This unit applies to individuals who provide contract bookkeeping services across all industries and bookkeepers working directly for organisations and small business owners or managers.

ELEMENT

PERFORMANCE CRITERIA

1. Identify relevant information and establish a chart of accounts

1.1. Business owner or manager is consulted to establish what business activities are undertaken, the nature of the entity and the industry type

1.2. Existing material is identified and examined for relevance in creating and/or modifying the chart of accounts

1.3. Business operations are examined in conjunction with the tax agent and business owner or manager to identify the accounting software required and to determine other relevant requirements

1.4. Chart of accounts and opening balances for assets, liabilities, equity, income, cost of sales and expenses are established

1.5. Chart of accounts and balances are validated and authorised by relevant persons

2. Analyse and verify source documents

2.1. Invoices and other source documents are verified for accuracy and compliance with taxation requirements

2.2. Discrepancies between monies owed and moniespaid are identified and investigated according to organisational policies and procedures

3. Process receipts and payments

3.1. Payments are made and money is received and banked

3.2. Receipts and payments are coded and recorded in bookkeeping system on a cash basis

3.3. Receipts and payments are filed

3.4. Cash register is balanced against purchases and takings are processed in internal bookkeeping system

4. Set up and maintain a petty cash system

4.1. An expenditure authorisation record is prepared and expenditure encoded, recorded and filed

4.2. Expenditure is reconciled and reimbursed

5. Process and reconcile credit cards

5.1. Credit card transactions are processed against invoices and other source documents, verified and reconciled against credit card statements

5.2. Credit card payments are processed in accordance with organisational policies and procedures

6. Manage bank reconciliations and prepare and produce reports

6.1. On receipt of statement, processed transactions are verified against the bank statement in a timely manner

6.2. Bank entries are processed and verified and the bank statement reconciled to balance as per bookkeeping system

6.3. Reports are produced in line with the business needs and are validated in a timely manner with corrections made as required

Required skills

communication skills to:

build relationships, determine and confirm client requirements, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

accurately analyse, code, record and store data in accordance with organisational requirements

access and use appropriate financial management software, spreadsheets and databases

use internet information

analysis for accessing, interpreting and managing relevant financial data

literacy skills for interpreting documentation and compiling reports

self-management skills for complying with ethical, legal and procedural requirements

problem solving skills to identify any issues that have the potential to impact on the bookkeeping process or outcome and to develop options to resolve these issues when they arise or refer to other professionals as appropriate

organisational skills, including the ability to plan and sequence work to provide a timely and professional service

teamwork skills to identify activities required with business owners or managers and tax agents

Required knowledge

statutory, legislative and regulatory requirements relevant to bookkeeping including future changes in requirements

differences between cash and accrual accounting

relevant industry codes of practice

relevant organisational policies and procedures in regard to processing accounts and transactions

relevant statutory, legislative and regulatory requirements specifically with relation to ensuring that all bookkeeping activities undertaken meet requirements related to Activity Statements

manual and computerised accounting systems

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:

establish client files and set up bookkeeping system on a cash basis

thoroughly check invoices, receipts, payments and balances outstanding

interpret and comply with relevant statutory, legislative and regulatory requirements

use bank account and cash reconciliation processes

establish a basic chart of accounts

carry out bank reconciliations.

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 real or simulated banking information.

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

observing processes and procedures in workplaces or role plays

verbal or written questioning on underpinning knowledge and skills

setting and reviewing workplace projects and business simulations or scenarios

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.

Nature of the entity may be:

association

limited company

not-for-profit groups

partnership

private company

public company

sole trader

trust.

Existing material may include:

computer data file

existing chart of account

financial statements and other material available from accountant

source documents such as:

asset and inventory records

cash receipts journals

cash payments journals

sales and purchases distribution journals

general ledger.

Assets include:

current assets

non-current assets - fixed assets.

Liabilities include:

Business Activity Statement (BAS) liabilities

current liabilities

non-current liabilities (long-term)

payroll liabilities.

Equity includes:

capital

current year earnings

drawings

reserves

retained earnings.

Relevant persons includes, but is not limited to:

accountants

debtors

directors

managers

owners

staff members.

Discrepancies between monies owed and monies paid may occur as a result of:

deduction of brokers' or agents' commissions

incorrect account allocation

keystroke errors

overpayments

part payments

system errors

termination of policies

underpayments.

Organisational policies and procedures may include:

manual or computer system documentation

internal control guidelines

legal obligations

operations manuals

policies and procedures relating to:

working with others

participating in ongoing learning

monitoring and evaluating own performance

managing own time and priorities

applying goals and visions

suspension of credit facilities

trading terms and credit limits.

Expenditure will include:

cost of goods sold

cost of sales

expenses.

Unit sector

Bookkeeping

FNSACC404A

Prepare financial statements for non-reporting entities

FNSBKG401A

Develop and implement policies and practices relevant to bookkeeping activities

This unit contains employability skills.