Important Standard Operating Procedures for your Business

A typical standard operating procedure should document the routine procedures in business. According to the EPA, a standard operating procedure should be developed in a step-by-step manner and should be inclusive of flowcharts to illustrate the existing relationship between departments and activities.

last updated Saturday, March 30, 2024
#Standard Operating Procedure #Accounting Practices

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John Burson

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Ensure that you review policies every one to two years to ensure they are relevant.

Financial Procedures

Financial information regarding financial reporting should constitute components of an SOP. Instructions for a board of directors meeting, annual stockholder meetings, and the release of critical financial documents should also be included. The standard operating procedure should be explained if the business raises its capital due to asset acquisition, leasing, or bank loans.

Accounting Practices

Include a standard operating procedure for your accounting unit, regardless of whether it consists of only one or several employees. An SOP for the accounting department should include instructions on managing accounting documents, legal expenses, property tax assessments, and personal contracts. Consider including documentation and handling of entertainment and travel expenses, as well as wire transfers and bank and policy transfers.

Human Resource Procedures

Incorporating HR procedures in your SOP is essential, including guidelines for conducting interviews, job policies and descriptions during the application process, and necessary background checks. You can also include compensation and other benefits, for instance, employee health insurance, benefits and payroll policies, and retirement security benefits. Some additional guidelines include complying with federal requirements, for example, the American Disability Act.

IT and Computer Procedures

Include information technology and computer processes in your standard operating procedures, for instance, the company policy on email, the internet, hardware and software evaluation, training, and evaluation. Your SOP can also include reflective standards to assess the risks of a breach in security technology and recommend how to conduct necessary technology security audits.

Security

Security measures and ways to maintain safety should be a component of your SOP, as well as guidelines and ethics statements for the employee code of conduct and steps that should be taken during emergencies, for instance, fires and other natural disasters.

Sales and Marketing

Biz, a standard operating procedure expert, recommends that businesses include sales and marketing strategies in their SOPs. They should also have market research guidelines and procedures for specific actions, such as marketing, direct mail, public relations, and Internet marketing.

 
 
 

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