Unit of competency details

Elements and Performance Criteria 

Element 

Performance Criteria 

1

Prepare and store physical records 

1.1

Physical records and inventories required for the organisation are determined in consultation with the management team .

1.2

Methods for collecting information  are reliable, and time and resources are used efficiently.

1.3

Appropriate interpersonal skills  are used to access relevant information from individuals and teams.

1.4

Information is organised into a format  suitable for analysis, interpretation and dissemination in accordance with organisational requirements.

1.5

Business equipment/technology  is used to maintain information in accordance with organisational and OHS requirements.

1.6

Records are updated and stored in accordance with organisational requirements.

2

Process petty cash transactions

2.1

Petty cash claims and vouchers are checked for accuracy and authenticity  prior to processing.

2.2

Petty cash transactions are processed and recorded in accordance with organisational requirements.

2.3

2.2 Petty cash book balanced in accordance with organisational requirements.

3

Establish and maintain a cash book  in accordance with organisational requirements

3.1

Cash receipts and payments book created, and documentation  relating to financial transactions checked for validity  prior to processing.

3.2

Cashbook balances reconciled with bank and creditor statements.

3.3

Cashbook balances are used to complete legislative reporting requirements .

3.4

Cash flow statements  are prepared on the basis of summarised cashbook entries.

4

Reconcile invoices for payment to creditors 

4.1

Adjustments and errors are identified, reported and rectified in accordance with organisational requirements.

4.2

Invoices processed and payment made in accordance with organisational requirements.

5

Prepare invoices for debtors 

5.1

Invoices are prepared accurately and, if required, distributed to nominated person for verification prior to despatch.

5.2

Adjustments are made as required in accordance with organisational requirements.

5.3

Invoices and other related documents copied and filed in accordance with organisational requirements for taxation and auditing  purposes.

What evidence is required to demonstrate competence for this standard as a whole ?

Competence in record keeping in rural businesses requires evidence that both physical and financial records for the business can be created, maintained and stored in accordance with legislative and organisational requirements. Financial transactions involving cash, electronic funds transfer, cheques and invoices must be processed and recorded accurately in accordance with legislative and organisational requirements.

The skills and knowledge required to keep records in a rural business must be transferable  to a different work environment. For example, across a wide range of small, medium and large agricultural and horticultural businesses.

What specific knowledge is needed to achieve the performance criteria ?

Knowledge and understanding are essential to apply this standard in the workplace, to transfer the skills to other contexts, and to deal with unplanned events. The knowledge requirements for this competency standard are listed below:

nature of the business and its legal and organisational structure

relevant National, State and local government legislative requirements, especially in regard to OHS and environmental requirements

organisational policies and procedures relating to the distribution of workplace information, legal and ethical obligations

methods to identify sources of information

procedures to analyse information to identify patterns and trends

the organisations record keeping/filing systems, security of information and safe record keeping procedures

principles of effective interpersonal communication

principles and procedures for cash and non cash handling

principles of single entry accounting, and cash flow statements.

What specific skills are needed to achieve the performance criteria ?

To achieve the performance criteria, appropriate literacy and numeracy levels as well as some complementary skills are required. These include the ability to:

relate to people from a range of social, cultural and ethnic backgrounds, and of varying physical and mental abilities

collect and record accurate and reliable information

present data in a format suitable for the organisations requirements

use business equipment and technology correctly and safely

file records accurately in accordance with organisational requirements

perform calculations and balance accounts

prepare cash flow statements and budgets

reconcile creditors invoices and prepare debtors invoices

process forms and other documentation.

What processes should be applied to this competency standard ?

There are a number of processes that are learnt throughout work and life, which are required in all jobs. They are fundamental processes and generally transferable to other work functions. Some of these are covered by the key competencies , although others may be added. The questions below highlight how these processes are applied in this competency standard. Following each question a number in brackets indicates the level to which the key competency needs to be demonstrated where 0 = not required, 1 = perform the process, 2 = perform and administer the process and 3 = perform, administer and design the process.

1. How can communication of ideas and information  (2 ) be applied?

By research and discussion with the management team, employees and outside organisations.

2. How can information be collected , analysed and organised  (2 )?

By collecting and presenting information from a variety of sources and organising it into records, graphs, charts and tables.

3. How are activities planned and organised  (2 )?

By capturing and storing data generated within the business on a regular basis.

4. How can team work  (2 ) be applied?

By working with business employees and the management team to assist in providing information on particular aspects of the business.

5. How can the use of mathematical ideas and techniques  (2 ) be applied?

By the processing of financial transactions and the development of cash flow statements and budgets.

6. How can problem -solving skills  (2 ) be applied?

Information that is contradictory, inconsistent, ambiguous or incomplete can be rejected.

7. How can the use of technology  (2 ) be applied?

By using technology to research information, keep records and perform calculations.

Are there other competency standards that could be assessed with this one ?

This competency standard could  be assessed on its own or in combination with other competencies relevant to the job function.

There is essential information about assessing this competency standard for consistent performance  and where and how it may be assessed , in the Assessment Guidelines for this Training Package. All users of these competency standards must have access  to the Assessment Guidelines . Further advice may also be sought from the relevant sector booklet .

Range of Variables 

The Range of Variables explains the contexts within which the performance and knowledge requirements of this standard may be assessed. The scope of variables chosen in training and assessment requirements may depend on the work situations available

What sort of things will be recorded in physical records ?

Records may include a property plan, livestock, paddock treatments including spraying, paddocks, rainfall, production, sales data, supplies, machinery and equipment, and stock.

Who might be members of the management team ?

They may be oneself, family members, fellow managers, employees, professional advisors, partners, and mentors.

What methods for collecting information  might be used?

Methods for collecting information may include observation and listening, previous file records, individual research, statistics and reports from other organizations, producing reports from data collected on the farm, translating data from diaries and note-books, or professional data collection agency.

What type of interpersonal skills  may be required?

Interpersonal skills may include effective listening, open questioning techniques, verbal and non verbal communication skills, appropriate body language, and the ability to relate to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities.

What type of format  might be relevant?

Format for records and inventories could include maps, graphs, charts, cards, electronic, databases, diaries, or notebooks.

What sort of business equipment /technology  might be used?

Business equipment and technology that might be used include computer, software, Internet, email, calculator, fax or phone.

What type of checking for accuracy and authenticity  might be used?

Checking may include correct information on voucher, receipt of purchase, and ensuring items are business related.

What is meant by a cashbook ?

A cashbook documents the daily receipts and payments of the business. It may be created and maintained manually and/or electronically.

What sort of documentation  requires checking for validity  in this context?

Documentation may include cheques, taxation invoices, accounts, and credit card vouchers.

Validity may include checking date, signature, details on cheque are correct, expiry date of credit cards, information on taxation invoice, and accounts are accurate.

What sort of legislative reporting requirements  would be included?

Legislative reporting requirements may include recording Australian Business Number (ABN), business activity statements (BAS), instalment activity statements (AIS), PAYG withholding, superannuation, taxation, or work cover.

What is meant by cash flow statements  in this context?

Cash flow statements summarise the organisations actual and expected cash flow over designated periods of time. Budgets allocate income against expenses. Both types of statements can be created manually or electronically.

Who might be creditors and debtors ?

Creditors and debtors may include financial institutions, goods and service suppliers, rural merchants, contractors, professional advisors, and co-operatives.

What sort of taxation and auditing requirements  may be required?

Taxation and auditing requirements would include accurate records of all business assets, liabilities, income, expenses and entitlements to be analysed by an accountant for compliance purposes.

What type of financial transactions  might the business undertake?

Financial transactions may include purchasing and selling products, machinery and equipment, vehicles and supplies, banking cheques, paying invoices and bills, or transferring funds electronically.

For more information on contexts, environment and variables for training and assessment, refer to the Sector Booklet.