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Accounting Policies and Procedures Manual
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Lack of adequate documentation is one of the largest pitfalls facing any accounting system.
One of four excuses is usually given: (1) nobody reads it, (2) the hands-on approach in
which each person teaches another is a better method, (3) written policies and procedures
are too confining, and (4) nobody has the time to write documentation. In a constantly
changing accounting world, none of these excuses can stand very long.
If an accounting staff and company executives are to be fully informed, this flood of
material must be read and, when necessary, related to the accounting operations at your
company. The dissemination of information on this scale cannot be handled orally or with
periodic meetings and brief memos to the staff involved. Thus, there is a need for clear,
consistent documentation to describe the accounting system being used, the principles
involved, the policies that management wishes enforced, and the procedures describing
what is to be done and how it is to be performed on a daily basis.
This book covers the development, implementation, and maintenance of 13 different
accounting manuals. Two of these are mandatory: the general accounting manual that
describes account coding schemes and how to code accounting transactions, and the
policy/procedure statement system that provides full information to anyone needing to
know a company’s accounting policies and the procedures to maintain them.
The other 11 manuals are optional, but as you read about them you will find that
they supplement and complement the primary accounting documentation; they are the
lubricant of the accounting system, and as such are useful for increasing the efficiency of
operations. If none of the following manuals are developed, certain portions of each will
appear in the basic manuals but in less depth. They are as follows:
1. Corporate policies manual. Contains nearly 250 policies used to govern all
functional areas of the accounting department.
2. Purchasing card manual. Describes all policies and procedures needed to operate
an effective purchasing card program.
3. Accounting controls manual. Contains nearly 400 controls that can be used
to ensure that accounting transactions are completed with a minimal number of
exceptions, and that the probability of fraud is reduced.
4. Period-end manual. Describes the actions, reports, and schedules to be completed
in sufficient detail to assure that the period-end closing is accurate, consistent,
usable, and timely.
5. Budgeting manual. Describes the specific steps to be followed to create the
annual budget, as well as task responsibilities by position.
6. Property accounting manual. Shows the forms that should be filled in and stored
in order to maintain a proper database of all corporate fixed assets, describing when
items were purchased or constructed, where they are located, and how they were
disposed of.
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xiv PREFACE
7. Forms manual. Describes every form in detail—its use, limitations, and how to
complete it.
8. Document management manual. Describes how to index, store, and dispose of
information related to the accounting function.
9. User manual. Provides information to non-accountant employees who are involved
in initiating or adding to an accounting document. This manual provides a
list of employees by function, a condensed chart of accounts, and instructions for
completing specific forms that are later used by the accounting department, such
as the employee expense report.
10. Information technology manual. A condensation of portions of the technical
computer processing instructions that accountants must handle, which can extend
to basic operating procedures for the information technology staff.
11. Human resources manual. Contains a list of all policies related to human resources
activities, as well as specific procedures required to perform operations
within the human resources department.
This book gives the reader a wide variety of real-life examples for constructing all of
the manuals just noted, as well as pertinent advice on how to write clearly, construct
easy-to-use manuals, and issue both paper-based and electronic manuals. It should be the
one-stop solution for anyone constructing accounting manuals.
Steven M. Bragg - Personal Name
5
ISBN 978-0-470-14662
NONE
Accounting
English
JOHN WILEY & SONS, LTD
2007
USA
1-541
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