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

Chapter 12. Forms Manual

Introduction

The forms manual is the easiest documentation module to prepare. However, given the absence of a forms specialist, this documentation is rarely completed, and it typically includes forms that reduce the efficiency with which accounting transactions are completed. In this chapter, we will cover the identification of needed forms, review the rules for constructing forms, and describe how to create the forms manual. There is also a brief discussion of ways to eradicate the use of superseded forms from an organization.

Identify Needed Forms

The first step in the creation of a forms manual is to complete a forms survey. In a small accounting operation, the controller could probably describe adequately all the forms used in the operation without a forms survey, but a larger organization will contain so many forms that the survey method is mandatory. The survey can be handled by various employees who are familiar with specific forms, or may be done on a consulting basis by one or two experienced people discussing the form with the person most familiar with its use. If a large number of forms are to be surveyed, the consultant method is more efficient.

Exhibit 12.1 shows a form survey worksheet that simplifies the information-gathering process. The survey is generally limited to forms initiated or processed by the accounting department, such as purchase orders, remittance vouchers, and forms for time reporting, payroll deduction authorizations, travel expense ...