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.
The accounting and finance manual is used as a reference point for management, supervisors, new and existing accounting staff, and auditors to train, make consistent and reliable decisions, resolve disputes, and give a clear understanding of the department. In addition, the manual should be updated on an annual basis for it to remain relevant and useful as a reference and guide.
The manual should not be taken as a “one-size-fits-all” document. Instead, each company needs to consider having a customized document as policies and procedures are dependent on the nature of the business, size, and complexity of the organization.
What should you expect from this service:
To provide low-cost, outsourced finance and accounting services to our SME clients within a framework that assures control, quality service delivery, and high performance.