In: Accounting
Discuss (100 to 120 words) how an organisation might use policies and procedures as part of its financial operations.
What's a policy?
A policy is a statement that outlines the principles and views of a businesson each topic covered.
Policies provide an overview of certain rules that you have in your business, and should.
What's a procedure?
Sometimes a policy will need a supporting procedure.
Procedures are clear and concise instructions on how to abide by the policyand detail the sequence of activities that are required to complete tasks.
They should include the 'how to' guidelines to achieve the necessary results, and be:
Which financial policies and procedures should I have?
Think about areas of importance to your business where policies and procedures would add value, such as:
How do I write or customise my manual?
The task of completing a full manual can be overwhelming, so start by thinking about what you want to achieve, and complete your manual in real-time.
Writing while doing is a great way to ensure you capture all the steps, so involve your employees and write policy and procedures as you're working on a particular activity.
For example, if you have a new customer, write up how you'll record the details, where these will be kept, how you'll set a customer credit limit etc.