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

Chapter 6. Accounting Procedures

Introduction

This chapter begins with a series of 10 process flowcharts, which itemize all the procedures that a typical accounting department can expect to be involved with; there are even additional procedures listed for the purchasing, shipping, and receiving departments, because these three areas initiate paperwork that eventually flows to the accounting department. By creating flowcharts first, one can identify all activities and thereby ensure that a procedure is written for each one. Also, each box in the flowcharts contains an identifying index number for each procedure, which is later listed as the procedure number in the header for each procedure. Thus, one can first refer to a process flowchart for the specific procedure needed, then trace the index number to the detailed procedure (which is also listed here, sorted in order by process flowchart designation). The process flowcharts are:

• Acquisitions (Exhibit 6.1)

  

  Figure 6.1. Acquisitions Flowchart

• Billing (Exhibit 6.2)

  

  Figure 6.2. Billing Flowchart

• Budget (Exhibit 6.3)

  

  Figure 6.3. Budget Flowchart

• Credit (Exhibit 6.4)

  Figure 6.4. Credit Flowchart

• Financial Statements (Exhibit 6.5)

  Figure 6.5. Financial ...