22567 Accounting for Small Business 2
UTS: Business: AccountingCredit points: 6 cp
Subject level: Undergraduate
Result Type: Grade and marksRequisite(s): 22107 Accounting for Business
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.
Handbook description
This subject teaches the skills and knowledge of the techniques used to analyse financial data for small and medium enterprises; how to apply these techniques with the aid of microcomputers and appropriate software; and how to develop integrated business plans to assist in the decision-making process in those enterprises.
Topics covered include: an outline and a revision of basic spreadsheet terminology and function; data collection and analysis; cost-volume-profit relationships; budgeting and other planning models; cash-flow analysis and capital expenditure budgets; business valuation; and performance evaluation.
Subject objectives/outcomes
On successful completion of this subject students should be able to:
- develop an understanding of the techniques used to analyse financial data for small business enterprises
- apply these techniques with the aid of computers and appropriate software to the preparation of comprehensive budgets
- develop an understanding of current issues affecting Australian small business enterprises
- develop an understanding of financing resources available to Australian small business enterprises.
The emphasis in all topics will be on the use of the analytical and accounting techniques in a small business environment.
Contribution to graduate profile
The subject provides students with a better understanding of basic accounting procedures and will strengthen their knowledge of cost accounting techniques. It will build on the skills in the use of computer technology and software, particularly spreadsheet applications, to increase student's proficiency in this area. The detailed coverage of selected quantitative methods and forecasting techniques will reinforce the work done in other relevant subjects.
Students will be able to gain an understanding of the business data analysis techniques for small business enterprises and issues related to planning future activities. Students will also acquire an understanding of the challenges and issues faced by contemporary Australian small business enterprises and, in particular, the availability of financial resources to finance business operations and expansion plans.
Teaching and learning strategies
The subject is strongly oriented towards practical experience. Formal class presentation in a lecture format will be supported by extensive workshop and computer laboratory sessions. Students will be given two major case studies and both lectures and seminars are organised around their solution. Students will also be required to undertake a research project by interviewing small business operators, conducting a literature review and finding out financial institutions requirements for financing of medium size expansion plans. Emphasis is placed on students learning how to efficiently use appropriate computer software to manage small business operations, analyse data and prepare relevant reports.
Content
- Data collection and analysis
- Cost functions and cost behaviour
- Methods and techniques of business data analysis
- Forecasting models: time-series analysis, decomposition, linear regression
- Budgeting: planning for the future
- Developing the budget model and flexible budgets
- Cash flow budgets, capital expenditure budgets, comprehensive financial budgets
- Capital budgeting: mathematics of finance, discounted cash flow models, cost of capital and internal rate of return
- Performance evaluation
- Profitability
- What-if analysis
- Current issues affecting Australian small business enterprises
- Preparing a finance proposal.
Assessment
Assessment item 1: Case studies and major assignments (2)
| Objective(s): | 1-4 |
| Weighting: | 60% |
| Task: | This part of the assessment addresses objectives 1, 2, 3 and 4. The assignments present students with realistic operational and accounting problems appropriate for small business enterprises. Their purpose is twofold. The primary objective is to provide an opportunity to the student for additional and self-directed learning of the skills and knowledge covered in the relevant subject topics and analyse contemporary issues affecting small business enterprises. A second objective is to allow students to demonstrate the skills and knowledge acquired. Each assignment will integrate the work of several topics with the use of spreadsheets, word processing and other computer applications. These assignments are the individual work of each student. |
Assessment item 2: Research Essay
| Objective(s): | 3, 4 |
| Weighting: | 20% |
| Task: | This addresses objectives 3 and 4. The research project will be on current issues affecting Australian small business enterprises. The objective is for students to undertake an in-depth analysis of contemporary problems and challenges faced by small business operators in Australia and critically evaluate possible solutions. |
Assessment item 3: Class Practice Tests (2)
| Objective(s): | 1, 2 |
| Weighting: | 20% |
| Task: | This part of the assessment addresses objectives 1 and 2. Two class practice tests will be undertaken during the semester to consolidate skills and knowledge progressively gained. The tests will consist of hands-on practical tasks to solve problems related to the major assignments. |
Recommended text(s)
Pazmandi, G., (2005), Business Modelling, Tekniks Publications Pty Limited, Sydney
Mariotti, S., (2006), Entrepreneurship — Starting and Operating a Small Business, Pearson Prentice Hall, Upper Saddle River
Petty, J., (2000), Australian Business Toolkit, CCH, Sydney.
Indicative references
There are no specific textbooks prescribed although use will be made of relevant sections of textbooks on financial accounting, cost accounting, capital budgeting and the manual of the spreadsheet program. Appropriate text and reference books will be referred to when necessary.
In addition, class notes and other material may be provided where necessary.
Students are expected to have read the content and procedures of the Guide to Writing Assignments, UTS Faculty of Business. It is in the closed reserve in the UTS Library or may be purchased from the Co-op Bookshop.
Coulthard, M., Howell, A., Clarke, G., (1996), Business Planning The Key to Success, Macmillan Education Australia Pty Ltd, Melbourne
Foster, G., (1986) Financial Statement Analysis, Prentice Hall, USA Upper Saddle River, NJ
Horngren, C.T., Srikant, M. Foster, G., Datar, S.M. (2003), Cost Accounting A Managerial Emphasis, Prentice Hall, Upper Saddle River
Levary, R. and Seitz, N., (1990), Quantitative Methods for Capital Budgeting, South Western Publishing Co., Cincinnati USA
Montgomery, M., A., (1998) Small Business Accounting, Prentice Hall, Upper Saddle River
Rayburn, L., (1996) Cost Accounting: Using a Management Approach, Irwin, Chicago USA
Wilson, J. and Keating, B., (1998) Business Forecasting, Irwin/McGraw Hill, Boston USA.
