Standard Operating Procedures (SOP) are the backbone of the accounting industry, and professionals in the sector depend on SOP accounting to ensure that their team is working as efficiently as possible.
These procedures should act as your all-important instructions for the various key processes conducted within your accounting department. The more specific and detailed they are, the better your performance will be.
So, how can we ensure that we’re all getting the most out of SOP accounting? And what does the ideal accounting SOP template look like? This article will cover how you can improve your Accounting OP template, share it effectively with all relevant stakeholders, and ensure they are as impactful as possible.
Why are SOPs so important?
Before we continue, let’s consider why SOPs are so important to accounting firms:
Compliance:
Having a standardized set of procedures in place helps accountants remain compliant with industry standards, and avoid costly fines or other penalties from regulators.
Conistency:
A robust SOP helps ensure that all members of your accounting team are singing from the same figurative hymn sheet; carrying procedures out the same way means that all individuals will (in theory) produce the same standard of work.
Improved Onboarding:
Getting new employees up to speed with the work practices of your firm can be a long and costly process. However, if your SOPs are detailed enough, you can ensure that new hires can quickly and effectively adjust to your working methods: saving you and them a lot of stress overall.
The secrets of an effective SOP
With all the above in mind, let’s now consider what’s the difference between a mediocre SOP and a great one, and how accountancy firms can improve their own to make them truly worthy.
Make them easy to understand
Procedures are important, but they’re useless if they’re too complex to be properly understood. Ensure that you’re boiling your instructions down to their simplest form, in order to get your message across.
Standardize formatting
You can’t expect your procedures to be standardized if the language you use to convey them isn’t standardized as well. Ensure that your SOPs follow a consistent formatting and structure.
Set out your objectives
SOPs are the ideal place to set out your firm’s goals for the benefit of your employees. So, when setting out your procedures, ensure that you also communicate why they are so important and what they’re contributing to.
Top SOP tips to get started
Whether you’re looking to improve your existing SOP, or create one from scratch, here’s some of our tips for how you can create and disseminate your company’s procedures.
Firstly, if you’re stuck on how to begin the formulation of your SOPs, you can turn to tools like Scribe’s Accounting Manual Generator or Tango to make things easier. This will help you identify processes you want to include (such as financial reporting, budgeting, tax compliance, etc) and automatically generate a step-by-step SOP for you. You’ll then be given a link to the finalized document to share with your colleagues.
If that sounds too technical, then you can always try recording yourself via video — either verbally explaining each of your steps in detail, or by sharing your screen to show how employees can complete each step themselves. You can then transcribe the audio file using AI tools like Otter, which can then be reverse engineered into a formal SOP document.
You should also try to mix up the presentation of your SOPs to accommodate all manner of learning styles. For example, alongside video and written instructions, you could also include infographics and slideshows to aid more visual learners get to grips with your procedures.
Finally, make sure you thoroughly review and check your finalized SOP document, to ensure you can iron out any last-minute errors.
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We boast members in 50 countries, spanning five continents, and are always looking for new members to help us steer the conversation on the future of accounting. If the INAA sounds like it could help you then join us today.