18/3/16 Date 18/3/16 Date 21/3/16

To Tyre World To Great Accounting P/L To Gas Supply
For: New tyres for work For: Book keeper monthly For: Gas bill for month of
car fee Feb 2016
Other: $50.00 GST Other: $20.00 GST Other: $60.00 GST
BAL………………… BAL………………… BAL…………………
400598 400599 400600
Date 23/3/16 Date 25/3/16 Date 27/3/16

To Organic Juicy To Organic Chook To Luscious Cakes
For: Stock Inv # 255 For: Stock Inv # 8444 For: Stock Inv # 123
Other: $40.00 GST Other: GST Free Other: $10.00 GST
BAL………………… BAL………………… BAL…………………
400601 400602 400603
109
Activity 4
CREDITORS AND DEBTORS RECORDS KEEPING
Assume it is 31 March 2016, and Fresh Foody requires their Creditors’ and Debtors’ record keeping
system to be up dated. The financial data is required to be rolled over (finalised) for the month, to
ensure they stay on track with all their accounts, in order to ensure adequate cash flow. This will
require each invoice to be recorded and placed in the column according to the month they are dated.
To enable this to take place, we need to age the invoices; this is where we identify the shortest
outstanding to longest outstanding invoice. The table below represents a guide for aging: Current, 30
Days, 60 Days, 90+ Days. The accounts need to be sorted into months according to the month they
were invoiced.
The table listing represents a guide for the Aging Process:
Current Invoices dated within the current month

30 DAYS Amounts outstanding after 30 days of invoice issued
60 DAYS Amounts outstanding after 60 days of invoice issued
90+ DAYS Amounts outstanding after 90+ days of invoice issued
By aging the invoices, Fresh Foody can identify where their accounts payable and accounts receivable
are situated month by month. Then the business owner or accounts department can follow up any
outstanding debts (accounts receivable), focusing on the longest outstanding debts first (90+ Days)
and working backwards to shortest outstanding debts, for collection purposes.
Record the following unpaid invoices for
 Credit Sales
 Credit Purchases
A tip: when recording Credit Sales and Credit Purchases, for this activity, remember the closing of the
month is 31 March 2016. Enter the name of each month above the Aged headings: current being
March, 30 days being February, 60 days being January, 90+ days being December; this allows you to
enter the details efficiently and effectively.
The steps to complete would include:
1. Enter the Account Details: customer/supplier name
2. Enter the invoice number
3. Enter the total $ amount into the Aged month it was invoiced
4. Once completed entering each invoice, add each column down to total
5. Add each total of: current, 30 days, 60 days, 90+ days across, and cross check the total column
to balance
110
111
112
CREDIT SALES
AGED RECEIVABLES
Invoice Current 30 Days 60 Days 90+ Days Total
Customer Name
Number $ $ $ $ $
TOTAL
113
114
CREDIT PURCHASES
AGED PAYABLES
Invoice Current 30 Days 60 Days 90+ Days Total
Supplier Name
Number $ $ $ $ $
TOTAL
115
Activity 5 - BANK RECONCILIATION
A bank reconciliation should be done monthly, as it ensures your Cash Books are aligned with your
bank statement. All transactions which appear in your bank statement or cash book(s) can be
identified and cross checked, alerting you of any discrepancies or unusual features which may
appear. By undertaking this, you can trace back and investigate further where required, making any
queries and adjustments to maintain an accurate cash balance.
Completing the Bank Reconciliation Activity will allow you to gain a further understanding of this
process. The steps involved are as follows:
 Access and print a Bank Statement, usually at the end of the month you wish to reconcile.
 Ensure all transactions have been entered into the Cash Receipts book and Cash Payments
book – closed off, at the same date as the bank statement.
 Match each transaction against the bank statement and Cash Books, as you attempt this,
placing a tick √ next to each matched $ amount in the bank statement and the Cash Book.
Verifying the amounts both match will keep you on track and allow you to identify any
discrepancies or unusual features.
 If any unusual features are found, such as bank fees, account keeping fees, bank interest or
incorrect bank entries, make the necessary adjustments into your cash books, before starting
your bank reconciliation – eg bank fees identified on the bank statement would need to be
entered into the cash payment book.
Now you are ready to start entering the information into your bank reconciliation
 Follow the stages from a – g in the Bank Reconciliation Sheet and you should successfully
complete your bank reconciliation to balance.
 If there are still discrepancies, unusual features or queries, you will need to cross check your
entries again and possibly contact the bank regarding any queries which are irreconcilable.
116
Peoples Bank
Bank Statement
Account Name Branch Name & Address
Mr Sam Adel Business Centre

Trading as Fresh Foody 125 Bourke St
18 Saddle Rd Melbourne VIC 3000
Scoresby VIC 3179 Business Service Team 13 15 18
Account Details
BSB: 056 432
Account Number: 8764537
ACCOUNT SUMARY
Opening Balance +$15,852.60
Total Credits +$ 6987.80
Total Debits -$ 5979.05
Closing Balance +$16861.35
Details of your Account for period from 01 March 2016 to 31 March

2016
Date Description Debit Credit Balance

2016
01 Mar Statement Opening Balance 15852.60
05 Mar Deposit 1657.00 17509.60
08 Mar Auto Bits Chq 400585 450.00 17059.60
09 Mar Food Fair Chq 400586 620.00 16439.60
14 Mar Deposit 865.50 17305.10
16 Mar Simply Energy Chq 400587 826.75 16478.35
20 Mar Deposit 2600.00 19078.35
22 Mar Sands Real Estate Chq 400588 3500.00 15578.35
26 Mar Deposit 1865.30 17443.65
28 Mar Bank Fees 10.00 17433.65
29 Mar Pure Nuts P/L Chq 400589 446.30 16987.35
30 Mar Transaction Fee 4.00 16983.35
31 Mar Chefs Tools P/L Chq 400590 122.00 16861.35
Statement Number 25 Page Number 1 of 1
117
Cash Payment book
1 2 3 4 5 6 7 8 9 10 11
DATE DETAILS CHEQUE AMOUNT STOCK UTILITIES MOTOR RENT EQUIP BANK FEE BANK
NO OF GST
08/03/16 AUTO BITS P/L 400585 40.90 409.10 450.00
09/03/16 FOOD FAIR P/L 400586 56.36 563.64 620.00

SIMPLY ENERGY
16/03/16 400587 75.15 751.60 826.75
SANDS REAL
22/03/16 ESTATE 400588 318.18 3181.82 3500.00
PURE NUTS P/L
29/03/16 400589 40.57 405.73 446.30
CHEFS TOOLS
30/03/16 P/L 400590 11.09 110.91 122.00
TOTAL 542.25 969.37 751.60 409.10 3181.82 110.91 5965.05
Cash Receipts Book

1 2 3 4 5 6 7 8 9 10
DATE DETAILS TOTAL GST SALE CAPITAL GST FREE REFUNDS INTEREST & BANK
Amount (excluding SALES DIVIDENDS
the GST)
05/03/16 CAN DO P/L 1657.00 150.63 1506.37 1657.00
14/03/16 ABLE P/L 865.50 78.68 786.82 865.50
20/03/16 CASH SALE 2600.00 236.36 2363.64 2600.00
29/03/16 CEDAR & ASSOC 1865.30 169.57 1695.73 1865.30
TOTAL 6987.80 635.24 6352.56 6987.80
118
Bank Reconciliation As at………………..
(a) Opening Bank Balance as per Bank Statement $
(b) Add Deposits $

(Bank Column Total in Cash Receipts Book)
A + B Total $
(c) Less Payment $

(Bank Column Total in Cash Payments Book)
C – A + B Total $
(d) Balance as per Closing Bank Statement

$
(e) Add Outstanding Deposits (if any)

$
(f) Less Unpresented Cheques (if any) $

Cheque no……………………..
Cheque no……………………..
(g) Add Other items $
Add D+E-F+G Closing Cash Balance as per Total $
119
Activity 6 - BUSINESS ACTIVITY STATEMENT
CALCULATION GST FOR THE BAS
Please Note:
All information contained in this activity is assumed and not from a real business.
When attempting your first BAS it is recommended you check with your financial
advisors or the ATO prior to submitting.
Whilst attempting this activity please be aware, there are sections on the BAS form
you will not be required to answer, you only have the resources issued in the
activity to gain your information from.
Ultimately the BAS is a standard form and maintaining a record keeping system will
assist you in completing your BAS.
All information contained within the following document corresponds with the BAS
Use this sheet as a guide to calculate the GST, PAYG Tax Withheld and Summary
Sections and then transfer your calculations over to the pre-printed BAS.
Specific Instructions for BAS Completion:
 Note all instructions outlined in section on top of the BAS to ensure

correct completion ‘When completing this form’ – ie print clearly using a
black pen
 Page 1 choose ‘Option 1 – Calculate GST and Report Quarterly’.
 Page 2 complete section ‘PAYG Tax Withheld’. No need to complete
either option for ‘PAYG Income Tax Instalment’
120
Corresponding
Item Label on BAS Label Number $ Explanation/Instructions
on BAS
Cash Receipts book, Total Amount
Total sales G1 Column Total
Cash Receipts book, total for
Export sales G2 quarterly period Exports column
total (required if business deals in
Exports) if applicable
Cash Receipts book, total for
Other GST-free sales G3 quarterly period GST free sales
column
Cash Payment book, total for
Capital purchases G10 quarterly period. Equip purchased
(including GST)
Non capital purchases Cash Payment book, all other
G11 expenses, (including GST) for
quarterly period
Total salary, wages & Employee Wages Record Keeping
other payments W1 System, total Gross Payment
column
Amounts withheld from Employee Wages Record Keeping
payments shown at W1 W2 System, total tax-withheld from
wages column
Amounts withheld from Total amount withheld from ABN
where no ABN is quoted W4 withholding summary
(if applicable)
Other amounts withheld Interest, Dividends, Unit Trusts,
(excluding any amount W3 investment distributions – for non-
shown at W2 or W4) resident’s and non-suppliers of Tax
File Number (if applicable)
Total Amounts withheld Write the W5 Amount at 4 in the
(W2 + W4 + W3) W5 summary section below
SUMMARY
AMOUNTS YOU OWE THE ATO
GST on Sales or GST Cash Receipts book, total quarterly
Instalments 1A period GST amount column
PAYG Tax withheld 4 $ amount from W5
PAYG Income Tax Commissioner instalment rate (%) per

Instalment 5A ATO if applicable
Deferred Company/Fund 7 If applicable

Instalment
1A + 4 + 5A + 7 = 8A
121
AMOUNTS THE ATO OWES YOU
GST on purchases 1B Cash Payment book, total quarterly

period, Amount of GST
Credit from PAYG income 5B If applicable

tax installment variation
1B + 5B = 8B
PAYMENT OR REFUND?
Is 8A more than 8B?
9 Calculate your BAS totals for
Write the results of 8A Payment or Refund
minus 8B
122
Cash Receipts Book
Name of Business: Sophies Fine Ceramics
Period Jan-March 2020
1 2 3 4 5 6 7 8 9 10
SALE
AMOUNT OF GST FREE Amount
DATE DETAILS Total Amount (excluding the CAPITAL REFUNDS INTEREST
GST SALES Banked
GST)
1/01/2020 St Kilda Market $ 1,100.00 $ 100.00 $ 1,000.00 $ 1,100.00
2/01/2020 Carlton Art Gallery $ 1,540.00 $ 140.00 $ 1,400.00 $ 1,540.00
3/01/2020 Rose Street Market $ 220.00 $ 20.00 $ 200.00 $ 220.00
4/01/2020 Online Sale $ 165.00 $ 15.00 $ 150.00 $ 165.00
1/02/2020 Online Sale $ 165.00 $ 15.00 $ 150.00 $ 165.00
2/02/2020 Online Sale $ 165.00 $ 15.00 $ 150.00 $ 165.00
3/02/2020 Online Sale $ 165.00 $ 15.00 $ 150.00 $ 165.00
4/02/2020 St Kilda Market $ 1,320.00 $ 120.00 $ 1,200.00 $ 1,320.00
2/03/2020 Chapel St Gallery $ 1,650.00 $ 150.00 $ 1,500.00 $ 1,650.00
4/03/2020 St Kilda Market $ 770.00 $ 70.00 $ 700.00 $ 770.00
TOTAL $ 8,690.00 $ 790.00 $ 7,900.00 $ - $ - $ - $ - $ 8,690.00
123
Cash Payment Book
Name of Business: Sophies Fine Ceramics
Period Jan-March 2020
1 2 3 4 5 6 7 8 9 10 11
CHEQUE /
AMOUNT OF Motor Vehicle Equipment Amount
DATE DETAILS REFERENCE Total Amount STOCK Market Fees Rent - Studio Sundry
GST Expenses Purchases Banked
NO
1/01/2020 Market Fees 400585 $ 220.00 $ 20.00 $ 200.00 $ 220.00
2/01/2020 Rent - Studio 400586 $ 330.00 $ 30.00 $ 300.00 $ 330.00
3/01/2020 Market Fees 400587 $ 110.00 $ 10.00 $ 100.00 $ 110.00
Apple Store -
4/01/2020 400588 $ 2,200.00 $ 200.00 $ 2,000.00 $ 2,200.00
Laptop
5/01/2020 BP - St Kilda Credit Card $ 50.00 $ 4.55 $ 45.50 $ 50.05
1/02/2020 Art Store Online 400589 $ 1,650.00 $ 150.00 $ 1,500.00 $ 1,650.00
2/02/2020 Rent - Studio 400590 $ 330.00 $ 30.00 $ 300.00 $ 330.00
3/02/2020 Officeworks 400591 $ 28.00 $ 2.55 $ 25.45 $ 28.00
4/02/2020 Market Fees 400592 $ 220.00 $ 20.00 $ 200.00 $ 220.00
5/02/2020 Caltex - Brunswick Credit Card $ 50.00 $ 4.55 $ 45.50 $ 50.05
1/03/2020 Market Fees 400593 $ 110.00 $ 10.00 $ 100.00 $ 110.00
2/03/2020 Rent - Studio 400594 $ 330.00 $ 30.00 $ 300.00 $ 330.00
3/03/2020 Market Fees 400595 $ 110.00 $ 10.00 $ 100.00 $ 110.00
4/03/2020 Market Fees 400596 $ 220.00 $ 20.00 $ 200.00 $ 220.00
5/03/2020 Caltex - Brunswick Credit Card $ 50.00 $ 4.55 $ 45.50 $ 50.05
TOTAL $ 6,008.00 $ 546.18 $ 1,500.00 $ 900.00 $ 136.50 $ 900.00 $ 2,000.00 $ 25.45 $ 6,008.13
124
EMPLOYEE WAGES RECORD KEEPING SYSTEM
Employee Full
James Salesman
Name
Employee Address 50 Blackwood Road Brunswick Vic 3056
Employee Contact
Home: 03 8888 5555 Mobile: 0408 888 555
Details
Tax File Number 123-567-942
Hourly End
$28.00 Overtime Rate $42.00 Start Date 2/02/2014
Rate Date
TAX WITHHELD FROM SUPERANUATION WORK

OTHER DEDUCTIONS
NORMAL EARNING TOTAL OVERTIME TOTAL ALLOWANCES GROSS PAYMENT WAGES /OTHER NET PAYMENTS
(CHILD SUPPORT) -9.50% COVER
PAYMENTS
Date Amount Amount
Month Hours Rate Hour Rate
$ c $ c $ c $ c $ c $ c $ c $ c $ c
Ending
31/01/2020 24 $ 28 $ 672 0 $ 672 0 $ 150 0 $ 522 0 $ 64 0
29/02/2020 24 $ 28 $ 672 0 $ 672 0 $ 150 0 $ 522 0 $ 64 0
31/03/2020 24 $ 28 $ 672 0 $ 672 0 $ 150 0 $ 522 0 $ 64 0
QTLY
$ 2,016 0 $ 2,016 0 $ 450 0 $ 1,566 0 $ 192 0
TOTAL
125
A
Office use only
41890314
Business activity
statement
Document ID
ABN
Form due on
When completing this form:
n print clearly using a black pen Payment due on
n round down to whole dollars (do not show cents) GST accounting method
n if reporting a zero amount, print ‘0’ (do not use NIL)
n leave boxes blank if not applicable (do not use N/A, NIL) Contact phone number
n do not report negative figures or use symbols such as +, −, /, $. Authorised contact person
who completed the form
Goods and services tax (GST)
Complete Option 1 OR 2 OR 3 (indicate one choice with an X)
Option 1: Calculate GST and report quarterly Option 2: Calculate GST quarterly and report annually
Total sales OR Total sales
(G1 requires 1A completed) G1 $ , , .00 (G1 requires 1A completed) G1 $ , , .00
Does the amount shown
Does the amount shown at G1 include GST? Yes No
at G1 include GST? Yes No (indicate with X)
(indicate with X)
Report GST on sales at 1A and GST on purchases at 1B
in the Summary section over the page
Export sales G2 $ , , .00
Option 3: Pay GST instalment amount quarterly

Other GST-free sales G3 $ , , .00 OR
.00 G21 $
Capital purchases G10 $ , ,
Write the G21 amount at 1A in the Summary section over the page
.00 (leave 1B blank)
Non-capital purchases G11 $ , ,
OR if varying this amount, complete G22, G23, G24
Report GST on sales at 1A and GST on purchases at 1B
in the Summary section over the page Estimated net G22 $ .00
GST for the year , ,
Varied amount payable .00

for the quarter G23 $ , ,
Write the G23 amount at 1A in the Summary section over the page
(leave 1B blank)
Reason code for variation G24
NAT 4189-03.2014 [JS 29398]
METHODS OF PAYMENT
BPAY® Credit card
Contact your financial institution to make this payment from Payments can be made online or by phone, visit our
your cheque or savings account. You will need the details website at ato.gov.au/howtopay or phone 1300 898 089.
listed below. A card‑payment fee applies.
Biller Code: 75556

Reference: Your EFT code (shown on the front Other payment options
of your payment slip directly above the barcode) For more information about other payment options, you can:
n visit our website at ato.gov.au/howtopay
n phone us on 1800 815 886.
Payments cannot be made in person at any of our branches

or shopfronts.
126
PAYG tax withheld PAYG income tax instalment
Total salary, wages and

Complete Option 1 OR 2 (indicate one choice with X)
other payments W1 $ , , .00
Option 1: Pay a PAYG instalment amount quarterly
Amount withheld from W2 $ .00

payments shown at W1 , , T7 $
Write the T7 amount at 5A in the Summary section below
Amount withheld where OR if varying this amount, complete T8, T9, T4
no ABN is quoted W4 $ , , .00
Estimated tax for the year T8 $ , , .00
Other amounts withheld
(excluding any amount W3 $ , , .00 Varied amount payable
shown at W2 or W4) for the quarter T9 $ , , .00
Total amounts withheld
(W2 + W4 + W3) W5 $ , , .00 Reason code for variation T4
Write the W5 amount at 4 in the Summary section below OR
Option 2: Calculate PAYG instalment using income times rate
Reason for varying (G24 & T4) Code Obligation PAYG instalment income T1 $ , , .00
Change in investments 21 PAYG only
Current business structure not continuing 22 GST & PAYG T2 %
Significant change in trading conditions 23 GST & PAYG OR
Internal business restructure 24 GST & PAYG New varied rate T3 . %
Change in legislation or product mix 25 GST & PAYG
Financial market changes 26 GST & PAYG T1 x T2 (or x T3) T11 $ , , .00
Use of income tax losses 27 PAYG only
Reason code for variation T4

Summary
Amounts you owe the ATO Amounts the ATO owes you
GST on sales
or GST instalment 1A $ , , .00 GST on purchases 1B $ , , .00
Do not complete 1B if using GST instalment amount (Option 3)
PAYG tax withheld 4 $ , , .00
.00 Credit from PAYG income tax .00

PAYG income tax instalment 5A $ , , instalment variation 5B $ , ,
Deferred company/fund 7 $ .00
instalment , ,
1A + 4 + 5A + 7 8A $ , , .00 1B + 5B 8B $ , , .00
Payment or refund?
Yes,
then write the result of 8A minus 8B at 9. This amount is Your payment or refund amount
Is 8A more than 8B? payable to the ATO.
(indicate with X) 9 $ , , .00
then write the result of 8B minus 8A at 9. This amount is
No, Do not use symbols such as +, –, /, $
refundable to you (or offset against any other tax debt you have).
Declaration I declare that the information given on this form is true and correct, and that Return this completed form to HRS MINS
I am authorised to make this declaration. The tax invoice requirements have been met.
Estimate the time taken to complete
this form. Include the time taken to
Signature Date / / collect any information.
T axation laws authorise the ATO to collect information including personal information about individuals who may complete this form. For information about privacy and
personal information go to ato.gov.au/privacy. Activity statement instructions are available from ato.gov.au or can be ordered by phoning 13 28 66.
127
GST calculation worksheet for BAS Tax period
(If you want to use the calculation sheet method to
work out GST amounts) Name
Do not lodge the calculation sheet with your BAS Show amounts
We recommend you file it with a copy of the BAS to which it relates at these labels
on your BAS
GST amounts you owe the Tax Office from sales
G1 Total sales (including any GST) G1 $ .00 G1 on the BAS
G2 Export sales G2 $ .00 G2 on the BAS
G3 Other GST-free sales G3 $ .00 G3 on the BAS
G4 Input taxed sales G4 $ .00
G5 G2 + G3 + G4 G5 $ .00
G6 Total sales subject to GST

(G1 minus G5) G6 $ .00
G7 Adjustments (if applicable) G7 $ .00
G8 Total sales subject to GST after adjustments

(G6 + G7) G8 $ .00
1A in the
G9 GST on sales (G8 divided by eleven) Summary section
G9 $ .00 of the BAS
GST amounts the Tax Office owes you from purchases
G10 Capital purchases G10 on the BAS

(including any GST) G10 $ .00
G11 Non-capital purchases G11 on the BAS

(including any GST) G11 $ .00
G12 G10 + G11 G12 $ .00
G13 Purchases for making input taxed sales G13 $ .00
G14 Purchases without GST in the price G14 $ .00
Estimated purchases for private use

G15
or not income tax deductible G15 $ .00
G16 G13 + G14 + G15 G16 $ .00
Total purchases subject to GST

G17
(G12 minus G16) G17 $ .00
G18 Adjustments (if applicable) G18 $ .00
G19 Total purchases subject to GST after G19 $ .00

adjustments (G17 + G18) 1B in the
Summary section
G20 GST on purchases (G19 divided by eleven) G20 $ .00 of the BAS
Now go to the GST section on the front of the BAS and follow the instructions on
the form. You will need to transfer amounts from this calculation sheet to the BAS.
NAT 4203-4.2004 128

Activity 7 - NEIS INCOME STATEMENT
Using the sample cash flow budget for Fresh Foody, complete the BUDGETED Income, Expenses and
Balance on the NEIS Income Statement Form for the March 2016 quarter (1 January 2016 - 31 March
2016).
Using the information compiled in your cashbook for activities 2 and 3. Complete the ACTUAL Income,
Expenses and Balance for the March quarter (1 Jan 2016 to 31 March 2016) in the NEIS Income Statement
Form- assume the data is for 3 full months.
129
CASHFLOW BUDGET Fresh Foody
Receipts Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Totals
Total Sales $ 2,300 $ 2,524 $ 2,608 $ 2,861 $ 2,945 $ 3,001 $ 3,266 $ 3,462 $ 3,618 $ 3,978 $ 4,990 $ 6,110 $ 41,663
Loans $ $ $ $ $ $ $ $ $ $ $ $ $
Capital input $ 1,000 $ 1,000
Total Cash Receipts $ 3,300 $ 2,524 $ 2,608 $ 2,861 $ 2,945 $ 3,001 $ 3,266 $ 3,462 $ 3,618 $ 3,978 $ 4,990 $ 6,110 $ 42,663
GST Collected $ 209 $ 229 $ 237 $ 260 $ 268 $ 273 $ 297 $ 315 $ 329 $ 362 $ 454 $ 555 $ 3,788
Variable Cash-out
Variable cash-out $ 941 $ 1,031 $ 1,065 $ 1,169 $ 1,203 $ 1,225 $ 1,334 $ 1,416 $ 1,478 $ 1,626 $ 2,042 $ 2,500 $ 17,030
GST Paid on Variable Cash-out $ 86 $ 94 $ 97 $ 106 $ 109 $ 111 $ 121 $ 129 $ 134 $ 148 $ 186 $ 227 $ 1,548
Cash Contribution from Receipts $ 2,235 $ 1,357 $ 1,403 $ 1,538 $ 1,584 $ 1,615 $ 1,756 $ 1,860 $ 1,945 $ 2,138 $ 2,680 $ 3,282 $ 23,394
Overhead cash-out (inc GST)

Accountant, Bookkeeper $ 300 $ 300
Advertising & Promotion $ 750 $ 280 $ 380 $ 80 $ 80 $ 280 $ 80 $ 80 $ 80 $ 530 $ 80 $ 80 $ 2,780
Car Insurance $ 350 $ 350
Car Registration $ 400 $ 400
Petrol & Servicing $ 175 $ 175 $ 175 $ 175 $ 275 $ 175 $ 175 $ 175 $ 175 $ 175 $ 275 $ 175 $ 2,300
Fees & Licences $
Post, Printing,Stationery $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 120
Telephone (Fixed Line) $ 120 $ 120 $ 120 $ 120 $ 120 $ 120 $ 120 $ 120 $ 120 $ 120 $ 120 $ 120 $ 1,440
Internet / Web Hosting $ 45 $ 45 $ 45 $ 45 $ 45 $ 45 $ 45 $ 45 $ 45 $ 45 $ 45 $ 45 $ 540
Mobile $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 385
Bank Charges $5 $5 $5 $5 $5 $8 $8 $8 $ 10 $ 10 $ 10 $ 10 $ 89
Gross Wages (of employees) $
Super Expense (of employees) $
Drawings (Sole Trader only) $ $ $ $ $ 300 $ 300 $ 300 $ 500 $ 500 $ 500 $ 700 $ 700 $ 3,800
Owner's net salary (Co. Only) $ $ $ $ $ $ $ $ $ $ $ $ $
Tax expense of owner's salary $ $ $ $ $ $ $ $ $ $ $ $ $
Super expense, owner's salary $ $ $ $ $ $ $ $ $ $ $ $ $
Total Overhead Cash out $ 1,140 $ 670 $ 1,520 $ 470 $ 870 $ 973 $ 773 $ 1,273 $ 975 $ 1,425 $ 1,275 $ 1,140 $ 12,504
Other Cash Out
NAB $ $ $ $ $ $ $ $ $ $ $ $ $
Insurance Public Liability $ 800 $ 800
Total Other Cash Out $ 800 $ $ $ $ $ $ $ $ $ $ $ $ 800
Total Operational Cash-outs $ 2,881 $ 1,701 $ 2,585 $ 1,639 $ 2,073 $ 2,198 $ 2,107 $ 2,689 $ 2,453 $ 3,051 $ 3,317 $ 3,640 $ 30,334
GST on Total Expenses $ 261 $ 154 $ 235 $ 149 $ 161 $ 172 $ 164 $ 198 $ 177 $ 231 $ 237 $ 266 $ 2,404
GST Assets Purchased $ $ $ $ $ $ $ $ $ 150 $ $ $ $ 150
Quarterly GST Remitted ATO $ $ $ $ 25 $ $ $ 320 $ $ $ 252 $ $ $ 597
Assets Bought, Bonds $ $ $ $ $ $ $ $ $ 1,650 $ $ $ $ 1,650
Provision/payment - Income Tax $
Total Cash Out $ 2,881 $ 1,701 $ 2,585 $ 1,664 $ 2,073 $ 2,198 $ 2,427 $ 2,689 $ 4,103 $ 3,303 $ 3,317 $ 3,640 $ 32,581
Net Cash In/Out for Month $ 419 $ 823 $ 23 $ 1,197 $ 872 $ 803 $ 839 $ 773 -$ 485 $ 675 $ 1,673 $ 2,470 $ 10,082
Opening Balance $ 419 $ 1,242 $ 1,265 $ 2,462 $ 3,334 $ 4,137 $ 4,976 $ 5,749 $ 5,264 $ 5,939 $ 7,612 $
Running Balance $ 419 $ 1,242 $ 1,265 $ 2,462 $ 3,334 $ 4,137 $ 4,976 $ 5,749 $ 5,264 $ 5,939 $ 7,612 $ 10,082 $ 10,082
130
NEIS Income Statement Form—page 2 of 2
Your details Cashflow summary

1 Your Job Seeker ID 9
BUDGET ACTUAL
(as per NEIS Business Plan)
2 Your NEIS Participant Agreement ID
A. INCOME
B. EXPENSES
3 Your full name
C. BALANCE
4 Your daytime contact phone number
D. DEBTORS ($ OWED TO YOU)
( )
E. CREDITORS ($ YOU OWE)
Your external income

NEIS Business Mentoring visit
5 Did you receive any income external to your NEIS Business
(excluding NEIS business income, NEIS Allowance, NEIS 10 Have you had a visit from your NEIS Business Mentor
Rental Assistance, Department of Human Services (DHS) this Financial Quarter?
or DVA Allowances/Pensions, and your partner’s income) Yes No
for this period? Do not include income you may have
received before commencing NEIS Assistance. 11 Number of people working in your NEIS Business
(including yourself )?
( appropriate box) No Yes
Full-time Part-time
If YES, give amount of gross income
6 Source of income Declaration
I certify that the information supplied on this form is complete and
correct to the best of my knowledge. I acknowledge that false
information will lead to termination of NEIS Assistance and where
Business income summary applicable, NEIS Allowance and action to recover any payment
Financial period being assessed falsely obtained will be instigated.
If you are completing this form electronically please print the
7 Quarter from (dd/mm/yyyy)
completed form, sign in the provided signature block and send
to to your NEIS provider. If you are unable to sign due to
a disability, please complete all required fields, mark the signature
8 Quarter number ( appropriate box)
block with the words “unable to sign” and email it to your NEIS
First Second Third Fourth provider. They will contact you to confirm alternative signature
arrangements based on your circumstances.
Additional Holmesglen Questions Signature
1. If relevant, indicate the value of any Stock on Hand

$
2. Do you have current business insurance as per your Date (dd/mm/yyyy)
Business Plan? Yes No
3. Are you operating your business according to your NEIs Send this form to your NEIS provider and make a copy
business plan? Yes No for your records.
4. Have you undertaken Marketing activities as per your
This form is to be emailed or faxed to the NEIS Office,
Business Plan? Yes No together with your proof of insurance (unless paying
5. Have any of your business details changed? monthly):
Email: neis@holmesglen.edu.au or Fax: 03 9209 5626
Yes No If yes, please provide details:________
_____________________________________________
NEIS Office Only - 2nd & 3rd Quarter only
6. Have any of your personal contact details changed
(phone, email, address)? Yes No Volunteer
If yes, please provide details:_____________________ Is the Business Viable: YES NO
_____________________________________________ Recommend Follow Up: mentor/other YES
7. Was your mentor session beneficial? Yes No Area Manager Signature:________________________________
Comments: ___________________________________ Date: ___________________
_____________________________________________
131
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NEIS Program

NEIS Business Plan Template

NEIS Business Plan Template

Analysis of market research questionnaire

NEIS Business Plan Template

Proof of Australian Business Number (ABN)

Proof of Registration of Business Name

NEIS Business Plan Template

Collating your business plan

NEIS Business Plan Template

1.2 Background to Business

Summarise keys aspects of your background which

(approx 50 - 100 words)

1.3 Target Market

NEIS Business Plan Template

Cash year end Yr1 $ Yr2 $

Profit for NEIS Yr1 $ Yr2 $

1.5 Key Success Factors

(50 - 150 words)

NEIS Business Plan Template

Each year must include a financial and marketing objective

3. Operational Objective / Other 1.

NEIS Business Plan Template

2.3 Legal Issues

2.3.1 Government Regulations

NEIS Business Plan Template

Local Laws Insert relevant council name

Local Regulations What aspects will you need to comply with?

Only include those that are relevant

health and safety/food handling

NEIS Business Plan Template

Only include those that are relevant, if any.

2.3.2 Taxation and Business Structure Obligations

Legal and Tax Obligations

GST registration: ☐ YES ☐ NO

PAYG (you/employees): ☐ YES ☐ NO Detail requirements:

Tax return Detail requirements related to this submission:

Maintenance of Taxation Records Number of years held:

NEIS Business Plan Template

Terms and Conditions

2.3.4 Licenses, Permits, Registrations and Special Requirements

NEIS Business Plan Template

Business Insurance: https://www.business.gov.au/Risk-management/Insurance/

2.3.6 Monitoring of Legal Requirements

NEIS Business Plan Template

If yes, what is the renewal date

Domain Name, if applicable

If yes, what is the renewal date?

Include a copy of the Certificate(s) of Registration in your appendices.

2.5 Legal Structure

Setting up a business structure - https://asic.gov.au/for-business/small-business/starting-a-small-business/setting-up-a-business-structure/

(300 - 1000 words)

NEIS Business Plan Template

Target Market 1: (name)

DEMOGRAPHIC GEOGRAPHIC SIZE BEHAVIOURAL

(approx 100 - 150 words)

NEIS Business Plan Template

DEMOGRAPHIC GEOGRAPHIC SIZE BEHAVIOURAL

(approx 100 - 150 words)

NEIS Business Plan Template

DEMOGRAPHIC GEOGRAPHIC SIZE BEHAVIOURAL

(approx 100 - 150 words)

NEIS Business Plan Template

How many surveys were completed?