Finance policies are the rules and principles applied in recording accounting and finance transactions, while finance procedures are the instructions outlining what employees are required to do in following these policies. The Accounting and Finance Manual of a firm may list the positions within the department, a list of accounts, special instructions for maintaining ledgers or records of transactions, or other rules that need to be followed by the accounting staff. The Manual therefore serves as a basic guide in understanding accounting processes, the recording of financial transactions, and the preparation of financial reports. Internal control best practices need also to be incorporated into this manual. Responsibilities and accountabilities should be clearly defined and stated to ensure that appropriate controls are observed.