This unit describes the skills and knowledge required to establish debtors and creditors, manage debt recovery, perform reconciliations and prepare reports for accrual accounting in manual and computerised accounting systems.  It applies to individuals who may use managerial and other techniques to provide contract bookkeeping services for organisations and small business owners.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.

Unit details

Study level:
Vocational and further education (TAFE)
Unit code:


FNSBKG402 - Establish and maintain a cash accounting system


Assessment tasks will be designed to reinforce and extend knowledge and skill competence within set and controlled parameters in accordance with each unit's learning outcomes and performance criteria requirements, including the setting of work based practical application tasks designed to provide evidence of competence outcomes, within periodic and scheduled timelines. Students will be expected to demonstrate the following required skills: - manage manual and computerised chart of accounts, incorporating accounts receivable and accounts payable, according to organisational procedures and legislative requirements; - review completed accounts receivable and payable processes and identify bad and doubtful debts; - plan recovery actions in accordance with legal requirements; - deal with debtors courteously and respectfully, and; - produce a trial balance. Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.Students will also be expected to demonstrate the following knowledge: - explain the differences between cash and accrual accounting; - explain the concept of double-entry accounting; - identify relevant legal processes and describe procedures relevant to debt recovery; - describe the necessary preliminary steps, timing and acceptable avenues for recovering debts; - explain organisational policy and procedures related to the processing of transactions and records; - identify the key legislative requirements that relate to compliant bookkeeping practice, and; - describe the key features and differences between the operation of manual and computerised accounting systems.

Where to next?

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