Unit of competency Outline

Date retreived
24/07/2026 12:29 AM AWST

Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.

Establish and maintain a cash accounting system

Establish and maintain a cash accounting system

Unit of competency
National Code
FNSBKG402A
State Code
D4070
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
24/11/2010
View on TGA
State Implementation and Classification
Approved Date
13/02/2012
Field of Education
080101 - Accounting
Original Release Date
13/02/2012
Nominal Hours
50
Description
This unit describes the performance outcomes, skills and knowledge required to establish and manage organisational procedures in arranging for and administering receipts and payments to establish and maintain a manual and computerised bookkeeping system on a cash basis.This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including various aspects of the Tax Act, Goods and Services Tax (GST) rulings.
Notes
Elements and 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
RANGE STATEMENT
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.
EVIDENCE GUIDE
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
Replaces
State Code National Code Title Type
C9639 FNSBKPG402A Establish and maintain a cash accounting system Unit of competency
Replaced By
State Code National Code Title Type
AUQ54 FNSBKG402 Establish and maintain a cash accounting system Unit of competency