Skills for Work: Business Finance
Business Finance is an Agored Cymru Skills for Work unit in which learners learn how businesses and other organisations are funded, why investment, raising money and cost savings matter, and how to apply this in their own setting or an enterprise scenario. It is one 20 hour unit, offered at Entry 1, Entry 2, Entry 3, Level 1 and Level 2, that learners combine with others into an Agored Cymru Skills for Work, or Skills for Life and Work, Award, Certificate or Diploma, assessed internally through a centre-devised task. Numeracy demand is high because learning outcome 4 at Level 1 and Level 2 requires a profit and loss account, profit margins and a cash flow forecast, and Entry 3 learners take part in calculating profit. Literacy demand is medium: learners define finance terms precisely, and describe, outline and at Level 2 explain funding, investment and cost-saving strategies, without drafting.
- Awarding body
- Agored Cymru
- Level
- Entry Level 1 to Level 2
- Guided learning hours
- 20
- First taught
- September 2027
- Amount of literacy work
- Medium
- Amount of numeracy work
- High
- Specification
- Open the specification
How this unit is assessed
- Level 2 (Unit ID CDS034, Unit Code AA42CY004): Four learning outcomes with 9 assessment criteria: define net profit, gross profit, loss, income, expenditure and cash flow; describe at least three reasons businesses need finance and at least three funding options, with an advantage and disadvantage of each; describe the role of investment and at least two cost-saving and two strategic financial planning strategies; then, in a scenario, produce a profit and loss account, calculate profit margins and produce a cash flow forecast, each using a digital spreadsheet, and explain a cost savings measure with a summary of financial effectiveness and suggestions for improvement. There are no prescribed assessment methods. Internally assessed by the centre through one centre-devised summative task that follows Agored Cymru's Summative Assessment Package, moderated by Agored Cymru. 20 GLH, 2 credits. Graded Pass or Fail.
- Level 1 (Unit ID CDS035, Unit Code AA41CY001): Four learning outcomes with 8 assessment criteria: define the same six finance terms; identify at least two funding sources and state at least two purposes of raising money; outline at least two ways to reduce costs and how cost-savings help a business stay successful; then, in a scenario, produce a basic profit and loss account, calculate profit margins and produce a basic cash flow forecast. The criteria do not name a spreadsheet, but learners must have access to spreadsheet software. There are no prescribed assessment methods. Internally assessed by the centre under the Summative Assessment Package and moderated by Agored Cymru. 20 GLH, 2 credits. Graded Pass or Fail.
- Entry Level (Entry 3 CDS036, AA4E3CY001; Entry 2 CDS037, AA4E2CY001; Entry 1 CDS038, AA4E1CY001): Entry 3 has 8 assessment criteria: outline profit, loss, income and expenditure, identify funding sources, name reasons a business needs money, list and outline ways to save money, then participate in producing a basic profit and loss account and in calculating profit. Entry 2 (4 criteria) and Entry 1 (3 criteria) identify ways businesses get money, give examples of ways to save money and participate in a budgeting activity, with Entry 2 also giving a reason a business needs money. There are no prescribed assessment methods, and learners must have access to spreadsheet software at every level. Internally assessed by the centre under the Summative Assessment Package and moderated by Agored Cymru. 20 GLH, 2 credits at each level. Graded Pass or Fail.
The literacy and numeracy skills in this qualification
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Producing a profit and loss account
Level 2 learners produce a profit and loss account, Level 1 learners produce a basic one, and Entry 3 learners participate in producing one, all in a scenario. Learners total income and expenditure and work out gross profit, net profit or loss accurately in pounds and pence. This is required by the assessment criteria.
Numeracy: Financial literacy, Calculation, Communicating with symbols
Getting pupils ready
- Year 7
- Pupils add up the takings and costs of a class bake sale and subtract to find whether it made a profit or a loss.
- Year 8
- Pupils set out a simple profit and loss table for a tuck shop week, finding gross profit from sales and stock costs, then net profit after other costs.
- Year 9
- Pupils produce a profit and loss account for a small business from a case study, with figures to two decimal places, and check each total with an inverse calculation.
Show the specification wording and the LNF statements
Where it is in the specification: Level 2, AC 4.1, page 82; Level 1, AC 4.1, page 85; Entry 3, AC 4.1, page 87
“Produce a basic profit and loss account.”
Progression step 3
I can use profit and loss in buying and selling calculations.
I can add and subtract numbers using whole numbers and decimals.
Progression step 4
I can use efficient written methods to add and subtract numbers and decimals of any size, including a mixture of large and small numbers with differing numbers of decimal places.
I can refine methods of recording calculations.
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Calculating profit and profit margins
Level 2 and Level 1 learners calculate profit margins, and Entry 3 learners participate in calculating profit. Learners express profit as a percentage of sales and judge whether the answer is sensible. This is required by the assessment criteria.
Numeracy: Calculation, Financial literacy, Conceptual understanding
Getting pupils ready
- Year 7
- Pupils work out the profit on each item at a school fair by subtracting the cost from the selling price.
- Year 8
- Pupils calculate the profit on three tuck shop items as a percentage of their selling price, using a calculator where appropriate.
- Year 9
- Pupils compare the profit margins of two businesses with different sales, explain why the one with more profit can have the lower margin, and check their answers are sensible.
Show the specification wording and the LNF statements
Where it is in the specification: Level 2, AC 4.2, page 82; Level 1, AC 4.2, page 85; Entry 3, AC 4.2, page 87
“Calculate profit margins.”
Progression step 3
I can calculate a percentage, fraction and decimal of any quantity with a calculator where appropriate.
I can use profit and loss in buying and selling calculations.
Progression step 4
I can express one quantity as a percentage of another.
I can interpret answers within the context of the problem and consider whether answers, including calculator, analogue and digital displays, are sensible.
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Producing a cash flow forecast
Level 2 learners produce a cash flow forecast and Level 1 learners produce a basic one, in a scenario. Learners organise expected cash in and cash out by month, work out net cash flow and carry the closing balance forward. This is required by the assessment criteria.
Numeracy: Financial literacy, Representing data, Strategic competence
Getting pupils ready
- Year 7
- Pupils record a month of pocket money in and out in a table and work out the balance at the end of each week.
- Year 8
- Pupils complete a three month cash flow table for a school stall, working out net cash flow and the closing balance each month.
- Year 9
- Pupils forecast six months of cash for a small business, including a large one-off cost, and identify the month when it would need extra funding.
Show the specification wording and the LNF statements
Where it is in the specification: Level 2, AC 4.3, page 82; Level 1, AC 4.3, page 85
“Produce a basic cash flow forecast.”
Progression step 3
I can plan and track money and savings by keeping accurate records.
I can represent data using:
- lists, tally charts, tables, diagrams and frequency tables
- bar charts, grouped data charts, line graphs and conversion graphs
- pictograms where one symbol represents more than one unit using a key
- Venn and Carroll diagrams.
Progression step 4
I can recognise, model and apply the underlying mathematical structures and ideas within problems, in order to formulate and solve them.
I can prioritise and organise the relevant steps needed to complete the task or reach a solution.
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Taking part in a budgeting activity
Entry 2 and Entry 1 learners participate in a budgeting activity, and Entry 3 learners participate in producing a basic profit and loss account, in a scenario. Learners work with money in and money out and see whether a plan stays within a budget. This is required by the assessment criteria.
Numeracy: Financial literacy, Strategic competence
Getting pupils ready
- Year 7
- Pupils are given £15 and a price list and choose items for a class party, adding up as they go so they do not overspend.
- Year 8
- Pupils plan a budget for a school club for a term, listing costs against the money available and showing how much is left.
- Year 9
- Pupils plan a budget for a class enterprise in ordered steps, then change it when a price rises so that it still balances.
Show the specification wording and the LNF statements
Where it is in the specification: Entry 2, AC 3.1, page 88; Entry 1, AC 3.1, page 90; Entry 3, AC 4.1, page 87
“Participate in a budgeting activity.”
Progression step 3
I can manage money, compare costs from different retailers and determine what can be bought within a given budget.
I can realise that budgeting is important.
Progression step 4
I can appreciate the basic principles of budgeting, saving (including understanding compound interest) and borrowing.
I can prioritise and organise the relevant steps needed to complete the task or reach a solution.
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Comparing funding, borrowing and investment
Level 2 learners describe at least three funding options, such as private investment, loans, venture capital and grants, with an advantage and disadvantage of each, describe the role of investment, and describe how strategic financial planning supports long-term goals. Level 1 and Entry 3 learners identify funding sources and reasons for raising money, and Entry 2 and Entry 1 learners identify ways businesses get money. This is required by the assessment criteria.
Numeracy: Strategic competence, Logical reasoning, Financial literacy
Getting pupils ready
- Year 7
- Pupils compare borrowing £20 from a friend with saving for four weeks and say which is better for buying a game and why.
- Year 8
- Pupils compare a grant and a loan for a school club, noting that a loan must be paid back with interest, and choose the better option.
- Year 9
- Pupils weigh up a bank loan, a grant and selling a share to an investor for a small business, setting out the cost and risk of each and justifying a choice.
Show the specification wording and the LNF statements
Where it is in the specification: Level 2, AC 2.1 to 2.4 and 3.2, pages 81 to 82; Level 1, AC 2.1 and 2.2, page 84; Entry 3, AC 2.1 and 2.2, page 86; Entry 2, AC 1.1 and 1.2, page 88; Entry 1, AC 1.1, page 90
“Describe the role of investment in the growth and sustainability”
Progression step 3
I can identify what further information might be required and select what information is most appropriate.
I can justify my procedures and predictions.
Progression step 4
I can appreciate the basic principles of budgeting, saving (including understanding compound interest) and borrowing.
I can understand the risks involved in different ways of saving and investing.
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Suggesting cost savings and judging their effect
Level 2 learners describe at least two cost-saving strategies and their impact, and explain a cost savings measure using a summary of financial effectiveness and suggestions for improvement. Level 1 learners outline ways to reduce costs and how savings help a business stay successful, and Entry learners list or give examples of ways to save money. This is required by the assessment criteria.
Numeracy: Financial literacy, Interpreting data
Getting pupils ready
- Year 7
- Pupils compare the price of the same pack of cups from two shops and work out how much the cheaper one saves.
- Year 8
- Pupils find three cost savings for a school tuck shop, such as buying in bulk, and work out how much each saves in a month.
- Year 9
- Pupils use a small business's profit and loss figures to pick one cost to cut, calculate the new profit, and explain whether the saving is worth any drop in quality.
Show the specification wording and the LNF statements
Where it is in the specification: Level 2, AC 3.1 and 4.4, page 82; Level 1, AC 3.1 and 3.2, page 85; Entry 3, AC 3.1 and 3.2, page 87; Entry 2, AC 2.1, page 88; Entry 1, AC 2.1, page 90
“Explain a cost savings measure and why it will save costs.”
Progression step 3
I can make comparisons between prices and understand which is best value for money.
I can manage money, compare costs from different retailers and determine what can be bought within a given budget.
Progression step 4
I can make informed decisions relating to discounts and special offers.
I can interpret mathematical information; drawing inferences from graphs, diagrams and data, including discussion on limitations of data.
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Defining finance terms precisely
Level 2 and Level 1 learners define net profit, gross profit, loss, income, expenditure and cash flow so the differences are clear, and Entry 3 learners outline profit, loss, income and expenditure. Learners need precise subject vocabulary. This is required by the assessment criteria.
Literacy: Vocabulary, spelling, grammar, Clarity and vocabulary
Getting pupils ready
- Year 7
- Pupils match the words income, expenditure, profit and loss to their meanings and use each in a sentence about a school fair.
- Year 8
- Pupils write a glossary of six finance terms with an example for each, showing how gross profit differs from net profit.
- Year 9
- Pupils write precise definitions of finance terms for a younger pupil, then check that each definition shows how it differs from the term most like it.
Show the specification wording and the LNF statements
Where it is in the specification: Level 2, AC 1.1, page 81; Level 1, AC 1.1, page 84; Entry 3, AC 1.1, page 86
“The stated terms should be clearly defined so that clear differences are shown”
Progression step 3
I can use varied, appropriate and precise vocabulary including area of learning and experience/discipline-specific words for different purposes.
I can express issues and ideas clearly using area of learning and experience/discipline-specific vocabulary and examples.
Progression step 4
I have experienced a range of area of learning and experience/discipline-specific and general academic vocabulary, and can use them in my own communication.
I can make informed choices about vocabulary, idiomatic and figurative language, and syntax in order to express myself with fluency, accuracy and clarity.
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Describing and explaining finance decisions in writing
Level 2 learners describe reasons for finance, funding options, the role of investment and financial strategies, and explain a cost savings measure, while Level 1 and Entry learners identify, state, outline and list. Agored Cymru's command words set the depth: Describe needs a detailed, logical account and Explain needs reasons linked with words such as because and therefore. Learners write without drafting, so planning matters. This is required by the assessment criteria.
Literacy: Planning and organising for different purposes, audiences and context, Connectives and syntax
Getting pupils ready
- Year 7
- Pupils write three sentences about why a school club needs money, each using because.
- Year 8
- Pupils describe two ways a business could raise money in a short paragraph each, with one advantage and one disadvantage, using linking words such as however.
- Year 9
- Pupils plan and write a structured explanation of how a cost saving would help a small business, using therefore and in order to, within a timed lesson.
Show the specification wording and the LNF statements
Where it is in the specification: Level 2, AC 2.1 to 3.2 and 4.4, pages 81 to 82; Command Word Definitions, page 93; Appendix A, page 106
“Use words such as 'therefore', 'because', 'in order to' to expand on points”
Progression step 3
I can write a comprehensive account of a topic, theme or viewpoint.
I can use an increasing range of connectives to organise my ideas in sentences, paragraphs and whole texts.
Progression step 4
I can use summary, discussion of issues, detailed explanations and logic when covering a topic.
I can use a range of connectives specifically when organising my ideas in whole texts for different purposes.
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Summarising financial effectiveness
Level 2 learners explain a cost savings measure using a summary of financial effectiveness and suggestions for improvement. Learners condense what their figures show and turn it into clear recommendations. This is required by the Level 2 amplification.
Literacy: Planning and organising for different purposes, audiences and context
Getting pupils ready
- Year 7
- Pupils write two sentences saying whether a class bake sale made money and what they would do differently.
- Year 8
- Pupils write a short summary of a tuck shop's month, using its figures, and end with two suggestions to improve it.
- Year 9
- Pupils write a one paragraph report on a small business's finances with a clear conclusion and recommendations supported by figures.
Show the specification wording and the LNF statements
Where it is in the specification: Level 2, AC 4.4 amplification, page 82; Command Word Definitions, Summarise, page 94
“The learner must use a summary of financial effectiveness”
Progression step 3
I can write an effective introduction that establishes context and purpose, a suitable balance between facts and viewpoints, and a precise conclusion.
I can adapt my writing style and structure to suit the audience, purpose and context, e.g. suitable balance between facts and viewpoints, a precise conclusion.
Progression step 4
I can use summary, discussion of issues, detailed explanations and logic when covering a topic.
I can adapt my writing style, choosing and using the best structures for different contexts and purposes, e.g. to successfully describe, explain, persuade, discuss.
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Explaining finance ideas aloud
Agored Cymru's mapping says the unit encourages clear written and oral explanations of financial concepts and terminology, and audio and video are permitted evidence formats. No criterion requires speaking, so oral explanation is taught, not assessed, though learners may choose it as their evidence.
Literacy: Clarity and vocabulary
Getting pupils ready
- Year 7
- Pupils explain to a partner what profit means, using an example from a school event.
- Year 8
- Pupils give a one minute talk on how a club could save money, using the terms income and expenditure.
- Year 9
- Pupils record a short audio explanation of a cash flow forecast for a small business, using finance terms accurately for a listener with no business knowledge.
Show the specification wording and the LNF statements
Where it is in the specification: Cross cutting themes and integral skills mapping, Literacy, page 92; Appendix A, Permitted evidence types, page 106
“Encourages clear written and oral explanations of financial”
Progression step 3
I can express issues and ideas clearly using area of learning and experience/discipline-specific vocabulary and examples.
I can speak clearly, recognising the appropriate language for different audiences and purposes, and varying my expression, vocabulary, tone and gestures to engage the audience.
Progression step 4
I can speak clearly, selecting and adapting my language appropriately for a range of audiences and purposes, conveying meaning effectively to the audience.
I have experienced a range of area of learning and experience/discipline-specific and general academic vocabulary, and can use them in my own communication.
Good to know
- The finance terms must be told apart: "The stated terms should be clearly defined so that clear differences are shown" (Level 2 and Level 1 amplification, pages 81 and 84).
- The calculations are real at Level 1 and Level 2: "Calculate profit margins." (Level 1, AC 4.2, page 85), and Level 2 adds that this is done "using a digital spreadsheet" (Level 2, AC 4.2, page 82).
- Entry learners take part rather than work alone: "Participate in the calculation of profit." (Entry 3, AC 4.2, page 87).
- Level 2 learners must evaluate finances, not just calculate: "The learner must use a summary of financial effectiveness" (Level 2, AC 4.4 amplification, page 82).
- Agored Cymru's mapping for numeracy is "Encourages analysis and interpretation of financial data" (page 92), yet the Area of Learning and Experience given for the unit is "Health and Well-being; Humanities", not Mathematics and Numeracy (page 83).
- Command words set the depth of writing: Explain means to "Use words such as 'therefore', 'because', 'in order to' to expand on points" (Command Word Definitions, page 93).
- Outcomes starting "Understand" need description in detail, while "Know" outcomes only need learners to "list, identify or outline with limited detail" (Section Three, page 16).
- The assessment is short and final: "20 GLH incorporates assessment time of no more than 60 minutes." and "Drafting and redrafting are not permitted in this summative task." (Appendix A, page 106).
- AI cannot be used to write or calculate: "AI tools must not be used at all." (Appendix A, page 106).
- Evidence need not be written: permitted formats include "Audio content" and "Video content" (Appendix A, page 106).
- There are no second chances on a submission: "There are no resubmission opportunities available for these qualifications." (Section Five, page 99).
Links with other qualifications
The WJEC Skills for Work unit Business Finance is also 20 hours but requires a real enterprise activity, centres on budgets and records of income and costs, and leaves spreadsheets, cash flow and break-even to guidance rather than the criteria. The Pearson unit is 10 hours and centres on income, costs, budgets and a simple financial plan, with no spreadsheet requirement. The Agored Cymru unit uses a scenario instead of an enterprise activity, goes further on funding, investment and strategic financial planning, and is the only one of the three whose criteria name a digital spreadsheet, for the Level 2 profit and loss account, profit margins and cash flow forecast. So the Agored Cymru unit carries more required numeracy than either, with profit margins and cash flow forecasts in the criteria at Level 1 and Level 2. The calculations link to GCSE Mathematics and Numeracy, the finance content to GCSE Business, the Agored Cymru Skills for Work unit Enterprise Venture and the Skills for Life unit Financial Literacy, and defining and explaining finance terms builds on GCSE English Language. Agored Cymru's own mapping lists both Literacy and Numeracy as cross curricular skills for the unit (page 92).
Source: Agored Cymru The Skills Suite: Skills for Life and Work Specification, version 1.0, October 2026, Business Finance.