This unit applies to individuals who are skilled operators and apply a broad range of competencies in various work contexts. They may exercise discretion and judgement using appropriate theoretical knowledge of financial records to provide technical advice and support to a team.

ELEMENT

PERFORMANCE CRITERIA

1. Maintain daily financial records

1.1. Correctly maintain daily financial records and in accordance with organisational requirements for accounting purposes

1.2. Identify and rectify or refer discrepancies or errors in documentation or transactions to designated persons in accordance with organisational requirements

1.3. Accurately credit and debit transactions and promptly enter into journals in accordance with organisational requirements

2. Maintain general ledger

2.1. Maintain general ledger in accordance with organisational requirements

2.2. Post transactions into general ledger in accordance with organisational reporting requirements

2.3. Reconcile systems for accounts payable and receivable with general ledger

2.4. Accurately prepare trial balance from general ledger in accordance with organisational requirements

3. Monitor cash control

3.1. Ensure cash flow is accurately accounted for in accordance with organisational requirements

3.2. Make and receive payments in accordance with organisational requirements

3.3. Collect or follow-up outstanding accounts within designated time lines

3.4. Check payment documentation for accuracy of information and despatch to creditors within designated time line

Required skills

literacy skills to identify financial information; to read and understand the organisation's accounting procedures; and to edit and proofread documents to ensure conformity and consistency of information

communication skills to clarify information and to refer errors or discrepancies to appropriate people

numeracy skills to read and interpret financial data and to prepare cash analysis sheets

problem-solving skills to reconcile figures.

Required knowledge

key provisions of relevant legislation from all levels of government that may affect aspects of business operations, such as:

anti-discrimination legislation

ethical principles

codes of practice

privacy laws

financial legislation

occupational health and safety (OHS)

organisational policies and procedures relating to maintaining financial records

definition of credits/creditors and debits/debtors

principles of double entry bookkeeping and accrual accounting

methods of presenting 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 following is essential:

identifying and responding to discrepancies and errors

transferring and recording financial data accurately

reconciling expenditures and revenue

knowledge of organisational policies and procedures relating to maintaining financial records.

Context of and specific resources for assessment

Assessment must ensure:

access to an actual workplace or simulated environment

access to office equipment and resources

examples of source documents relating to financial record keeping.

Method of assessment

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

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

review of identification and rectification or referral of discrepancies or errors in documentation or transactions

analysis of responses to case studies and scenarios

demonstration of techniques

oral or written questioning to assess knowledge of financial record keeping

examples of financial documentation.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

general administration units

other financial administration units.

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.

Organisational requirements may include:

designated time lines

guidelines for reconciling journals

legal and organisational policies, guidelines and requirements

OHS policies, procedures and programs

procedures for totalling adjusted journals

quality assurance and/or procedures manuals

resolution procedures

security procedures

Discrepancies may relate to:

bank charges

dishonoured cheques

errors in transposing between source documents and journals

interest

Documentation may include:

purchase credit notes

purchase invoices

sales credit notes

sales invoices

Designated persons may include:

bank

line management

organisation's authorisations department

statutory body

supervisor

Journals may include:

cash payments

cash receipts

purchases and purchase returns

sales and sales returns

Transactions may include:

commencing business entries

correction of posting errors

interest expense

interest receivable

non-cash transactions (e.g. writing-off depreciation, stock losses)

purchase of a fixed asset on credit

sale of a fixed asset on credit

withdrawal of stock/assets by owner

write-off a bad debt

Reconciling systems for accounts payable and receivable may include:

checking accuracy of creditor account balances (e.g. cash payments journal, purchases journal, purchases returns journal, general journal)

checking accuracy of debtor account balances (e.g. cash receipts journal, sales return journal, general journal)

checking cash payments and receipt journals against bank statement

checking the total of the creditor's schedule equals the balance of the creditor's control account

checking the total of the debtor's schedule equals the balance of the debtor's control account

Payments may include:

cash

cheque

credit card

direct debit

Designated time lines may include:

by month end

monthly

within agreed period

within organisational deadline

Unit sector

Finance - Financial Administration

This unit contains employability skills.