Helping you document business processes with templates

Accounting Policies and Procedures Manual

Make Your Accounting Manual with Templates

 

Many businesses are required to have documented accounting policies and procedures with appropriate internal control, others want to document their internal procedures and implement best practices.

Copedia templates provide the policies, procedures and internal controls necessary to develop this documentation. Included is the content, checklists, forms and spreadsheets you need to develop a comprehensive accounting policies and procedures manual for your business.

The Copedia Accounting Policies and Procedures Manual template framework licenses standalone, as individual templates or bundled with the management and internal control templates. We also have an edition just for nonprofit organizations.

All templates are delivered via download in MS Word and Excel format.

Accounting Manual Template Contents

Some of the areas covered in the manual's table of contents include:

  • Accounting Policies and Procedures
  • Revenue
  • Credit and Accounts Receivable
  • Accounts Payable and Cash Disbursements
  • Payroll
  • Assets
  • Liabilities
  • Equity, Warrants, and Options
  • Financial Reporting
  • Purchasing
  • Financial Internal Controls
  • Segregation/Division of Duties Defined in the Documents
  • Flowcharts of your accounting system for visuals

Sample Accounting Manual

Example Manual Templates

You can visit a sample Copedia app accounting policy manual or

Following is a partial list and sample content for some accounting policies and procedures in our template sets.

Accounting Policies and Procedures

Start with an overview of your accounting process and system. Remember not everyone has an accounting background, so a review of the concepts and an overview of your people and software is the place to begin your manual.

Overview

The organization employs a comprehensive and effective set of accounting practices, procedures and policies that are designed to:

Be effective in ensuring accuracy and efficiency.

To ensure appropriate internal controls are in place which are designed to protect key assets and prevent fraud and other such activities.

Maintain an updated and documented record of the closing procedures that the company employs to produce financial statements and other management reports.

To provide historical accounting records for comparative reporting, benchmarking and other management needs.

People

Responsibilities

President

The President of the organization is responsible for the following accounting related tasks:

Approving all Expenditures over $10,000
Reviewing and approving all checks that require signature of the president
Reviewing a weekly/biweekly payroll summary of hours worked and check amounts
Approval of all Budgets as authorized by the board
Approve the Monthly financial reports.
Annual Review of financial internal controls

VP / CFO

The Chief Financial Office or Vice President is responsible for:

Reviewing the daily AP invoices and files the copy of the AP invoice log by month then day
Reviewing and Approving the check runs prior to printing
Reviewing the check run summary report
Reviewing and Approving all invoices and checks that require CFO signature
Approve all employee reimbursements
Approve all inter - account and intra - account transfers
Authorize all inter fund transfers
Receive the monthly bank statements unopened bank statements
Review all bank reconciliations
Manage all asset accounts
Coordinate the budget process for submission to the president
Review and approve with the president the monthly and annual financial statements prior to publication

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Software

The Company uses accounting software provided by xxxxxxx to track its accounting information.

Accounting Process – Debits & Credits

An overview of the the accounting system:

Accrual Basis of Accounting

Debits and Credits

Revenue

Expenses

Assets

Liabilities

Owners Equity (include a table)

Accounting Process – manual systems

Financial Statements (Income Statement and Balance Sheet)

Accounting for Assets

Purpose

This policy establishes the fundamental guidelines and practices for properly accounting and reporting assets on the Company’s Balance Sheet.   An asset is an element of the financial statements constituting economic resources as of a certain date, and expected to benefit future operations i.e. land, buildings, work-in-process, inventory, and receivables....

Responsibilities

  The Controller or designee is designated as the Fixed Asset System Coordinator and is responsible for ensuring:

  • Administration and maintenance of the asset and property accountability and control system
  • The designation of custodial areas and Property Custodians for each asset group

Property Custodians are responsible for:

  • Notifying the Controller whenever fixed assets are acquired lost, destroyed, stolen or disposed of
  • Identifying and reporting to management any property which is usable but not needed, or which should be disposed of

Individual employees are responsible for:

The proper use, care and protection of company property
Ensuring that company property is used only for the conduct of official company business....

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Accounting for Liabilities

Policies for long term liabilities and presentation on the balance sheet. Provide guidelines to properly accounting for liabilities including categorization, valuation methods, and G/L account code tables.

Valuation

Book Value

Net Settlement Value

Present Value (include a table)


Accounting for Revenue

Helps with proper revenue classification and accounting for it. Define and classify revenue types with tables for General Ledger codes.

Operating Revenue

Non-operating Revenue

External Sources of Revenue (include a table)

General Ledger Accounts for Recording Revenue (include a table)

Restatements of Revenue

Accounting for Expenses

Policy

This policy discusses and offers guidelines on operating expenses and credits, and includes tables that list General Ledger account code ranges for recording expenses. This policy defines and classifies types of expenses and expense credits at the Company. Expenses are the costs used to produce revenue. They are outflows of cash or charges. For financial reporting purposes, expenses include all costs paid to external parties.

Division of Duties

All procedures and expenditures shall be conducted and approved in accordance with the company written Delegation of Authority, Accounts Payable and Purchasing Policies and Procedures.

Expense Analysis

Expenses are to be analyzed for reasonableness. Reasonableness is ...

Coding and Approval

(include the Expense Dictionary and GL codes)

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Purchasing

Purpose

The purpose of this document is to describe how you buy goods, services, and assets at our organization.

Overview

Purchasing means the act of buying or obtaining goods, services, or assets on behalf of the company for a price or its equivalent. All purchasing must comply with the following policies and procedures:

Purchasing is authorized by the Delegated Authority Policy.

Purchasing is implemented by the Accounts Payable Procedures, Disbursement Approval Procedure, P-Card Policies, Purchase Order Policy and Procedures, and the Procurement Policy and Procedures.

General Purchasing Policies

All purchases over $100 require the use of a purchase order.


Verbal Quotes and Awards must be documented.

Purchasing amounts between $1,000 and $5,000 require at least three price quotes.

Purchases between $5,001 and $24,999 require written quotes be submitted from 3 qualified vendors for approval by the purchaser’s supervisor.

Purchases of $25,000 or more must comply with the procurement procedures.

All real estate leases and transactions must comply with the procurement procedures regardless of amount and without exception.

The company uses p-cards to increase purchasing efficiency and reduce accounting costs. Company P-Card Employees are authorized to use their p-cards according to the p-card policies and procedures

Division of Duties

All inventory purchasing activities should be separate from the associated receiving activity.

P-Card purchasing and receiving activities should not be separated but should be independently verified by use of a log.

All purchasing activities must be separate from accounting activities.

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Accounts Payable Policy

Purpose and Scope

Discussion

Applicable Laws

Generally Accepted Accounting Principles (GAAP)

Moral and Ethical Standards

Kickbacks an Gratuities

Loyalty

Timeliness


Accounts Payable Procedures

Overview

Accounts Payable is the process of keeping track of Company financial obligations. It involves the issuance of purchase orders, acceptance of invoices from vendors, recording the invoices in the computer system, and payment to vendors. This section describes the procedures and forms used in accounts payable.

  • This is a 17 page template...


Segregation of Duties

Approval Authority

Expense Types – Categories (include a table)

Interim – Manual/Hand Checks

New Vendors

Setting up and maintaining Vendors in the Computer

Receipt of Invoices

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Accounts Receivable Policy

The AR templates make a 29 page Accounts Receivable and Collections manual...

Accounts Receivable Credit Procedure



Accounts Receivable Collections Procedure

Overview

Discussion

Understand the Payment Process for your particular Industry

Red Flags

Making Collection Calls

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Administrative Procedures

General Organization

Etiquette (dress, attitude, food and lunch room, gossip, visitors, introductions, personal habits)

Ethics

Communications (telephone, correspondence, faxing, mail)

Computers, E-mail, and the Internet

Forms

Records Keeping (Filing, Alphabetic Filing, Numeric or Sequential Filing, Alpha-Numeric Filling, Subject Filing, Security of records)

Meeting Procedures

Security of Facility

Security of Equipment

Terminology


A/R Lost Payments Procedure

Purpose/Discussion

Detailed Steps for Resolution


Archive Policy

Purpose

Discussion


Archive Procedure

Cash Management



Claim Outline

Purpose and Scope

Discussion

Introduction

Statement of Facts

Contract Analysis

Financial Analysis

Schedule Analysis

Legal Analysis

Conclusion

Exhibits


Code of Ethics Policy

Overview

The organization (we) are committed to being an ethical and responsible member of society. In order to ensure the highest standards of ethics, honesty, governance, and integrity are maintained, we have adopted this Code of Ethics Policy. We refer to the elements of this policy as our Code. Our Code provides the guidelines and standards for acceptable business conduct.

It is our policy that all employees and directors shall abide by and comply with the Organization’s Code.

An employee that believes they have discovered a matter that appears to be in violation of the Code has a duty to report the matter. This matter may be reported to the employee’s supervisor other management level employee.

We have also adopted a Whistleblower policy to ensure that employees reporting a genuine concern or complaint will not be discriminated or retaliated against and have the opportunity to make such reports anonymously...

Discussion

Applicable Laws

Generally Accepted Accounting Principles (GAAP)

Moral and Ethical Standards

Loyalty

Kickbacks and Gratuities

Conflicts of Interest

Improper Influence of Conduct of Audits

Employee Privacy

Insider Trading

Computing Resources

Email and the Internet

Political Activities

Safety and the Environment

Anti Trust, Timeliness

Compliance Procedures

Document Control

Revision Information


Contract Changes and Claims

Purpose

Management Responsibilities

Educate field personnel about the contract requirements for changes

Types of Changes

Extras

Change Orders

Claims

Delays


Crisis Management

Purpose

Team Leader

Spokesperson

Safety Coordinator

Manager

Team Secretary

Financial Counsel

Legal Counsel

Governmental Liaison

Delegated Authority Policy

Overview

Discussion

Assignments

Bank Signatories

Bids

Capital Expenditures

Claims

Change Orders

Contracts

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Division of Duties

Overview (include a table)


Financial Analysis

Overview

Dollar and Percentage Changes

Component Percentages

Ratios

Benchmarking

Financial Ratio Analysis

Liquidity Ratios

Leverage Ratios

Activity Ratios

Direct Cost Ratios

Overhead Ratios

Profitability Ratios

Summary

Financial Reporting Policies and Procedures

With procedures and spreadsheet checklist for each month.

Fraud and Embezzlement Policy

A must have policy.

Internal Control Policy

Purpose

This 10 page policy statement sets up the internal control system:

Control Framework

Control Environment

Risk Assessment

Control Activities

Information and Communication

Monitoring

Detective Controls

Preventative Controls

Management Controls

Accounting Controls

Communication

Internal Control Checklists

Employee Rotation

Vacations

Financial Forecasting

External and Internal Auditing

Risk Assessment and Mitigation

Company Mail

Check Stock.....

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............. Setup

Control Modification

Quarterly Review

Annual Review

Internal Control – Cash

Policy with checklists


Internal Control Safety

Internal Controls – Safety


Internal Control Accounts Payable

Purpose/ Discussion

Purchasing

Receiving

Payments to Individuals

Accounts Payable


Accounts Receivable Internal Control Procedures

Discussion

Bad Debt write-off


Internal Control Job Costing

Overview

Checklist

Absorption Rates – Overhead and Burden


Internal Control Payroll and HR

Purpose

Payroll and Human Resource Internal Controls


Internal Control Policy

Purpose

This 10 page policy statement sets up the internal control system.

Internal Control – Project Management

Purpose/Discussion

Project Management Controls


Internal Control Purchasing

Overview

Checklist


Internal Control Receiving and Warehousing

Purpose

Checklist

Asset Protection and division of Duties

Receiving of Goods


Internal Control Sales and Estimating

Purpose

Summary Information

Detail information

Sales Analysis

Forecasting


Internal Controls Retail

Checklist


Inventory Management and Control

Overview

Discussion

Security

Division of Duties

Receiving

Valuation

Physical Inventory

Coding

Procedures (includes a table)


Journal Entry Procedure

Purpose/Discussion

Documentation Required

Approval Authority and Date


Mechanics Lien Procedure

Mechanics Liens are an important collection tool.

Determine if it’s Legal for you to file a Mechanics Lien

File a Notice of your intent to Lien

File the Mechanic’s Lien


Office Task List – Person(s) Responsible

Activity

Payroll and H/R

Accounts Payable

Accounts Receivable

Job Costing

General Ledger

Tax Reporting

Business Development

Operations

Inventory

Safety & Environment

Other


Order and Contract Management

Overview

Discussion

Order/Contract Administrator

Receiving Orders

Deposits

Order Processing

Order Changes

Order Fulfillment

Shipping

Billing and Invoicing


Project Estimating and Budgeting

Overview

Discussion

Purchasing Material s and Renting Equipment

Equipment Rental Policy

Short Term Rentals

Long Term Rentals

Purchase Order Authority Policy

Purchases

Purchase Orders and Approval

Small Tools

Tools Rental

Purchasing Small Tools


Records Management Policy

Purpose

Discussion

Responsibilities

Creation

Maintenance

Disposition and Archive


Risk Management Policy

Overview

Discussion

Risk Identification

Risk Assessment

Risk Mitigation


Risk Analysis Procedure (a table and spreadsheet)


Strategic Planning

Purpose

Definitions and assumptions

Perform SWOT Analysis

Develop Specific and Measurable Objectives (table)

Strategic Management Process


Telephone Answering Procedures

Protocol

Normal Office Hours

When an employee is not available

When an employee is available – politely screen the call

If you need to transfer a call, follow these procedures

Phones

Templates Download in Word and Excel

All Templates download in MS Word and Excel for easy customization.

Compliance, Certifications, Accreditations

Copedia also provides a correct framework for compliance with ISO certification, Accreditations, Board requirements, and other government agency type audits which require that you have documented corporate policies and procedures, an internal control system, and an integrated risk management framework. The Copedia compliance templates and internal control evaluation tools, policy and procedures, and checklists provide the tools you need.

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