Introducing the RQF Computerised Bookkeeping qualifications Introducing the RQF Bookkeeping Qualifications 22/04/2016 Introducing the RQF Computerised Bookkeeping qualifications Dave Sutton

Level 1 Award in Computerised Bookkeeping Introducing the RQF Bookkeeping Qualifications 22/04/2016 Level 1 Award in Computerised Bookkeeping

Assessment Terminology Knowledge Tests Open book, not controlled conditions but time constrained Learners must attempt all questions Learners awarded Pass or Fail - 70% minimum level of achievement (all levels) Results notified immediately Assignment Not controlled conditions but time constrained Learners awarded a Pass or Fail - 70% minimum level of achievement (all levels) Provisional result notified immediately, subject to IAB moderation Examination Time constrained and controlled exam conditions 60% minimum level of achievement (levels 2 & 3) Results are not immediate, subject to IAB moderation and review

L1 Award in Computerised Bookkeeping (RQF) GLH 30 hours Introduction to computerised accounting – D/508/5836 Set up a computerised accounting system and process data – Y/508/5849

Specifically aimed at learners who wish to begin their studies of computerised accounting Learners with no previous knowledge or experience. Learners employed at a junior level with some limited basic accounting knowledge Learners returning to study and/or work after a study or career break Learners considering a change in career.

Introduction to Computerised bookkeeping – Knowledge Test One hour duration Understand the basics of computerised accounting Understand accounting terms Recognise source documents Understand the basics of the VAT system

Knowledge Test – Introduction to computerised accounting – 70% for a pass. Open book Assessment Emphasis at L1 is on the basic fundamentals of double entry bookkeeping – mirrors Manual bookkeeping qualification with L1 Computerised Bookkeeping qualification Learners are required to demonstrate competence by completing short answer tasks ranging from multiple choice to drop down options and all tasks within the assessment will be independent tasks. The assessment will be one hour duration and open book The emphasis is very much on the understanding of the basics of computerised accounting, accounting terms, recognise source documents, and understanding the basic of the VAT system Must have knowledge of accounting equation – but will not be required to calculate a missing value Learners will be required to understand the requirements of HMRC VAT legislation relating to the calculation of VAT where prompt payment discounts are offered. Learners will be required to understand the difference between capital income, capital expenditure, revenue income, and revenue expenditure. Learners will be required to understand the accounting concepts of dual aspect and business entity

Set up a computerised accounting system and process data – Assignment Sage Assessment which is open book and of of one and half hours duration Set up a computerised accounting system Process credit based transactions Process cash sales and sundry income Process receipts from credit customers Process payments to credit suppliers  Process payments through the bank current account  Process petty cash transactions Reconcile the balance on the bank current account Generate reports

Assignment – Set up a computerised accounting system and process data - 60% for a pass The assessment will consist of two parts. Learners should be prepared set up the sage accounting system with name, address, post code, and VAT registration number. Learners should be prepared to enter opening balance in the ledger Learners should be prepared set up supplier accounts and customer accounts Learners should be prepared to process purchase invoices, sales invoices and credit notes Learners should be prepared to process cash sales, credit sales, payments to suppliers and payments received form customers Learners should be prepared to process an income from a non trading activity such as rent received Learners should be prepared to process petty cash transactions and use the calculate net function for VAT Learners should be prepared reconcile the balance on the business bank current account with the balance on the statement of account received from the bank

Assignment – Set up a computerised accounting system and process data - 60% for a pass Learners should be prepared to generate the following reports the trial balance, supplier list, customer list and bank statement reconciled and unreconciled transactions In part two of the assessment learners will be required to complete a number of tasks which either relate to the tasks completed in part one of the assignment, or are based on knowledge and use of the use of computerised accounting systems Learners should be prepared to answer questions based on the reports generated in part one of the assignment Learners should be prepared to add missing information to reports which are a duplication of the reports that the learner generated in part one of the assignment. This could require the learner to enter the correct credit and debit balances in the trial balance

Level 2 Certificate in Computerised Bookkeeping Introducing the RQF Bookkeeping Qualifications 22/04/2016 Level 2 Certificate in Computerised Bookkeeping

Assessment Terminology Knowledge Tests Open book, not controlled conditions but time constrained Learners must attempt all questions Learners awarded Pass or Fail - 70% minimum level of achievement (all levels) Results notified immediately Examination Time constrained and controlled conditions 60% minimum level of achievement Results are not immediate, subject to IAB moderation and review

L2 Award in Computerised Bookkeeping (RQF) GLH 50 hours Principles of computerised accounting and VAT – M/508/5842 Use a computerised accounting system – R/508/6627

The Level 2 Certificate in Computerised Bookkeeping is specifically aimed at learners who wish to further their studies of computerised accounting and gain a qualification at Level 2 Learners who have already achieved a level 1 in computerised bookkeeping. Learners with a practical and working knowledge of bookkeeping who require a qualification at Level 2 to enhance career and job prospects Small business owners who use sage accounting for maintaining accounts for the business

Principles of computerised accounting and VAT– Knowledge Test One hour duration Understand the basics of computerised accounting system Understand accounting terms Recognise source documents and understand their purpose Understand the basics of the VAT system Understand HMRC VAT rules Understand the purpose of VAT accounts and the VAT return

Knowledge Test –– Principles of computerised accounting and VAT 70% for a pass. Open book Assessment The level 2 qualification builds upon the knowledge acquired in the level 1 qualification. Learners are required to demonstrate competence by completing short answer tasks ranging from multiple choice to drop down options and all tasks within the assessment will be independent tasks. The assessment will be one hour duration and open book The emphasis is very much on the understanding and the purpose of a computerised accounting system. The learners should be able to recognise the security measures designed to protect computer hardware, software and restrict access to the computerised accounting system. Learners will be required to demonstrate a knowledge of bad debts, discounts (trade, bulk and prompt payment discounts), wages, salaries, gross pay, net pay and statutory and voluntary deductions Learners will be required to understand the requirements of HMRC VAT legislation relating to the calculation of VAT where prompt payment discounts are offered and the rules for accounting for a VAT adjustment where the offer of a prompt payment discount is taken-up Learners will not be required to have knowledge of the VAT rules relating to imports, exports and VAT on supplies between EC member states

Use a computerised accounting system – Examination 60% pass Two hours duration Set up a computerised accounting system Generate and use source documents Account for cash sales and sundry income Process customer receipts and refunds Process supplier payments and refunds Process payments through the bank current account Process petty cash transactions Reconcile the balance on the bank current account Prepare and post journal entries Generate reports

Examination – Use a computerised accounting system- 60% for a pass It is important that learners have the knowledge that is required for level 1 before attempting this exam. A key criteria is that learners should have a good understanding of the double entry system which is a requirement of the learning outcomes. Learners will be prepared to prepare and post journal entries for the following transactions Bad debts and VAT bad debt relief The correction of errors (omission, commission, principle and original entry) The clearing of balances on VAT purchase tax and sales tax accounts Wages and salaries (net pay, deductions from pay) Learners will be required to use the computerised accounting software to generate the following reports Supplier and customer names and addresses Supplier and customer activity reports Aged debtor and creditor reports Trial balance and summary audit trail Bank statement reconciled and unreconciled transactions Day book reports (customer invoices and credits, supplier invoices and credits)

L2 Certificate in Computerised Bookkeeping (RQF) – General comments Examination is on-demand and closed book Knowledge test is open book and time constrained to one hour A key to performing well on the QCF level 2 was practice on assessment and not entering the exam until the candidate was well prepared with a good knowledge of double entry bookkeeping and the same applies to the new RQF qualification.

Level 3 Certificate in Computerised Bookkeeping & Accounting Introducing the RQF Bookkeeping Qualifications 22/04/2016 Level 3 Certificate in Computerised Bookkeeping & Accounting

Assessment Terminology Knowledge Tests Open book, not controlled conditions but time constrained Learners must attempt all questions Learners awarded Pass or Fail - 70% minimum level of achievement (all levels) Results notified immediately Examination Time constrained and controlled conditions 60% minimum level of achievement Results are not immediate, subject to IAB moderation and review

Level 3 Certificate in Computerised Bookkeeping and Accounting GLH 70 hours Principles of advanced computerised accounting – J/508/5846 Use a computerised accounting package – D/508/6629

The Level 3 Certificate in Computerised Bookkeeping is specifically aimed at learners who wish to further their studies of computerised accounting and gain a qualification at Level 3 Learners who have already achieved a level 2 in computerised bookkeeping. learners who already have a good working knowledge of accounting software, and wish to enhance career prospects or progress to higher qualifications.

Knowledge Test –– Principles of advanced computerised accounting 70% for a pass. Open book Assessment The level 3 qualification builds upon the knowledge acquired in the level 1 and 2 qualifications. Learners are required to demonstrate competence by completing short answer tasks ranging from multiple choice to drop down options. The assessment will be one hour duration and open book The emphasis is very much on the understanding and the application of a computerised accounting system. Learners will be required to demonstrate an accounting knowledge of stock valuation, fixed assets, prepayments and accruals, trial balance and a suspense account. Learners will be required to understand the purpose of financial statements Learners will be required to understand the principles of accounting for partnerships Understand the purposes of budgeting

Examination – Use a computerised accounting package 60% for a pass It is very important that learners have the knowledge that is required for level 1 and 2 before attempting this exam. A key criteria is that learners should have a good understanding of advanced bookkeeping Duration of exam 2 hours and 30 minutes Learners must be prepared to use an accounting package to process the following Business transactions (level 1 and level 2 criteria) Journal entries Stock Fixed assets (non current assets) Prepayments and accruals Bad debts and a provision for doubtful debts Make end of period adjustments Amend the chart of accounts and generate reports