Bizmanualz Accounting Policies and Procedures Sample

Accounting procedures provide the internal control you need to comply with financial regulations like Sarbanes-Oxley (SOX) and prevent waste, fraud and abuse. These prewritten and fully editable accounting policies and procedures are based on Generally Accepted Accounting Principles (GAAP).

You can spend hundreds of hours designing accounting procedures and yet lack the full policies and procedures required for internal control and asset protection. Why start from beginning when you can acquire accounting policies and procedures in a professional style that have been extensively studied, prepared, and approved by specialists in the field?

1. SAMPLE FROM THE ACCOUNTING POLICIES AND PROCEDURES MANUAL INCLUDES AN EXAMPLE
PROCEDURE, A LIST OF TOPICS, FORMS AND JOB DESCRIPTIONS

Accounting Policies and Procedures Manual
The Bizmanualz Accounting Policies and Procedures Manual will establish
a strong internal control system and comply with Sarbanes-Oxley section
404. With these prewritten accounting procedure templates, you will learn
how to improve accounting department controls for Sarbanes-Oxley 404
compliance, how to improve the performance of business finance and
credit, how to manage shipping, purchasing and receiving, and how to
manage cash operations.
US$ 595.00

How to Order:
Online:
www.bizmanualz.com
By Phone: [phone]
866-711-5837
Email: [email protected]
Includes seven (7) modules:
1. Introduction and Table of Contents
2. Guide to preparing a well written manual
3. A Sample Accounting Manual covering
common requirements and practices
4. 39 Policies and 56 corresponding forms
5. Embezzlement Prevention Supplement
6. 32 Job Descriptions covering every position
referenced in the Manual
7. Complete Index


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Sample Policy for Accounting Policies and Procedures Manual
Cash Section: Bank Account Reconciliations
Document ID
CSH
Title
BANK ACCOUNT RECONCILIATIONS
Print Date
mm/dd/yyyy
Revision
0.0
Prepared By
Preparer’s Name/Title
Date Prepared
mm/dd/yyyy
Effective Date
mm/dd/yyyy
Reviewed By
Reviewer’s Name/Title
Date Reviewed
mm/dd/yyyy
Approved By
Final Approver’s Name/Title
Date Approved
mm/dd/yyyy
Policy: To ensure the accuracy of the company’s bank account records by proving the monthly
balance shown in the bank’s Account Register.
Purpose: To outline the practices for preparation of a Monthly Bank Reconciliation
Scope: This applies to all bank accounts maintained by the company.
Responsibilities:
CFO is responsible for review and approval of all reconciliations.
Controller is responsible for reconciling all checking accounts.
Background: Errors or omissions can be made to the company's bank account records due to the
many cash transactions that occur. Therefore, it is necessary to prove the monthly
balance shown in the bank account register. Cash on deposit with a bank is not
available for count and is therefore proved through the preparation of a reconciliation

2. SAMPLE FROM THE ACCOUNTING POLICIES AND PROCEDURES MANUAL INCLUDES AN EXAMPLE
PROCEDURE, A LIST OF TOPICS, FORMS AND JOB DESCRIPTIONS
of the company's record of cash in the bank and the bank's record of the company's
cash that is on deposit.
Definitions: Batch- All of the day’s credit card transactions are collected into a “batch” of
transactions. The batch is closed, usually at the end of the day, and the result is
submitted to the merchant processor as a single “batch”.
Settlement- The processor clears the credit card transactions in the batch and the result
is “settled” to the designated bank account. Settlement varies by Credit Card Company
but usually occurs in 2-3 days after a batch is closed.
Processor- The processor is responsible for authorizing credit card transactions and
settling each batch. The processor is also the company that one must interface with on
all discrepancies or “chargebacks”.
Chargebacks- A chargeback occurs when a customer (cardholder) disputes a charge that
appears on their monthly credit card statement. If the dispute is unable to be resolved
then the transaction is charged back to the merchant. The processor charges the
merchant and returns the cardholder’s money.
Procedure:
1.0 BANK STATEMENT PREPARATION
1.1 After receipt of the monthly bank statement, including cleared checks, deposit slips and any
other transactions; the Controller should prepare the monthly bank reconciliation and have it
carefully reviewed by the CFO. The CFO review is especially important if a bookkeeper is hired
to perform other cash drawer or cash posting transactions. To preserve proper segregation of
duties, no single employee, other than the owner, should perform both cash transaction
functions and bank account reconciliations.
1.2 Prior to preparing the bank reconciliation, the accountant should review the bank statement for
any interest credits, bank charges and other fees. These should all be posted to the checking
account before reconciling. Note: some accounting systems allow for the entry of interest
credits, bank charges and other fees during the reconciliation process.
2.0 COMPUTERIZED FORMAT
2.1 In the computerized environment, the accounting system may provide an automated
bank reconciliation task. This task is generally selected once a month in conjunction
with receiving the month end bank statement. Once selected, the screen shows a list of
all items that have been posted to the cash account and that have not been cleared
from the previous month's account reconciliation. The screen is usually divided into two
segments: one half is a list of all checks and other charges reducing cash, and the other
half is a list of all deposits and other items increasing cash. This screen would also have
a field for entering the proper month end date and the balance at month end, per the
bank.
2.2 After the account-reconciling task is successfully completed, a report is provided which
shows the reconciliation process, including outstanding checks and deposits in transit.

3. SAMPLE FROM THE ACCOUNTING POLICIES AND PROCEDURES MANUAL INCLUDES AN EXAMPLE
PROCEDURE, A LIST OF TOPICS, FORMS AND JOB DESCRIPTIONS
The actual format will vary depending on the accounting system, but in general, will
contain the same information as shown on the manually prepared report in CSH107 Ex1
SAMPLE BANK AND BOOK BALANCES RECONCILIATION TO CORRECTED BALANCE.
Note: Print out the full (not a summary) report, staple it to the applicable bank statement, and
file the result as an important control feature. This will document that the bank statement has
been successfully reconciled.
3.0 MANUAL PREPARATION AND RECONCILING ITEMS
3.1 A monthly bank reconciliation starts with the ending bank statement balance. List any deposits
in transit that were made but were not yet recorded by the bank and add to the bank balance.
Then, list any checks that were written on the account prior to month-end, but which have not
yet cleared the bank and deducted from the bank balance. The ending balance should agree
with the balance "per books", i.e.: the balance recorded in the checking account.
3.2 Now perform the same process with the monthly reconciliation of the ending balance per the
company's books.
Total deposits and total disbursements should be reconciled to the bank statement, then
adjustments such as any interest or any other bank credit items should be listed and added to
the balance. Then, any bank charges, transfer fees, etc. should be listed and deducted from the
balance.
From these steps, the "corrected" ending “book” balance is derived and should equal the
"corrected" bank balance from the previous step.
3.3 Any discrepancies between the derived balance and the checkbook balance will require
research to determine the cause, such as recording errors, omissions, incorrect postings,
etc. In some cases, the discrepancy can be caused by not accurately entering all bank
generated credits and charges; such as fees, interest, etc. If the balances still do not
equal, the bank statement should be carefully reviewed for possible errors; such as,
checks or deposits clearing for amounts that do not agree with those posted to the
store's checking account.
4.0 COMPUTERIZED PREPARATION AND RECONCILING ITEMS
4.1 The same procedures as the manual tasks described above are followed in a computerized
environment. The primary difference is in the ease of preparation. All transactions, which were
not already cleared in the prior month’s reconciliation, are listed.
4.2 Start by checking or clicking off with the mouse or keyboard those transactions, (mainly checks
and other debit memos, and deposits and other credit memos) that agree with the bank
statement. Once all bank statement items have been found and clicked off on the screen, the
remaining "un-cleared" entries on the screen are, in effect, the list of outstanding checks and
deposits in transit.
Furthermore, the screen typically provides a continually updating reconciled cash amount that
should agree to the ending bank balance amount once all items are correctly accounted for and

4. SAMPLE FROM THE ACCOUNTING POLICIES AND PROCEDURES MANUAL INCLUDES AN EXAMPLE
PROCEDURE, A LIST OF TOPICS, FORMS AND JOB DESCRIPTIONS
cleared. Usually the accounting system does the math and the screen displays both the ending
bank balance and the reconciled cash amount with the remaining difference, if any.
4.3 Investigate all differences and enter any adjustments to the reconciliation or post to the cash
account in order to ensure an accurate bank balance.
5.0 ADJUSTMENTS AND OTHER TROUBLESHOOTING
5.1 In spite of the best of efforts, the reconciliation result may not agree with the bank
balance. The obvious first step is to make sure that all checks and deposits on the bank
statement agree with the entries in the cash account. Discrepancies of this type are
usually rare in computerized environments but may be caused by improperly recording
manual checks or credit card deposits and fees.
Checks are generally posted and printed simultaneously so that what shows up in the
accounting system will always agree to what was processed through the bank. Deposits are
another matter. The bank might group deposited checks differently than they were in the
accounting system. As explained in more detail in procedure CSH101 CASH DRAWERS AND
CREDIT CARDS.
To simplify the month end reconciliation, receipts should be batched in a total deposit amount
that agrees to both the accounting system and the bank. Make sure to print a totaled deposit
report when daily receipts of checks and cash are batched for deposit. After making the bank
deposit, staple the validated bank deposit slip to the deposit report. This will document the two
events: 1) what was deposited per the accounting system, and 2) what was actually deposited in
the bank. These two amounts must agree. This helps eliminate deposit errors for check and
cash receipts.
5.2 A more difficult reconciling task is in obtaining agreement of all credit card receipts. The
difficulty results from three unique situations. First, there is a time lag of several days between
the time the credit card transaction occurred in the store and the time it is settled or deposited
to the store's bank account. Second, depending on the type of credit card and/or the merchant
provider, the fee charged (typically 1% to 4%) on each transaction may be automatically
deducted from the deposit before it shows up on the bank statement. And third, “chargebacks”
are usually deducted immediately by the processor and only reversed if the dispute is resolved
in the company’s favor. This may even occur before the chargeback notice has arrived in the
mail.
Consequently, the deposit on the bank statement may not agree with the daily credit
card batch (receipts). In the face of these difficulties, the CFO and Controller should
thoroughly understand the particular credit card daily closing procedures. An end of
day report for each credit card closing should be printed and saved as a reference for
the month end reconciliation process.
Alternatively, the credit card processor will provide a month-end statement listing each
credit card “batch” submitted each day. This report can be used to reconcile the credit
card batches to the settlement deposits.

5. SAMPLE FROM THE ACCOUNTING POLICIES AND PROCEDURES MANUAL INCLUDES AN EXAMPLE
PROCEDURE, A LIST OF TOPICS, FORMS AND JOB DESCRIPTIONS
5.3 After reconciling checks and deposits, the next area to reconcile are bank generated Credit and
Debit memos. These can result from various events including, returned checks, returned check
charges, monthly bank activity charges, credit card merchant fees, charges from the use of debit
cards, interest income and other service charges. The CFO may not know many of these until
the bank statement is received. Each one of these entries must be entered and distributed to
the proper income or expense account. Whatever the accounting system, its reconciling
program usually provides a routine for entering these “end of month” bank credits and charges.
5.4 After agreeing all checks and deposits and entering all other bank credits and charges, the
balance per accounting system and reconciled bank balance should agree. Any remaining
difference must be investigated. If there is no other explanation, an adjustment should be
made. This would be entered as a bank charge or credit and posted to a miscellaneous account.
5.5 Any outstanding checks or deposits in transit over six months old should be reviewed for
disposition including write-off by a journal entry.

Revision History:

Revision Date Description of changes Requested By
0 mm/dd/yy Initial Release

6. SAMPLE FROM THE ACCOUNTING POLICIES AND PROCEDURES MANUAL INCLUDES AN EXAMPLE
PROCEDURE, A LIST OF TOPICS, FORMS AND JOB DESCRIPTIONS
CSH107 Ex1 SAMPLE
BANK AND BOOK BALANCES
RECONCILIATION TO CORRECTED BALANCE



Account No.
For Month Ended XX/XX/XX



Reconciliation of Bank Balance
Ending balance per bank statement $10,000.00

Additions:
Deposit in transit 2,500.00

Deductions:
Outstanding Checks
# 1003 150.00
# 1232 325.00
# 1235 1,275.00
1,750.00


Ending balance per checking account $10,750.00

7. SAMPLE FROM THE ACCOUNTING POLICIES AND PROCEDURES MANUAL INCLUDES AN EXAMPLE
PROCEDURE, A LIST OF TOPICS, FORMS AND JOB DESCRIPTIONS
Reconciliation of Book Balance
Ending balance per books $10,750.00

Additions:
Interest 100.00

Deductions:
Bank Charges 70.00
Wire transfer fees 30.00
100.00



Corrected Balance $10,750.00

8. SAMPLE FROM THE ACCOUNTING POLICIES AND PROCEDURES MANUAL INCLUDES AN EXAMPLE
PROCEDURE, A LIST OF TOPICS, FORMS AND JOB DESCRIPTIONS
Accounting Policies and Procedures Manual:
39 Prewritten Policies and Procedures
General and Administrative
1. Chart Of Accounts
2. Files And Records Management
3. Travel And Entertainment
4. Management Reports
5. Period-End Review & Closing
6. Controlling Legal Costs
7. Taxes And Insurance
8. Property Tax Assessments
9. Confidential Information Release
10. Document Control

Cash
11. Cash Drawers And Credit Cards
12. Cash Receipts And Deposits
13. Problem Checks
14. Wire Transfers
15. Check Signing Authority
16. Check Requests
17. Bank Account Reconciliations
18. Petty Cash

Inventory and Assets
19. Inventory Control
20. Inventory Counts
21. Fixed Asset Control
22. Customer Property
23. Fixed Asset Capitalization & Depreciation

Revenue
24. Sales Order Entry
25. Point-Of-Sale Orders
26. Customer Credit Approval And Terms
27. Sales Order Acceptance
28. Shipment Of Goods
29. Invoicing And Accounts Receivable
30. Sales Tax Collection
31. Progress Billing
32. Account Collections
33. Customer Returns

Purchasing
34. Vendor Selection
35. General Purchasing
36. Project Purchasing
37. Receiving And Inspection
38. Shipping And Freight Claims
39. Accounts Payable And Cash Disbursements

9. SAMPLE FROM THE ACCOUNTING POLICIES AND PROCEDURES MANUAL INCLUDES AN EXAMPLE
PROCEDURE, A LIST OF TOPICS, FORMS AND JOB DESCRIPTIONS
56 Corresponding Forms and Records
General and Administrative
1. Account Codes
2. Master File Guide Index
3. Records Retention Periods
4. Travel Arrangements Form
5. Travel And Miscellaneous Expense Report
6. Entertainment And Business Gift Expense Report
7. Department Reporting Summary
8. Daily Flash Report
9. Weekly Financial Report
10. Six Week Cash Flow Report
11. Budget vs. Actual Report
12. Financial Statements
13. Federal Tax Calendar
14. Non-Disclosure Agreement
15. Request For Document Change
16. Document Change Control

Cash
17. Daily Cash Report
18. Deposit Log
19. Bad Check Notice
20. Bank Wire Instructions
21. Wire Transfer Form
22. Check Signing Authority Log
23. Check Request
24. Sample Bank And Book Balances Reconciliation
25. Petty Cash Journal

Inventory and Assets
26. Inventory Requisition
27. Inventory Count Sheet
28. Inventory Tag

Inventory and Assets (Con’t)
29. Capital Asset Requisition
30. Asset Disposition Form
31. Bill Of Sale
32. Material Return Notice

Revenue
33. Sales Order
34. Order Form
35. Credit Application
36. Request For Credit Approval
37. Credit Inquiry
38. Phone Confirmation Checklist
39. Shipping Log
40. Commercial Invoice
41. Invoice
42. Accounts Receivable Write-Off Authorization
43. Account Collection Control Form
44. 30 Day Satisfaction Guarantee
45. Returned Goods Authorization

Purchasing
46. New Vendor Notification
47. Vendor Survey Form
48. Purchase Requisition
49. Purchase Order
50. Purchase Order Log
51. Purchase Order Follow-Up
52. Daily Sundry Payable Log
53. Order And Arrival Log
54. Receiving Log
55. Receiving and Inspection Report
56. Inventory Inspection Levels

Job Descriptions: A complete job description is included for each of the 32 positions referenced in the
Accounting Polices and Procedure Manual. Each position includes a summary description of the position,
essential duties and responsibilities, organizational relationships, a list of the procedures where the position is
referenced, specific qualifications, physical demands of the position, and work environment

Accounting Manager
Accounts Payable Clerk
Accounts Receivable Clerk
Administrative Services Manager
Cash Manager
Cashier
Chief Financial Officer
Construction Manager
Controller
Credit Manager
Customer Service Representative
Director of Quality
Engineering Manager
Financial Manger
Human Resources Manager
Inventory Control Manager
Legal Counsel
Manufacturing Manage
Marketing Manager
Office Manager
President
Production Manager
Project Manager
Purchasing Manager
Quality Control Manager
Quality Manager
Receiving Manager
Sales Manager
Sales Representative
Service Manager
Shipping Manager
Travel Coordinator