Apprenticeship Standard: Accounts/Finance Assistant L2

Introduction to Bookkeeping introduces the basic principles of double entry and provides students with an understanding of manual and digital systems.

Principles of Bookkeeping Controls explores control accounts, journals and reconciliations.

Principles of costing give an introduction to the fundamentals of basic costing and builds a solid foundation in the knowledge and skills required for more complex management accounting.

The Business Environment provides students with the essential business knowledge so that they are aware of the impact that the business environment has on organisations, from sole traders to large companies.

Introduction to Bookkeeping covers how to check the accuracy of invoices, credit notes, remittance advices, statements of account and petty cash vouchers. Students will learn how to use these documents to make entries in sales and purchases day-books, sales and purchases returns day-books, and discounts allowed and received day-books using account codes, as well as how to transfer those totals to the sales, purchases and general ledgers. Apprentices will learn that entering these into a digital bookkeeping system is the same process as entering the transactions manually, although the way they are entered will vary from system to system. Apprentices will learn that entering transactions into the cash book of a digital bookkeeping system serves the same purpose as entering the transactions into a manual bookkeeping system. Learners will make appropriate checks on the accuracy of supplier invoices and credit notes, reconcile supplier statements with the purchases ledger account and calculate payments due to suppliers. They will also calculate sales invoice and credit note amounts and check receipts from customers. Apprentices will have learnt all stages necessary to process transactions using both manual and digital systems. Reference to digital systems includes applications as well as both desktop and cloud accounting software.

Principles of Bookkeeping controls takes Apprentices through a number of processes used in bookkeeping that help verify and validate the entries made. These processes enable the learner to understand the purpose of control accounts and associated reconciliations. They will also understand the use of the journal to the stage of redrafting the trial balance, following initial adjustments. This unit covers procedures that are required to ensure bookkeeping is completed beyond purely entering or processing initial transactions, which will enable students to develop their understanding of the relationship between the various accounting records and consolidate their knowledge of double-entry bookkeeping. They will develop the ability to prepare the value added tax (VAT) control account as well as the receivables and payables ledger control accounts, including reconciliation with the receivables and payables ledgers. Learners will use the journal to record a variety of transactions, including the correction of errors. They will be able to redraft the initial trial balance, following adjustments. Apprentices will learn to update the cash book following receipt of a bank statement, and also how to prepare a bank reconciliation statement.

Principles of costing teaches the importance of the costing system as a source of information that allows management to plan, make decisions and control costs. Learners will recognise the key differences from a business perspective between costing and financial accounting. They will learn a range of techniques to cost materials, labour and overheads to establish the unit cost of a product or service, and this will include understanding and applying codes. Learners will learn how to classify costs and will understand how different classifications of cost can be used for internal management decision making. They will understand how cost behaves at different levels of output, and how variable and fixed costs per unit behave as output changes. Apprentices will learn to build a basic unit product cost using labour hours, machine hours and per unit as a basis in overhead apportionment, reapportionment and absorption. The budgetary control system is introduced, and by comparing actual costs with budgeted costs for a single product and using a fixed budget, learners will determine variances, noting whether they are adverse or favourable and reporting to management on their causes and effects.

The Business Environment provides knowledge and understanding of key business concepts and their practical application in the external and internal environment in which learners will work. Apprentices will gain an understanding of the legal system and principles of contract law and an appreciation of the legal implications of setting up a business and the consequences this may have. Wider issues impacting businesses will be considered, including the global economic environment in which it operates, how governments impact upon it and the competitive nature of the global economy. Apprentices will learn how organisations are structured and where the finance function fits within this. They will recognise that the role of the finance function has changed considerably due to the impact of new technologies. They will gain an appreciation of communication methods and learn how to recognise valid sources of information. Apprentices will develop skills in using data analytic technology to solve problems, analyse data and communicate effectively. Ethics and sustainability are key themes embedded throughout this unit. They will recognise the importance of ethics in business and how sustainable business is important for future business success.