NOS for Accountancy and Finance Amended V2

National Occupational Standards for Accountancy and Finance Page 1

National Occupational Standards for Accountancy and Finance

January/February 2012

These National Occupational Standards (NOS) aim to define the competencies required to carry out the functions used in Accounting and Finance. Please note that they do not describe individual job roles, which may embody a number of functions nor do they define qualifications. They are intended as a high-level strategic overview of the competencies required to fulfil tasks effectively within industry.

This document currently contains updated NOS units covering Accounting and Payroll Administration. It is intended that NOS units covering other areas within Accountancy and Finance will be added in due course, as and when they are updated, thereby consolidating all of the NOS units in this area into a single point of reference. NOS units for Credit Management and Internal Audit are currently under review and will be added here shortly. Other units are expected to follow subsequently.

Copyright © 2009 Financial Services Skills Council. All rights reserved.

Contents Contents ............................................................................................................................................................................................................................................. 1 Accountancy and Finance Units ............................................................................................................................................................................................................. 3


Imported Units .................................................................................................................................................................................................................................. 47 Signposted Units ................................................................................................................................................................................................................................ 48


Accountancy and Finance Units

The following pages present the core units that form the Accountancy and Finance NOS. Additional supporting units, drawn from other NOS suites and detailing more general skills that are not specific to Accountancy and Finance, are signposted at the end of this document. For convenience, the core units have been grouped into the following categories.

Professional Standards

PS-1 Work Effectively In Accountancy and Finance ........................... 4 PS-2 Professional Ethics in Accountancy and Finance ........................ 6

Financial Accounting

FA-1 Process Income...................................................................... 8 FA-2 Process Expenditure ............................................................. 11 FA-3 Account for Income and Expenditure ..................................... 14 FA-4 Prepare Accounts ................................................................. 16 FA-5 Draft Financial Statements .................................................... 18

Management Accounting

MA-1 Provide Cost And Revenue Information ................................. 19 MA-2 Provide Management Information ......................................... 21 MA-3 Draft Budgets...................................................................... 23 MA-4 Monitor Financial Performance .............................................. 25

Tax

T-1 Calculate Personal Tax ........................................................... 27

T-2 Calculate Business Tax ........................................................... 29 T-3 Report VAT............................................................................ 31

Treasury Management*

TM-1 Administer Cash Balances ..................................................... 32 TM-2 Grant and Control Credit ...................................................... 33

Financial Systems

FS-1 Review Accounting Systems ................................................... 34

Audit*

A-1 Implement External Audit Procedures ....................................... 35

Payroll

P-1 Create and Maintain Employee Records .................................... 37 P-2 Calculate Pay .......................................................................... 39 P-3 Determine Entitlements and Deductions .................................... 41 P-4 Control Payroll ........................................................................ 43 P-5 Complete End-of-Period Procedures .......................................... 45

P-6 Process Expenses and Benefits in Kind ...................................... 46

*Please note: there are separate suites of NOS for Credit Management and Internal Audit, which are currently under review.


PS-1 Work Effectively In Accountancy and Finance

Overview Performance Knowledge and Understanding

This unit is about the core competence that everyone working in accounting needs, regardless of their role or function. It involves:

• Understanding the purpose of accountancy and the environment in which it operates;

• Organising your time and workload;

• Working with colleagues;

• Communicating with others;

• Using computers, electronic, vitual and automated systems as appropriate;

• Displaying commercial awareness and acumen;

• Keeping documents safe.

You will need to be familiar with software tools in the following categories:

• Spreadsheets;

• Word processing;

• Software specific to your role or function (e.g. accounts packages or payroll systems).

HOWEVER, YOU ALSO NEED TO BE AWARE THAT:

• BEING ABLE TO USE ACCOUNTING SOFTWARE IS NOT A SUBSTITUTE

You must be able to:

1. Manage your workload effectively;

2. Produce work to the required standard within the required timescales;

3. Communicate with others in a way that is clear, diplomatic, objective and sensitive to their needs and feelings;

4. Interact with clients on a face-to-face basis where appropriate to understands their needs;

5. Understand the needs of your customers and work with them to promote their trust and deliver effective solutions;

6. Find workable solutions for any conflicts or dissatisfaction which reduce personal or team effectiveness;

7. Follow organisational procedures if there are difficulties in working relationships that are beyond your authority or ability to resolve, and promptly refer them to the appropriate person;

8. Identify your own development needs and objectives by taking into consideration your current work activities and your career goals;

9. Monitor developments relating to your job role;

10. Maintain and develop your own specialist knowledge relevant to your own working environment;

11. Act in compliance with relevant legislation, including equalities legislation;

12. Regularly review your own performance and progress in relation to your learning and development;

13. Present information in appropriate formats, using the

You must know and understand:

The Business Environment

1. Basic numeracy and literacy;

2. The role of accountancy and other financial functions within business;

3. The impact of your work on others;

4. The contribution of those in accounting and other financial roles to maintaining the smooth running, solvency and legal compliance of an organisation;

5. Relevant security and legal regulations relating to data protection, retention of documents and compliance and to business practice;

6. How to plan your work to meet deadlines;

7. Who needs to be informed if you anticipate any difficulties in carrying out your work;

8. How to encourage, receive and give frank and constructive feedback, whether negative or positive;

9. How to verbally communicate problems, issues, ideas or requirements to others;

10. Ways of presenting written, numerical or diagrammatic information;

11. The importance of continuing professional development and lifelong learning;

12. Ways of identifying and satisfying your own learning and development needs;

13. Safe and healthy use of computer equipment, including seating, posture and screen-breaks.


FOR UNDERSTANDING THE BASIC UNDERLYING PRINCIPLES OF ACCOUNTANCY.

relevant house style and template and in the manner that is most environmentally sustainable ;

14. Use spreadsheets or other accounting systems or software;

Unit continues on next page

PS-1 Work Effectively In Accountancy and Finance continued


15. Ensure your work area, including desk, chair and computer, is set up in a way that is comfortable, safe and healthy to use, and resolve or report any problems;

16. Maintain security and confidentiality of data at all times, applying passwords where required, keeping passwords safe and changing them at appropriate times;

The Organisation

14. Who is your supervisor, line manager or other authority to whom you are answerable;

15. Any organisational policies and procedures that affect your work or within which you must operate;

16. Different company structures and the impact they can have on tax and accounting practice;

17. The house style and templates for business reports and


17. Make backup copies of your work at appropriate intervals;

18. Safely and securely store documents and back-up copies using appropriate naming and filing conventions.

19. Implement and maintain a system for monitoring data accuracy.

20. Ability to question accuracy of data.

other communications, and why these are important;

18. The naming conventions and filing procedures for documents and back-up copies, and why these are important;

19. The policies, procedures and appropriate times for changing passwords and making back-up copies of documents.

PS-2 Professional Ethics In Accountancy and Finance


This unit is about the important aspect of working in an ethical manner in respect of accountancy and taxation practice. It is important for three key reasons:

1. The level of confidence that the public has in accountancy and finance practices or functions;

2. Your organisation’s probity and reputation;

3. Your own professional reputation and legal liability.

It involves:

• Acting with honesty and integrity;

• Exercising objectivity, fairness and due


1. Act appropriately and with integrity, honesty, fairness and sensitivity when liaising with legislative bodies, official enquiries, clients, suppliers and colleagues;

2. Keep a professional distance, exercise objectivity, and maintain professional standards of conduct with others at all times;

3. Take care in and responsibility for your work;

4. Adhere to organisational and professional values, culture, codes of practice and regulations at all times;

5. Strictly adhere to policies for handling clients’ monies;

6. Recognise when information should be kept confidential and keep it as such;

7. Identify circumstances when confidential information should be disclosed and do so only to those who are


1. The fundamental general principles of ethical behaviour and how they apply to you and your organisation;

2. The type of organisational culture that promotes high ethical values and helps resolve any conflict of loyalties;

3. An overview of the relevant legal, regulatory and ethical requirements affecting the accounting sector and your own industry;

4. The role and purpose of professional bodies relevant to your work or industry, who they are and how to contact them;

5. The codes of conduct and practice within which you, your organisation or your industry are expected to operate;

6. How organisations and industries can be at risk from improper practice and why it is important to be vigilant;

7. Organisational policies for handling clients’ monies;


care;

• Respecting confidentiality;

• Adhering to professional values and codes of practice and behaving professionally;

• Maintaining your professional and technical competence.

entitled to receive it;

8. Advise the relevant authority if a professional situation becomes liable to compromise;

9. Discuss, agree and resolve any ethical conflict;

10. Report any inappropriate client behaviour or disclosures to the relevant authority;

11. Follow appropriate procedures where you suspect an employer, colleague or client has committed or may commit an act which you believe to be illegal or unethical;

12. Confidentially report non-compliance, suspected fraud or illegal activity, breaches of confidentiality, or other issues that could put your own or your organisation’s integrity at risk, to the relevant authority;

8. The relevant internal authorities, within your organisation, to whom unethical behaviour, breaches of confidentiality or other malpractice should be reported, and the procedures for doing so;

9. Relevant external authorities, outside your organisation, to which unethical behaviour or other malpractice can be reported, and the procedures for doing so;

10. The procedures for reporting suspected breaches of ethical behaviour or suspected illegal acts;

11. When and how ethical or malpractice issues should be escalated from internal to external authorities;

12. How to communicate professionally and effectively with external bodies and agencies, colleagues, clients and suppliers;


PS-2 Professional Ethics In Accountancy and Finance continued


You need to be aware that:

• Individual organisations may have their own value base but conduct is always based upon the stipulated requirements of the profession and statutory obligations;

• Performance in this unit will be demonstrated throughout your professional career.

13. Always work within the scope of your professional liability and the limits and confines of your own professional experience and expertise;

14. Accurately advise clients on the retention of books, working papers and other documents;

15. Maintain an up to date knowledge of changes to codes of practice, regulation or legislation affecting your role and profession;

16. Distinguish between offering accountancy services and offering consultancy and advisory services

17. Maintain your continuing professional development in line with the requirements of relevant professional bodies.

13. Sources of information for continuing professional development.


FA-1 Process Income


This unit is about processing income and receipts coming into the organisation. This function is vital in ensuring that accurate accounts may be subsequently prepared and that there is a clear record of financial transactions with regard to income received.

It involves:

• Issuing and coding invoices and credit notes for goods and services supplied;

• Entering invoices and credit notes into the relevant books of prime entry;

• Checking, recording and processing receipts;

• Preparing statements of account for customers;

• Responding to queries from customers and chasing payments.


1. Prepare accurate invoices and credit notes as appropriate, in accordance with organisational and tax authority requirements;

2. Check invoices and credit notes against source data;

3. Obtain correct authorisation for invoices and credit notes before sending them to customers;

4. Confirm the accuracy and validity of receipts against relevant supporting information;

5. Correctly code and enter invoices, credit notes and receipts into the appropriate books of prime entry;

6. Accurately distinguish between capital and revenue;

7. Accurately apply discounts to customer accounts where relevant;

8. Post from the books of prime entry to the ledgers;

9. Prepare paying-in documents and reconcile to relevant records;

10. Produce statements of account for despatch to debtors;

11. Use relevant information from the aged debtors analysis to communicate with customers about their accounts, respond to queries and chase payments;

12. Distribute aged debtor listings to the appropriate person to deal with them;

13. Appropriately make provision for Bad Debts

14. Identify problems in transactions and their supporting documentation and either resolve them or refer to the appropriate person.

15. Appropriately use software and/or software



1. Income and receipt transactions, and their associated documentation;

2. Retention policies for source documents;

3. Relevant contract law;

4. The general principles of VAT regarding income and receipts;

5. Types of discounts available to customers;

6. Types of receipts from customers;

7. Credit limits;

8. Responsibilities regarding data security in relation to customers.

Accounting Techniques, Principles and Theory

9. Accounting for receipts from cash and credit customers;

10. How to code income and receipts data;

11. Books of prime entry;

12. Double entry bookkeeping and balancing accounts;

13. Ledgers;

14. How to interpret an aged debtor analysis;

15. Batch control;

16. Credit card procedures.


programmes and 0n-line transaction systems.



FA-1 Process Income continued


The Organisation

17. The organisation’s accounting and administrative systems and procedures;

18. The nature of the organisation’s business transactions;

19. How to prepare invoices and credit notes;

20. Source documents relating to processing income;

21. How to identify problems with transactions and how to deal with them;

22. Organisational procedures for authorising and coding sales invoices;

23. Organisational procedures for filing and retaining source documents;

24. The organisation’s house style for correspondence;

25. Banking security procedures.


FA-2 Process Expenditure


This unit is about processing payments made by the organisation. This function is vital in ensuring that accurate accounts may be subsequently prepared and that there is a clear record of financial transactions with regard to payments made.

It involves:

• Dealing with order and delivery documents from suppliers;

• Checking, coding and recording invoices and credit notes for goods and services received;

• Preparing, coding, authorising and recording payments;

• Entering transactions into the books of prime entry;

• Making payments relating to invoices, wages, salaries and petty cash.


1. Match purchase orders and goods received notes

1. Check supplier invoices and credit notes against source data;

2. Deal with on-line transactions and automated payment systems

3. Ensure pay in time and confirm that all relevant discounts have been applied by suppliers to invoices and credit notes;

4. Identify and deduct available settlement discounts;

5. Identify discrepancies and queries relating to supplier invoices and credit notes and either resolve them or refer to the appropriate person;

6. Communicate with suppliers effectively regarding accounts;

7. Correctly code and enter invoices, credit notes and payments into the appropriate books of prime entry;

8. Accurately distinguish between capital and revenue;

9. Post from the books of prime entry to the ledgers;

10. Accurately calculate payments from relevant documentation;

11. Schedule payments and obtain authorisation;

12. Use the appropriate payment method and timescale, in accordance with organisational procedures;

13. Prepare accurate documentation to accompany payment to the supplier;

14. Reconcile supplier statements to their purchase ledger account;



1. Payment methods, procedures and transactions, and their associated documentation;

2. Relevant contract law;

3. Retention policies for source documents;

4. The general principles of VAT regarding expenditure and payments;

5. Types of discounts available from suppliers;

6. Responsibilities regarding data security in relation to suppliers.


7. Accounting for payments to cash and credit suppliers;

8. How to code purchase and payments data;

9. Books of prime entry;


11. Ledgers;

12. The use of the cash book and petty cash book as part of the double entry system or as books of prime entry;

13. Batch control;

14. Capital and revenue expenditure;

15. Methods of securely handling and storing money;

16. Petty cash procedures, methods and analysis;

17. The entries necessary to account for payroll transactions.


15. Maintain security and confidentiality in relation to expenditure and payments at all times.



FA-2 Process Expenditure continued


The Organisation

18. The organisation’s accounting, administrative and filing systems and procedures;

19. The nature of the organisation’s business transactions;

20. Supplier documentation;

21. Organisational procedures for the authorisation and coding of purchase invoices and payments.


FA-3 Account for Income and Expenditure


This unit is about an organisation’s accounting processes. It involves:

• Checking and verifying bank transactions;

• Preparing ledger balances and control accounts;

• Drafting a trial balance.

It also involves identifying and correcting or referring any errors or discrepancies as well as maintaining security and confidentiality of information at all times.

The figures you produce here may form the basis for the organisation’s accounts and financial statements.


1. Record details from the relevant primary records in the cashbook and ledgers;

2. Correctly calculate totals and balances of receipts and payments;

3. Compare individual items on the bank statement and in the cashbook for accuracy and identify discrepancies;

4. Prepare a bank reconciliation statement that illustrates any discrepancies;

5. Make and record authorised adjustments;

6. Balance relevant accounts in the main ledger;

7. Reconcile control accounts with the totals of the balance in the subsidiary ledger accounts;

8. Reconcile the petty cash book with cash in hand and subsidiary records;

9. Identify discrepancies arising from the reconciliation of control accounts and either resolve them or refer to the appropriate person;

10. Draft a trial balance and open a suspense account to record any imbalance where necessary;

11. Identify reasons for imbalance, rectify them and make accurate corrections in the journal;

12. Securely store documentation in line with the organisation’s confidentiality requirements.



1. Types of business transactions and the documents involved;

2. The general principles of VAT;

3. Relevant bank services and the operation of the bank clearing system;

4. The function and form of banking documentation.


5. Capital and revenue expenditure;

6. How to identify different types of errors;

7. How to make adjustments to correct errors and write off bad debts;

8. Methods of posting from books of prime entry to ledger accounts;


10. The inter-relationship of accounts and the double entry system;

11. The use of journals;

12. How to identify discrepancies through control account reconciliation;

13. The function and form of a trial balance;

14. How to rectify imbalances and adjust errors not requiring a suspense account;

15. The purpose and function of a suspense account;

16. How to rectify imbalances by creating and then subsequently clearing a suspense account.



FA-3 Account for Income and Expenditure continued


The Organisation

17. The organisation’s accounting, administrative and filing systems and procedures;

18. The nature of the organisation’s business transactions.


FA-4 Prepare Accounts


This unit is about preparing the final accounts of sole traders and partnerships. It involves:

• Recording capital acquisitions, disposals and depreciation;

• Collecting and collating the information needed to prepare final accounts;

• Preparing a trial balance;

• Preparing the final accounts.


• The accounting systems of an organisation are affected by its organisational structure, its administrative systems and procedures and the nature of its business transactions;

• Recording and accounting practices may vary between organisations and different parts of organisations.

You will need to maintain security and confidentiality of information and business transactions at all times, and will be responsible for handling queries.


1. Correctly identify, calculate and record information in the appropriate records;

2. Clearly show in the records the prior authority for capital expenditure and disposal of assets;

3. Identify and resolve or refer to the appropriate person any lack of agreement between physical items and records, discrepancies in the reconciliation process, unusual features or queries;

4. Correctly identify, calculate and record appropriate accruals and prepayments;

5. Correctly identify, calculate and record appropriate adjustments;

6. Make the relevant journal entries to close off the revenue accounts in preparation for the transfer of balances to the final accounts;

7. Prepare a trial balance;

8. Prepare final accounts of sole traders in the proper form;

9. Prepare final accounts of partnerships in the proper form and in compliance with the partnership agreement or relevant legislation;

10. Observe the organisation’s policies, regulations, procedures and timescales relating to the maintenance of records and the preparation of final accounts.



1. Relevant legislation and regulations;

2. The main requirements of relevant accounting standards;

3. Ways of presenting information.


4. Generally Accepted AccountingPrinciples (GAAP) and concepts;

5. The International Financial Reporting Standards (IFRS)

6. The principles of double entry bookkeeping;

7. The accounting treatment of accruals and prepayments;

8. Methods of funding for capital expenditure;

9. The objectives of accounting for depreciation, the methods of doing so, and when to use each of them;

10. The accounting treatment of capital items sold, scrapped or otherwise retired from service;

11. How to use the journal;

12. How to use the fixed asset registers;

13. How to analyse income and expenditure, and the distinction between capital and revenue expenditure;

14. Post balance sheet events

15. The reasons for closing off accounts and producing a trial balance;

16. Methods of constructing accounts from incomplete evidence;

17. Reasons for, and how to correct, errors, imbalances or incomplete records;



FA-4 Prepare Accounts continued


18. How to make and adjust provisions for bad and doubtful debts;

19. The objectives and constraints in selecting accounting policies;

20. The basic principles of accounting for stock valuation;

21. Types of records;

22. The information that needs to be recorded in appropriate records;

23. Types of reconciliation;

24. The components of the final accounts of sole traders;

25. The components of the final accounts of partnerships.


FA-5 Draft Financial Statements


This unit is about drafting the financial statements of incorporated organisations following the preparation of an initial trial balance.


• The financial statements will need to comply with relevant accounting standards and applicable legislation;


• Reporting and presentation requirements may vary if you are working in certain types of organisation, particularly in the public sector.

You will need to maintain security and confidentiality of information and business transactions at all times, and may be responsible for handling queries.


1. Identify the users of financial accounting information and financial statements;

2. Identify the general purpose, elements and relationships between the elements of financial statements;

3. Use appropriate information to draft financial statements in the appropriate form and in compliance with relevant accounting standards and domestic legislation and with the organisation’s policies, regulations and procedures;

4. Correctly identify and implement subsequent adjustments;

5. Identify discrepancies, unusual features or queries and either resolve them or refer to the appropriate person;

6. Prepare simple consolidated accounts;

7. Prepare and interpret a cash flow statement;

8. Interpret financial statements using ratio analysis;

9. Draw valid conclusions from the information contained within financial statements;

10. Present issues, interpretations and conclusions clearly to the appropriate people.

11. Work under pressure to meet year end deadlines



1. The elements and purposes of financial statements of the organisation;

2. The statutory form of financial statements and disclosure requirements;

3. Relevant accounting standards;

4. The obligations of directors or other responsible parties in respect of financial statements;

5. The forms of equity, reserves and loan capital;

6. The presentation of business taxation in financial statements;

7. The audit needs and threshold relating to accounts;

8. The differences between the published accounts and financial statements of different types of organisations.


9. Generally Accepted Accounting Principles/International Financial Reporting Standards (GAAP/IFRS) and concepts;

10. The types of financial statements and how to prepare them in the proper form;

11. The elements of financial statements;

12. The types of relationship between the elements of financial statements;

13. How to calculate and interpret accounting ratios and analyse the information contained in financial statements;

14. The concept of group accounts and the general principles of consolidation.


MA-1 Provide Cost And Revenue Information


This unit is about responding to requests for financial information. It involves:

• Extracting and analysing coded information;

• Providing comparisons of costs and income over different periods;

• Providing information in the required formats to relevant people.

You need to be aware of:

• The relationship between financial and management accounting.


1. Clarify information requirements with the appropriate person;

2. Extract income and expenditure details from relevant sources;

3. Recognise appropriate cost centres;

4. Calculate cost information for materials, labour and expenses;

5. Calculate appropriate valuations for stock and issues of stock;

6. Compare cost and revenue information with actual results and identify any discrepancies;

7. Compare budget costs with actual costs and note any differences;

8. Provide comparisons to the appropriate person in the required format;

9. Refer any problems in obtaining the necessary information to the appropriate person;

10. Identify and report any errors in the information, such as incorrect codes or excessive volumes, to the appropriate person.



1. Costs and cost classification;

2. Types of overhead;

3. Types of cost centres, profit centres and investment centres, and how to identify them;

4. Sources of information on costs;

5. Methods of coding data and how to operate an appropriate cost accounting system;

6. The nature and purpose of internal reporting;



8. How income and expenditure data is recorded in the accounting records;

9. Types of stock;

10. Methods of stock control and valuation;

11. Methods for calculating payments for labour and the make up of gross pay;

12. Procedures and documentation relating to expenses;

13. Calculation of product and service direct cost;

14. The relationships between the various costing and accounting systems.



MA-1 Provide Cost And Revenue Information continued


The Organisation

15. The organisation’s accounting and administrative systems and procedures and its cost centres;

16. The nature of the organisation’s business transactions, particularly the goods and services it produces, buys or delivers;

17. The sources of income and expenditure information for historic, current and forecast periods;

18. The principles of confidentiality and the organisation’s requirements and policies for handling confidential information.


MA-2 Provide Management Information


This unit is about gathering, analysing and reporting information about income and expenditure to support decision making, planning and control by managers. It involves:

• Recording and analysing data about costs and revenues;

• Recording and analysing data about overheads;

• Working consistently and analysing information on an ongoing basis either routinely or for a specific purpose;

• Presenting data in a variety of formats.


• The relationship between financial and management accounting.


1. Identify, record and analyse direct and overhead costs in accordance with the organisation’s costing procedures;

2. Analyse cost information for materials, labour, expenses and stock;

3. Attribute overhead costs to production and service cost centres in accordance with agreed bases of allocation and apportionment;

4. Calculate overhead absorption rates in accordance with agreed bases of absorption;

5. Make adjustments for under and over recovered overhead costs in accordance with established procedures;

6. Review methods of allocation, apportionment and absorption at regular intervals with senior staff and implement agreed changes to methods;

7. Consult staff working in operational departments to resolve any queries in overhead cost data;

8. Compare budgeted costs with actual costs and note any variances;

9. Analyse variances and prepare relevant reports for management;

10. Inform budget holders and other managers of any significant variances to help them take remedial action;

11. Prepare estimates of future income and costs for decision making;



1. Costs and cost classification;

2. Types of overhead;

3. Types of cost centres, profit centres and investment centres;

4. The nature and purpose of internal reporting and management information;



6. Marginal and absorption costing;

7. The identification of fixed, variable and semi-variable costs and their use in cost recording, cost reporting and cost analysis;

8. Bases of allocating and apportioning indirect costs to cost centres;

9. Bases of absorption;

10. Calculation of product and service cost;

11. The drivers behind cost movements

12. The effect of changing activity levels on unit costs;

13. Methods of stock control and valuation;

14. The relationships between the various costing and accounting systems;

15. The considerations affecting decision-making;

16. The principles of discounted cash flow.



MA-2 Provide Management Information continued


12. Prepare reports in the appropriate form and present them to stakeholders within the required timescales.

The Organisation

17. The organisation’s responsibility centres, expense centres, profit centres and investment centres;

18. Costing systems appropriate to the organisation;

19. The organisation’s house styles.


MA-3 Draft Budgets


This unit is about the process of preparing budgets. It involves:

• Preparing forecasts of income and expenditure;

• Preparing draft budget proposals.


• The accounting systems of an organisation are affected by its organisational structure, its administrative systems and procedures and the nature of its business transactions.


1. Identify relevant data for forecasting income and expenditure from internal and external sources;

2. Correctly code and allocate actual cost and revenue data to responsibility centres;

3. Calculate the effects of variations in capacity on costs;

4. Analyse critical factors affecting costs and revenues and draw clear conclusions from the analysis;

5. Identify and evaluate options and solutions to increase profitability or reduce losses for their contribution to organisational goals;

6. Identify and follow consistency of approach across the organisation

7. Estimate future income and costs in accordance with the organisation’s costing procedures, stating any assumptions made;

8. Prepare accurate cash flow forecasts to facilitate the achievement of organisational objectives;

9. Prepare draft budgets from forecast sales data;

10. Break down budgets into periods appropriate to the organisation;

11. Verify that draft budget proposals are consistent with organisational objectives and include all relevant data and assumptions;

12. Set clear performance targets and indicators to enable the budget to be effectively monitored;

13. Agree draft budget proposals with budget holders;

14. Present draft budget proposals to management in a clear and appropriate format;



1. External sources of information on costs, prices, demand, and availability of resources;

2. The general economic environment/climate in which you or your organisation operates;



4. Basic statistical methods;

5. Calculation of product and service cost;

6. The different types of costs;

7. Standard costing;

8. Different types of budgets;

9. The effect of capacity, production and sales constraints on budgets;

10. Analysis of the significance of budget variances and possible responses required by managers;

11. Uses of budgetary control;

12. The relationship between budgets, forecasts and planning and product life cycles;

13. The behavioural aspects of budgets and budgetary control;


The organisation

15. The structure of the organisation, its responsibility centres and the inter-relationships between its departments and functions;



MA-3 Draft Budgets continued


15. Check and reconcile budget figures on an ongoing basis;

16. Review and revise the validity of budgets in the light of any significant anticipated changes;

17. Present any recommendations, and the rationale for them, to appropriate people in a clear and concise way.

18. Appropriately conduct Scrutiny and Scenario analysis and planning

16. The notional internal cost and value of the organisation’s resources;

17. The organisation's external environment and specific external costs;

18. Relevant data for budget proposals.


MA-4 Monitor Financial Performance


This unit is about ensuring the organisation is performing effectively. It involves:

• Collecting and analysing information about costs from both internal and external sources;

• Monitoring performance and making recommendations to enhance value;

• Preparing and presenting periodic performance reports.



• Recording and accounting practices may vary between organisations and different parts of organisations.


1. Obtain income and expenditure information from different units of the organisation to consolidate into the appropriate form;

2. Reconcile income and expenditure information derived from separate information systems within the organisation;

3. Account for transactions between separate units of the organisation in accordance with the organisation’s procedures;

4. Identify other valid, relevant information from internal and external sources;

5. Analyse routine cost reports, compare them with budget and standard costs and identify any differences and their implications;

6. Relate financial Performance to business performance

7. Correctly identify variances and prepare relevant reports for management;

8. Compare Return on Investment

9. Compare results over time using an appropriate method that allows for changing price levels;

10. Analyse the effect of organisational accounting policies on reported costs;

11. Monitor and analyse current and forecast trends in prices and market conditions on a regular basis;

12. Compare trends with previous data and identify potential implications;

13. Consult relevant staff in the organisation about the analysis of trends and variances;



1. Costs and sources of information on costs;

2. Types of cost centres, profit centres and investment centres;

3. Relevant performance and quality measures;

4. Methods of presenting information in written reports, diagrams and tables, including the conventions for formatting professional business documents.


5. Basic statistical methods;

6. The use of standard units of inputs and outputs;

7. Standard, marginal and absorption costing;

8. Variance analysis in labour, materials and overheads costing;

9. Cost management techniques;

10. The identification of fixed, variable and semi-variable costs and their use in cost recording, cost reporting and cost analysis;


12. Performance indicators key business indicators and balanced scorecards

13. Ratios used to determine performance.

The Organisation

14. The contribution of an organisation’s functional specialists to cost reduction and value enhancement;



MA-4 Monitor Financial Performance continued


14. Calculate ratios, performance indicators and measures of value added in accordance with the organisation’s procedures;

15. Prepare and monitor relevant performance indicators, interpret the results, identify potential improvements and estimate the value of potential improvements;

16. Compare performance to overall business plan and strategy taking into account factors arising from business size and structure

17. Consult relevant specialists to identify ways to reduce costs and enhance value;

18. Prepare reports in the appropriate form and present them to management within the required timescales;

19. Prepare exception reports to identify matters which require further investigation;

20. Make specific recommendations to management in a clear and appropriate form and to support or challenge management decision making as appropriate.

15. The organisation's external environment and specific external costs;

16. The purpose and structure of reporting systems within the organisation;

17. The organisation’s house styles.


T-1 Calculate Personal Tax


This unit is about preparing tax computations and returns for individuals. It involves:

• Calculating income from employment;

• Calculating property and investment income;

• Preparing income tax computations;

• Preparing capital gains tax computations.


1. Prepare accurate computations of emoluments, including benefits in kind;

2. Record relevant details of income and payments legibly and accurately in the tax return;

3. List non-savings, savings and dividend income and check for completeness;

4. Prepare schedules of income from land and property and determine profits and losses;

5. Identify allowances that can be set against non-savings income;

6. Apply deductions and reliefs and claim loss set-offs;

7. Account for personal allowances;

8. Calculate income tax payable;

9. Identify and value chargeable personal assets and shares that have been disposed of;

10. Calculate chargeable gains and allowable losses;

11. Apply reliefs and exemptions correctly;

12. Calculate capital gains tax payable;

13. Record relevant details of gains and the capital gains tax payable legibly and accurately in the tax return;

14. Make computations and submissions in accordance with current tax law;

15. Identify the due dates of payment of income tax by individuals, including payments on account;



1. The duties and responsibilities of the tax practitioner;

2. The issues of taxation liability;

3. Relevant tax authority legislation and guidance.

Tax Laws and Treatment

4. Basic law and practice relating to taxation;

5. The types of income for which disclosure is required;

6. The main tax exempt investments;

7. Emoluments;

8. Allowable expenses;

9. Types of property income and expenses;

10. Methods of disposal of chargeable assets;

11. Self assessment including payment of tax and filing of returns by individuals;

12. Calculation of assessable employment income including benefits in kind;

13. Calculation and set-off of rental losses;

14. Calculation of gains and losses on disposals by individuals of capital assets;

15. Set-off of capital losses and annual exemption to arrive at taxable gains;

16. Calculation of tax on non savings, savings and dividend income;

17. Calculation of capital gains tax payable by individuals.

18. Tax treatment and requirements in relation to inheritance tax and trusts and where they are applicable;



T-1 Calculate Personal Tax continued


16. Advise clients of penalties and interest charges on late submission and payments;

17. Give timely and constructive advice to clients on the recording of information relevant to tax returns;

18. Communicate with tax authority staff in an open and constructive manner.

19. Maintain an up to date knowledge of changes to codes of practice, regulation or legislation affecting your role and profession

The Client

19. The individual’s employment status;

20. How the taxation liabilities of individuals are affected by their employment status.


T-2 Calculate Business Tax


This unit is about preparing tax computations for businesses and completing the relevant tax returns. It involves:

• Preparing capital allowances computations;

• Computing assessable business income;

• Preparing corporation tax computations on income and capital gains.

The unit relates to both unincorporated and incorporated businesses, which means you need to apply the different tax rules appropriately.


1. Classify expenditure on capital assets in accordance with the statutory distinction between capital and revenue expenditure;

2. Ensure that entries and calculations relating to the computation of capital allowances for businesses are correct;

3. Make computations and submissions in accordance with current tax law and tax authority practice;

4. Make adjustments for private use by owners of unincorporated businesses;

5. Adjust trading profits and losses for tax purposes;

6. Divide profits and losses of partnerships amongst partners;

7. Apply the basis of assessment for unincorporated businesses in the opening and closing years;

8. Identify the due dates of payment of income tax by unincorporated businesses, including payments on account;

9. Identify the national insurance contributions payable by employers and self-employed individuals;

10. Complete correctly the self-employed and partnership supplementary pages to the tax return for individuals, together with relevant claims and elections, and submit them within statutory time limits;

11. Identify and value correctly any chargeable assets that have been disposed of;

12. Identify and value shares disposed of by companies;



1. The duties and responsibilities of the tax practitioner;

2. The issues of taxation liability;

3. Relevant tax authority legislation and guidance.

Tax Laws and Treatment

4. Basic law and practice relating to taxation;

5. Basis of assessment of unincorporated businesses;

6. Basic allocation of income between partners;

7. Regulations relating to disallowed expenditure;

8. Availability and types of capital allowance;

9. Treatment of capital allowances for unincorporated businesses including private use adjustments;

10. Capital gains exemptions and reliefs on assets;

11. Ways that chargeable assets can be disposed of;

12. Types of reliefs and loss reliefs;

13. Self assessment including payment of tax and filing of returns for unincorporated businesses and companies;

14. Calculation of profit for corporation tax purposes including income, chargeable gains and charges;

15. Calculation of corporation tax payable by different types of companies including those with associated companies;

16. Set-off of trading losses incurred by companies;

17. Adjustment of trading profits and losses for tax purposes;



T-2 Calculate Business Tax continued


13. Calculate chargeable gains and allowable losses and correctly apply reliefs, deferrals and exemptions;

14. Enter adjusted trading profits and losses, capital allowances, investment income and capital gains in the corporation tax computation;

15. Calculate corporation tax due, taking account of marginal relief;

16. Identify the amount of corporation tax payable and the due dates of payment, including payments on account;

17. Complete corporation tax returns correctly and submit them, together with relevant claims and elections, within statutory time limits;

18. Give timely and constructive advice to clients on the maintenance of accounts and the recording of information relevant to tax returns;

19. Communicate with tax authority staff in an open and constructive manner.


18. Identification of business assets disposed of including part disposals;

19. The rate of tax payable on gains on capital assets disposed of by individuals and when individuals are entitled to entrepreneur’s relief;

20. Calculation of gains and losses on disposals of assets;

21. Calculation of national insurance contributions payable by employers and self-employed persons.

The Organisation

22. The organisation’s legal structure and its business transactions;

23. How the taxation liabilities of an organisation are affected by its legal structure and the nature of its business transactions.


T-3 Report VAT


This unit is about calculating VAT and submitting the VAT return. It involves:

• Extracting the correct information from the organisation’s recording systems;

• Accurately calculating VAT payable to or reclaimable from the relevant tax authority;

• Ensuring forms and payments are accurately submitted on time;

• Resolving errors or omissions;

• Maintaining effective dialogue with the relevant tax authority.


1. Extract relevant data for a specific reporting period from the appropriate recording systems;

2. Correctly calculate relevant inputs and outputs and compute VAT due to or from the relevant tax authority;

3. Correctly account for changes in the VAT rate, noting the importance of the date and nature of the supply;

4. Complete and submit VAT returns correctly, within the statutory time limits;

5. Ensure the correct payment reaches the relevant tax authority on time;

6. Deal appropriately with different rates, business and non-business and Partial Exemption

7. Make the necessary adjustments and declarations for any identified errors for previous accounting periods;

8. Maintain an up to date knowledge of changes to the VAT system and advise relevant people of the effects changes may have on the organisation’s recording systems;

9. Inform relevant people of any impact VAT payment requirements may have on the organisation’s cash position and financial forecasts;

10. Seek guidance from the relevant tax authority when required, in a professional manner.




1. How types of supply are classified for VAT purposes;

2. VAT registration requirements;

3. Sources of information on VAT;

4. Types of VAT schemes and the reporting frequency options;

5. The information that must be included on the business communications of VAT registered businesses.


6. Types of inputs and outputs.

The Organisation

7. The basis of the relationship between the organisation and the relevant government agency;

8. When the organisation’s VAT return is due;

9. The implications and penalties for incorrect application of VAT law and for late submission of returns.


TM-1 Administer Cash Balances


This unit is about looking after an organisation’s money. It involves:

• Monitoring and controlling cash receipts and payments;

• Identifying variances in budgets and preparing cash budgets;

• Managing cash balances;

• Ensuring liquidity and gaining the best available return on cash balances within mandated authority;

• Arranging overdraft or loan facilities on behalf of the organisation where required.


• The basic structure of the banking system and the money market in the UK and the relationships between financial institutions;

• The legal relationship between a bank and its customers;

• The way the accounting systems of an organisation are affected by its organisational structure, its administrative systems and procedures and the nature of its business transactions.


1. Monitor and control cash receipts and payments against budgeted cash flow;

2. Consult appropriate staff to determine the likely pattern of cash flows over the accounting period and to anticipate any exceptional receipts or payments;

3. Ensure forecasts of future cash payments and receipts agree with known income and expenditure trends;

4. Prepare cash budgets and clearly indicate net cash requirements;

5. Identify significant deviations from the cash budget and take corrective action within defined organisational policies;

6. Anticipate cash requirements and arrange overdraft and loan facilities on the most favourable terms available;

7. Invest surplus funds as mandated and within defined financial authorisation limits;

8. Observe the organisation's financial regulations and security procedures;

9. Take account of trends in the economic and financial environment in managing cash balances;

10. SENSITIVITY ANALYSIS/SCENARIO ANALYSIS (WORDING NEEDED)

11. Manage cash, overdrafts and loans in order to maintain an adequate level of liquidity in line with cash forecasts.



1. The main types of cash receipts and payments;

2. Bank overdrafts and loans and the terms and conditions associated with them;

3. Types of investments, their risks, and the terms and conditions associated with them;

4. Statutory and other regulations relating to the management of cash balances in different types of organisation.


5. The form and structure of cash budgets;

6. Lagged receipts and payments;

7. Basic statistical techniques for estimating future trends;

8. Methods of assessing the sensitivity of elements in the cash budget to change;

9. How to manage risk and exposure;

10. Cash flow accounting and its relationship to accounting for income and expenditure;

11. Liquidity management.

The Organisation

12. How recording and accounting practices may vary in different parts of the organisation;

13. How practice in this area will be determined by an organisation's specific financial regulations, guidelines and security procedures;

14. The way government monetary policies affect an organisation’s treasury functions.


TM-2 Grant and Control Credit


This unit is about managing money owed to an organisation. It is intended for finance officers or accounting technicians - units for credit management specialists can be found in the CM section of the NOS. This unit involves:

• Granting credit;

• Monitoring and controlling the collection of debts;

• Recommending action to resolve bad debt.



• Recording and accounting practices may vary in different parts of the organisation;

• Practice in this area will be determined by an organisation's credit control policies and procedures.

You must therefore be familiar with the relevant policies and procedures of the organisation.


1. Evaluate the current credit status of customers and potential customers;

2. Agree credit terms with customers in accordance with the organisation's policies;

3. Open new accounts for those customers with an established credit status;

4. Agree changes to credit levels or credit terms with customers as required;

5. Discuss the reasons for refusing or extending credit with customers in a tactful manner;

6. Regularly monitor and analyse information relating to the current state of debtors' accounts;

7. Promptly send information regarding significant outstanding accounts and potential bad debts to relevant individuals within the organisation;

8. Negotiate with debtors in a courteous and professional manner;

9. Accurately record the outcome of negotiations;

10. Select debt recovery methods appropriate to the circumstances of individual cases and use them in accordance with the organisation’s procedures;

11. Base recommendations to write off bad and doubtful debts on a realistic analysis of all known factors.



1. Basic contract law and remedies for breach of contract in relation to the credit the organisation offers its customers;

2. The terms and conditions associated with contracts relating to the granting of credit;

3. Data protection legislation;

4. Credit control information;

5. Sources of credit status and other information;

6. Legal and administrative procedures for the collection of debts;

7. The effect of bankruptcy and insolvency on organisations.


8. Discounts for prompt payment;

9. Interpretation and use of credit control information;

10. Methods of analysing information on debtors;

11. Methods of debt management and collection;

12. How to evaluate different collection methods;

13. Liquidity management.


FS-1 Review Accounting Systems


This unit is about checking that accounting systems are properly set up and operating as effectively as possible. It involves:

• Identifying an organisation’s accounting system requirements;

• Recommending appropriate controls;

• Planning appropriate information flows;

• Ensuring that an organisation’s accounting system requirements enable compliance with financial reporting regulations;

• Rolling the accounting system into the new financial year

• Evaluating the effectiveness of an organisation’s accounting systems and recommending changes to them.


1. Identify an organisation’s accounting system requirements;

2. Review record keeping systems to confirm whether theyreflect the client account and so meet the organisation’s requirements for financial information;

3. Understand and regularly review the chart of accounts

4. Identify weaknesses in, and the potential for improvements to, the accounting system and consider their impact on the operation of the organisation;

5. Identify potential areas of fraud arising from lack of control within the accounting system and grade the risk;

6. Regularly review methods of operating for cost-effectiveness, reliability and speed;

7. Make recommendations for changes to the accounting system to the appropriate person in a clear, easily understood format;

8. Support recommendations for changes to the accounting system with a clear rationale including an explanation of any assumptions made;

9. Engage with individuals who may be responsible for implementing or working with changes to accounting systems;

10. Explain to those affected the implications of recommended changes in terms of time, financial costs, benefits, and operating procedures;

11. Assist individuals who operate accounting systems to understand how to use the system to fulfil their responsibilities.



1. The range of external regulations affecting accounting practice;

2. The various business purposes for which financial information is required;

3. Common types of fraud and the implications of fraud.


4. Types of controls that can be put in place to ensure compliance with statutory or organisational requirements;

5. The value and benefit to specific organisations of different types of accounting systems and software packages;

6. Methods of detecting fraud within accounting systems;

7. Weaknesses in accounting systems;

8. Ways of supporting individuals to operate accounting systems.

The Organisation

9. How accounting systems are affected by organisational structure, systems, procedures and business transactions;

10. The types of accounting system requirements;

11. The effect of changes to accounting systems on the users;

12. The purposes of an organisation’s requirements for financial information;

13. An overview of the organisation’s business and its critical external relationships;

14. The purpose, structure and organisation of the accounting function and its relationships with other organisational functions.


A-1 Implement External Audit Procedures


This unit relates to the external auditing process and requires involvement from the planning through to the reporting stage. It involves:

• Identifying and assessing the control framework;

• Selecting a sample and conducting tests;

• Drawing appropriate conclusions from the tests;

• Drafting reports providing preliminary conclusions and recommendations.

The unit is for someone who is supervised in the work of auditing and who works as part of an audit team.


• The accounting systems of an organisation are affected by its organisational structure, its administrative systems and procedures and the nature of its business transactions.


1. Identify the accounting systems under review and record them clearly on appropriate working papers;

2. Correctly identify the control framework;

3. Accurately assess risks associated with the accounting system and its controls;

4. Correctly record significant weaknesses in control;

5. Identify account balances to be verified and the associated risks;

6. Select an appropriate sample for testing;

7. Select or devise appropriate tests in accordance with the auditing principles and agree them with the auditing supervisor;

8. Provide clear information and recommendations for the proposed audit plan, and submit it to the appropriate person for consideration;

9. Conduct tests correctly and as specified in the audit plan, properly record test results and draw valid conclusions from them;

10. Establish the existence, completeness, ownership, valuation and description of assets and liabilities and gather appropriate evidence to support these findings;

11. Identify all matters of an unusual nature and refer them promptly to the audit supervisor;

12. Identify and record material and significant errors, deficiencies or other variations from standard and report them to the audit supervisor;



1. An overview of the legal duties of auditors, including the content of reports and the definition of proper records;

2. An overview of the liability of auditors under contract and negligence including liability to third parties;

3. Relevant legislation and auditing standards;

4. The concept of assurance and why a company wants/needs an audit including the benefits of assurance.

Auditing Techniques, Principles and Theory

5. The features of accounting systems;

6. The features of recording and evaluating systems;

7. Audit planning and control;

8. Verification techniques;

9. Basic sampling techniques in auditing;

10. The use of audit files and working papers;

11. Auditing techniques in an IT environment;

12. Types of tests;

13. Audit reporting including management feedback that include systems weaknesses, clerical/accounting mistakes, disagreement regarding accounting policies or treatment;

14. Materiality;

15. Audit risk.

The Organisation

16. The organisation's systems and auditing procedures.



A-1 Implement External Audit Procedures continued


13. Prepare and submit clear and concise draft reports illustrating constructive and practicable recommendations in line with organisational procedures;

14. Agree your preliminary conclusions and recommendations with the audit supervisor;

15. Use effective interview and listening skills

16. Communicate with staff operating the system being audited in a manner that promotes professional relationships between auditing and operational staff;

17. Follow confidentiality and security procedures at all times.


P-1 Create and Maintain Employee Records


This unit is about setting up and amending basic employee records within a payroll administration system. It involves:

• Setting up new employee records;

• Implementing instructions from employees and external agencies;

• Evaluating and processing permanent organisational variations to payroll.


• The payroll function often overlaps with human resources hence the payroll system you are working with may have wider use within the organisation.


1. Create a new employee record and accurately enter all required statutory and non-statutory details, including allowances and deductions;

2. Check that all payment and deduction instructions are accurate, complete and are correctly authorised and documented;

3. Process instructions from statutory or non-statutory bodies in accordance with statutory and organisational requirements;

4. Obtain authorisation from the employee concerned for all non-statutory deductions;

5. Check all data and documentation relating to permanent variations for accuracy, reasonableness and proper authorisation;

6. Accurately and promptly process permanent variations;

7. Amend leavers’ records to ensure that leavers will not be paid in future pay runs;

8. Obtain properly authorised documents of every appointment and cessation of employment before making changes to payroll;

9. File source documents in a logical and orderly manner in accordance with statutory and organisational requirements;

10. Accurately complete and despatch statutory documentation;

11. Identify and document all discrepancies and either resolve them directly or refer to the appropriate organisation or person;


The Statutory Framework 1. Relevant income tax and national insurance legislation;

2. Employment rights legislation;

3. Data protection legislation;

4. Pensions legislation

5. Legislation relating to the recording of attachments of earnings information;

6. What information is required by statute to be kept in a payroll system;

7. Types of non-statutory voluntary or contractual data that may be kept in a payroll system;

8. Recognised ways in which payment and deduction instructions may be documented;

9. Relevant statutory bodies;

10. Types of non-statutory body;

11. Types of permanent change to payroll;

12. Sources of authorisation;

13. Source documents, and where to find out about and verify an individual’s employment status.

The Organisation

14. Procedures for keeping data confidential and secure;

15. How to record and store data;

16. Types of information received from external agencies;

17. How to deal with instructions from external agencies;

18. The organisation’s signatories and authorisations procedures.



P-1 Create and Maintain Employee Records continued


12. Comply with all organisational and statutory timescales;

13. Maintain the security and confidentiality of data, particularly employees’ personal details or other sensitive information, at all times.

14. Maintain and develop your own specialist knowledge relevant to your own working environment;


P-2 Calculate Pay


This unit is about calculating employees’ gross and net pay. It involves:

• Calculating gross pay;

• Processing entitlements and deductions;

• Calculating and verifying net pay;

• Resolving employees’ queries about their pay.

In this function, you are working with instructions and/or figures provided by someone else (see Unit P-3 Determine Entitlements and Deductions). You are not responsible for verifying the legality of instructions or complying with employees’ rights.


1. Check all data and documentation relating to temporary variations for accuracy, reasonableness and proper authorisation;

2. Identify employees where action is required to ensure payment and correctly enter relevant details into the system;

3. Check rates for overtime payments against agreed scales for each type of employee affected;

4. Process pensions and expenses payments

5. Process temporary payments and deductions accurately and identify the appropriate tax and national insurance treatment for them as well as any effect they may have on pension contributions;

6. Process termination payments in accordance with legislative requirements;

7. Check the employment status of all employees and verify their entitlement to receive pay for the pay period;

8. Enter any applicable pre-tax deductions and all relevant statutory and non-statutory voluntary or contractual deductions into the system;

9. Produce and distribute accurate and legible payslips in accordance with statutory and organisational requirements;

10. Check net pay totals to ensure that the full range of applicable allowances and deductions has been made;

11. File source documents in a logical and orderly manner in accordance with statutory and organisational requirements;


Types of Payroll

1. Negative payrolls (those where employees will be paid automatically unless action is taken to prevent payment);

2. Positive payrolls (those where employees will not be paid unless individual payments are specifically instructed in the system).

The Statutory Framework

3. Legislation relating to payroll processing and data protection;

4. Types of temporary variations;

5. Sources of authorisation;

6. Types of statutory additions to pay;

7. Types of pre-tax deductions;

8. Types of statutory and non-statutory deductions.

The Organisation

9. How to check that the payment due is valid and authentic;

10. The organisation’s procedures and timeline for initiating, making and monitoring payments;

12. The organisation’s signatories and authorisations procedures;

11. The organisation’s procedures for maintaining the security and confidentiality of information;

12. Organisational, external agency and employee requirements for information;

13. Sources of information for resolving discrepancies.



P-2 Calculate Pay continued


13. Effectively resolve queries relating to pay calculations in a polite, secure and timely manner;

14. Refer enquiries to the appropriate person when you do not have the authority or expertise to resolve them;

15. Maintain the security and confidentiality of data, particularly employees’ personal details or other sensitive information, at all times.


P-3 Determine Entitlements and Deductions


This unit is about identifying, calculating and checking statutory entitlements. It involves:

• Checking that the correct entitlements and deductions are applied;

• Applying appropriate rules to calculate entitlements and deductions so that others can enter the correct figures into the payroll system;

• Applying controls to the payroll to ensure aggregate payroll totals are correct;

• Responding to employees’ queries about their pay.


1. Determine entitlement to statutory payments when entitlement to occupational payments expires or payments are not made;

2. Process statutory payments accurately on receipt of regulatory forms;

3. Issue the correct regulatory documentation where entitlement to statutory payments does not arise or ceases;

4. Calculate exceptional payments and deductions in accordance with organisational requirements, to the deadlines agreed;

5. Apply the correct payment schemes with regard to statutory entitlements;

6. Calculate any applicable pre-tax deductions and all relevant statutory and non-statutory deductions;

7. Identify the tax, national insurance and pension liability of all payments;

8. Calculate the amount of any statutory redundancy payment;

9. Correctly apply the terms of any contractual, non-statutory redundancy scheme to enhance statutory redundancy payments;

10. Enter into the payroll system any sums due in respect of redundancy so that that payments will be made at the correct time and will receive the appropriate tax treatment;

11. Process termination payments in accordance with legislative requirements;



1. The rules relating to statutory payments and deductions;

2. Types of non-statutory deductions;

3. Types of exceptional payments;

4. Types of termination payments.

Payroll Techniques, Principles and Theory

5. How to use the relevant tax authority’s tools to perform calculations of statutory additions to pay;

6. How to use the relevant tax authority’s tools to perform calculations of net pay.

The Organisation

7. The organisation’s methods of disbursement;


9. The organisation’s policies for recording and storing data;


11. The organisation’s policies for resolving discrepancies;

12. The types of information received from external agencies;


14. How to deal with instructions from external agencies.



P-3 Determine Entitlements and Deductions continued


12. Use the relevant tax authority’s tools to check statutory pay entitlements in response to individual employees’ queries;

13. Identify and resolve all discrepancies directly or by reference to the appropriate person;

14. Comply with all organisational and statutory timescales;

15. Maintain the security and confidentiality of personal and sensitive details at all times.


P-4 Control Payroll


This unit is about controlling the accuracy and compliance of the payroll. It involves:

• Applying controls to the payroll function;

• Producing management information;

• Providing information and making payments to authorised agencies.


1. Correctly identify the treatment of all allowances and enhancements with respect to tax, national insurance and pensions deductions;

2. Update rates for permanent and temporary payments and deductions against agreed scales for each type of employee affected;

3. Reconcile the national insurance liability for directors against the national insurance actually paid;

4. Monitor compliance with attachments of earnings legislation;

5. Correctly code and reconcile total charges to organisational budgets against aggregate payroll totals;

6. Promptly reconcile the number of no pays and actual pays with the number of employees on the payroll;

7. Calculate and reconcile aggregate payroll totals, including aggregate statutory payments and non-statutory deductions, against authorised control totals;

8. Calculate and reconcile aggregate amounts payable to, or recoverable from, statutory and non-statutory bodies against control totals;

9. Reconcile payroll records with the organisation's financial reports;

10. Make payments to statutory and non-statutory bodies by the required deadline, accompanied by the applicable documentation and in accordance with organisational regulations and procedures;



1. Legislation relating to payroll processing and data protection;

2. The regulations of the relevant tax authority in respect of income tax and national insurance liability on pay, expenses and benefits;

3. National insurance regulations concerning directors;

4. Income tax and national insurance regulations relating to termination, lump sum and “out of sync” payments;

5. Legislation controlling attachments of earnings and the rules applying to how they interact with each other;

6. Types of exceptional payment;

7. Types of attachments to earnings;

8. Types of termination payments.

The Organisation

9. The organisation’s policies for recording and storing data;






P-4 Control Payroll continued


11. Check that individuals raising queries are authorised to receive the information they are requesting;

12. Seek clarification or additional information from employees or managers where the nature of their queries is not clear;

13. Present accurate information extracted from the payroll system in an appropriate format;

14. Deal effectively with enquiries from statutory agencies and non-statutory bodies;

15. Obtain employee authorisation where required prior to the release of information;

16. Supply information within the specified timescale and in compliance with relevant legislation;

17. File copies of responses in a logical and orderly manner in accordance with statutory and organisational requirements.


P-5 Complete End-of-Period Procedures


This unit is about producing periodic payroll returns and reports. It involves:

• Aggregating and reconciling data;

• Completing end-of-period returns;

• Distributing information and paperwork.


1. Reconcile cumulative pay records to end-of-period balances;

2. Calculate the total cost of wages to the employer;

3. Reconcile totals of income tax and national insurance contributions deducted with payments made to the relevant tax authority;

4. Reconcile the total value of basic and supplementary pension contributions and additional voluntary contributions from each employee with cumulative net taxable pay;

5. Accurately complete and file all statutory and non-statutory end-of-period returns by the applicable due dates;

6. Distribute end-of-period information for employees by the applicable statutory date;

7. Accurately and promptly prepare internal end-of-period summaries for accounting purposes.



1. Data Protection legislation;

2. The regulations of the relevant tax authority in respect of income tax and national insurance liability on expenses and benefits;

3. The different reporting periods;

4. Income tax and national insurance regulations relating to end of period reporting;

5. The methods of submitting end of period returns;

6. The impact of dispensations, extra statutory concessions, and tax authority regulations settlement agreements on end of period reporting for income tax and national insurance purposes.

Payroll Techniques, Principles and Theory

7. The principles of payroll accounting and the reconciliation of balances;

8. The principles of total cost of wages to an employer.

The Organisation

9. Policies, practices and procedures for filing;





P-6 Process Expenses and Benefits in Kind


This unit is about identifying and reporting benefits and expenses in the context of income tax and national insurance. It involves:

• Identifying tax and national insurance liabilities on benefits and expenses;

• Calculating the value of expenses and benefits;

• Calculating the tax and/or national insurance due on expenses and benefits.


1. Identify the existence of a income tax and national insurance liability for benefits and expenses and the correct method of calculating this;

2. Identify statutory exemptions from liability to income tax and national insurance;

3. Check that dispensations are up-to-date and are applicable to current organisational procedures;

4. Identify the relevant statutory return to be submitted for each employee and the statutory deadline for filing;

5. Correctly calculate the value of taxable benefits;

6. Accurately report the value of income taxable benefits and expenses, taking into account non-reportable items;

7. Calculate the relevant national insurance liability in accordance with statutory timescales;

8. Calculate the income tax and relevant national insurance liability on benefits where the organisation has agreed to meet the liability.



1. Data Protection legislation;

2. The regulations of the relevant tax authority in respect of income tax and national insurance liability on expenses and benefits;

3. Dispensations, extra statutory concessions, and tax authority regulations settlement agreements, and the impact of these on tax and national insurance;

4. Types of benefits;

5. Types of expenses.

The Organisation 6. The organisation’s policies for dealing with expenses and

benefits;

7. The organisation’s method of payment of expenses;





Imported Units

The following units exist in other suites of NOS and are likely to be included in the qualification structure:

Originator Suite Unit

E-Skills IT User CAS: Computerised Accounting Software (in development)

E-Skills IT User SS: Spreadsheet Software (in development)

E-Skills IT User BS: Bespoke or Specialist Software (in development)

http://nos2008.e-skills.com/database/aoc_html?action=view;id=44�




Signposted Units

The following units exist in other suites of NOS and are referenced here as they may be relevant to Accounting in some circumstances or may describe complementary competencies or suggest related directions for progression.

Computer Software


E-Skills IT User PM: Project Management Software (in development)

E-Skills IT User WP: Word Processing Software (in development)

E-Skills IT User ITS: IT Security For Users (in development)

Financial Management


MSC Management and Leadership E1: Manage A Budget

MSC Management and Leadership F1: Manage A Project

MSC Management and Leadership E2: Manage Finance In Your Area Of Responsibility

MSC Management and Leadership D16: Manage Redundancies In Your Area Of Responsibility

SFEDI Business Enterprise MN3: Keep Financial Records For Your Business

SFEDI Business Enterprise MN4: Manage Cash Flow In Your Business

SFEDI Business Enterprise MN5: Get Customers To Pay On Time

SFEDI Business Enterprise MN8: Monitor Borrowing For Your Business

SFEDI Business Enterprise MN9: Carry Out The Banking For Your Business

Payroll


SFEDI Business Enterprise MN10: Prepare Wages





Tax


SFEDI Business Enterprise MN11: VAT Registration And Returns

Business Communications


MSC Management and Leadership E11: Communicate Information And Knowledge

E-Skills IT User ICF: IT Communication Fundamentals (in development)

E-Skills IT User ISF: IT Software Fundamentals (in development)

Ethics And Environment


MSC Management and Leadership B8: Ensure Compliance With Legal, Regulatory, Ethical And Social Requirements

MSC Management and Leadership E9: Manage The Environmental Impact Of Your Work

ENTO Health and Safety HSS7: Make Sure Your Own Actions Within The Workplace Aim To Protect The Environment

Health And Safety


ENTO Health and Safety HSS1: Make Sure Your Own Actions Reduce Risks To Health And Safety

ENTO Health and Safety HSS2: Develop Procedures To Safely Control Work Operations

ENTO Health and Safety HSS3: Monitor Procedures To Safely Control Work Operations

ENTO Health and Safety HSS4: Promote A Healthy And Safe Culture Within The Workplace

ENTO Health and Safety HSS6: Conduct A Health And Safety Assessment Of A Workplace

E-Skills IT User IUF: IT User Fundamentals (in development)

Client / Customer Management


SFEDI Business Enterprise EE5: Build Relationships to Build Your Business

MSC Management and Leadership F5: Resolve Customer Service Problems





MSC Management and Leadership F6: Monitor And Solve Customer Service Problems

MSC Management and Leadership F7: Support Customer Service Improvements

Audits


MSC Management and Leadership F14: Prepare For And Participate In Quality Audits

MSC Management and Leadership F15: Carry Out Quality Audits

Personal Effectiveness


SFEDI Business Enterprise LG2: Keep Up To Date With Current Legislation Affecting Your Business

NOS for Accountancy and Finance Amended V2

Documents

pagenational

national occupational

discounted

double entry

organisations

extra statutory

petty cash

corporation