The unit has application across all sectors of the financial services sector and other industry organisations using accounting software. It has application to job roles such as accounts receivable and payable clerks.

ELEMENT

PERFORMANCE CRITERIA

1. Implement an integrated accounting system

1.1. The general ledger, chart of accounts and subsidiary accounts are implemented in accordance with organisational requirements, procedures and policies

1.2. Customers, suppliers and inventory items are set up in the system to meet organisational requirements and the reporting requirements of Goods and Services Tax (GST)

1.3. Appropriate technical help is used to solve any operational problems

2. Process transactions within the system

2.1. Input data is collated, coded and classified before processing

2.2. A wide range of cash and credit transactions are processed in both a service and trading environment

2.3. The general journal is used to make any balance day adjustments for prepayments and accruals

2.4. System output are regularly reviewed to verify the accuracy of data input and adjustments made for any detected processing errors

2.5. An end of financial year rollover is performed

3. Maintain the system

3.1. Any new general ledger accounts, customer, supplier, inventory and fixed asset records are added as required

3.2. An existing chart of accounts, customer, supplier, inventory and fixed asset records and subsidiary accounts are maintained and updated

3.3. The chart of accounts is customised to meet the reporting requirements of the organisation

4. Produce reports

4.1. Reports to indicate the financial performance and financial position of the organisation and for GST purposes are generated as required or requested

4.2. Reports to ensure that subsidiary ledgers and accounts reconcile with the general ledger are generated

4.3. Reports, which ensure that the bank account reconciles with the bank statement, over at least two reporting periods are generated

5. Ensure system integrity

5.1. Regular back-ups of the system are made to ensure against loss or corruption of data

5.2. Data are restored from back-ups in the event of loss or corruption of current data

5.3. A secure record of all processed transactions is maintained for audit purposes

Required skills

communication skills to:

determine and confirm work requirements, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

research skills such as:

accessing and managing information

interpreting documentation

numeracy skills for financial calculations and analysis

well-developed IT skills for modifying and using integrated financial software

literacy skills for identifying and using financial data from a variety of sources

problem solving skills to identify any issues that have the potential to impact on the data entry and reporting process and to develop options to resolve these issues when they arise

organisational skills, including the ability to plan and sequence work

Required knowledge

organisational procedures and policies relating to maintaining financial records

principles and practices of accrual accounting

principles of double entry accounting

relevant financial services industry legislation and statutory requirements

the characteristics and included information in relevant source documents of financial data

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

set up an organisation's chart of accounts by modifying an established integrated financial software system

interpret and apply organisational policies and procedures

implement an integrated accounting system ensuring integrity of the data

process transactions within the integrated system and generate reports

maintain the integrated system.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables.

access to an integrated financial software system and associated data

access to the internet.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills

setting and reviewing projects using specialised software

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Chart of accounts may include:

classified expenses by type

current assets

current liabilities

equity

income

non-current assets

non-current liabilities.

Organisational requirements, procedures and policies may include:

Australian Accounting Standards

corporate governance

correctly identifying and opening files within an organisational permit

electronic and paper-based recording

log on and system security procedures

organisational health and safety (OHS) policies, procedures and programs

storing data to security requirements and for appropriate future access.

Appropriate technical help may include:

computer help desk personnel

designated technology assistance staff

external staff employed or recommended by the software supplier to assist with difficulties

managers and supervisors

on-screen help

online help

software manuals.

Transactions may include:

adjustment notes

bad debts

bank reconciliation

cash sales and deposits

cheque payments

commencing business entry

commission

contra entries

credit card payments

customer payments

discounts

financial

sales

funds transfers

inventory stock take

loans

petty cash

purchase and sale of stock

purchase invoices

purchase orders

sales invoices

supplier payments

withdrawal of stock and assets by owner.

Balance day adjustments may include:

accrued expenses

depreciation

doubtful debts

prepaid expenses

revenue received in advance.

Reports may include:

aged payables and reconciliation

aged receivables and reconciliation

asset listing

auditable transaction trail

balance sheet

bank reconciliation

business activity statement

customer statements

inventory listing

profit and loss.

Subsidiary ledgers may include:

accounts payable

accounts receivable

fixed assets

inventory.

Unit sector

Accounting

This unit contains employability skills.