There may be an assumption that there is no need for anyone to write an accounting manual that because your Company's accounting system is relatively simple and your accounting personnel have direct and easy access to the controller (financial vice-president, etc.) when questions arise, there is no need for an accounting manual. However, written procedures, instructions, and assignments of duties will prevent or reduce misunderstandings, errors, inefficient or wasted effort, duplicated or omitted procedures, and other situations that can result in inaccurate or untimely accounting records. An accounting manual can also help to ensure that all similar transactions are treated consistently, that accounting principles used are proper, and that records are produced in the form desired by management. A good accounting manual should aid in the training of new employees and possibly allow for delegation to other employees of some accounting functions management performs.
At times you may need a trained outside professional to review or write an accounting manual for you while evaluating your company's operations to determine if the appropriate controls are in place to ensure proper application of procedures and efficient use of resources.
A standardized chart of accounts would serve as an excellent base for the starting point and development of an accounting manual. The accounting manual should include, in addition to the chart of accounts, descriptions of all accounting procedures and routines and a summary of all accounting policies. Changes in the system or procedures should require a written revision of the manual and should be approved by management.
We assess your internal control systems to determine the efficiency and effectiveness of your operating procedures. Then we make recommendations to fix any problems that we find.
1. We can write an accounting manual and then, set up a program to set up segregation of duties so that duties are divided, or segregated, among different people.
2. The accounting manual can document transactions are authorized by a person delegated with approval authority when the transactions are consistent with policy.
3. Determine if records are routinely reviewed and reconciled, by someone other than the preparer to determine that transactions have been properly processed.
4. Determine that equipment, inventories, cash and other property are secured, physically, counted periodically, and compared with item descriptions shown on control records.
5. Provide employees with appropriate training and guidance to ensure they have the knowledge necessary to carry out their job duties, are provided with an appropriate level of direction and supervision, and are aware of the proper channels for reporting suspected improprieties.
6. Document policies and procedures and making them accessible to employees. The documented policies and procedures provide day-to-day guidance to your staff and continuation of duties in the event of prolonged employee absences or turnover.
7.Review operations to ascertain whether results are consistent with your established business objectives and goals including your accounting manual and whether the operations are being carried out as planned.If you don't have an accounting manual we can write an accounting manual for you.
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