Accounting Policies and Procedures Manual

Steven Bragg, CPA, CMA, CIA, CPIM, has been the chief financial officer or controller of four companies, as well as a consulting manger at Ernst & Young and auditor at Deloitte & Touche. He received a Master's degree in Finance from Bentley College, an MBA from Babson College, and a Bachelor's degree in Economics from the University of Maine. He has been the two-time president of the Colorado Mountain Club, and is an avid alpine skier, mountain biker, and certified master diver. Mr. Bragg resides in Centennial, Colorado. He has written the following books through John Wiley & Sons: Accounting and Fiance for Your Small BusinessAccounting Best PracticesAccounting Control Best PracticesAccounting Reference DesktopBilling and Collection Best PracticesBusiness Ratios and FormulasController's Guide to CostingController's Guide to Planning and Controlling OperationsController's Guide: Roles and Responsibilities for the New ControllerControllershipCost AccountingDesign and Maintenance of Accounting ManualsEssentials of PayrollFast CloseFinancial AnalysisGAAP GuideGAAP Policies and Procedures ManualInventor AccountingInventor Best PracticesJust-in-Time AccountingManagement Accounting Vest PracticesManaging Explosive Corporate GrowthOutsourcingPayroll AccountingPayroll Best PracticesRevenue RecognitionSales and Operations for Your Small BusinessThe Controller's FunctionThe New CFO Financial Leadership Manualthe Ultimate Accountants' ReferenceThroughput AccountingAlso: Advanced Accounting Systems (Institute of Internal Auditors)Run the Rockies (CMC Press)

• Preface xiiiAcknowledgments xvAbout the Author xviiAbout the Web Site xixChapter 1 Accounting Manuals 11.1 Introduction 11.2 General Accounting Manual 21.3 Corporate Policies Manual 31.4 Accounting Procedures 41.5 Purchasing Card Manual 51.6 Accounting Controls Manual 51.7 Year-End Manual 51.8 Budgeting Manual 51.9 Property Accounting Manual 61.10 Forms Manual 61.11 Document Management Manual 61.12 User Manual 71.13 Information Technology Manual 71.14 Human Resources Manual 81.15 ISO 9000 Quality Standards 81.16 In The Beginning 101.17 Procedures to Write and Change Procedures 13Chapter 2 General Accounting Manual 162.1 Introduction 162.2 Charts of Accounts 172.3 Accounting Term Definitions 232.4 Job Descriptions 312.5 Activities Calendar 362.6 Accounting Policies 362.7 Process Cycle Descriptions 402.8 Accounting Procedures 51Chapter 3 Procedure Statements 523.1 Introduction 523.2 Writing Style 523.3 Writing Mechanics 563.4 Flowcharting for a Procedures Manual 583.5 Format of The Procedure 733.6 Work Steps for Constructing a Procedures Manual 773.7 Suggested List of Procedures 813.8 Other Uses for Procedures Manuals 86Chapter 4 Maintaining and Distributing Accounting Manuals 884.1 Introduction 884.2 Maintaining Accounting Manuals 894.3 Responsibility for Maintenance of Manuals 934.4 Physical Construction of The Manual’s Binder 964.5 Creation and Storage of The Master Manual Copy 984.6 Creation and Maintenance of The Distribution Mailing List 1004.7 Physical Distribution Process 1004.8 Issuances to New Employees 1024.9 Manual Retrieval 1024.10 Benefits of Using Electronic Manuals 1034.11 Disadvantages of Using Electronic Manuals 1054.12 Basic Electronic Manual 1064.13 Accounting Manual on an Intranet, Extranet, or the Internet 1074.14 Electronic Manual with Embedded Hypertext 1074.15 Electronic Manual with Advanced Indexing Features 1104.16 Electronic Manual with Built-in Help Information 1114.17 Electronic Manual with Built-in Tutorials 1144.18 Writing Tips for Electronic Manuals 1144.19 Example of Comprehensive Electronic Manual Features 1164.20 Using the PDF Format for Electronic Files 1164.21 Maintaining an Electronic Manual 118Chapter 5 Corporate Policies Manual 1205.1 Introduction 120Chapter 6 Accounting Procedures 1476.1 Introduction 147Chapter 7 Purchasing Card Manual 3077.1 Introduction 307Chapter 8 Accounting Controls Manual 3248.1 Introduction 3248.2 Basic Order Entry Controls 3258.3 Computerized Order Entry Controls 3258.4 Electronic Order Entry Controls 3268.5 Basic Credit Granting Controls 3268.6 Computerized Credit Granting Controls 3278.7 Basic Purchasing Controls 3288.8 Basic Inventory Procurement Controls 3298.9 Computerized Purchasing Controls 3308.10 Procurement Card Controls 3318.11 Goods in Transit Controls 3328.12 Manual Receiving Controls 3328.13 Computerised Receiving System Controls 3338.14 Receiving—Evaluated Receipts Controls 3338.15 Manual Accounts Payable Controls 3348.16 Computerized Accounts Payable Controls 3358.17 Manual Cash Disbursement Controls 3368.18 Computerized Cash Disbursement Controls 3378.19 Electronic Payment Controls 3378.20 Basic Inventory Storage/Movement Controls 3388.21 Basic Perpetual Inventory Tracking Controls 3398.22 Computerized Perpetual Inventory Tracking Controls 3398.23 Inventory Bar Code Scanning Controls 3408.24 Inventory Zone Putaway and Picking Controls 3408.25 Inventory Pick-to-Light Controls 3418.26 Inventory Cross-Docking Controls 3418.27 Inventory Valuation Controls 3418.28 Obsolete Inventory Controls 3428.29 Manufacturing Resources Planning Controls 3438.30 Just-in-Time Manufacturing Controls 3448.31 Basic Shipping Controls 3448.32 Drop Shipping Controls 3458.33 Shippings—Evaluated Receipts Controls 3458.34 Basic Billing System Controls 3468.35 Computerized Billing System Controls 3478.36 Advanced Billing System Controls 3478.37 Credit Memo Controls 3488.38 Basic Cash Receipt Controls 3498.39 Basic Check Handling Controls 3508.40 Computerized Check Handling Controls 3518.41 Credit Card Receipt Controls 3518.42 Lockbox Receipt Controls 3518.43 Petty Cash Controls 3528.44 Investment Controls 3528.45 Basic Payroll System Controls 3538.46 Computerized Timekeeping Controls 3558.47 Computerized Payroll System Controls 3568.48 Payroll Self-Service Controls 3568.49 Cash Payroll Payment Controls 3578.50 Electronic Payroll Payment Controls 3578.51 Electronic Payroll Remittance Controls 3588.52 Outsourced Payroll Controls 3588.53 Fixed Asset Controls 358Chapter 9 Period-End Manual 3619.1 Introduction 3619.2 Period-End Manual 3619.3 Closing Procedure by Position 3699.4 Soft Close 3709.5 Year-End Close 3769.6 New Year Startup 386Chapter 10 Budget Manual 38910.1 Introduction 38910.2 System of Interlocking Budgets 38910.3 Sample Budget 39710.4 Flex Budget 41310.5 Budgeting Process 41410.6 Budgetary Control Systems 420Chapter 11 Property Accounting Manual 42211.1 Introduction 42011.2 Project Cost Report 42311.3 Record Keeping for Land Projects 42311.4 Record Keeping for Land Improvement Projects 42411.5 Record Keeping for Building Projects 42411.6 Record Keeping for Factory Equipment Projects 42511.7 Record Keeping for Office Equipment Projects 42511.8 Record Keeping for Vehicles 42611.9 Record Keeping for Leasehold Improvements 42611.10 Record Keeping for Leases 42711.11 Sample Property Accounting Manual 427Chapter 12 Forms Manual 46312.1 Introduction 46312.2 Identify Needed Forms 46312.3 Rules for Form Creation 46512.4 Creating the Forms Manual 46912.5 Electronic Forms 474Chapter 13 Document Management Manual 47513.1 Introduction 475Chapter 14 User Manual 49314.1 Introduction 49314.2 Starting the Manual 49414.3 Outlining and Updating the User Manual 49514.4 Sample User Manual 495Index 513