Financial Viability Risk Assessment

Financial Viability Risk Assessment plays an important factor is determining the future business strategy applied by top management in managing RTO.

Installation of Compliance based Accounting Software

The application of specific accounting software with a capacity to perform and manage management accounts need to be installed. A number of market based software are available. With proper add on, it can satisfy the first stage of financial viability risk assessment.Remember as per requirements, it should have capacity to Develop Financial statements on annual basis by using Accrual Accounting Method and being able to generate Monthly Management Accounts and reconciliation of Management Accounts with Actual Results

Business Plan

For a successful Financial Viability Risk Assessment, Proper business plan must be prepared covering operating and financial strategies to achieve desired objectives as stated in business plans. A subdivided plan covering Marketing plan, Recruitment Plan, Course Management Plan and Compliance Management plan will subsequently help in extracting a complete Business Plan. The business plan is effected by the type of courses offered and method of delivery offered. It is imperative to correlate Business Plan effectively.The minimum requirements set by asqa need business objective supported by Market analysis and Swot management.In comprehensive manner, Separate business plans are developed for each area of operations. It can be conclusively used to extract predicted financial commitments which can be used to develop budgeted financial position, a requirement stated in Financial viability Risk assessment.

Ratio Analysis

once comprehensive forecasted financial statements are prepared as per business plan for next two year. A detail ratio analysis is provided for each area of operations.In conclusion, It’s a most important document developed during the registration process of RTO. The document will be utilised by ASQA during subsequent AUDITS. It serve as a basis “How business are managing their Financial viability risk assessment”.Our experienced Accountants who are certified by IPA has got the expertise to develop Financial Viability risk assessment as per ASQA Requirements.

Future Impact

Once RTO is approved to operate, Financial viability risk assessment act as a standard to moniter future performance. Any deviation from stated path as stated in financial viability risk assessment may force ASQA to review your status in subsequent Audit. A geniune change in plan which is increase the business scope and profitability is always welcome where as a change in negative direction can go against RTO operations.