Finance And Accounting Policy

Every company needs their finance accounting policy to be functional in order to achieve their financial goals. This finance accounting policy helps to control the financial activities in the company. Here we will give you a sample of what this policy looks like. You can copy them and use for your company.

 

CASH PAYMENT

Policy Objectives

• To ensure adherence to cash payment procedures that shall be issued by the management from time to time.
• To ensure effective cost control.
• To limit the level of cash handling and reduce exposure to risk of robbery and stealing.
• To streamline the sources of authority to pay cash
• To institute transparency and accountability in the system.

Policy Guidelines

1. All cash payment requisitions shall be made through the official cash payment voucher.
2. All cash payment voucher shall be routed through and approved by the relevant head of department in the first instance as 1st approval before passing the voucher to the finance department for 2nd approval and finally to the MD for final approval.
3. Upon receipt of the payment voucher by the finance department, the finance manager shall collate and tabulate all cash payment vouchers into “summary schedule of cash vouchers” and route the summary list through the relevant approving authority.
4. The finance and accounts department shall prepare summary of cash voucher in a separate list to be signed by the relevant final approving authority.
5. All cash payment requisitions must be submitted with appropriate supporting documents or schedule, routed through and approved by the relevant head of department for clearance.
6. No staff shall approve cash payment for a transaction that he/she has personal interest or derive benefit, rather such transactions should be routed through his/her respective supervisor for approval. Only the directors are however, exempted.

Policy Commencement Date

This policy takes effect from 1st December, 2017. (You can put your own date)

 

CHEQUE AND ELECTRONIC PAYMENT

Policy Objectives

• To ensure adherence to cheque and electronic payment procedures that shall be issued by the management from time to time.
• To ensure effective cost control.
• To prevent fraud and safeguard the beneficiary from unforeseen risks.
• To streamline the sources of authority to pay cheques
• To institute transparency and accountability in the system.

Policy Guidelines

1. All cheque and electronic payment request shall be made through the official cheque and electronic payment voucher.
2. All cheque and electronic payment voucher shall be routed through and approved by the relevant head of department in the first instance as 1st approval before passing the voucher to the finance department for 2nd approval and finally to the MD for final approval.
3. Upon receipt of the payment voucher by the finance department, the finance manager shall collate and tabulate all cheque and electronic payment vouchers into “summary schedule of cheque and electronic vouchers” and route the summary list through the relevant approving authority.
4. The finance and accounts department shall prepare summary of cheque and electronic payment voucher in a separate list to be signed by the relevant final approving authority.
5. Any cheque or electronic payment request by a Project Manager or Head of Department in which he/she has personal interest or derive benefit should be routed through his/her respective supervisor for approval. Only the directors are however, exempted.
6. All cheque and electronic payment requisitions must be submitted with appropriate supporting documents or schedule, routed through and approved by the relevant head of department for clearance.
7. All suppliers, vendors and sub-contractors shall be paid by cross cheques except otherwise approved by the MD.
8. All cheque payments shall be made in the name of the vendors as stated on the invoice submitted for payment.

Policy Commencement Date

This policy takes effect from 1st December, 2017 (You can put your own date)

 

Finance and accounting policy may differ from company to company depending on their organizational financial goal. The above finance accounting policy and be adjusted to suit your organizational needs. You can as well copy this finance accounting policy and edit it and use it for your company.

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