People often ask us, “What should be in our ‘Accounting Policies and Procedures’ manual?”, which naturally leads us to the next question, “What’s in your ‘CFO Accounting Policies and Procedures’ manuals?”  In other words, what specifically is contained in the manuals?  What accounting processes are covered when you order the five-manual Accounting Policies- Procedures bundle?

The CFO Accounting Policies and Procedures Manuals includes 239 prewritten accounting procedure templates and 373 forms organized within five functional business manuals.  All 612 files are in Microsoft Word format, so you can easily edit each file to suit your company’s particular needs. Topics are well-researched and are based on best practices, saving you countless time and enabling you to meet approaching deadlines fast.

Improve your accounting process with:

Accounting Revenue Cycle Procedures

There are many elements to the Revenue Cycle.  Key tasks include how orders are confirmed and entered, and how credit and collections are performed.  There are 13 accounting procedures that address this important accounting process:

1. Cash Drawers And Credit Cards
2. Cash Receipts And Deposits
3. Sales Order Entry
4. Point-Of-Sale Orders
5. Customer Credit Approval And Terms
6. Sales Order Acceptance
7. Invoicing And Accounts Receivable
8. Wire Transfers
9. Problem Checks
10. Sales Tax Collection
11. Progress Billing
12. Account Collections
13. Customer Returns

Accounting Cash Disbursement Cycle Procedures

The Cash Disbursement cycle deals with controlling expenses, confirming expenditures, and ensuring effectiveness of purchases.  There are 12 procedures in the CFO Accounting Policies and Procedures set that address cash disbursement:

1. Check Signing Authority
2. Check Requests
3. Vendor Selection
   

   Vendor Selection Procedure

4. IT Vendor Selection
5. IT Outsourcing
6. General Purchasing
7. Project Purchasing
8. Receiving And Inspection
9. Shipping And Freight Claims
10. Accounts Payable And Cash Disbursements
11. Travel And Entertainment
12. Controlling Legal Costs

Accounting Production Cycle Procedures

The Production Cycle includes processes like how orders are shipped, how freight claims are processed, and how production documents are controlled.   There are 3 production cycle procedures available in the CFO Accounting set.  (Note: additional production cycle procedures are found in the ISO 9001 Quality manual, which is part of the CEO Company Policies and Procedures set of manuals).

1. Shipment of Goods
2. Shipping And Freight Claims
3. Document Control

Accounting Asset Cycle Procedures

The Asset Cycle includes inventory, asset management, and asset acqusition processes.  There are 10 procedures in the CFO Accounting set that address important parts of this key accounting cycle:

1. Inventory Control
2. Inventory Counts
3. Fixed Asset Control
4. Customer Property
5. Asset Acquisition
6. Inventory Management
7. IT Asset Standards
8. IT Asset Management
9. IT Asset Assessment
10. IT Asset Installation Satisfaction

Accounting Audit Cycle Procedures

The Audit Cycle encompasses internal and external (third-party) auditing procedures, as well as performing corrective actions in response to qualified audit opinions.   There are 3 accounting procedures that address this important check step in the accounting process:

1. External Auditing
2. Internal Auditing
3. Corrective Action

Accounting Finance Cycle Procedures

The Finance Cycle includes such processes as raising debt and equity capital, working with leases, mechant accounts, and foreign exchange.  There are 12 accounting procedures in the CFO series that address key elements of the finance cycle:

1. Capital Plan
2. Valuation
3. Bank Loans
4. Stock Offerings
5. Debt and Investment
6. Leasing Procedure
7. Working Capital
8. Cash Management
9. Foreign Exchange Management
10. Managing Bank Relationships
11. Merchant Accounts
12. Letters of Credit

Financial Reporting Cycle Procedures

The Financial Reporting Cycle contains 18 accounting procedures for management reports, stockholder reports, and financial statement reporting.  All companies have financial reporting obligations to their shareholders, investors, and regulators, making this a key accounting cycle:

1. Chart of Accounts
2. Bank Account Reconciliations
3. Management Reports
4. Period-End Review & Closing
5. Taxes And Insurance
6. Property Tax Assessments
7. Confidential Information Release
8. Files And Records Management
9. Fixed Asset Capitalization & Depreciation
10. Annual Stockholders’ Meetings
11. Board of Directors’ Meetings
12. Financial Forecasting
13. Financial Reporting
14. Financial Statement Analysis
15. Financial Management Review
16. Financial Restatements
17. Financial Information Release
18. Related Party Transactions

Strategic Planning Cycle Procedures

The Strategic Planning Cycle addresses management responsibilities, various forms of risk assessment, continuity, and compliance.  There are 13 accounting procedures in the CFO Accounting Policies-Procedures set of manuals that support this accounting cycle:

1. Business Plan
2. Risk Assessment
3. Risk Management
4. Financial Objectives
5. Management Responsibility
6. Continuity Planning
7. Document Control
8. Record Control
9. IT Threat And Risk Assessment
10. IT Security Plan
11. IT Disaster Recovery
12. Sarbanes-Oxley Compliance
13. SAS 70 Compliance

Accounting Payroll Cycle Procedures

The Payroll Cycle addresses benefits, compliance, and employee performance appraisals.  There are 9 accounting procedures available to you that are included in the Payroll cycle:

1. Payroll
2. Paid and Unpaid Leave
3. Insurance Benefits
4. Healthcare Benefits
5. Compliance Posting Requirements
6. Employee Performance Appraisals
7. Employee Retirement Income Security (ERISA)
8. Consolidated Budget Reconciliation (COBRA)
9. Family and Medical Leave (FMLA)

Information Integrity Cycle Procedures

The Information Integrity Cycle is a key part of the accounting-IT interaction.  Key procedures in this cycle include computer and Internat usage, IT access control, IT management, and IT incident handling.  There are 9 accounting procedures addressing this important accounting cycle:

1. E-Mail Policy
2. Computer and Internet Usage Policy
3. Information Technology Management
4. IT Records Management
5. IT Document Management
6. Computer Malware
7. IT Access Control
8. IT Security Audits
9. IT Incident Handling

CFO Accounting Policies Procedures Manuals

In all, there are over 200 prewritten accounting procedures and nearly 400 accounting forms organized within the five functional business manuals of the CFO Accounting Policies and Procedures Manuals series.  Each procedure and form is available in Microsoft Word, so they can be customized to reflect the accounting processes at your company.

The Securities & Exchange Commission is scheduled to decide before the end of 2011 whether US companies will be required to prepare their financial reports according to international financial reporting standards, or IFRS, rather than according to generally accepted accounting principles, or GAAP.  If the SEC takes this step — and most every indication is that it will — the largest public companies would begin reporting according to IFRS in 2014.  All public companies would have to implement the international standards at some point in 2016.  That means that large companies could begin implementing IFRS as early as 2011.

Some multinationals are in the process of switching to IFRS in their American operations.  They’ve been using IFRS in their non-US operations and financial results reporting according to a single set of standards promises greater efficiency and, therefore, less cost.  A move like this, if undertaken by many more companies in the next year or so, may make the decision to switch accounting standards easier for the SEC.

What about private companies, though?  What about companies with just a few hundred employees, or fewer?  Well, there’s been some talk (but not a lot) that small-to-medium enterprises (SMEs) — companies with fewer than 250 employees — might not be required by Federal law to use the IFRS standards.  However, market forces alone promise to exact a toll on the company that wants to stick with GAAP since commerce in some quarters has been global for decades and is becoming increasingly so in virtually every area.  We see stories all the time about small, family-run businesses eager to sell overseas.  If switching to IFRS helps them achieve their goals, they’ll use it.

The FASB and the AICPA have been working closely with the IASB in preparing for the conversion and between them and the IRS, there isn’t much enthusiasm for managing two sets of standards.  Just last week, the IASB and FASB talked about their continuing commitment to the improvement and convergence of IFRS and GAAP.  The AICPA has already developed courses so that accountants in the US can make the transition.

Small companies ought to be able to make the switch easier than public ones.  To make the conversion even easier for small-to-medium enterprises, the IASB published a slimmed-down version of the IFRS earlier this year.  Simply titled “IFRS for SMEs”, it comes in at around 230 pages, so it appears the IASB really wants to get all types of businesses (and their accounting firms) on board.

Now, my questions to you, the audience:

• Are you looking into IFRS compliance?
• Are you already taking steps to comply with IFRS?
• What are you doing to drive compliance to accounting standards?  What tools are you using or what do you plan to use?
• Which of your Accounting Procedures and Processes — as well as other processes – will need to change?
• What accounting internal control issues are most important to you?
• How can we at Bizmanualz help?

When you think of accounting, do you think of accounts receivable, accounts payable, revenue recognition, and depreciation?  What about banking, cash flow, and financial statements?  Or tax accounting, costing, compliance, assets, and auditing?

The term “accounting” encompasses an enormous wealth of information, much more than the traditional “dollars and cents” we all think of.  It includes areas ranging from human resources (payroll, benefits, etc.) to computer information integrity.  So, since procedures on counting income and expenses are only a part of what makes up accounting, what do you include when you are designing an accounting policies and procedures manual?

The accounting area can be broken down into ten core cycles — these cycles make up the accounting body of knowledge.  Each cycle focuses on a key element of business accounting and, therefore, should be covered in your company’s business accounting policies and procedures manual.

1. Revenue Cycle Procedures

The first — and what business owners would consider the most important — business process is the revenue or sales cycle. Revenue is the lifeblood of any business. Once sales has obtained an order, the order must be “booked” into the accounting system, triggering your credit, fulfillment, and accounts receivable (or collections) processes. Example procedures for the revenue cycle can be found in the Bizmanualz Accounting Policies and Procedures Manual.

2. Cash Disbursement Cycle Procedures

The second most important cycle deals with how you manage your cash expenses. We’re talking about your purchasing, receiving, accounts payable, and administrative expense processes. Once you receive cash from your customers (revenue cycle), you must spend less than you receive to maintain a positive cash flow and stay in business. Sample cash disbursement cycle procedures can also be found in the Bizmanualz Accounting Policies and Procedures Manual.

3. Production Cycle Procedures

With the two key accounting cycles (making money and spending it) covered, the remainder of your accounting manual is devoted to accounting support processes. The production cycle is the most critical to your business — if you don’t have a product or service to sell, the first two cycles are immaterial, aren’t they?

The production cycle introduces issues such as managing raw materials, Work In Process (WIP), finished goods inventory, product release, and shipping. Example procedures for the production cycle can be found in the Bizmanualz Accounting Policies and Procedures Manual.

4. Financial Reporting Cycle Procedures

In the first three cycles, you took orders, purchased materials, made products and/or services, delivered products, billed customers, and now you must report your results. The financial reporting cycle includes budgeting and forecasting what you might need, reporting what you sold, financial analysis (to see if you’re making a profit, to spot trends, etc.), and management reviews with key stakeholders (the Board of Directors, your shareholders, government agencies, etc.) to discuss how well the plan is going.

Example of procedures for the financial reporting cycle can be found in the Bizmanualz Financial Policies and Procedures Manual. Notice we’ve switched manuals, going into the financial area of accounting.

5. Finance Cycle Procedures

The finance cycle is about raising capital and managing the capital you have. You might need debt or equity capital to finance your business. Either way, you’ll need a process to acquire and manage that cash.  And, if you have a lot of cash moving through your business, you’ll need some form of treasury management (i.e., how to invest or “park” your cash). Sample procedures for the finance cycle are in the Bizmanualz Financial Policies and Procedures Manual.

6. Asset Cycle Procedures

What business does not have assets?  If you have one or more computers, production machinery, or office furniture, you have assets. Your assets require processes for depreciation, inventory management, asset acquisition and asset disposition or disposal.

Since there are laws and standards (e.g., IRS, IFRS, GAAP) that must be observed, it is important that you have asset cycle processes. Example procedures for asset cycle processes are in the Bizmanualz Accounting Policies and Procedures Manual.

7. Internal Audit Cycle Procedures

Publicly traded companies and businesses with significant debt or equity require internal auditing. Your internal audit process consists of audit planning, conducting the audit, audit reporting, and audit follow-up. Sample procedures for the internal audit cycle are in the Bizmanualz Financial Policies and Procedures Manual.

8. Strategic Planning Cycle Procedures

If you have cash, assets, compliance, and stakeholders of any kind, you need a strategic planning process. Business planning is just that — a planning process necessitating a business plan.  The company business plan takes into account how to prepare for compliance (with SOX, SAS 70, etc.), standards and guidelines (e.g., GAAP, IFRS), and Board and stockholders’ meetings. Examples of procedures for the strategic planning cycle are in the Bizmanualz Financial Policies and Procedures Manual.

9. Payroll Cycle Procedures

The payroll process focuses on administrating compensation, benefits, and personnel compliance.  How do you comply with an alphabet soup of government acts (including EEO, FMLA, FLSA, EPPA, OSHA, ADA, ERISA, FICA, FUTA, IRCA, ADEA, HIPAA, IRS, WARN, and others)?

This may not sound like traditional accounting, but the accounting department is involved with compliance by virtue of its role as the financial gatekeeper and financial reporting contact. Samples of procedures for the payroll cycle are in the Bizmanualz Human Resources Policies and Procedures Manual.

10. Information Integrity Cycle Procedures

Today, all accounting transactions are performed on computers, across networks, and using IT assets.  Information integrity — specifically, security, timeliness, and accuracy — is critical to accounting, and to the business. Now it may not be accounting’s primary job to manage all IT assets, but accounting cannot shy away from its duty to ensure the integrity of computer and IT management, IT security, IT disaster recovery, and IT internal controls. Samples of procedures for the information integrity cycle are in the Bizmanualz Computer and IT Policies and Procedures Manual.

Sarbanes Oxley Compliance Cycle

Since the late 1990’s, there has been an increased focus on effective internal controls, adding, in effect, a new requirement — or 11^th cycle — Sarbanes-Oxley (or SOX) compliance.  The SOX cycle is about compliance planning, understanding your audit responsibilities, and demonstrating the effectiveness of your firm’s internal controls with respect to accounting. Example procedures for The Sarbanes Oxley compliance cycle are in the Bizmanualz Financial Policies and Procedures Manual.

There you have it!  Ten core accounting policies and procedures areas — plus Sarbanes-Oxley — that you should include in your accounting procedures manual.

We mentioned four key Bizmanualz products: Accounting; Finance; Human Resources; and Computer & IT. If you purchased these separately, they’d cost $2,280…but all of these accounting cycles and their associated procedures are included in the CFO Accounting Procedures Series for only $1,995!  Plus, you receive the Bizmanualz Business Policies and Procedures Manual for free when you purchase the bundle!  The Business Procedures Manual includes 111 additional business procedures for many general business areas.

Accounting Processes Policies Procedures

To truly implement a complete business accounting policies and procedures manual, you will need to include topics from Accounting, Finance, Human Resources, and Computer & IT  areas of the Bizmanualz product line.  Fortunately, you can obtain all four manuals and save 33% in one easy bundle - the CFO Accounting Procedures Series. It covers all ten areas of accounting plus the Sarbanes Oxley compliance process and — as an added bonus — you receive the Business Procedures Manual at no additional cost!  Try a free sample download.  Judge for yourself.

The Top Ten Accounting Policies and Procedures

1. Revenue Cycle
2. Cash Disbursement Cycle
3. Production Cycle
4. Financial Reporting Cycle
5. Finance Cycle
6. Asset Cycle
7. Internal Audit Cycle
8. Strategic Planning Cycle
9. Payroll Cycle
10. Information Integrity Cycle
    PLUS (for public companies) Sarbanes-Oxley Compliance Cycle