Finance Department Instructions

These instructions outline the key processes and responsibilities within the Finance Department, ensuring accuracy, efficiency, and compliance with all relevant regulations and organizational policies.

Expense Reporting

All employees incurring business expenses must submit expense reports within 30 days of the expense. Each report should include original receipts, a detailed description of the expense’s purpose, and the relevant project or department code. Use the standardized expense report template available on the company intranet. Digital copies of receipts are acceptable, provided they are clear and legible. Any expenses exceeding pre-approved limits require manager approval prior to being incurred. Failure to adhere to these guidelines may result in delayed reimbursement or rejection of the expense report. All expense reports will be subject to audit.

Invoice Processing

All invoices received must be promptly forwarded to the Accounts Payable department. Upon receipt, invoices should be date-stamped and logged into the invoice tracking system. Verify the accuracy of invoice details, including vendor information, purchase order number (if applicable), items ordered, and pricing. If discrepancies are found, contact the vendor to resolve the issue before processing the payment. Once validated, route the invoice for departmental approval as per the established approval matrix. Ensure all invoices are paid within the agreed-upon payment terms. Maintain accurate records of all invoices processed, including supporting documentation.

Budget Management

Each department is responsible for managing its budget effectively. Budget owners should regularly monitor their spending against the approved budget and proactively identify any potential overruns or underspends. Any significant deviations from the budget require immediate notification to the Finance Department, along with a detailed explanation and proposed corrective action. The Finance Department will provide monthly budget reports to assist department heads in tracking their financial performance. Budget reallocations require prior approval from the CFO or designated authority, submitted via the budget amendment form.

Petty Cash Management

Petty cash funds should be used for minor, infrequent expenses only. Maintain a detailed record of all petty cash transactions, including date, purpose, recipient, and amount. Receipts must be obtained for all expenditures. Reconcile the petty cash fund regularly and replenish as needed, submitting a replenishment request form with supporting documentation. Petty cash should be stored in a secure location, and access limited to authorized personnel only. The maximum amount for a single petty cash transaction is [Dollar Amount].

Financial Reporting

The Finance Department is responsible for preparing accurate and timely financial reports, including monthly, quarterly, and annual reports. These reports should comply with Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), as applicable. Departments are expected to provide the necessary data and support to ensure the accuracy and completeness of these reports. All financial reports are subject to internal and external audit. Access to financial information is restricted to authorized personnel only.

Internal Controls

Adherence to internal controls is paramount. All financial transactions must be properly authorized and documented. Segregation of duties is essential to prevent fraud and errors. Regular audits will be conducted to ensure compliance with internal controls and identify areas for improvement. Any suspected violations of internal controls should be reported immediately to the Finance Director or the compliance officer.

These instructions are subject to change. Please refer to the Finance Department intranet page for the most up-to-date information and any policy revisions. Contact the Finance Department with any questions.