This unit focuses on generic bookkeeping skills and principles and must therefore be contextualised to meet specific industry contexts. It does not reflect the skills of a specialist bookkeeper. In the workplace, this function may be integrated with other activities and systems such as guest registration or travel file management. It is also highly likely that systems for maintaining financial records will be automated.

While individuals working at an operational level undertake this role, it may also be relevant to small business managers who administer their own accounts.

Nil

ELEMENT

PERFORMANCE CRITERIA

1

Post transactions.

1.1

Organise and interpret source documents accurately in preparation for entering transactions.

1.2

Identify any irregularities in documentation promptly and take action to resolve within scope of individual responsibility and designated timeframes.

1.3

Check or obtain correct authorisation for entry.

1.4

Select correct account and journal for intended entry.

1.5

Enter credit and debit transactions into journals, including correct allocation of all amounts within designated timeframes.

1.6

Support journal entries with explanation and cross-referencing to support documentation where necessary.

1.7

Cross-check source documentation with entered transaction to ensure matching.

1.8

File source documents in the correct location and according to organisation procedures.

2

Reconcile transactions to a balance.

2.1

Check documentation and balances to ensure matching.

2.2

Where appropriate, use reconciliation features of computerised systems correctly to assist the reconciliation process.

2.3

Where necessary, investigate and clear outstanding entries accurately and promptly in consultation with appropriate colleagues.

2.4

Identify, investigate or report discrepancies according to scope of individual responsibility.

2.5

Finalise reconciliations within designated timelines and provide information to colleagues.

3

Retrieve financial information.

3.1

Interrogate financial records correctly to identify required information.

3.2

Generate and distribute relevant routine financial reports or information at designated times and in response to requests from colleagues.

3.3

Check financial reports for accuracy prior to distribution.

3.4

Identify, investigate or report discrepancies according to scope of individual responsibility.

This section describes the essential skills and knowledge and their level, required for this unit.

The following skills must be assessed as part of this unit:

problem-solving skills to identify and resolve discrepancies in transaction journals and reconciliations

organisational skills to logically organise, file and maintain a wide range of business source documents

literacy skills to interpret a range of source documents

numeracy skills to make basic calculations, identify numerical discrepancies and work with financial reconciliations.

The following knowledge must be assessed as part of this unit:

features of financial record-keeping systems relevant to the industry sector or organisation

bookkeeping cycle relevant to a particular industry sector or organisation

principles of bookkeeping and general understanding of bookkeeping terminology, including charts of accounts, reporting periods, ledgers, double-entry, debits, credits, debtors, creditors, income, expenditure, receipts, disbursements, transactions, journals, accounts, reconciliations, unpresented cheques, bank charges, and direct debits and credits

impact of GST on the bookkeeping process in the relevant industry context, including the types of transactions that attract GST or are GST-exempt and the GST reporting requirements for different businesses

bookkeeping terminology of specific relevance to an industry sector or organisation

income and expenditure types relevant to a particular industry sector or organisation

nature of source documents relevant to a particular industry sector or organisation.

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

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

Evidence of the following is essential:

understanding of financial record-keeping processes as they apply to a particular industry sector or organisation

ability to maintain accurate records within acceptable organisation timeframes and according to organisation requirements

ability to complete reconciliations and resolve routine bookkeeping problems within organisation-acceptable timeframes

posting of multiple transactions of different types over a period of time to reflect the typical trading or reporting period within a given sector or organisation

completion of reconciliations that include data of a size, scope and nature to reflect current industry practice

generation of financial information and routine reports that reflect current industry format and practices

presence of time constraints that reflect the relevant industry environment.

Context of and specific resources for assessment

Assessment must ensure:

use of industry-current accounting systems

integration of problem-solving strategies, such as identifying and resolving errors in reports.

Methods 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 observation of the candidate using a system to post transactions

review of reconciliations and the accuracy of financial records or reports prepared by the candidate

review of documentation used or prepared by the candidate to prepare financial records

problem-solving exercises to address typical bookkeeping errors and problems

review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate.

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

Assessing employability skills

Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors. How these skills are applied varies between occupations and qualifications due to the different work functions and contexts.

Employability skills embedded in this unit should be assessed holistically with other relevant units that make up the skill set or qualification and in the context of the job role.

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 in the performance criteria is detailed below.

Source documents may include:

cheques

deposit books

cheque requisitions

tax invoices

credit notes

expense vouchers

petty cash vouchers

receipts

bank and credit card statements.

Transactions may include:

cash and credit card receipts

cash and credit card payments

petty cash

sales

refunds

rebates

interest expenses or interest received

direct debits and credits

returns and allowances journal entries

bad debts journal entries

main, general journal entries

payroll journal entries.

Reconciliations may include:

single system reconciliations

creditor statements

petty cash

foreign currency

bank reconciliations

guest accounts

travel files

taxation.

Routine financial reports may include:

period reports on receipts or disbursements

account summaries

short-term trading information

information for business activity statements

GST paid or received.

Sector

Cross-Sector

Finance

The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit is packaged will assist in identifying employability skills requirements.