Accounting Policy Manual

The Accounting Policy Manual covers the common accounting requirements and practices. It is intended only to provide an example of wording that might be used in an Accounting Policy Manual. This sample wording can be helpful in generating ideas for developing a manual for your own company. However, accounting policies should be drafted as appropriate and as necessary to accurately reflect your company’s accounting standards. (50 pages, 10334 words)

The purpose of this Accounting Policy Manual is to document the principles and policies governing your company’s accounting practices. The principles and policies provide:

• A foundation for a system of internal controls
• Guidance in current financial activities
• Criteria for decisions on appropriate accounting treatment
• Accounting officers with direction and guidance in connection with those accounting transactions, procedures, and reports that should be uniform throughout the company

When consistently applied throughout the company, these principles and policies assure that the various financial statements issued by the company accurately reflect the results of the company’s operations. Internal controls provide a system of checks and balances intended to identify irregularities, prevent waste, fraud and abuse from occurring, and assist in resolving discrepancies that are accidentally introduced in the operations of the business.

All additional departmental or functional policies and procedures written should conform to and parallel the policies in this manual. All changes to policies and procedures are required to be reviewed to ensure that there are no conflicts with the policies stated in the Accounting Policy Manual. This policy manual covers:

PURPOSE

SCOPE

RESPONSIBILITY

EXCLUSIONS

• Internal Auditing, Finance, and Treasury
• Payroll
• Information Systems
• Security Planning
• Disaster Recovery

MANAGEMENT RESPONSIBILITY

ACCOUNTING ORGANIZATION

ACCOUNTING DEPARTMENT ORGANIZATION CHART

• Finance & Treasury Responsibilities
• Controller Responsibilities
• Accounting Staff Responsibilities
• Operations Staff Responsibilities

MANAGEMENT COMMITMENT 

MANAGEMENT ACCOUNTING POLICY

PLANNING

• Accounting Objectives
• Accounting System Planning

RESPONSIBILITY, AUTHORITY, AND COMMUNICATION

• Responsibility and Authority
• Management Representative
• Internal Communication
• Referenced Procedures

MANAGEMENT REPORTING

• General
• Review Input
• Review Output
• Referenced Procedures

ETHICAL BUSINESS CONDUCT

ACCOUNTING MANAGEMENT SYSTEM

OBJECTIVES

REQUIREMENTS

• Accounting Processes
• Internal Controls
• Audit Opinions

TRANSACTIONS

• Authorization
• Timing
• Amounts
• Accuracy
• Segregation of Duties (Internal Controls)
• Referenced Procedures

DOCUMENTATION

• Accounting Policy Manual
• Control of Documents
• Control of Records
• Accounting Transactions
• Referenced Procedures

SECURITY

• Physical Security
• Disaster Security
• Information Security

COST ACCOUNTING

• Costing Purposes
• Cost – Time Incurred.
• Cost – Reaction to Changes in Activity Levels
• Cost – Influence on Decision Making

BASIS OF ACCOUNTING

PROCESSES AND CONTROLS

GENERAL & ADMINISTRATIVE PROCEDURES

CASH PROCEDURES

INVENTORY & ASSETS PROCEDURES

REVENUE PROCEDURES

PURCHASING PROCEDURES

RESOURCE MANAGEMENT

PROVISION OF RESOURCES

HUMAN RESOURCES

• Accounting Staff
• Competence, Awareness, and Training
• Separation and Supervision of Duties
• Referenced Procedures

INFRASTRUCTURE

WORK ENVIRONMENT