For your business to thrive and increase its position in the marketplace, you need sound accounting policies. Determining how your company handles and reports financial transactions is essential to measure company performance. When you need to implement a new accounting company policy, follow these three steps as a guideline to success.
Start creating your policy by focusing on your overall objective. What problem are you trying to solve? What are your short-term and long-term goals? How will working conditions or productivity improve? Including affected employees in policy creation can help in setting realistic guidelines for attainable results. Discuss how the new policy will be implemented and what changes are expected. Gather data on how similar policies succeeded or failed in your company and similar ones. Go online to find sample policies to help create your own. When drafting your policy, add in all possible contingencies. Think about potential questions employees may have, and ensure each aspect of the policy is clear, relevant, and executable. Refine your work as you go. Ensure you cover all details for your new company policy.
Get Legal Review
When completed, get a legal review of your new accounting policy to ensure it appropriately covers all necessary areas. Make sure nothing is discriminatory, causes a conflict of interest, or violates workplace rules. After being approved by legal counsel, approve the policy with management before implementing it.
After legal and management review, put the new accounting policy into place within your company. Choose one person as a contact point for employee questions or concerns. Ensure workers know who that person is and that he’s available to help with the transition. Give affected workers time to adjust to the new policy so they can make necessary changes in how they carry out tasks. After an appropriate amount of time, be sure the policy is always enforced. If practicalities of enforcement become an issue, change or revoke the policy.
Creating and implementing a new company policy can be stressful. However, having well-defined accounting policies ensures practices stay consistent and financial transactions are recorded and maintained correctly by colleagues. Learn more about implementing an accounting company policy by contacting Trimble & Associates today!