SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Manage the cash flow of a small business or a business unit 
SAQA US ID UNIT STANDARD TITLE
116786  Manage the cash flow of a small business or a business unit 
ORIGINATOR
SGB Manufacturing and Assembly Processes 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 06 - Manufacturing, Engineering and Technology Engineering and Related Design 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5  10 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
In order to setup and run a sustainable business, a technically qualified learner will have to manage the financial resources of the business on a day-to-day basis in order to ensure profitably, sustainability and growth. In order to do this effectively, qualifying learners will be able to:
  • Manage income and expenditure
  • Generate appropriate financial documentation and records
  • Use appropriate responses to deal with cash flow issues.

    In doing this, learners will also know and understand:
  • Concepts, issues and conventions relating to the management of cash flow
  • Running costs related to a small business or business unit
  • Financial accounting principles.

    Learners can be assessed against this unit standard in any of the following contexts:
  • A small or micro business
  • An autonomous or semi-autonomous business unit within a larger organisation.

    The skills, the knowledge and the values reflected in this unit standard form part of the exit level outcomes required for the National Certificate in Master Craftsmanship NQF Level 5. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    The credits for this unit standard assume that learners have an NQF Level 4 qualification, as well as experience, in a trade or technical occupation. They also assume that learners are working towards their qualification as part of a learning programme which integrates all the required unit standards.

    Learning time will increase if learners do not have:
  • A relevant NQF 4 qualification
  • Experience in a relevant field.

    Learning time will be decreased if they have experience in this field because:
  • Their learning programmes will be adjusted to build on what they already know
  • They can apply to have that prior learning recognised 

  • UNIT STANDARD RANGE 
    The ranges as indicated under the specific outcomes determine the scope and level of this unit standard.

    Qualifying learners will in most cases make use of another party to do the bookkeeping element of managing cash flow. This unit standard reflects the skill and knowledge and the understanding but not necessarily to perform this function. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Control and monitor credit risk. 
    OUTCOME RANGE 
    Credit risk means the managing of credit within the context of a small business, i.e. making decisions on whether to accept cash, whether to allow credit and for what period; whether to revoke credit facilities, and managing the company's exposure to credit 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Customer credit status is evaluated 

    ASSESSMENT CRITERION 2 
    Client accounts are opened and managed 

    ASSESSMENT CRITERION 3 
    Reasons for granting and refusing credit are discussed 

    SPECIFIC OUTCOME 2 
    Generate invoices and statements and collect debts. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A constant cash flow is achieved 

    ASSESSMENT CRITERION 2 
    VAT is calculated and shown 

    ASSESSMENT CRITERION 3 
    Invoices are tracked and followed up where necessary 

    ASSESSMENT CRITERION 4 
    Appropriate debt recovery methods are instituted 

    ASSESSMENT CRITERION 5 
    Discussions and negotiations with debtors are conducted courteously and assertively 

    ASSESSMENT CRITERION 6 
    The importance of cash flow to a small business is described and discussed 

    SPECIFIC OUTCOME 3 
    Receive and deposit payments and capture income. 
    OUTCOME RANGE 
    Payments: cash, cheque, credits cards, electronic transfer 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Payments are received appropriately and receipts are issued 

    ASSESSMENT CRITERION 2 
    Deposits and payments are recorded and stored appropriately 

    ASSESSMENT CRITERION 3 
    Customer complaints are recorded and responded to 

    SPECIFIC OUTCOME 4 
    Verify, make and record payments and monitor expenditure. 
    OUTCOME RANGE 
  • Expenditure includes salaries, deductions, tax (PAYE, SDL, UIF, WC, RSC) and claiming grants
  • Record payments includes making out salary advice and paying wages 

  • ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    All regular payments are made in time 
    ASSESSMENT CRITERION RANGE 
    Regular payments - rent, hire purchase, supplies/water and lights
     

    ASSESSMENT CRITERION 2 
    Accurate expenditure records are kept 

    ASSESSMENT CRITERION 3 
    Statutory requirements are met 
    ASSESSMENT CRITERION RANGE 
    Income tax, SITE and PAYE; IRP declarations; Deductions, eg UIF, Workman's Compensation; Pension & provident fund contributions
     

    ASSESSMENT CRITERION 4 
    Legal requirements and statutory requirements applicable to small business are described and discussed 

    ASSESSMENT CRITERION 5 
    Importance of maintaining own credit rating are described 

    SPECIFIC OUTCOME 5 
    Read, interpret and process all documents and reports and make decisions relating to cash flow. 
    OUTCOME RANGE 
    Financial reports e.g. income statement; accounts, statements, and bank statements; types of banks services 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Cash flow is monitored and issues are dealt with 

    ASSESSMENT CRITERION 2 
    Own records and bank statements are reconciled 

    ASSESSMENT CRITERION 3 
    Describe and discuss banking services and options, banking costs and how to resolve difficulties 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    The assessment will be governed by the policies and guidelines of a relevant Education and Training Quality Assurance body, which has jurisdiction over this field of learning. The assessor will be accredited and have a Diploma in Master Craftsmanship at NQF Level 5 or an equivalent NQF Level 5 qualification and experience in the running of a small or medium business or autonomous business unit within a larger organisation. Since it is unlikely that there will be sufficient qualified people in the early stages of the life of this qualification, ETQAs should be allowed to make interim arrangements such as:
  • Assessor panels
  • People experienced in the field but without formal qualifications, eg current or retired owners of successful businesses or respected managers in organisations.

    Learners can be assessed in the language of their choice although if they have to report incidents or conditions to someone else, they will be assessed on their ability to report in the language commonly used in the working environment.

    They will be assessed in a workplace but can submit documents, projects, test results and assignments that were not produced in the workplace.

    They can be assessed against this unit standard to obtain credits or as part of an integrated assessment for a qualification. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    The activities in this unit standard require an extensive practical experience integrated with a thorough knowledge and understanding of theory and the options related to the technical field and to general principles of organising work. It is assumed that the learners being assessed will have participated in formal structured learning processes to acquire the relevant knowledge. What follows are broad guidelines to the kind of content of such structured learning processes.

    Names & functions of:
  • Relevant accounting and bookkeeping records and reports
  • Financial services, including different types of bank account, overdrafts, fees, credit, loan
  • Financial documents, e.g. invoices, receipts, accounts, statements
  • Various types of tax and contributions

    Purpose of:
  • Relevant accounting and bookkeeping records and reports
  • Financial services, including different types of bank account, overdrafts, fees, credit, loan
  • Financial documents, e.g. invoices, receipts, accounts, statements
  • Various types of tax and contributions

    Attributes, descriptions, characteristics & properties:
  • Relevant accounting and bookkeeping records and reports
  • Financial services, including different types of bank account, overdrafts, fees, credit, loan
  • Financial documents, e.g. invoices, receipts, accounts, statements
  • Various types of tax and contributions

    Sensory cues:
  • "Rubber" cheques - potentially fraudulent transactions
  • Stained or counterfeit banknotes
  • Poor payers
  • Corporate bullies

    Processes and events:
  • Receiving and making payments
  • Storing information
  • Recording transactions
  • Reconciling of accounts
  • Investment decisions
  • Funding cash flow shortages and investing surpluses

    Causes and effects, implications of:
  • Poor financial controls, records and procedures
  • Misallocations
  • Making incorrect investment decisions

    Procedures and techniques:
  • Dealing with fraud and other forms of financial misbehaviour
  • Determining risk profile of client or potential client
  • Collecting money from reluctant payers
  • Principles, methods and techniques of bookkeeping
  • Basic financial reports

    Regulations, legislation, agreements, policies, standards:
  • Financial and tax legislation
  • General acceptable accounting principles
  • VAT regulations, payments and records
  • Understanding of legislation, rules and statutory requirements applicable to the business

    Theory: rules, principles, laws:
  • Bookkeeping and accounting principles related to income statements
  • Time value of money
  • Cash flow management
  • Generally Accepted Accounting Principles

    Relationships, systems:
  • Cash flow and profitability and sustainability of enterprise 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems
  • Cash flow shortage problems
  • Credit rating problems
  • Non paying clients 

  • UNIT STANDARD CCFO ORGANISING 
    Organise and manage myself and my activities
  • Operating and maintaining financial systems for own company or business unit 

  • UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information
  • Collect, analyse, organise and critically evaluate financial information related to the day-to-day operations of an enterprise or business unit 

  • UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively
  • Negotiating with banks, suppliers and customers 

  • UNIT STANDARD CCFO SCIENCE 
    Use science and technology effectively and critically
  • Effective use of appropriate technology for receiving and making payments, and recording transactions 

  • UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrate an understanding of the world as a set of related systems
  • Balancing technical and customer considerations with business and sustainability considerations 

  • UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Supplementary information

    How credits were determined

    Activity - Hours - Notes
    Classroom learning - 48
    On-the-job learning - 40
    Self directed learning - 10 - Assignments, projects
    Coaching required - 2 - One-to-one passing on of tips and expert practice
    Other - 0 - Preparation of portfolios
    Total - 100
    Credits - 10 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Fundamental  49061   National Certificate: Master Craftsmanship (Electrical)  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  EWSETA 
    Elective  57607   National Certificate: 3D Animation and Visual Effects  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  MICTS 
    Elective  58820   National Certificate: Advertising  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  MICTS 
    Elective  58025   National Certificate: CNC Production Machining  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  MERSETA 
    Elective  61349   National Certificate: Heritage Resource Management  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  CATHSSETA 
    Elective  57122   National Certificate: Printing and Manufacture of Packaging  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Reregistered" 
    2015-06-30  FPMSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Coastal Kzn F.E.T. College - Umbumbulu Campus 
    2. Jeppe College of Commerce and Computer Studies 
    3. NEMISA 
    4. South African Film Institute 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.