The salesperson should have the customer complete the Credit Application Template upon determining their intent to purchase products from the company, and return it by mail or fax. The salesperson should review the application for completeness and accuracy. Missing or erroneous information may result in delays or rejection of the application. The Credit Manager will review the credit application and the results of the credit investigation to determine approval or rejection of credit for the customer, and the credit line and terms authorized if approved.
Upon determination of the credit status of the customer, the Credit Department will complete the approval/denial section of the Request for Credit Approval form and forward it and the original REV103-1 CREDIT APPLICATION back to the originating salesperson for follow-up with the customer. If the application is rejected, the Credit Department will send out a standard credit denial letter to the customer and/or work with the sales contact to arrange possible alternate financing.
The salesperson should prepare a Credit Approval Request Template after reviewing the application and submit this form along with the customer’s credit application to the Credit Department for processing.
The Credit Department will review the REV103-2 REQUEST FOR CREDIT APPROVAL and application for the following key categories of information:
Legal name of business.
Trade name or “Doing Business As” (DBA) name.
Type of Business – Sole proprietorship, partnership, corporation, subsidiary or division, or nonprofit organization.
Complete address – street, city, state/province, zip code/postal code, and telephone number(s). A post office box is not acceptable.
Years in business – Credit risks increase for businesses in existence for less than five years.
Primary bank and the name of the applicant’s commercial loan officer. Since money can be moved around easily, a reference does not mean much if an account has had significant balances for less than six months. A year is much better. If an applicant switched primary banks within the past year, find out why.
Trade References – Five references are better than the standard three references. References will be contacted but should be expected to be favorable as people seldom give out “bad” references. Also some references could be friends or relatives.
The Credit Inquiry Request Template is part of the credit investigations process. The customer’s bank(s) should be contacted to determine how the customer handles their finances.
Contact each credit reference provided by telephone, fax, or mail. Each reference should complete a REV103-3 CREDIT INQUIRY form. The Credit Manager should evaluate the completed form upon its return. If additional information is deemed necessary, a Credit Bureau Report on the customer should be obtained. Note: written authorization is required for most inquiries.
The data collected above can be used to assign customer credit scores or ratings that can be used to segmenting that customer base by risk category. Segmenting the customer base by risk — high, medium, and low — allows the company to achieve collection efficiencies by better prioritizing accounts and identifying customer trends.
The Daily Cash Report Template is used by cashiers to account for all of the cash and cash equivalents collected in order to close out their cash drawers at the end of a day, shift, or open period. Totals are counted for Opening and Closing amounts of cash, all credit card charges, and invoices. Each report must be signed by the cashier. Upon beginning a shift, each cashier should count the beginning balance of their cash drawer and enter the totals onto CSH101-1 DAILY CASH REPORT.
At the end of the shift, in the presence of the sales manager, the cashier should count the cash drawer and enter the totals onto CSH101-1 DAILY CASH REPORT showing the amount of the opening change fund or cash drawer, the cash receipts collected, refunds, or credits granted and any cash payouts made. The settlement sheet should be compared to the cash register tape and any overage/shortage documented. The cash register “tape” will either be the tape in the register or a printed report from the register’s printer.
A summary of credit card transactions or Batch Report is also included on the DAILY CASH REPORT, since credit cards are simply another form of tender. The actual end of day closing routines for credit cards will vary, depending on the credit card merchant account and verification software. This type of report is always a sub-total of each day’s transactions. It verifies sequential integrity and ensures that all transactions recorded through the system are accounted for. The cashier will then sign the reconciled DAILY CASH REPORT and submit the settlement sheet and collected funds to the Cash Manager. This report should always be available and subject to review.
The Daily Flash Report Template represents the summary information needed to monitor the company’s current activity. The Daily Flash Report Template should be generated and reviewed daily by the CFO. This report supplements the Weekly Financial report as well as the detailed monthly and quarterly financial statement reports and provides an indication of real-time trends and customer behavior.
G&A104-2 DAILY FLASH REPORT should include:
Daily sales, month to date and year to date, by department as a percentage of the total.
Cash drawer activity, reconciled to all cash received for the day, and taken from the sum of all DAILY CASH REPORTS as discussed in procedure CSH101 CASH DRAWERS AND CREDIT CARDS.
Number of customers and number of negative-on-hand items.
Critical balance sheet levels: Inventory, A/R, A/P, and cash.
The Daily Sundry Payable Log Template keeps track of all information regarding sundry payables. The Purchasing Manager will be responsible for issuing and controlling the books of Field Purchase Orders. The Project Manager and Project Superintendent will issue the Field Purchase Order for small or short-term rental as specified above.
The field representative will give the original and one copy to the supplier, who in turn will attach the original and one copy to his invoice and forward to the Division Office for payment. Upon receipt of the invoice and Field Purchase Order, all paperwork should be reviewed to ensure that all necessary data is shown and the purchase is within allowable established limits.
If the authorized amount has been exceeded, then forward the invoice to the Purchasing Manager for appropriate action. As supplier invoices are received, sort the invoices according to the Project Manager approval required.
Record the invoices on a PUR102-5 DAILY SUNDRY PAYABLE LOG and send the sorted originals to each Project Manager for approval. Once such approval is obtained, normal processing for the Daily Sundry Payables will be followed.
The Department Reporting Summary Template is a summary of all reporting, which should be prepared by the Office Manager. The summary should include the following categories:
Department or Functional Area
Name of Report
Purpose of the Report
Frequency of Preparation
Distribution of Copies
Updates of G&A104-1 DEPARTMENT REPORTING SUMMARY will be issued to all company officers and department managers. Managers should use the summary to determine what information is being compiled and the format and distribution of reporting. Many times duplicate or redundant information gathering, reporting, and filing can be avoided by merely changing the format or distribution of existing reports.
If approved, the Controller assigns a Document Change Number (DCN) on the Document Change Control Report Template and submits the new or changed accounting documents along with the appropriate approvals to the Office Manager for typing and formatting. Upon receiving G&A110-2 DOCUMENT CHANGE CONTROL, the Office Manager updates the accounting document, indexes the revision, and updates the revision history.
The Office Manager notifies the reviewers via email when the document is available for review. Reviewers indicate intended approval or submit comments via email. If comments are substantive, the Office Manager incorporates the comments and contacts reviewers for re-review.
When all reviewers indicate intent to approve, the Office Manager circulates the final accounting documents to obtain signatures. When the required approvals have been obtained, the Office Manager updates the master list with the new revision number and last review date for changed documents or with all required information for new documents.
Sufficient copies are made for distribution to all accounting locations indicated on the master list. The Office Manager stamps “Controlled Copy” in red on each copy and distributes the controlled copies. The master copy of the previous revision is pulled, marked “Obsolete,” and filed in the historical files.
The Document Change Request Template applies to a new accounting documents or changes to an existing document. To submit a change, the requestor prints a copy of the document and marks the required changes on the copy. If changes are extensive, a new document may be typed and submitted.
The requestor completes G&A110-1 REQUEST FOR DOCUMENT CHANGE (RDC) indicating the nature and reason for the change and submits it to the Controller for review. The Controller reviews the request. If the request is denied, the Controller notifies the requestor the reason for the denial.
If the request is approved, the Controller indicates who else needs to review the change. Department Managers of any affected departments should be included. Only the RDC needs to be submitted for approval. Reviewers consider the reason for the change and determine if the change is warranted. The Controller notifies the requestor if the RDC is denied.
The Embezzlement Training Evaluation Template should be completed after the Embezzlement Prevention Training Program is conducted. The EMB500-5 EMBEZZLEMENT PREVENTION TRAINING EVALUATION allows you to rate the seminar instructor, content, and organization. The Embezzlement Prevention Training Evaluation covers seminar name, location, comment section, and more.
The Entertainment Business Expenses Report Template keeps track of all entertainment expenditures incurred by employees that need to be reimbursed. Expense reports should be completed and turned in within two weeks of return or incurrence of expenses.
G&A103-3 ENTERTAINMENT AND BUSINESS GIFT EXPENSE REPORT must be filled out and totaled completely. Use the appropriate headings and total on a daily basis. Required receipts for items charged must be attached to the report. Any questions regarding completion of the report should be directed to the employee’s supervisor or the Accounting Manager.
Entertainment Business Expenses Report Template Details
The Federal Tax Calendar Template provides a sample guide to some of the most common taxes. The controller should create and maintain the detailed tax calendar as a guide to serve as a reminder of tax due dates.
A separate file should be created for each tax (by year). The file should contain:
Tax return, coupon book, or required filing forms
Instructions on completing the forms
Copies of completed documentation along with detailed payment information.
Start work on the tax return, coupon book, or required filing forms at least seven to ten day before the forms are due. Make a copy of the completed documents and file it with the notes used to produce the figures in the tax file. Note on the G&A107-1 FEDERAL TAX CALENDAR the date the form was mailed.
If the tax collector or field agent calls to discuss any filed paperwork then schedule a time for a conference and make sure to have a qualified tax advisor or tax attorney, and the tax preparer present. Tax laws are complex and constantly changing so it is not advisable for any controller or CFO to represent themselves.
If the tax collector wishes to speak with other employees or accounting personnel then make sure that all employees understand that the company’s qualified tax advisor or tax attorney must be present for all interviews.
The Financial Statements Report Template is used for both the monthly and quarterly financial report and provides one indication of the performance of the company. The Controller is responsible for maintaining current Financial Statements on a monthly basis. The CFO, President, and the Board of Directors should review the Financial Statements each month.
G&A104-6 FINANCIAL STATEMENTS typically are comprised of three main parts: The Balance Sheet, Income Statement, and the Statement of Cash Flows.
The Balance Sheet lists all of the company’s assets (cash, receivables, deposits, inventory, equipment, intellectual property, etc.), liabilities (debt, lease obligations, tax obligations, etc.), and equity (paid in capital, stock issued, dividend paid, etc.). It identifies the assets (which are “the business”) and the financiers, or debt and equity holders and the relationship between the two.
The Income Statement represents the company’s operational sources of cash – sales revenue – or uses – business expenses and is typically divided into operating periods that represent months, quarters or years of operations. It identifies the profitability of the company as a function of the tax and accounting decisions.
The Statement of Cash Flows is the difference between the Balance Sheet sources and uses of cash and the Income Statement sources and uses of cash. This difference assists in identifying the health of the company’s operations. It identifies whether the company is producing cash or consuming cash and at what rate and from what sources.
The Inventory Count Accounting Worksheet Template helps keep track of information related to inventory counts. The Inventory Control Manager will provide to every count team prenumbered counts sheets with preprinted inventory items and will be responsible for keeping track of all count sheets to maintain an accurate count.
INV102-1 INVENTORY COUNT SHEET is an example count sheet, consider using one with the following attributes: a Heading with the name of the company, Date of Physical count, Sequential Page number, and Description of Page (i.e., Physical Inventory Count Sheet). Individual Column Headings would be: SKU#, Description, Location, Quantity, and Initials of person recording the count.
Count sheets should be organized by location number. Generally, the computer quantities should not be shown on the count sheets, however, in small environments, it may be more efficient to include the on-hand quantities, as long as the counting is performed by teams, and the person counting is not able to know the current quantities.
Each count team should be started by the Inventory Control Manger and should be periodically observed by the Inventory Control Manager to assure that instructions are being complied with in the counting and listing process.
The Inventory Inspection Levels Guide Template provides generic descriptions of the type of inspections that should be performed for various classes of inventory items. The descriptions are not completely comprehensive for all the possible types of inventory that can be received and therefore, the inspector should use appropriate judgment to determine any special inspection procedures that may be necessary for unique items.
The inspection levels in PUR104-3 INVENTORY INSPECTION LEVELS are intended to be cumulative in that higher level inspections will also include all lower level inspection procedures. If multiple part number classes are included in the shipment, each class will be segregated and inspected accordingly. Any previously undiscovered damage to individual inventory items should be noted on the inspection report and immediately followed up with the vendor.
The Inventory Requisition Template relates to inventory usage and disposal. Be sure to review inventory requests to ensure completeness, validity, and that the form has the proper approvals. Inventory requests consist of either a completed Sales Order form or a completed INV101-1 INVENTORY REQUISITION form which is required for all internal requests.
Complete the Inventory Requisition form prior to disposal of any inventory item. The purchasing agent is the most logical person to be held responsible for reclamation and salvage disposal, because of the knowledge of materials and how the company uses them. The purchasing agent is familiar with the companies that manufacture or distribute various materials and knowledgeable about the items the company buys and at what cost.
The four main destinations for such material for disposal are:
reuse by some other segment of the company,
return to original supplier for restocking,
sale to used-material dealers or to other users, and
storage of material yard for usage on another job at a later date.