Running a business without a clear system is like navigating without a map—you might eventually get there, but not without stress, delays, and missteps. This is especially true when it comes to managing finances.
That’s where a Bookkeeping SOP (Standard Operating Procedure) becomes a game-changer.
Whether you’re a solo entrepreneur, part of a small business, or managing a growing team, having a bookkeeping SOP ensures consistency, accuracy, and peace of mind. It’s your go-to guide for handling financial tasks—step by step.
So, what exactly should go into your bookkeeping SOP?
1. Overview and Purpose
Start by explaining why the SOP exists and who it’s for. This sets the tone and ensures everyone using it understands the importance of following the same standards.
📝 Example:
“This SOP is designed to ensure consistency and accuracy in recording, managing, and reviewing all financial transactions. It applies to the internal bookkeeping team and any third-party accounting professionals working with the company.”
2. Bookkeeping Schedule
Outline when specific bookkeeping tasks should be done—daily, weekly, monthly, quarterly, and annually.
📅 Include tasks like:
- Daily transaction recording
- Weekly reconciliations
- Monthly financial reports
- Quarterly VAT submissions or tax prep
- Year-end close process
3. Chart of Accounts (COA) Setup
Include a clear explanation of your chart of accounts—how it’s structured, naming conventions, and rules for creating new accounts.
🧾 Tip: Attach a copy of your current COA as a reference.
4. Invoicing Process
Document how client invoices are created, sent, and followed up.
🧾 Should cover:
- Tools/software used (e.g., QuickBooks, Xero)
- Payment terms
- Follow-up schedule for unpaid invoices
- Where to record received payments
5. Expense Management
Explain how to handle and record expenses, including reimbursable expenses and recurring costs.
💳 Include:
- Receipt handling (e.g., via apps or manually)
- Approval workflows
- Categorization of expenses
- Petty cash process (if applicable)
6. Bank Reconciliation
Describe the process for reconciling bank statements and how often it should be done.
🔁 Checklist:
- Reconcile all bank and credit card accounts
- Match transactions
- Flag and review discrepancies
7. Payroll Process
If payroll is part of your bookkeeping system, outline the steps, including:
👥 Details to include:
- Payroll software used
- Cut-off dates and pay dates
- Tax deductions and filings
- Employee records management
8. Financial Reporting
Define what reports should be generated and when—plus who should receive them.
📊 Common reports:
- Profit & Loss
- Balance Sheet
- Cash Flow Statement
- Budget vs Actual
9. Tax Preparation & Filing
Outline procedures for organizing financials for tax season, including:
🧾 Details:
- Record keeping for receipts and documents
- Communication with tax professionals
- Deadlines and compliance reminders
10. Security & Backup Protocols
Financial data must be protected. Include your company’s policies on:
🔐 Make sure to cover:
- Password-protected systems
- Two-factor authentication
- Cloud backups
- Who has access to what
11. Software & Tools Used
List all tools and platforms involved in your bookkeeping process.
🛠️ Examples:
- QuickBooks, Xero, Wave
- Receipt scanners (like Dext or Hubdoc)
- File storage systems (Google Drive, Dropbox)
12. Roles and Responsibilities
Assign who is responsible for what tasks. This helps avoid confusion and accountability gaps.
👤 Tip: A simple table or list works best here.
13. Review and Updates
Set a schedule for reviewing and updating the SOP. Your business will grow—and your systems should grow with it.
📆 Example:
“Review this SOP every 6 months or whenever a major process or tool is changed.”
Final Thoughts
A bookkeeping SOP isn’t just for big companies—it’s for any business that values accuracy and efficiency. With a proper SOP in place, onboarding becomes easier, errors are reduced, and your financial operations become smoother.
How Accredited Bookkeeping Can Support Your Business
At Accredited Bookkeeping, we understand the challenges small businesses face when it comes to managing finances. We’re here to help you streamline your bookkeeping processes, avoid unnecessary financial errors, and gain greater clarity about your financial health. Our services are designed to fit the specific needs of your business, giving you peace of mind while you focus on growth.
Contact us today for a free consultation and discover how we can make bookkeeping easier for you.
📧 marianne@accreditedbookkeeping.com
Marianne Kirwan
📞 352-626-0116
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