certificate iv in accounting and...

FNSACC408 UG V18.4.docx © Copyright 2018 OfficeLink Learning

Certificate IV

in Accounting and Bookkeeping

FNSACC408 Work Effectively in the Accounting and Bookkeeping Industry

User Guide Part # 300

ISBN 978-1-925527-72-8

All Rights Reserved

© Copyright 2018 OfficeLink Learning

No part of the contents of this book may be reproduced or transmitted in any form or by any means without the written permission of OfficeLink Learning. All registered trademarks are service marks of their respective owners.

While care has been taken in the preparation of this Training Tool, OfficeLink Learning and the developer do not accept any liability for any damage or loss (including indirect and consequential loss) incurred by any person as a result of relying on the information contained in this material. This tool should not be regarded as professional advice and it should not be relied upon in any important matter without obtaining appropriate advice relevant to your situation.

It is the Registered Training Organisation’s responsibility to validate the mapping of this tool to the performance criteria.

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Table of Contents Introduction ........................................................................................................ i

Unit overview and learning outcomes ................................................................ ii

Unit 1: The financial services industry .............................................................. 1

1.1 The financial services industry main sectors ......................................................... 2

Other sectors ..................................................................................................... 2

Inter-relationship of sectors.............................................................................. 3

1.2 What is bookkeeping? ........................................................................................... 4

Functions of bookkeeping ................................................................................. 4

Bookkeeper’s responsibility .............................................................................. 5

1.3 Accountant’s responsibility ................................................................................... 6

1.4 Common bookkeeping terms ................................................................................ 7

Unit 2: Develop professional relationships ....................................................... 9

2.1 Components of professional working relationships ........................................... 10

2.2 Clarifying business needs and expectations ........................................................ 11

Client types ...................................................................................................... 11

The essential ingredient .................................................................................. 12

Activity task 1 .................................................................................................. 13

Activity task 2 .................................................................................................. 14

2.3 Bookkeeper roles and responsibilities ................................................................ 15

Typical bookkeeping responsibilities .............................................................. 16

Documenting bookkeeping responsibilities .................................................... 17

Contents for service agreements .................................................................... 17

Activity task 3 .................................................................................................. 18

Activity task 4 .................................................................................................. 19

2.4 Utilising external networks and resources .......................................................... 20

2.4.1 Networking ............................................................................................. 20

Activity task 5 .................................................................................................. 21

2.4.2 Accessing publications ........................................................................... 22

Activity task 6 .................................................................................................. 22

2.4.3 Software tools ........................................................................................ 23

Activity task 7 .................................................................................................. 25

Sample


2.5 Seeking client feedback ....................................................................................... 26

The implications of doing nothing .................................................................. 26

The process for developing a client feedback process ................................... 26

Activity task 8................................................................................................... 28

Activity task 9................................................................................................... 30

2.6 Ethical conduct..................................................................................................... 33

Activity task 10 ................................................................................................ 35

2.7 Continuing professional development ................................................................ 36

2.7.1 Defining continuing professional development..................................... 36

2.7.2 How CPD assists bookkeepers ............................................................... 36

2.7.3 CPD plans ................................................................................................ 37

CPD learning activities ..................................................................................... 38

Activity task 11 ................................................................................................ 40

Unit 3: Legislative, statutory, regulatory and Industry requirements ............. 41

3.1 Researching legislative, statutory and regulatory requirements ........................ 42

Activity task 12 ................................................................................................ 43

3.2 Overview of legislation, regulations and codes of practice ................................ 44

3.3 Tax agent services legislation .............................................................................. 45

3.4 Registration requirements ................................................................................... 47

Fit and proper person ...................................................................................... 47

Qualification/experience ................................................................................. 47

Companies/partnerships ................................................................................. 48

Eligibility requirements under the tasa – summary ........................................ 48

Code of professional conduct ......................................................................... 49

Breach of the code .......................................................................................... 50

Civil penalty provisions .................................................................................... 51

Injunctions ....................................................................................................... 51

Change of circumstances ................................................................................ 52

3.5 Professional associations ..................................................................................... 53

3.6 Privacy .................................................................................................................. 54

Protecting tax file number information .......................................................... 54

Private sector obligations ................................................................................ 54

The notifiable data breaches scheme ............................................................. 55

Activity task 13 ................................................................................................ 56

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Unit 4: Managing workplace information ....................................................... 59

4.1 The importance of managing workplace information ........................................ 60

4.2 Document formats ............................................................................................... 60

Activity task 14 ................................................................................................ 62

4.3 Document creation .............................................................................................. 63

4.4 Document version control ................................................................................... 65

4.5 Document storage and archiving ........................................................................ 66

4.6 Document security ............................................................................................... 67

Unit 5: Getting work done .............................................................................. 69

5.1 Planning for professional success ........................................................................ 70

5.2 Deadlines and timeframes ................................................................................... 71

Activity task 15 ................................................................................................ 72

5.3 Planning time and resources ............................................................................... 73

5.4 Planning tools and calendars ............................................................................... 74

5.5 Prioritising tasks ................................................................................................... 77

5.6 ATO small business newsroom – key dates ........................................................ 77

5.7 Strategic planning ................................................................................................ 78

Activity task 16 ................................................................................................ 78

5.8 Obstacles to successful planning ......................................................................... 81

Activity task 17 ................................................................................................ 82

Unit 6: Working in teams ................................................................................ 83

6.1 Team work ........................................................................................................... 84

Activity task 18 ................................................................................................ 85

6.2 Managing your team ........................................................................................... 86

Activity task 19 ................................................................................................ 87

6.3 Team meetings .................................................................................................... 88

Formal meetings .............................................................................................. 88

Informal meetings ........................................................................................... 89

6.4 Providing feedback to your team ........................................................................ 90

Activity task 20 ................................................................................................ 92

6.5 Working as a role model ...................................................................................... 94

Activity task 21 ................................................................................................ 96

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Unit 7: Designing systems ............................................................................... 97

7.1 Quality management systems ............................................................................. 98

7.2 Documenting policies and procedures ................................................................ 98

7.3 Classifying policies and procedures ..................................................................... 99

Activity task 22 .............................................................................................. 100

7.4 Writing a policy manual ..................................................................................... 101

7.5 Writing a procedures manual ............................................................................ 102

7.6 Developing policy and procedure templates .................................................... 103

7.7 Sample policy template ..................................................................................... 105

7.8 Sample procedure template .............................................................................. 106

Activity task 23 .............................................................................................. 108

Activity task 24 .............................................................................................. 109

Unit 8: Competency mapping ....................................................................... 111

8.1 Competency mapping ........................................................................................ 112

Conclusion ................................................................................................................ 114

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Develop Professional Relationships Page 9


Unit 2: Develop Professional

Relationships

By the end of this unit you will be able to:

• Identify the components of professional working relationships

• Clarify the business needs and expectations of clients

• Identify the roles and responsibilities of bookkeepers

• Utilise external networks and resources

• Seek client feedback

• Maintain ethical standards

• Manage ongoing continuous improvement strategies

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Develop Professional Relationships


2.1 Components of Professional Working Relationships

Professional working relationships have several components that work together to develop and maintain those relationships.

Business needs & expecations

clarified

Bookkeeper roles & responsibilities

defined

Continuing professional development

Feedback is sought from clients

External networks &

resources utilised, where appropriate

Conduct is ethical

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2.2 Clarifying Business Needs and Expectations

The more clearly you can articulate and document the business needs and expectations of the clients you work with, the more effective you will be and the more satisfied they (and you) will be when it comes to your performance and your working relationships.

Client Types

Whatever your employment situation, your likely client types will generally include:

• Business owners

• Managers and supervisors (direct or indirect)

• Accountants (internal or external)

• Auditors (internal or external)

• Registered Tax Agents

Business needs& expecations

clarified

Bookkeeper roles &

responsibilities defined


Feedback is sought from

clients

External networks & resources

utilised, where appropriate

Conduct is ethical

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The Essential Ingredient

The essential ingredient in determining needs and expectations of others is

to be a good listener.

You need to take the time to identify the needs of your client by asking them questions, probing and concentrating on what they are really saying.

Listen to their words, tone of voice, body language and most importantly, how they feel. Be careful not to make assumptions. Thinking you intuitively know what your client wants can get you into trouble.

Do you know the three outcomes/deliverables that are most important

to your client?

This question is one that you should be able to answer for each of your clients. If you can’t … you need to seek additional information.

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Activity Task 1

(a) With consideration of likely client types, discuss and list probable means for gathering information regarding their business needs and expectations.

________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________

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Activity Task 2

(a) Work in pairs to develop a questionnaire to determine the business needs and expectations for the client in the following scenario.

Scenario: You are a contract bookkeeper who is meeting with a potential client for the first time. The potential client is an owner of a small family-owned carpet cleaning business who is looking to outsource her bookkeeping activities.

(b) Once complete, team-up with another pair and discuss the merits and limitations of your questionnaires.

(c) Make improvements to your questionnaires where necessary.

Note: You will expand this questionnaire during Activity Task 4.

________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________

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2.3 Bookkeeper Roles and Responsibilities The scope and responsibilities of a bookkeeper tend to vary depending on several factors, such as:

• the employment situation (e.g. employed, contract, or self-employed)

• the business needs and size of the company that employs the bookkeeper

• the skill level of the bookkeeper/s employed or contracted

In small companies, the bookkeeper tends to be responsible for the general ledger, which encompasses all the financial transactions for the given company. In addition, the bookkeeper often provides summaries of the general ledger’s details, such as what the company owes, what is owed to the company, as well as any information regarding the company’s profit margin. Furthermore, a bookkeeper with a job at a small company may also be responsible for payroll, customer invoices, and tax reports.

In larger companies and corporations, people with bookkeeping careers are often assigned to a specific task or specialised area. For example, one bookkeeper may be assigned the task of maintaining accounts receivable, while another bookkeeper maintains the accounts payable. The responsibilities of a bookkeeper within a large company vary depending upon experience and position. Furthermore, an entry-level bookkeeper may enter transactions, total accounts, monitor accounts, and calculate interest charges, while a more advanced bookkeeper may reconcile vouchers, verify the accuracy of data, and review accounting journals.


clarified

Bookkeeper roles &

responsibilities defined



clients


utilised

Conduct is ethical

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Typical Bookkeeping Responsibilities

While bookkeeper roles will differ, it is typical that they will be defined by a combination of the following responsibilities:

• Accounts payable and receivable Data entry Management of accounts Invoicing customers Paying suppliers Liaising with customers and suppliers Debt recovery Reconciliations Weekly, fortnightly, monthly or quarterly services

• Reporting Profit & loss Balance sheet Aged receivables Any type of reporting required in relation to accounts, banking, sales,

purchases and payroll Performed monthly, quarterly or as required

• Payroll

Weekly, fortnightly or monthly pay runs Monthly/quarterly payment of PAYG Superannuation Employee record keeping

• BAS

Performed under the supervision of a registered tax agent

• Statutory compliance BAS, Payroll Tax, Workcover

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Documenting Bookkeeping Responsibilities

If you are providing bookkeeping services, you should never rely on verbal agreements. Make sure you have a written service agreement in place to protect the interests of both you (the provider) and the receiver of services (business owner).

Documentation of bookkeeping responsibilities will generally take two forms:

1. Position Description (or Job Description) – usually in place for an employer/employee relationship

2. Service Agreement (or Service Contract) – usually in place for all bookkeeping provider/receiver relationships

Contents for Service Agreements

In partnership with the business owner, a service agreement should be developed to pin down issues such as the following:

• Definition and scope of services being rendered

• Services that are not included

• Payment schedule for services

• Warranty or guarantee of service

• Time sensitivities

• Confidentiality issues

• How changes to the agreement will be handled

• How the agreement can be ended

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Activity Task 3

(a) Research and review a selection of 3 or 4 bookkeeper job vacancies (online or print).

(b) List any bookkeeping responsibilities that are advertised as a requirement for these jobs that were not identified as a typical bookkeeping responsibility on the previous page.

______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________

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Activity Task 4

Part A:

(a) Team up with your partner from Activity Task 2.

(b) Work together to expand your Activity Task 2 questionnaire to include questions you would ask of the business owner to determine your role and responsibilities.

Part B:

(c) Role-play the interview scenario, with one of you acting as the bookkeeper (using your questionnaire) and the other as the business owner.

(d) Be sure to demonstrate clear communication and active listening.

Part C:

(e) Use the responses (given by the business owner) to develop a service agreement.

______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________

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2.4 Utilising External Networks and Resources

2.4.1 Networking

Professional networks will assist when encountering tasks outside their defined roles and responsibilities or beyond their skill set. The network of professionals that bookkeepers will build relationships with may include, but is not limited to:

Network type: Can assist with:

• Fellow bookkeepers Processes, industry updates, software assistance

• Colleagues/staff Company policies, procedures and information

• Accountants Legislation and tax information

• Lawyers Laws and legislation

• Registered Tax Agents Legislation and tax information

• Auditors Adherence to company policies, legislation and tax information

• Banks, building societies, credit unions

Banking and financial tools

• Suppliers Software upgrades and advances

• Mentors Processes, industry updates, software assistance, ethical behaviours, professional developments

• Software consultants Software upgrades and advances

• Information technology (IT) team Software upgrades and advances

• Australian Taxation Office (ATO) Legislation and tax information

• Professional associations Processes, industry updates, software assistance, ethical behaviours, professional developments

• Business or financial advisor Processes, industry updates, software assistance, ethical behaviours, professional developments

• Debt collection agencies Adherence to company policies, legislation and tax information adherence

It is imperative that bookkeepers build and maintain networks with other professionals.

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Activity Task 5

(a) Discuss and identify two activities or business owner requests that would generally fall outside the scope of a bookkeeper and would require the assistance of other professionals.

(b) Identify the network/s able to carry out or provide advice regarding the activities/requests.

(c) Explain why it would be appropriate to utilise the assistance of other networks for this activity/request.

Example:

Activity: Preparing tax return

Referral network: Accountant

Reason: Bookkeepers may not have the requisite knowledge and experience to comply with the legislation allowing them to prepare tax returns.

Activity/request: ___________________________________________________

Referral network/s: ________________________________________________

Reason: _________________________________________________________

________________________________________________________________

________________________________________________________________

Activity/request: ___________________________________________________

Referral network/s: ________________________________________________

Reason: _________________________________________________________

________________________________________________________________

________________________________________________________________

Sample



2.4.2 Accessing Publications Bookkeepers should conduct regular research to identify and access publications that help them maintain current knowledge of industry trends and practices and stay abreast of regulatory changes and requirements. Publications may be online or in print, and include (but are not limited to):

• ATO’s Bookkeeping essentials

• ATO Fact Sheets and guides

• The BAS Agent – a free e-newsletter

• Professional association newsletters

• Training publications

• Operation manuals

• Instructional guides

Activity Task 6

(a) Access the ATO website at www.ato.gov.au and type ‘free newsletter’ in the Search for… field.

(b) Locate and click ‘Subscribe to the Tax professionals newsletter’.

There are 2 free newsletters available: • The tax professionals newsletter • The tax professionals newsletter – BAS agent addition

(c) Subscribe to the Tax professionals newsletter – BAS agent addition.

(d) Print a copy of the email response that is automatically generated to your nominated email address (confirming your contact details) and attach as evidence.


clarified

Bookkeeper roles & responsibilities

defined



clients


utilised, where appropriate

Conduct is ethical

Sample



2.4.3 Software Tools Earlier in this User Guide, we examined some of the roles responsibilities of a bookkeeper. Many of these functions (such as tax and profit reporting) consist of complex calculations that can be quite confusing and time consuming to manage. Many financial institutions utilise commercial accounting packages to assist in the management of these functions including:

• MYOBTM

• XeroTM

The main advantage of these programs is their reporting capabilities. Simply by performing daily financial operations, bookkeepers create valuable data records that can be used to create a vast array of reports. These reports can in turn be utilised to perform such functions as:

• Reconciling bank accounts

• Measuring and analysing sales profits/losses

• Identification of high and low sales areas to assist in marketing campaigns

• Reconciling customer account discrepancies

If you or your client want to be able to communicate electronically with the Australian Taxation Office, they will need to register for AUSKey. AUSkey is the single key to securely accessing government online services. ATO digital Certificates are no longer issued but existing ones can still be used for as long as they remain valid.

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With an AUSKey you can:

• view, prepare, lodge and revise activity statements

• view and request refunds from:

income tax accounts

fringe benefits tax accounts

excise accounts

some superannuation accounts

• view your statement of account and payment options

• update your details

• transfer funds between your accounts

• communicate with us through a secure mailbox.

The Australian Business Software Industry Association (ABSIA) has developed a software industry product catalogue to replace the ATO Product Register which enables you to search for tax-related software products. www.absia.asn.au/page/product-catalogue. The products listed in the catalogue are commercially available and meet Tax Office requirements. Using products listed in the catalogue will increase the quality of business management and record keeping, resulting in efficiencies within accounting practices, increased compliance and less intrusive audits. You can search the catalogue by:

• Company or Product Name

• Industry

• Target Market

Software tools to assist in planning your activities are discussed in later topics.

Sample



Activity Task 7

(a) Conduct research to identify two commercially available software tools designed to assist in carrying out bookkeeping activities.

(b) Briefly explain the differences between the two products.

________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ (c) List some of the reporting functions of these software programs. ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________

Sample

Competency Mapping


8.1 Competency Mapping

Element and Performance Criteria Reference Activity Tasks

1. Develop professional working relationships

1.1 Clarify business needs and expectations of work to be done through clear communication with key stakeholders

Unit 2.2 1 and 2

1.2 Determine roles and responsibilities of various members of the accounting and tax profession according to business needs

Unit 2.3 3 and 4

1.3 Identify activities that fall outside own role and responsibilities, and identify networks of individuals able to carry out those activities

Unit 2.4 5

1.4 Refer business owner to networks for advice and services where applicable Unit 2.4 5

1.5 Request feedback on range, type and quality of service to be provided and act on feedback, where applicable

Unit 2.5 8 and 9

1.6 Identify and use ethical principles and practices in own role and responsibilities Unit 2.6 10

2. Identify compliance requirements and support materials

2.1 Obtain access to publications and software tools designed to assist in carrying out own work activities Unit 2.4, 7.1 6, 7 and 22

2.2 Research legislative, statutory, regulatory and industry requirements for carrying out own work activities

Unit 3.1 - 3.6 12 and 13

3. Set up and maintain systems to meet compliance requirements

3.1 Develop systems to support user needs Unit 2.4, 7.1 – 7.8 7, 22, 23 and 24

3.2 Develop instructions and guidelines for carrying out daily activities according to compliance requirements

Unit 2.3 - 2.5, 4.1, 7.2-7.3, 7.5, 7.8 3, 4, 14, 22 and 24

3.3 Review and adapt systems as necessary on a regular basis Unit 2.5, 7.1 - 7.8 8

Sample

Competency Mapping Page 113


4. Work autonomously or in a team to complete work activities

4.1 Determine tasks to be done and identify required conditions to work autonomously or in team environment

Unit 5.1 – 5.5, 5.9, 6.1 15, 17 and 18

4.2 Plan work to manage resources, time and priorities Unit 5.3 - 5.6 16

4.3 Provide feedback to team members to encourage, value and reward individual and team efforts, and contributions

Unit 6.2, 6.4 19 and 20

4.4 Support team to identify and resolve problems that impede its performance Unit 6.3, 6.4 20

4.5 Adapt to changes in technology and work organisation in a timely manner Unit 5.4 16

5. Develop and maintain own competency

5.1 Identify and review own professional development needs and goals on regular basis Unit 2.7 11

5.2 Clarify and comply with competency, authorisation and licensing requirements

Unit 2.1 – 2.3, 2.7, 7.2 – 7.3

1, 2, 3,4 and 11

5.3 Seek professional development opportunities that reflect own needs and goals in agreed timeframe Unit 2.7 11

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