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- Accounts Receivable SOP (Sales & Invoicing) Accounts or trade receivable is the amount owed to a company when it provides goods and/or services on credit.
- Accounts Payable SOP (Purchase & Payments) Accounts Payable consists of all short-term debts owed to creditors (to be paid off within a year or so) and are shown as a current liability on the company’s balance sheet.
- Tax Compliance SOP. Tax compliance is adherence to legal tax-based requirements and norms, with systematic protection of the company’s internal tax-related policies.
- Banking & Investment Management SOP. Banking and Investment management SOPs seek to establish a system in which sourcing of long-term financing (beyond the day-to-day working capital needs), portfolio holdings of financial assets, budgeting, and investments are efficiently managed.
- (Date)
- I. Introduction
- II. Division of Responsibilities
- Operations Manager (Finance Director)
- Bookkeeper
- III. Chart of Accounts and General Ledger
- IV. Cash Receipts
- V. Inter-Account Bank Transfers
- VI. Cash Disbursements & Expense Allocations
- Expense Allocations
- VII. Credit Card Policy and Charges
- VIII. Accruals
- IX. Bank Account Reconciliations
- X. Petty Cash Fund
- XIII. Payroll Processing
- XIV. End of Month and Fiscal Year-End Close
- XV. Financial Reports
Note: this sample manual is designed for nonprofit organizations with the following staff involved with accounting processes: Executive Director/CEO Operations Director/Finance Director Bookkeeper Organizations with more staff than these involved with accounting may not find this sample manual relevant. The intent of the authors is not to prescribe...
The purpose of this manual is to describe all accounting policies and procedures currently in use at (Organization) and to ensure that the financial statements conform to generally accepted accounting principles; assets are safeguarded; guidelines of grantors and donors are complied with; and finances are managed with accuracy, efficiency, and tran...
The following is a list of personnel who have fiscal and accounting responsibilities:
Approves all program expenditures (may be done by a Program Manager at larger organizations) Monitors program budgets Reviews all payrolls and is responsible for all personnel files Reviews and manages cash flow Reviews and approves all reimbursements and fund requests Processes all inter-account bank transfers Assists Executive Director with the d...
Overall responsibility for data entry into accounting system and integrity of accounting system data Processes invoices and prepares checks for signature Makes bank deposits Processes payroll Maintains general ledger Prepares monthly and year-end financial reports Reconciles all bank accounts Mails vendor checks Manages Accounts Receivable
(Organization) has designated a Chart of Accounts specific to its operational needs and the needs of its financial statements. The Chart of Accounts is structured so that financial statements can be shown by natural classification (expense type) as well as by functional classification (program vs. fundraising vs. administration). The Operations Man...
Cash receipts generally arise from: Contracts and Grants Direct donor contributions Fundraising activities The principal steps in the cash receipts process are: The Receptionist receives incoming mail and forwards it unopened to the Operations Manager. The Operations Manager opens, date stamps, and distributes the mail. The Operations Manager enter...
The Operations Manager monitors the balances in the bank accounts to determine when there is a shortage or excess in the checking account. The Operations Manager recommends to the Executive Director when a transfer should be made to maximize the potential for earning interest. The Bookkeeper is directed in writing when to make a transfer and in wha...
Cash disbursements are generally made for: Payments to vendors for goods and services Taxes/license fees Staff training and development Memberships and subscriptions Meeting expenses Employee reimbursements Marketing/promotional materials Checks are processed weekly. Invoices submitted to the Operations Manager by Wednesday will be processed ...
Most non-salary expenses that benefit more than one cost center (administration, fundraising, and program) are spread across centers using a shared cost method. Under this method, the number of full-time equivalents (FTEs) within a department are divided by the total number of FTEs at the organization to determine the percentage of shared costs the...
All staff members who are authorized to carry an organization credit card will be held personally responsible in the event that any charge is deemed personal or unauthorized. Unauthorized use of the credit card includes: personal expenditures of any kind; expenditures which have not been properly authorized; meals, entertainment, gifts, or other ex...
To ensure a timely close of the General Ledger, (Organization) may book accrual entries. Some accruals will be made as recurring entries. Accruals to consider: Monthly interest earned on money market accounts, certificates of deposits, etc. Recurring expenses, including employee vacation accrual, prepaid corporate insurance, depreciation, etc.
All bank statements are given unopened to the Executive Director. The Executive Director reviews the statements for unusual balances and/or transactions. The Executive Director gives the statements to the Bookkeeper for timely reconciliation as follows: a comparison of dates and amounts of deposits as shown in the accounting system and on the state...
Petty cash funds are maintained by the organization. The funds are to be used for miscellaneous or unexpected purchases and the same approval procedures apply as mentioned in the cash disbursement section. The petty cash fund will not exceed $250 and is kept in a locked file cabinet at all times. The Operations Manager oversees the petty cash f...
Timesheets are to be prepared by all staff on the approved form and submitted semi-monthly on the ___ and __ of the month. If the ___ and/or ___ of the month fall on a weekend or holiday, the timesheets are to be submitted the day prior to the weekend or holiday. Exceptions to the submittal date may occur and will be communicated accordingly. Time...
The Operations Manager will review and sign off on all month- and year-end journal entries. They will be printed and filed for audit trail purposes. At the end of each month and fiscal year end, the Operations Manager will review all balance sheet accounts including verification of the following balances: cash accounts match the bank reconciliation...
The Bookkeeper will prepare the monthly and annual financial reports for distribution to the Operations Manager. The reports will include: balance sheet, statement of income and expenses, budget versus actual report for each program which has an established budget, a budget versus actual report for the organization, accounts receivable aging, accou...
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Jan 10, 2024 · Discover how to craft an effective accounting policies and procedures manual in 2024. Explore a detailed guide, customizable template and real-world examples.
Jul 17, 2019 · A standard operating procedure, or SOP, is a step-by-step set of instructions to guide team members to perform tasks in a consistent manner. SOPs are particularly important for complex tasks that must conform to regulatory standards.
Before you begin looking for an accounting policies and procedures template to customize, it is important to understand what an accounting policy and procedures manual is, what it should accomplish, and how to go about writing a good one.
What are Accounting Policies and Procedures? Accounting policies are the principles and methods your firm adopts to prepare financial statements. They act as the overarching guidelines that dictate how you account for various financial elements like asset valuation, revenue recognition, and expense recognition.
Standard Operating Procedures (SOPs) in accounting are written documents that outline the specific steps and procedures for completing various financial tasks. SOPs help to ensure that each financial task is managed consistently and correctly, with defined goals and expectations.
