Nội dung

Accounting Policies and Procedures 4expertise.com Introduction This section provides an accounting primer to explain the basic concepts of accounting, its structure, standards and definitions. The need to review these concepts is greater now then ever. Please read this whole section before you begin editing your manual. 100 Introduction Page i of xxiv Call 800-221-3104 toll free (US & Canada) or email: info@4expertise.com to ask questions or order. Can also be ordered at http://www.4expertise.com/ the shopping cart Store of Hard-toFind Business Tools with over 2000 downloadable forms, templates, software, manuals, job descriptions, game bird books, dental SOPs, e-books, free gifts, free-form software, medical tools, consulting tools, marketing tools, wills, living wills, advanced directives, and much more. We accept all major credit cards and ship internationally. All products have a 30-day money back guarantee. Accounting Policies and Procedures 4expertise.com [This page intentionally left blank] 100 Introduction Page ii of xxiv Accounting Policies and Procedures 4expertise.com Subject Matter Expertise JOHN MCPEEK, CPA John McPeek is a co-author of the Complete Guide to a Business Policy & Procedure Manual. Mr. McPeek was also a co-author in the development the ISO 9000 Production & Documentation Manual. Mr. McPeek has over 18 years of operational management experience with both start-up and larger businesses. He started as a CPA with McGladrey & Pullen, LLP, a leading CPA firm serving middle-market businesses. He then moved on to a few start-up medical and dental manufacturing companies serving in various capacities as Corporate Controller, Vice President of Finance and Operations, and President. While in these positions, he was instrumental in establishing company wide organizational policies and procedures as well as implementing protocols for meeting Food & Drug Administration regulatory requirements for medical devices and Department of Defense contract requirements. He is currently the President of ASI Medical, Inc. located in Englewood, Colorado and is personally responsible for the innovative design and manufacturing of their line of products. He is a graduate of Colorado State University holding a Bachelor of Science Degree in Business Administration. BUD CARLSON, CPA Bud Carlson brings together over 29 years of public accounting, retail and business management experience. Mr. Carlson has successfully worked both in finance, management and accounting. As a business owner he managed his own company for six years before selling the business. As an accountant, he has spent nine years as a CPA and computer audit specialist at KMPG Peat Marwick auditing various retail and wholesale distributors including prominent SEC clients. He has implemented numerous management reporting systems for a various small to mid-sized businesses. Mr. Carlson holds a Bachelor of Science in Business from the University of Denver and a Bachelor of Science in Accounting from Thomas College. He is an active member of AICPA. 100 Introduction Page iii of xxiv Accounting Policies and Procedures 4expertise.com JAMES SKELTON James Skelton has been writing policy and procedures for over twenty years. He has personally authored manuals on topics from administration, operations, training, to employee handbooks, personnel, policy and procedures, and accounting. He has attended professional courses in Resource Management and National Security Planning. He has an extensive background in management, administration and technical writing. He is also certified as a Professional in Human Resources through the Society for Human Resource Management. He holds a Bachelor of Science Degree in Management and Organizational Development from the University of West Florida and a graduate level education in Systems Engineering, Systems Safety Management and Management Information Systems from the Naval Postgraduate School in Monterey, CA. CHRISTOPHER ANDERSON, MBA Chris Anderson has over 17 years of sales, marketing and business management experience working with small to large corporations. He served as President of a catalog, Internet and mail order company specializing in finance and investment analysis products. He served as Vice President at Arc Tangent, a direct mail marketing software publisher where he managed all operations, sales, and administration. Prior to Arc Tangent, Mr. Anderson managed North American distribution sales for Interactive Systems, a UNIX operating system developer and publisher. He has worked as a marketing analyst as Nixdorf Computer Corporation, an electrical engineer for McDonnell Douglas Corporation developing missile simulation software for the US Navy as well as developing MIL-STD documentation. He served as a Lieutenant and Aeronautical Engineering Duty Officer for the US Navy working for the Naval Air System Command. He is currently the Managing Director of 4expertise.com, Inc. He holds Master in Business Administration from Pepperdine University and a Bachelor of Science degree in Electrical Engineering from Southern Illinois University. 100 Introduction Page iv of xxiv Accounting Policies and Procedures 4expertise.com Table of Contents SUBJECT MATTER EXPERTISE ...................................................................................iii John McPeek, CPA iii Bud Carlson, CPA iii James Skelton iv Christopher Anderson, MBA iv Introduction ......................................................................................................... Tab 1 WHO NEEDS ACCOUNTING POLICIES AND PROCEDURES?..................................1 The Recent Past 1 The Present 2 The future 2 ACCOUNTING BASICS 2 Bookkeeping 3 Accounting 3 Reporting 4 Non-financial data 4 Financial data 4 COMPONENTS OF AN ACCOUNTING SYSTEM 5 Revenue Cycle 6 Order Entry .............................................................................................................6 Cash Receipts / Deposits..........................................................................................6 Accounts Receivable................................................................................................6 Purchase Cycle 6 Purchase Orders / Purchasing ..................................................................................6 Cash Disbursements / Checks ..................................................................................7 Accounts Payable.....................................................................................................7 Payroll Cycle 7 General Journal Cycle 7 How does posting work? 7 ACCOUNTING TERMS AND CONCEPTS 8 Double-Entry Accounting 8 BASIC ACCOUNTING STRUCTURE 9 Balance sheet 9 Income Statement 10 Basic Accounting Formula: 10 SUMMARY OF ACCOUNTING CYCLES & ACCOUNTING CONCEPTS 12 ACCOUNTING STRUCTURE - ACCOUNTING SOFTWARE PROGRAMS 19 ACCOUNTING METHODS 20 100 Introduction Page v of xxiv Accounting Policies and Procedures 4expertise.com Accrual Method ............................................................................................................. 20 Cash Method.................................................................................................................. 20 Percentage of Completion Method ................................................................................ 21 REPORTING STANDARDS........................................................................................ 21 GAAP - Generally Accepted Accounting Principles .................................................... 21 The Matching Principle ................................................................................................ 22 Conformity ................................................................................................................... 22 Valuation ...................................................................................................................... 22 Inventory Valuation....................................................................................................... 22 Materiality .................................................................................................................... 23 TYPES OF REPORTS..................................................................................................... 23 External Reports ........................................................................................................... 24 Compilation .................................................................................................................. 24 Review.......................................................................................................................... 24 Audit............................................................................................................................. 25 SEC - Audit ................................................................................................................. 25 Internal Reports ........................................................................................................... 25 SUMMARY.....................................................................................................................26 Manual Preparation ..............................................................................................Tab 2 SECTION 1 INTRODUCTION ........................................................................................ 5 SECTION 2 INSTALLATION INSTRUCTIONS ................................................................7 Editing Files .......................................................................................................................8 Word Processing (Text) Files .............................................................................................8 File Properties And Style Formats .....................................................................................8 Printing Files .....................................................................................................................9 Technical Support.............................................................................................................10 SECTION 3 YOUR ACCOUNTING MANUAL ............................................................ 11 Style and Format .......................................................................................................... 11 Considerations in writing your manual ......................................................................... 12 Sources of additional Information ................................................................................. 13 SECTION 4 EFFECTIVE COMMUNICATION ............................................................. 15 Communication and Addressing Your Audience........................................................... 15 Sexism in Writing ......................................................................................................... 15 Number Usage............................................................................................................... 16 Organizing Your Thoughts ............................................................................................ 16 Outlining Technique ...................................................................................................... 16 Defining the Format and Organization of Your Manual................................................... 17 Design Features ............................................................................................................ 18 Style and Mechanics ..................................................................................................... 18 100 Introduction Page vi of xxiv Accounting Policies and Procedures 4expertise.com Sources of additional Information .................................................................................19 SECTION 5 ACCOUNTING PROCEDURES ............................................................... 21 Format ......................................................................................................................... 21 Heading Information .................................................................................................... 21 Title And Introduction .................................................................................................. 23 The Body Of The Procedure Statement ....................................................................... 24 Attachments.................................................................................................................. 24 Authorization................................................................................................................ 25 Production And Distribution ........................................................................................ 26 Revising And Updating Statements ............................................................................. 26 Accounting Manual ............................................................................................. Tab 3 1.0 2.0 Purpose....................................................................................................................5 Scope.......................................................................................................................7 2.1 Responsibility .........................................................................................................7 2.2 Exclusions................................................................................................................7 2.2.1 Internal Auditing ............................................................................................7 2.2.2 Payroll ............................................................................................................7 2.2.3 Finance And Treasury ....................................................................................7 2.2.4 Information Systems .......................................................................................7 2.2.5 Security Planning ...........................................................................................7 2.2.6 Disaster Recovery ...........................................................................................7 3.0 Management Responsibility ....................................................................................9 3.1 Accounting Organization ............................................................................................9 3.1.1 Accounting Department Organization Chart ......................................................9 3.1.2 Finance & Treasury Responsibilities ...............................................................10 3.1.3 Controller Responsibilities ...............................................................................10 3.1.4 Accounting Staff Responsibilities ....................................................................11 3.1.5 Operations Staff Responsibilities ....................................................................12 3.2 Management Commitment..................................................................................... 12 3.3 Management Accounting Policy ............................................................................12 3.4 Planning ................................................................................................................13 3.4.1 Accounting Objectives .................................................................................13 3.4.2 Accounting System Planning .......................................................................13 3.5 Responsibility, Authority, And Communication .......................................................13 3.5.1 Responsibility And Authority .......................................................................13 3.5.2 Management Representative ........................................................................13 3.5.3 Internal Communication................................................................................14 3.5.4 Referenced Procedures:.................................................................................14 3.6 Management Reporting.......................................................................................... 14 100 Introduction Page vii of xxiv Accounting policies and Procedures 4expertise.com 3.6.1 General.................................................................................................... 14 3.6.2 Review Input .......................................................................................... 14 3.6.3 Review Output ........................................................................................ 15 3.6.4 Referenced Procedures: .......................................................................... 15 3.7 Business Conduct................................................................................................... 15 4.0 Accounting Management System ............................................................................... 17 4.1 Objectives ............................................................................................................. 17 4.2 Requirements ........................................................................................................ 17 4.2.1 Overview ..................................................................................................... 17 4.2.2 Internal Controls ........................................................................................... 17 4.2.3 Audit Findings .............................................................................................. 18 4.3 Transactions .......................................................................................................... 18 4.3.1 Authorization ................................................................................................ 18 4.3.2 Timing ......................................................................................................... 18 4.3.3 Amounts ...................................................................................................... 18 4.3.4 Accuracy....................................................................................................... 18 4.3.5 Referenced Procedures: ................................................................................ 19 4.4 Documentation....................................................................................................... 19 4.4.1 Accounting Manual ...................................................................................... 19 4.4.2 Control Of Documents ................................................................................. 19 4.4.3 Control Of Records ...................................................................................... 20 4.4.4 Accounting Transactions............................................................................... 20 4.4.5 Referenced Procedures: ................................................................................ 20 4.5 Security ................................................................................................................. 20 4.5.1 Physical Security .......................................................................................... 20 4.5.2 Disaster Security ........................................................................................... 21 4.5.3 Information Security ..................................................................................... 21 4.6 Cost Accounting .................................................................................................... 21 4.6.1 Costing Purposes .......................................................................................... 21 4.6.2 Cost - Time Incurred .................................................................................... 22 4.6.3 Cost - Reaction To Changes In Activity Levels ............................................ 22 4.6.4 Cost - Influence On Decision Making........................................................... 23 4.7 Basis Of Accounting.............................................................................................. 25 5.0 Processes And Controls ........................................................................................ 27 5.1 General & Administrative...................................................................................... 29 5.1.1 Chart Of Accounts ...................................................................................30 5.1.2 Files And Records Management ............................................................ 30 5.1.3 Travel And Entertainment........................................................................30 5.1.4 Management Reports.............................................................................. 30 5.1.5 Period-End Review & Closing.................................................................30 5.1.6 Controlling Legal Costs ...........................................................................31 100 Introduction Page viii of xxiv Accounting policies and Procedures 4expertise.com 5.1.7 Taxes And Insurance .............................................................................. 31 5.1.8 Property Tax Assessments ...................................................................... 31 5.1.9 Confidential Information Release ........................................................... 31 5.1.10 Document Control .................................................................................. 31 5.1.11 Referenced Procedures:........................................................................... 32 5.2 Cash....................................................................................................................... 33 5.2.1 Cash Drawers And Credit Cards .................................................................. 34 5.2.2 Cash Receipts And Deposits ........................................................................ 34 5.2.3 Problem Checks ............................................................................................ 34 5.2.4 Wire Transfers .............................................................................................. 34 5.2.5 Check Signing Authority .............................................................................. 34 5.2.6 Check Requests ............................................................................................ 34 5.2.7 Bank Account Reconciliations ..................................................................... 35 5.2.8 Referenced Procedures: ................................................................................ 35 5.3 Inventory & Assets ............................................................................................... 37 5.3.1 Inventory Control ......................................................................................... 37 5.3.2 Inventory Counts .......................................................................................... 38 5.3.3 Fixed Asset Control ...................................................................................... 38 5.3.4 Customer Property ........................................................................................ 38 5.3.5 Fixed Asset Capitalization & Depreciation ................................................... 38 5.3.6 Referenced Procedures: ................................................................................ 38 5.4 Revenue ................................................................................................................. 39 5.4.1 Sales Order Entry ......................................................................................... 40 5.4.2 Point-Of-Sale Orders .................................................................................... 40 5.4.3 Customer Credit Approval And Terms ........................................................ 40 5.4.4 Sales Order Acceptance ................................................................................ 40 5.4.5 Shipment Of Goods ...................................................................................... 40 5.4.6 Invoicing And Accounts Receivable............................................................. 41 5.4.7 Sales Tax Collection ..................................................................................... 41 5.4.8 Progress Billing ............................................................................................ 41 5.4.9 Account Collections ..................................................................................... 41 5.4.10 Customer Returns ....................................................................................... 41 5.4.11 Referenced Procedures:............................................................................... 42 5.5 Purchasing ............................................................................................................. 43 5.5.1 Vendor Selection ................................................................................... 44 5.5.2 General Purchasing ..................................................................................44 5.5.3 Project Purchasing ...................................................................................44 5.5.4 Receiving And Inspection ...................................................................... 44 5.5.5 Shipping And Freight Claims...................................................................45 5.5.6 Accounts Payable And Cash Disbursements .......................................... 45 5.5.7 Referenced Procedures: .......................................................................... 45 100 Introduction Page ix of xxiv