SOP & Internal Control Setup
Standard Operating Procedures (“SOPs”) are clearly defined and documented sets of instructions for any specific tasks and processes. They help to govern and standardize the operational roadmap of an organization. SOPs are normally laid down for all the business departments in an organization, i.e. Accounts & Finance, HRD/ HRM, Production, Purchase/ Inventory, Planning, Legal, Marketing & Branding, Sales, Corporate Communication, etc.
Importance of SOPs for the Accounts & Finance Department
· Accounting and Finance are the nerve center of any organization through which business performance can be measured internally and externally. These departments manage cash inflows and outflows associated with routine tasks like supplier and rental payments, staff salaries, monthly interest payments to financial institutions, etc. Importantly, SOPs in accounting and finance are necessary directives to ensure day-to-day transactional governance, implementation of statutory compliance measures, consistency in customer experience (“CX”), and a reduction in employee training time. This leads to profitability, growth, and increased goodwill for the company.
· Financial management refers to the strategic planning, organizing, directing, and controlling of financial undertakings in an organization or an institute. It also includes applying management principles to the financial assets of an organization, while also playing an important part in fiscal management. Take a look at the objectives involved:
Maintaining enough supply of funds for the organization;
Ensuring shareholders of the organization to get good returns on their investment;
Optimum and efficient utilization of funds;
Creating real and safe investment opportunities to invest in.
Here are the essential SOPs for Accounts & Finance. We will explore the typical responsibilities of finance department for the following areas;
Receipt of Bills
Entry of Bill in the Books of Accounts
Issue of Cheques
Dispatch of Cheques
Cash Payments
Fixed Asset Register
Direct Taxes
Indirect Taxes
Employee Insurance
Delegation of Authority Matrix
Bank Payment
Tours & Travel Statements
Compliance of Audit Queries
Cash payments and Journal Vouchers
Responsibilities of Finance Manager
Responsibilities of Accounts Officer
Responsibilities of Accountant/Cashier
Insurance Requirements
Various Governing Acts
Intellectual Property Rights
Cost Reduction Initiatives
Asset Management
Accounting Metrics
Collection Policies
Inventory Management
Annual Budgeting
Tracking Credit Card Auto-Payments
Sales and Accounts Receivable
Purchase and Accounts Payable
Financial Statements finalization
Internal Reporting
Cash-flow Management
