Sample financial procedures manual

Going through this template is illuminating for me. For many years I have worked in nonprofits with the title of accountant or bookkeeper. Recently I have found it very difficult to get a new job. No wonder employers have been passing me by.

Our non-profit is reviewing is policies and procedures and it will be good to have a source to refer to. Thanks you!!!! God bless you. We're already doing this but appreciate having it template form. A Ayris. This is the best thanks so much!! Been trying to find a good template to help local non profit orgs.

In more formal usage, revenue is a calculation or estimation of periodic income based on a particular standard accounting practice or the rules established by a government or government agency. Suppliers must be requested to produce invoices. While claims for small items of expenditure may be made via petty cash see section 4 , adequate supporting documentation, preferably receipts, must be obtained. Large items requiring cash payment must be checked with Finance before the arrangement is confirmed.

All invoices must be authorised for payment by the budget holder, although the actual checking of details may be delegated. The authorising department is responsible for checking invoices for accuracy in terms of figures and conformity with the order placed, that the services or goods have been received, and following up any problems.

Finance must be informed if there are queries delaying authorisation or if payment is to be withheld for any reason. A Purchase Ledger is operated by Finance. All incoming invoices are to be passed to Finance section as soon as they arrive. Invoices will be recorded on to the Purchase Ledger within two days, unless there are coding problems. They are then passed on to budget holders for authorisation.

Once authorised as above, suppliers will be paid within the appropriate timescale. The latter must be communicated by budget holders to Finance, who will inform them of any difficulties in meeting these. Signatories will only be drawn from senior staff and Trustees, and any new signatory must be approved by the Trustees before the bank is notified.

Cheque signatories should check that the expenditure has been authorised by the appropriate person before signing the cheque. Salary payments require the signature of the Director, Company Secretary, Financial Controller or a member of the Board of Trustees, plus one other. Signatories will not sign cheques which are payable to themselves, or blank cheques.

Cheques should be filled in completely with payee, amount in words and figures, and date before cheques are signed. Receipts for this type of expenditure must be returned immediately. However, where a larger cash float is required for a major event for example , this may be approved by the Financial Controller with the Director.

When signing cheques to restore the imprest balance see section 4 , receipts accompanied by an add-list must be presented with the cheque request. Anything over this should be paid by cheque where possible. The petty cash balance will be reconciled when re-storing the imprest balance, or monthly if this is more frequent.

All cash collected from Finance will be signed for, and receipts will be issued for all cash returned. Specific extra cash floats for tills at events etc.

The person signing for the float is responsible for ensuring cash and receipts are returned as soon as possible after the event etc. No further floats may be issued to that person, or another person in the same department for a similar purpose, unless the previous float has been accounted for. Mixing money or receipts from different petty cash sources creates large accounting problems.

Any cash income will be banked via Finance, and not used for petty cash expenditure. Such cash will be passed to Finance:. Cash will be kept in locked metal cabinets wherever possible. Appropriate arrangements will be made for till security. Could also refer to volunteer and staff expenses here. This has been a helpful guide to Accounting Policies along with Accounting policies examples and its significance. You may also like our suggested articles below —. Accounting policies and procedures are not one and the same thing, though workers in an office often confuse the two.

Accounting policies represent the guidelines or rules that define what the accounting department expects in a given situation. By creating policies, the accounting department ensures that company rules and standards are maintained and adhered to in a consistent manner by all those affected. The procedure represents the how-side of the equation by defining the individual steps that ensure the company's accounting policies are maintained and internal controls are in place.

When coming up with the accounting policy and procedure handbook used by accountants and others in the company, you must first define each rule or guideline as an individual policy that you want people to follow. Do not mix policies together, because it is too confusing.

Accounting departments create cash-flow policies, travel reimbursement policies, petty cash policies, account payable policies or billing policies, just to name a few. The policy should define the rule -- known as the what -- and include who must adhere to it and why it must be adhered to.

Policies and procedures are maintained as separate documents. Each policy must include an overview or summary of the guideline or rule. The overview comes first, with detailed information that includes the specifics.

For instance, an accounting department might have a petty cash fund policy that details how much money will be made available for petty cash, the type of purchases it covers and the title of the person who is responsible for ensuring it is maintained properly. The policy doesn't list people's names, but rather the title or position in the company responsible for it. Procedures are the step-by-step process by which individuals adhere to the company policy.

For instance, an accounting department may set a cash-flow policy that specifies how much operating cash should be available at all times and what must occur if it is not available. Clearly outlining who does what helps you avoid misunderstandings and sets expectations for organization. Who can sign checks for the company? It might be just the owner, but it could also include one or more key employees.

Whatever you decide, extend that policy to credit and debit card use as well. Note that any changes to a checking or savings account must go through an approval process. Task one person with building, maintaining and securing employee files. Include information regarding who processes payroll, keeps track of sick and vacation days and who ultimately signs the paychecks. These policies would detail guidelines relating to approval of new vendors and who has access to them.

It would also cover payment terms and authorizations along with describing detailed procedures for new vendor setup. The overall purpose of every financial policy is to ensure that the business finances are enough to keep the business running.