List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Identify relevant information and establish chart of accounts | 1.1 Consult business owner or manager to establish what business activities are undertaken, nature of entity and industry type 1.2 Identify existing material and examine for relevance in creating and/or modifying chart of accounts 1.3 Examine business operations in conjunction with tax agent and business owner or manager to identify accounting software required and determine reporting requirements 1.4 Establish chart of accounts and opening balances for assets, liabilities, equity, income, cost of sales and expenses 1.5 Refer prepared chart of accounts and balances for validation and authorisation by relevant persons |
2. Analyse and verify source documents | 2.1 Verify invoices and other source documents for accuracy and compliance with taxation requirements 2.2 Identify and investigate discrepancies between monies owed and monies paid according to organisational policy and procedures |
3. Process receipts and payments | 3.1 Collect payments and bank money received 3.2 Code and record receipts and payments in bookkeeping system on cash basis 3.3 File receipts and payments 3.4 Balance cash register against purchases and process takings in internal bookkeeping system |
4. Set up and maintain petty cash system | 4.1 Prepare expenditure authorisation record of encoded, recorded and filed expenditure 4.2 Reconcile and reimburse expenditure |
5. Process and reconcile credit cards | 5.1 Process credit card transactions against invoices and other source documents, and verify and reconcile against credit card statements 5.2 Process credit card payments in accordance with organisational policy and procedures |
6. Manage bank reconciliations and prepare and produce reports | 6.1 Verify processed transactions promptly against bank statement on receipt of statement 6.2 Process and verify bank entries and reconcile bank statement to balance as per bookkeeping system 6.3 Produce validated reports in line with business needs in timely manner, and make corrections as required |
Evidence of the ability to:
establish client files and set up manual and computerised bookkeeping system on a cash basis
thoroughly check invoices, receipts, payments and balances outstanding
use bank account and cash reconciliation processes
establish a basic chart of accounts
carry out bank reconciliations and prepare reports
follow organisational procedures and legislative requirements in conducting all activities.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
To complete the unit requirements safely and effectively, the individual must:
explain the differences between cash and accrual accounting
describe the key accounting and reporting requirements for different types of business entities
explain bookkeeping activities necessary to meet the requirements of activity statement statutory, legislative and regulatory requirements
outline relevant industry codes of practice
describe organisational policy and procedures that relate to processing accounts and transactions
outline possible reasons for discrepancies between monies owed and monies paid
outline the different features of manual and computerised accounting systems.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the bookkeeping field of work and include access to and use of:
common office equipment, technology, software and consumables
an integrated financial software system and real or simulated banking information.
Assessors must satisfy NVR/AQTF assessor requirements.