Accounting Policies and Procedures Manual: A Blueprint for Running an Effective and Efficient Department, Fifth Edition

Chapter 3. Procedure Statements

Introduction

A procedure is a standard method for accomplishing a task, usually composed of a series of steps that are followed in a definite, regular order. A typical procedure identifies the purpose for completing it, as well as what job position is responsible for each task within it and how each task is to be completed.

A procedures manual usually only contains the most commonly used procedures, because the inclusion of every possible procedure would require a great deal of time and effort. The reason for this long delay is that, in addition to initiating, checking, approving, distributing, calculating, balancing, and other accounting activities, there are also many forms that each person completes on a regular basis, which may require input from multiple departments. Documenting all of this is a considerable task. Consequently, it is not uncommon to target for documentation only a few of the most important procedures for inclusion in the initial procedures manual, and then add more procedures to subsequent releases of the manual if there is a cost-effective reason for doing so.

In this chapter, we will review the format of a procedure, as well as the writing style and writing mechanics used to create its content. The chapter also covers the basic work steps needed to create a procedure, and a detailed list of possible procedures that may be worthy of inclusion in a procedures manual.

Writing Style

Clarity and readability are much more important than ...