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.
Skills that use Communicating with symbols
-
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.
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.