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Evidence Guide: FNSBKG402 - Establish and maintain a cash accounting system

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSBKG402 - Establish and maintain a cash accounting system

What evidence can you provide to prove your understanding of each of the following citeria?

Identify relevant information and establish chart of accounts

  1. Consult business owner or manager to establish what business activities are undertaken, nature of entity and industry type
  2. Identify existing material and examine for relevance in creating and/or modifying chart of accounts
  3. Examine business operations in conjunction with tax agent and business owner or manager to identify accounting software required and determine reporting requirements
  4. Establish chart of accounts and opening balances for assets, liabilities, equity, income, cost of sales and expenses
  5. Refer prepared chart of accounts and balances for validation and authorisation by relevant persons
Consult business owner or manager to establish what business activities are undertaken, nature of entity and industry type

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify existing material and examine for relevance in creating and/or modifying chart of accounts

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Examine business operations in conjunction with tax agent and business owner or manager to identify accounting software required and determine reporting requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish chart of accounts and opening balances for assets, liabilities, equity, income, cost of sales and expenses

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Refer prepared chart of accounts and balances for validation and authorisation by relevant persons

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse and verify source documents

  1. Verify invoices and other source documents for accuracy and compliance with taxation requirements
  2. Identify and investigate discrepancies between monies owed and monies paid according to organisational policy and procedures
Verify invoices and other source documents for accuracy and compliance with taxation requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and investigate discrepancies between monies owed and monies paid according to organisational policy and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Process receipts and payments

  1. Collect payments and bank money received
  2. Code and record receipts and payments in bookkeeping system on cash basis
  3. File receipts and payments
  4. Balance cash register against purchases and process takings in internal bookkeeping system
Collect payments and bank money received

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Code and record receipts and payments in bookkeeping system on cash basis

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

File receipts and payments

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Balance cash register against purchases and process takings in internal bookkeeping system

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Set up and maintain petty cash system

  1. Prepare expenditure authorisation record of encoded, recorded and filed expenditure
  2. Reconcile and reimburse expenditure
Prepare expenditure authorisation record of encoded, recorded and filed expenditure

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Reconcile and reimburse expenditure

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Process and reconcile credit cards

  1. Process credit card transactions against invoices and other source documents, and verify and reconcile against credit card statements
  2. Process credit card payments in accordance with organisational policy and procedures
Process credit card transactions against invoices and other source documents, and verify and reconcile against credit card statements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Process credit card payments in accordance with organisational policy and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Manage bank reconciliations and prepare and produce reports

  1. Verify processed transactions promptly against bank statement on receipt of statement
  2. Process and verify bank entries and reconcile bank statement to balance as per bookkeeping system
  3. Produce validated reports in line with business needs in timely manner, and make corrections as required
Verify processed transactions promptly against bank statement on receipt of statement

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Process and verify bank entries and reconcile bank statement to balance as per bookkeeping system

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Produce validated reports in line with business needs in timely manner, and make corrections as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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

Required Skills and Knowledge

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.