Unit 2

• EFTPOS


  Electronic Funds Transfer at Point of Sale
• How EFTPOS system works


  1. Transfer of funds directly from a customer's bank account to a business's account, using a debit or credit card

  2. Small business owners have debit/credit cards linked to their business accounts to pay for supplies

  3. Cards are now stored on electronic devices such as phones and smart watches
• Jonny BRAG insists all customers should pay using cash, the traditional way


  Jonny should include both cash payments as well as EFTPOS payments
• Benefits of using an EFTPOS system

  • Convenience for customers
  • Reduced cash handling
  • Improved cash flow
• Disadvantages of using EFTPOS in small business

  • Transaction fees
  • Technical issues
  • Fraudulent use of cards
• 1. What is the first step for BPay?

  • Receive Bill/Invoice:
  • The payer receives a bill or invoice containing a Biller Code and Customer Reference Number (CRN).
• Credit Cards


  Cards that allow individuals to make purchases on credit, issued by financial institutions, borrowing money from issuer to make purchase with understanding of repayment later, also used by small businesses as short-term borrowing
• Risks to small businesses using B-Pay


  • Security concerns: vulnerability to hacking or fraud
  • Technical issues: system outages or glitches disrupting bill payment processing
• Risks to small businesses using Credit Cards

  • Transaction fees and interest: impact on profit margins
  • Chargebacks and disputes: potential loss of revenue
• Online Banking


  Enables businesses to manage finances, conduct transactions, and access banking services through internet-based platforms
• Benefits of Online Banking for businesses

  • Convenience and accessibility: 24/7 access
  • Time and cost savings: reduced need for physical bank visits
  • Enhanced financial management: transaction history, balance updates, financial reporting
• Direct Debits


  Instruction to a bank to pay a regular amount to a third party at the same time when the payment is due
• Direct Debit examples for small businesses

  • Rent payments
  • Loan repayments
  • Insurance payments
  • Collecting monthly membership fees from clients
• Disadvantages of Direct Debits for small businesses

  • Authorisation and error issues: customer dissatisfaction, legal issues
  • Customer cancellations: disruption to cash flow
  • Insufficient funds: inability to make transfer, chasing up payment
• Integrity


  • Accountants are expected to be honest, trustworthy, and maintain high moral and ethical principles
  • They should act in a way that promotes public confidence in the profession
• Objectivity


  • Accountants must maintain impartiality and avoid conflicts of interest that could compromise their professional judgment
  • They should not allow personal biases or external pressures to influence their decision-making process
• Professional Competence


  • Accountants should strive to maintain and enhance their professional knowledge and skills to perform their duties competently
  • This includes staying updated with changes in accounting standards, regulations, and best practices
• Confidentiality


  • Accountants are required to maintain the confidentiality of information obtained during their professional engagements
  • They should not disclose any sensitive or confidential information without proper authorization, unless there is a legal or professional duty to do so
• Professional Behavior


  • Accountants should conduct themselves in a manner that upholds the dignity and reputation of the profession
  • They should avoid any behavior that may discredit the accounting profession or undermine public trust
• Compliance with Laws and Regulations


  • Accountants are expected to comply with relevant laws, regulations, and professional standards
  • They should also be aware of their responsibility to report any illegal or unethical activities they become aware of during the course of their work
• Independence


  • Accountants should maintain independence in their judgments and avoid any relationships or situations that may impair their objectivity
  • This ensures that their work is free from undue influence and bias
• Professional Development


  • Accountants should actively pursue professional development opportunities to stay current with the evolving accounting practices, technological advancements, and regulatory changes
  • They should seek continuous improvement in their skills and knowledge
• Confidentiality


  Accountants are required to maintain the confidentiality of information obtained during their professional engagements. They should not disclose any sensitive or confidential information without proper authorization unless there is a legal or professional duty to do so.
• John has breached Confidentiality
• John should have not shared this information because it is sensitive to the market and his friend will benefit financially
• Integrity


  Accountants are expected to be honest, trustworthy, and maintain high moral and ethical principles. They should act in a way that promotes public confidence in the profession.
• John with the pressure from Mary Thompson has breached Integrity
• John would have to have a meeting with Mary Thompson and point out that she is being dishonest by not providing objective figures and by making the company look better than it is. If Mary does not comply, he would report her to the CEO who would need to act as Mary Thompson has also breached the ethical standard of integrity. If this does not change, John would report the breach to CA Australia NZ or CPA Australia.
• Professional Competence

  Accountants should strive to maintain and enhance their professional knowledge and skills to perform their duties competently. This includes staying updated with changes in accounting standards, regulations, and best practices.
• John has breached the ethical standard of Professional Competence
• John should have training on this software until he is proficient and confident or hire someone on his behalf to use the new software or tell management that he can't do the software and that they should hire an accountant who is more proficient with new software
• Compliance with laws and regulations


  Accountants are expected to comply with relevant laws, regulations, and professional standards. They should also be aware of their responsibility to report any illegal or unethical activities they become aware of during their work.
• John is in breach of not complying with laws and regulations
• John has an obligation under the tax laws to bring this to the attention of the ATO. John would submit a formal report to the ATO containing all the details of the illegal GST entries.
• What is the second step for B-Pay?

  • Log into Online Banking:
  • The payer logs into their online banking platform or contacts their financial institution.
• What is the third Step for B-Pay?

  • Enter Payment Details:
  • The payer enters the Biller Code and CRN provided on the bill or invoice.
• What is the Fourth step of B-Pay?

  • Confirm and Authorize:
  • The payer confirms the payment amount and authorizes the transfer.
• What is the fifth step of B-Pay?

  • Funds Transfer:
  • The funds are transferred electronically to the biller's account.
• Asset


  A present economic resource controlled by the entity as a result of a past event
• Liability


  A present obligation of the entity to transfer an economic resource as a result of past events