SOP for Finance and Accounting Operations

Bank Payment (Online/Cheques) after Approval / Bank Reconciliation

Procedure:
1. Payments should be initiated after obtaining necessary approvals as per the
company's authorization matrix.
2. Payments should be initiated after obtaining necessary approvals as per the
company's authorization matrix.
3. Maintain a record of supporting documents, including invoices, purchase
orders, and approval notes.
4. For cheque payments, ensure that all details are correctly filled, and dual
signatures are obtained where required.
5. Conduct monthly bank reconciliations to match company records with bank
statements.

Transaction Entry, Interest Checking, Bank Charges, and Reporting in

Accounts

Procedure:
Transaction Entry
1. Ensure that all supporting documents (invoices, receipts, etc.) are available
and verified before initiating the entry process.
2. Access the accounting software/system with the appropriate credentials.
3. Record all financial transactions promptly and accurately in the accounting
system.
4. Verify the accuracy of data entered, including amounts, dates, and accounts.
5. Ensure that all entries are approved by the authorized personnel before
finalization.
6. Properly classify transactions into relevant accounts and cost centers.
Interest Checking
1. Regularly monitor interest rates on loans, investments, and other financial
instruments.
2. Calculate interest accruals using the prescribed formulas and methods.
3. Review interest calculations to ensure accuracy and compliance with
accounting standards.
Bank Charges
1. Regularly reconcile bank statements with the accounting records.
2. Scrutinize bank statements to identify any bank charges or fees.
3. Verify the legitimacy and accuracy of bank charges by cross-referencing with
supporting documents.

Dr/CR Journal Entry and Drs List Preparation

Procedure
Dr/CR Journal Entry:
1. Identify all financial transactions that occurred during the past week.
2. Classify transactions into debit and credit categories.
3. Ensure that all transactions are supported by relevant documentation.
4. Verify the accuracy of amounts and account codes.
5. Prepare Dr/CR journal entries using the organization's accounting software.
6. Prepare Dr/CR journal entries using the organization's accounting software.
7. Ensure that journal entries comply with accounting principles and
regulations.
Drs List Preparation:
1. Compile a list of all outstanding receivables (Drs) as of the previous week.
2. Include details such as customer names, outstanding amounts, and aging of
receivables.
3. Verify the accuracy of the information by reconciling with the general ledger.
4. Highlight overdue receivables and separate them from current ones.
5. Prepare a summary report of the Drs List for management review.
6. Include any comments or notes related to specific receivables that require
attention.
7. Ensure the confidentiality and security of the Drs List information.
Follow-up on Drs List:
1. Share the Drs List with relevant stakeholders, such as sales, customer
service, or collection teams.
2. Schedule follow-up actions for overdue receivables.
3. Communicate with customers regarding outstanding balances and payment
timelines.
4. Document all communications and actions taken to resolve outstanding
receivables.
5. Provide regular updates to management on the progress of Drs List follow-
up.
6. Implement appropriate measures, such as late fees or credit holds, for
persistent non-payment.
Reporting of Old Drs:
1. Identify receivables that are significantly overdue and pose a higher risk.
2. Prepare a separate report for old Drs, categorizing them by the length of
overdue periods.
3. Analyze reasons for prolonged outstanding balances and report findings to
management.
4. Implement escalated actions for extremely overdue receivables, such as
involving legal or senior management.

Petty Cash Lorry Receipt Entry:

Procedure
Receipt Collection:
1. Lorry Receipts should be collected from the respective transporters upon the
delivery of goods.
2. Ensure that the Lorry Receipt is complete and accurate, including details
such as date, consignor, consignee, description of goods, and other relevant
information.
Verification:
1. Verify the details on the Lorry Receipt against the corresponding delivery
document.
2. Confirm that the receipt is properly authorized by the transporter and
includes the necessary signatures.
Entry into Petty Cash System:
3. Record the details from the Lorry Receipt into the petty cash system.
4. Enter the date, amount, reference number, and any other relevant
information.
5. Maintain a chronological order of entries for easy tracking.
6. File the original Lorry Receipts in a secure and organized manner.
7. Ensure that the filing system allows for quick retrieval of documents when
needed.
Provision of Freight Booking:

Procedure
Request for Freight Booking:
1. When goods are ready for transportation, raise a request for freight booking
with the designated transporter or logistics department.
2. Include details such as the nature of goods, quantity, destination, and any
special handling instructions.
Cost Estimation:
1. Obtain a cost estimate for the freight services based on the provided details.
2. Ensure that the estimate includes all relevant charges such as
transportation, handling, and any additional fees.
Approval:
1. Submit the freight booking request and cost estimate for approval to the
authorized personnel.
2. Obtain necessary approvals before proceeding with the booking.
Booking Confirmation:
1. Upon approval, confirm the booking with the transporter.
2. Obtain a confirmation document that includes the agreed-upon terms and
conditions.
Record Keeping:
1. Record the details of the freight booking in the relevant tracking system or
log.
2. Maintain a copy of the confirmation document in the appropriate files for
future reference.
Invoice Processing:
1. Process the transporter's invoice for payment in accordance with the agreed
terms.
2. Verify the invoice against the confirmed booking details before approving for
payment.

Documentation and Compliance:

Procedure
Compliance Check:
1. Regularly review this SOP to ensure compliance with relevant regulations
and organizational policies.
2. Update the SOP as necessary to reflect any changes in processes or
regulations.
Factory Salary Payment
1. Check & Maintain accurate and up-to-date employee records.
2. Verify attendance and any overtime hours for their respective teams.
3. Ensure compliance with labour laws and company policies.
4. Coordinate with other departments for any salary adjustments, bonuses, or
deductions.
5. Coordinate with other departments for any salary adjustments, bonuses, or
deductions.
6. Verify the accuracy of the payroll data provided by the HR department.
7. Report any discrepancies or changes in employee status to the HR
department promptly.
8. Process salary payments through the designated payment method (e.g.,
bank transfers, cheques).
9. Ensure the security and confidentiality of payroll data.
Banking Correspondence and Related Work

Procedure:
1. All incoming correspondence should be logged and categorized promptly.
2. Prioritize urgent matters and escalate them to the appropriate department.
3. Standard templates should be used for outgoing correspondence.
4. Verify the accuracy of customer information before sending any
communication.
5. Verify the accuracy of customer information before sending any
communication.
6. Implement security measures to protect sensitive customer information.
7. Maintain comprehensive records of all correspondence and transactions.
8. Establish retention periods for different types of documents.
9. Regularly update procedures to comply with relevant banking regulations.
10.Specify the channels through which communication will occur (e.g., email,
mail, phone).

Sponge Purchase Bill & L/R Checking Entered at Factory

Procedure:
1. Validate sponge purchase bills against purchase orders and ensure
compliance with agreed-upon terms.
2. Verify and check the correctness of the freight details mentioned in the bill.
3. Ensure that all bills are correctly entered into the accounting system at the
factory.

Stores & Project Purchase Bill Entry after Proper Checking Control of Pending
MRN

Procedure:
1. Enter stores and project purchase bills into the accounting system.
2. Verify the accuracy of entries against supporting documents.
3. Monitor and control pending Material Receipt Notes (MRN) to avoid
discrepancies.

Sales Bill Checking with DO

Procedure:
1. Verify sales bills against Delivery Orders (DO) to ensure accurate billing.

Outward Transport / Broker Bills, Inward Freight / CHA / Expenses Bill, Labor
Contractor Bills / Security Bills / Professional Bill Entry after Proper
Checking and Approval

Procedure:
1. Review and approve outward transport, broker bills, inward freight, CHA,
expenses, labor contractor bills, security bills, and professional bills before
entry

Attending and Complying with Monthly Internal Audit Reports and Correction
of Errors as Reported by Auditors
Procedure:
1. Regularly review internal audit reports.
2. Identify and understand reported errors and discrepancies.
3. Address and correct errors promptly.
4. Implement measures to prevent recurring issues

TDS/TCS Deduction & Payment & Filing TDS TCS Returns and All Related
Duty

Procedure:
1. Deduct TDS/TCS as per applicable rates.
2. Timely deposit deducted amounts to the government.
3. Prepare and file TDS/TCS returns within the stipulated deadlines.

Server Management, IT Management, and Liaison with ARCHYS

Procedure:
1. Oversee server and IT infrastructure management.
2. Regularly update and patch systems.
3. Maintain effective communication and coordination with ARCHYS for IT-
related matters.

Daily Cash Balance Management of All Group Accounts (Optional)

Procedure:
1. Monitor and manage daily cash balances across all group accounts.
2. Utilize tools or systems for real-time tracking.

GST Returns Partywise List Maintaining

Procedure:
1. Ensure accurate and timely filing of GST returns.
2. Maintain a partywise list for reconciliation.

Full Duties of Sister Concern & Individual Companies Accounts / Recently

Started to Balance Sheet Working

Procedure:
1. Perform all accounting duties for sister concerns and individual companies.
2. Regularly update balance sheet working papers.

Full Duties of Individual Accounts: MF / LIC / Premium Payments and

Reports, Final Accounts, Maintenance Bills Payment

Procedure:
1. Manage individual accounts, including Mutual Funds (MF), LIC, and
premium payments.
2. Prepare final accounts and reports.
3. Ensure timely payment of maintenance bills for individuals.

Note: This SOP is a guideline. It is important to customize and adapt it according

to the specific needs and processes of your organization. Regular training and
awareness programs should be conducted to ensure compliance with the SOP.
Periodic reviews and updates to the SOP are necessary to incorporate changes in
regulations or internal processes.