Question

Describe how you would apply policies and procedures to operating a computerised accounting system.

Answer 1

Policies provide an overview of certain rules that you have in your business, and should align with business goals and plans ,reflect the culture of the business ,be flexible ,be easily interpreted and understood by everybody in the business.

Procedures are clear and concise instructions on how to abide by the policy and detail the sequence of activities that are required to complete tasks.They should be factual, simple to understand and written in a step-by-step style that shows people how to follow the procedure through from beginning to end.

One should think about areas of importance to a particular business where policies and procedures would add value, such as:

1)Authorizations – for example, which job roles are allowed to authorize various activities within the business .

2)Bank accounts – when and how new bank accounts are opened, who should be given access to view the details

3)New suppliers and how to choose them

4)New customers and how to manage them

5)Buying and purchasing – for example, how to determine when stock, equipment and assets need to be purchased

6)Debt collection - Important aspect in any business and detailed procedures must be prepared on this point.

7)Insurance and risk management