FINANCIAL POLICY AND PROCEDURE MANUAL TEMPLATE

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Who should use this template?

All small business operators who emplo one or more sta!!"

Why use a policy and procedure manual?

This !inan#ial poli# an$ pro#e$ure manual is !or the small business operator an$ their emplo ees" The main bene!its to ha%in& this poli# an$ pro#e$ure manual' ensures all sta!! are aware o! obli&ations in relation to !inan#e transa#tions within the business is a pro%en wa to help our mana&ers an$ super%isors ma(e #onsistent an$ reliable $e#isions helps &i%e ea#h emplo ee a #lear un$erstan$in& as to what ou e)pe#t an$ allow" It ta(es some e!!ort to #omplete* but brin&s $e!inite lon&+term bene!its* re$u#es $isputes* an$ a$$s to the pro!essionalism o! our business"

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Include what you must and can comply with

Your #ommitments in this manual ma also !orm part o! an #omplian#e re,uirements su#h as Australian Ta)ation O!!i#e #omplian#e re,uirements" To #omplete the template' -" .here ou see a guidance note (delete this later) rea$ an$ then $elete it" These ha%e been a$$e$ to help ou #omplete the template" The are not meant to be part o! our !inal %ersion" /" Repla#e <Insert with relevant details here>with our own wor$in&" 0" .here ou see a re!eren#e to Poli# * this pro%i$es a lin( to another e)ample poli# ou ma li(e to re!er to 1" On#e ou ha%e !inishe$ wor( on the template* delete this and the following page. 2" Lastl refresh the page numbers in the table of contents" Ri&ht mouse #li#( on the table o! #ontents 3 #hoose 4Up$ate Fiel$5 3 #hoose 4Up$ate pa&e numbers onl 5"

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Finance Policy and Procedure Manual

To stop this poli# manual sittin& on a $es( #olle#tin& $ust* ma(e it a li%in& $o#ument" 6ow7 As( our sta!! !or their thou&hts on how to impro%e it" Then re%iew it e%er si) months" Ma(e e)plainin& our poli#ies an$ pro#e$ures an important part o! our in$u#tion pro#ess" Lea%e the wor$s 4Do#ument %ali$ when printe$ onl 5 in the !ooter to remin$ the rea$er the mi&ht be usin& an out+o!+$ate #op " 8The 4Last printe$5 $ate automati#all up$ates in the !ooter when ou print" You $on5t nee$ to up$ate this"9 Tr to $estro or ar#hi%e all out+o!+$ate #opies" The writin& st le $oesn5t nee$ to be !ormal or lon&win$e$ to be e!!e#ti%e" Use simple senten#es an$ plain En&lish to re$u#e the #han#e an emplo ee or mana&er will be #on!use$ about the intent o! our poli# or the wa to #arr out a pro#e$ure"

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The information in this publication is for general guidance only. The State of Victoria does not make any representations or warranties (expressed or implied as to the accuracy! currency or authenticity of the information. The State of Victoria! its employees and agents do not accept any liability to any person for the information or ad"ice gi"en in this document. #uthorised by the Victorian $o"ernment! %&% 'xhibition Street! Melbourne! ())). * +epartment of State +e"elopment! ,usiness and -nno"ation &)%(.

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FINANCE POLICY AND PROCEDURE MANUAL

Table of Contents
Finan#e Authorisation Poli# """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""1 :an( A##ount Poli# """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 2 Pett Cash Poli# """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ; Use o! :usiness Cre$it Car$ Poli# """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""< New =upplier Poli# """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" > Pur#hasin& Poli# """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" -/ =to#( Control Poli# """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""-1 New Customer Poli# """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""-; Customer Cre$it Limit Poli# """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""/? Customer Debt Colle#tion Poli# """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""//

Introduction
The <Insert business name here> Finan#ial Poli# an$ Pro#e$ure Manual pro%i$es the poli#ies an$ pro#e$ures !or !inan#e transa#tions within the business whi#h must be !ollowe$ b all sta!!" It also pro%i$es &ui$elines <Insert business name here> will use to a$minister these poli#ies* with the #orre#t pro#e$ure to !ollow" <Insert business name here> will (eep all !inan#ial poli#ies #urrent an$ rele%ant" From time to time it will be ne#essar to mo$i! an$ amen$ some se#tions o! the poli#ies an$ pro#e$ures* or to a$$ new pro#e$ures" An su&&estions* re#ommen$ations or !ee$ba#( on the poli#ies an$ pro#e$ures in this manual are wel#ome" These poli#ies an$ pro#e$ures appl to all emplo ees"

Finance Authorisation Policy Policy Number: <insert unique number> Policy Date: <insert date of policy>
This policy should be read and carried out by all staff for all authorisations of finance transactions as noted in the policy. Edit this policy so it suits the needs of your business.

Purpose of the Policy

All !inan#e transa#tions as note$ in this poli# are to be authorise$ b the note$ authorise$ person prior to the transa#tion bein& un$erta(en" This poli# is to be rea$ in #on@un#tion with other spe#i!i# !inan#e poli#ies where rele%ant"

Procedures
Prior to an o! the !ollowin& !inan#e transa#tions bein& un$erta(en* the authorisin& person note$ must authorise the transa#tion" .here a$$itional poli# is note$* this poli# must also be a$here$ to when un$erta(in& the !inan#e transa#tion" Finan#e Transa#tion :an( A##ounts Issuin& Pett Cash :usiness Cre$it Car$ Authorisin& New Customers Authorisin& New =uppliers Pur#hasin& =to#( Pur#hasin& AssetsA E,uipment Debt Colle#tion Pa ment o! In%oi#es <insert other finance transactions here> Authorise$ Person <insert relevant ob title here> <insert relevant ob title here> <insert relevant ob title here> <insert relevant ob title here> <insert relevant ob title here> <insert relevant ob title here> <insert relevant ob title here> <insert relevant ob title here> <insert relevant ob title here> <insert relevant ob title here> A$$itional Poli# <insert policy name! or number here> <insert policy name! or number here> <insert policy name! or number here> <insert policy name! or number here> <insert policy name! or number here> <insert policy name! or number here> <insert policy name! or number here> <insert policy name! or number here> <insert policy name! or number here> <insert policy name! or number here>

Bank Account Policy Policy Number: <insert unique number> Policy Date: <insert date of policy>
This policy should be read and carried out by all staff for all authorisations of opening, operating and closing bank accounts. Edit this policy so it suits the needs of your business.

Purpose of the Policy

This poli# sets out the re,uirements !or use o! ban( a##ounts* in#lu$in& openin&* #losin& authorisation* %ariations to terms an$ #on$itions* re#on#iliation o! ban( a##ounts an$ ban( a##ount transa#tions"

Procedures "pening #an$ %ccounts

An new ban( a##ounts to be opene$ !or the business must ha%e the authorisation o! <insert relevant ob title here> Where a new bank account is being considered, you may like to incorporate into this policy some of the recommendations from Refinancing or switching banks information as procedure steps. For ea#h new ban( a##ount opene$* the !inan#ial s stem must be up$ate$ an$ the ban( a##ount re&istere$ b <insert relevant ob title here>

#an$ %ccount %uthorisations

For monies with$rawn !rom an ban( a##ount* whether b #he,ue* EFT or other online pa ment metho$* there must be <insert number of persons to authorise payments! recommended two> persons authorisin& !or ea#h pa ment" The authorise$ persons !or ban( a##ount pa ments are' <insert relevant ob title here> <insert relevant ob title here> <insert relevant ob title here> etc. Ea#h pa ment ma$e must be supporte$ b in%oi#e* re#eipt or other appropriate $o#umentation an$ the authorisations must be atta#he$ to this $o#umentation prior to pa ment"

Variations to Bank Account Terms and Conditions

An %ariations to ban(in& arran&ements #an be ma$e or %arie$ b <insert relevant ob title here> <insert relevant ob title here> is responsible !or up$atin& the !inan#ial s stem an$Aor ban( a##ount re&ister with the new in!ormation"

Closing Bank Accounts

.here it is $e#i$e$ that a ban( a##ount is no lon&er ne#essar * <insert relevant ob title here> will authorise the #losure o! the ban( a##ount" The <insert relevant ob title here! recommended boo$$eeper or finance person> will then be re,uire$ to #omplete the !ollowin&'

ensure all transa#tions with respe#t to the a##ount 8in#lu$in& #he,ues $rawn9 ha%e been #omplete$B

lo$&e with the ban( a letter* si&ne$ b <insert number of persons to authorise! recommended two>authorise$ si&natories a$%isin& o! the #losure o! the a##ountB

meet the ban(Cs re,uirements with respe#t to a##ount #losureB an$ up$ate the !inan#ial s stem an$ ban( a##ount re&ister"

Bank Account Transactions

All $eposits re#ei%e$ must be ban(e$ within <insert number of days from receipt! recommended two> Unallo#ate$ $ire#t $eposits o! more than <insert number of months! recommended one> will be in%esti&ate$ !ull to $etermine sour#e o! $eposit" .here the sour#e #annot be i$enti!ie$* the $eposit will be allo#ate$ to <insert financial account to authorise payments! recommended setting up a suspense account to $eep these funds separate and identifiable> Che,ues outstan$in& !or more than <insert number of months! recommended twelve months in line with ban$s policy> will be reallo#ate$ ba#( to the business throu&h the !inan#ial s stem .here a pa ment stop on a #he,ue is re,uire$* this will be authorise$ b <insert relevant ob title here>. <insert relevant ob title here> will be responsible !or #arr in& out the !ollowin& $uties in re&ar$s to pa ment stop on a #he,ue' ensurin& the #he,ue has not alrea$ been presente$ at the ban(B &ettin& authorisation to a#tion the stop pa ment usin& appropriate !orms !rom the ban(B ensurin& the ban( re#ei%es noti!i#ation o! the stop pa ment noti#eB re#ei%in& #on!irmation o! a#tion !rom the ban( o! the stop pa mentB an$ ensurin& the $etails o! the stop pa ment are (ept in the stop pa ment !ol$er"

Petty Cash Policy Policy Number: <insert unique number> Policy Date: <insert date of policy>
This policy should be read and carried out by all staff where petty cash is issued. Edit this policy so it suits the needs of your business.

Purpose of the Policy

Pett #ash shoul$ be use$ to pa !or small business e)penses up to <insert maximum amount here! usually up to &'(( > where pa ments throu&h a##ounts pa able or #re$it #ar$ are not @usti!ie$ or appropriate

Procedures Issuing )etty *ash

Pett #ash %ou#hers must be #omplete$ be!ore an #ash is ta(en !rom the pett #ash !loat" Onl up to <insert maximum amount here! usually up to &'(( > #an be $isburse$ at an one time" All pett #ash %ou#hers issue$ must be appro%e$ b <insert relevant ob title here> On#e the pett #ash is spent* a re#eipt or in%oi#e shoul$ be atta#he$ to the %ou#her an$ returne$ to pett #ash with an balan#e o! monies unspent All #omplete$ %ou#hers must ha%e the !ollowin& $etails in#lu$e$' Issue $ate o! %ou#herB Name o! person issue$ the %ou#herB Amount o! monies $isburse$B Details o! e)penseB In%oi#e or re#eiptB an$ =i&nature o! appro%al person*

Reconciling Petty Cash

Pett #ash !loat is to be re#on#ile$ <insert time here! at least monthly is recommended>. This is the responsibilit o! <insert relevant ob title here> All pett #ash e)pen$iture must be entere$ into the !inan#ial s stem on#e the pett #ash has been re#on#ile$" The balan#e o! monies an$ %ou#hers must e,ual the pett #ash !loat amount be!ore reimbursement #an be ma$e" Reimbursement o! pett #ash will be authorise$ b <insert relevant ob title here>

Use o Business Credit Card Policy Policy Number: <insert unique number> Policy Date: <insert date of policy>
This policy should be read and carried out by all staff who require the use of business credit cards. Edit this policy so it suits the needs of your business.

Purpose of the Policy

This poli# pro%i$es &ui$elines !or the issue an$ use o! business #re$it #ar$s"

Procedures
An emplo ee will onl be issue$ a #re$it #ar$ on#e the Cre$it Car$ Authorisation Form has been #omplete$" The business #re$it #ar$ #an onl be use$ !or tra%el* authorise$ entertainment an$ pur#hases o! small %alue e)penses or e,uipment up to the %alue o! <insert amount here! recommended & +(( > No #ash a$%an#es are to be ta(en usin& the business #re$it #ar$ unless authorise$ b <insert relevant ob title here> .here a business #re$it #ar$ is lost or stolen* then the owner o! this #ar$ is to noti! <insert relevant ob title here> who is responsible !or noti! in& the issuin& a&en# an$ ensurin& the #ar$ is #an#elle$" The use o! the business #re$it #ar$ is not to be use$ !or personal e)penses" All hol$ers o! business #re$it #ar$s are re,uire$ to re#on#ile the monthl #re$it #ar$ statement to the e)pense !orm* atta#h all re#eipts !or pa ments ma$e on the #re$it #ar$ an$ ha%e the e)pense statement authorise$ b <insert relevant ob title here> Upon #ompletion an$ authorisation o! the monthl e)pense statement* these $o#uments are to be !orwar$e$ to <insert relevant ob title here> !or pa ment o! the #re$it #ar$ statement" All business #re$it #ar$s are to be returne$ to the business when the person is re,ueste$ to b <insert relevant ob title here> or where the are no lon&er an emplo ee o! the business"

New !upplier Policy Policy Number: <insert unique number> Policy Date: <insert date of policy>
This policy should be read and carried out by all staff who are in ol ed in supplier selection. Edit this policy so it suits the needs of your business.

Purpose of the Policy

All new suppliers to the business must be re%iewe$ an$ a##epte$ in a##or$an#e with this poli# to ensure that the supplier ser%i#e is ali&ne$ with the business ob@e#ti%es"

Procedures *hoosing a New ,upplier

A new supplier must pro%i$e our business with <insert the priorities required from your suppliers! such as quality product! great service! competitive pricing! efficient delivery etc. > For ea#h new supplier the !ollowin& in!ormation table must be #omplete$ prior to a&reein& ser%i#es ,upplier ,election #ac$ground Information :usiness Name o! =upplier Lo#ation o! =upplier

Pro$u#tsA=er%i#es pro%i$e$ b supplier 8 Atta#h a list i! ne#essar 9 Name o! business ownerA sales representati%e 6ow man ears has the supplier been tra$in&7

For ea#h new supplier bein& #onsi$ere$ the !ollowin& #he#(list must be #omplete$ ,upplier ,election -eview Is the supplier pri#in& #ompetiti%e7 Atta#h list to this #he#(list .hat are the pa ment terms !or this supplier7 .hat is the return poli# !or this supplier Does the supplier pro%i$e warranties* &uarantees et#"7 Are the suppliers representati%es (nowle$&eable o! the pro$u#tsA ser%i#es an$ in$ustr 7 Is there an alternati%e to this supplier* has the alternati%e supplier been #onsi$ere$7 .hat are the $eli%er ser%i#es o! the supplier7 6as a #re$it #he#( been un$erta(en !or the supplier 8atta#h to this #he#(list9 6as the Personal Propert =e#urities Re&ister 8PP=R9" been re%iewe$ 6as the supplier been tra$e #he#(e$ 8atta#h this to this #he#(list9 <insert additional information required to assist in the decision of appointing a new supplier >

%ppointment of ,upplier
The appointment o! a new supplier will be authorise$ b <Insert relevant ob title here>

All rele%ant $etails o! the supplier will be entere$ into the !inan#ial s stem b <Insert relevant ob title here> on#e appro%al is obtaine$ !rom <Insert relevant ob title here> <Insert relevant ob title here> will re%iew in!ormation entere$ into the !inan#ial s stem an$ in$epen$entl %eri! the ban( a##ount or other pa ment $etails o! the supplier to ensure pa ments ma$e are to the #orre#t supplier The pur#hasin& $epartment will be noti!ie$ within <Insert time frame here! recommended one wee$> o! the new supplier bein& appro%e$

,upplier )ayment .erms

All pur#hases !rom suppliers must be supporte$ b a pur#hase or$er D re!er to the Pur#hasin& an$ =to#( #ontrol poli# Pa ment terms !or all suppliers must be re%iewe$ b <Insert relevant ob title here> e%er <Insert timing of review here! recommended at least once a year>. Followin& this re%iew ea#h supplier must be approa#he$ to see( impro%e$ pa ment terms b <Insert relevant ob title here> All supplier pa ment terms must be a minimum o! <Insert relevant payment terms! remember the longer the terms the more time you have to pay> An %ariation to the abo%e must be authorise$ b <Insert relevant ob title here> All supplier pa ments are to be re%iewe$ <Insert timing of review here! recommended at least once a quarter> to ensure that pa ment terms are a$here$ to" For pa ments ma$e to an suppliers earlier or later than the a&ree$ terms <Insert relevant ob title here> will prepare a report that $etails the reasons wh pa ment terms ha%e not been a$here$ to" This report will be re%iewe$ an$ authorise$ b <Insert relevant ob title here>

%dditional )olicies for ,uppliers

Pur#hasin& Poli# =to#( Control Poli#

Purchasin" Policy Policy Number: Einsert uni,ue number3 Policy Date: Einsert $ate o! poli# 3
This policy should be read and carried out by all staff. Edit this policy so it suits the needs of your business.

Purpose of the Policy

This poli# pro%i$es &ui$elines !or the pur#hase o! &oo$s* ser%i#es* e,uipment an$ assets !or the business" This poli# is appli#able !or all pur#hases o%er <insert maximum petty cash amount here! usually up to &'(( > .here items to be pur#hase$ are less than <insert maximum petty cash amount here! usually up to &'(( >* then the pett #ash poli# is to be use$"

Procedures -equest for )urchase

All pur#hases !or business items must be re,ueste$ throu&h a pur#hase or$er" All items o%er the %alue o! <insert amount here > must be supplie$ b authorise$ suppliers D re!er to the New =uppliers Poli# where the supplier is not an e)istin& supplier For items o%er the %alue o! <insert amount here > three ,uotations must be pro%i$e$" A re,uest !or pur#hase must a$$ress the !ollowin& #riteria' Pur#hasin& that promotes en%ironmental sustainabilit B Falue !or mone B an$ Pre!eren#e to AustralianAlo#all pro$u#e$"

All pur#hase or$ers must be authorise$ within the !ollowin& &ui$elines' Items Pur#hase$ Persons Authorise$ =e#on$ Authorisation Retail =to#( <insert relevant ob title here> <insert relevant ob title here> =pare parts* #omponents et#" E,uipment Assets <insert other types of purchases here> <insert relevant ob title here> <insert relevant ob title here> <insert relevant ob title here> <insert relevant ob title here> <insert relevant ob title here> <insert relevant ob title here> <insert relevant ob title here> <insert relevant ob title here>

All authorise$ pur#hase or$ers are to be #opie$ an$ one $istribute$ to a##ounts pa able with estimate$ pa ment $ate an$ one to <insert relevant ob title here> who will #he#( re#eipt o! pur#hase a&ainst the pur#hase or$er when re#ei%e$"

/quipment %sset )urchases

All e,uipment an$ asset pur#hases must be entere$ in the !inan#ial s stem b <insert relevant ob title here> with the !ollowin& $etails in#lu$e$' Date o! pur#haseB =upplierB an$ Ma(e* mo$el* warrant A&uarantee in!ormation"

,ervice %greements
All a&reements !or the pro%ision o! ser%i#es to the business in e)#ess o! <insert amount here > are to abi$e b this poli# "

Receipt of Purchases
All pur#hases re#ei%e$ are to be #he#(e$ a&ainst pur#hase or$er an$ note$ as #orre#tl supplie$" On#e #orre#t re#eipt has been re#or$e$* this will be re#or$e$ on pur#hase or$er an$ !orwar$e$ to a##ounts pa able !or pa ment o! pur#hase"

%dditional )olicies for )urchasing

Pett Cash Poli# Use o! :usiness Cre$it Car$ Poli# =to#( Control Poli#

!tock Control Policy Policy Number: <insert unique number> Policy Date: <insert date of policy>
This policy should be read and carried out by all staff. Edit this policy so it suits the needs of your business.

Purpose of the Policy

This poli# pro%i$es &ui$elines !or monitorin& an$ mana&in& the amount o! sto#( within the business to ensure that there are suitable le%els o! sto#( a%ailable to #ustomers at all times" This poli# #o%ers <insert what stoc$ this policy is intended to cover such as stoc$ in store! stoc$ in storage! stoc$ in distribution centre etc.> It is <insert relevant ob title here! recommended stoc$ manager> responsibilit to ensure that the sto#( #ontrol poli# is a$here$ to b all emplo ees"

Procedures )urchase of ,toc$

It is <insert relevant ob title here! recommended person responsible for buying stoc$> responsibilit to' I$enti! #ore sto#( an$ ensure that appropriate le%els are hel$ at all times Monitor all sto#( le%els an$ 4sto#( turns5 8how man times sto#( turns o%er in a ear9 For !ast+mo%in& sto#( ne&otiate with suppliers !or 4@ust in time5 $eli%eries where possible Re&ularl re%iew sales bu$&ets an$ or$er ne#essar sto#( in line with bu$&ets Ne&otiate with suppliers !or best pri#e* ,ualit * $eli%er metho$s an$ returns poli# Or$er all sto#( re,uire$ Maintain Gpre!erre$ suppliersH list

Ieep up to $ate with #ustomer an$ mar(et tren$s an$ see( out new pro$u#t !or re#ommen$ation to the <insert relevant ob title here! recommended stoc$ manager> Pur#hase o! all sto#( must be authorise$ b <insert relevant ob title here! recommended person responsible for buying stoc$> an$ <insert relevant ob title here! recommended stoc$ control manager> All sto#( pur#hases must be re,ueste$ b usin& a pur#hase or$er !orm an$ a$here to the pur#hasin& poli# "

-eceiving ,toc$
.hen sto#( is re#ei%e$ !rom the supplier* it is <insert relevant ob title here! recommended person stoc$ control manager> responsibilit to'

Re%iew $eli%ere$ items to $eli%er $o#(et* in#lu$in& ,uantit * ,ualit an$ #ompleteness o! or$er Mat#h $eli%er $o#(et to pur#hase or$er Follow up an$ ensure #orre#t sto#( or$er will be re#ei%e$ where there is <insert possible issues on delivery such as under0over1supply! damaged goods etc.> =tore the sto#( se#urel an$ in appropriate area Up$ate all sto#( re#or$s !or re#eipt o! &oo$s In!orm <insert relevant ob title here! such as sales manager> o! an un$erAo%er suppl or $ama&e$ &oo$s

2anaging ,toc$
It is <insert relevant ob title here! recommended person stoc$ control manager> responsibilit to' I$enti! #ore sto#( an$ ensure that appropriate le%els are hel$ at all times Monitor all sto#( le%els an$ sto#( turns Re&ularl re%iew sales bu$&ets an$ ensure that sto#( is or$ere$ in line with bu$&ets Un$erstan$ ea#h sto#( item D whi#h items are the !ast an$ slow mo%in& sto#( Monitor re+or$er le%els an$ ensure or$ers are pla#e$ in a$e,uate time to re$u#e non+ a%ailabilit o! #ore or ne#essar sto#( items Ensure that all sto#( items are pri#e$ in line with <insert relevant policy here! such as pricing or mar$1up policy> <insert required policy or procedure on mar$ downs and0or discounting stoc$>

Meet <insert timing here! such as wee$ly> with <insert relevant ob title here! recommended person responsible for buying stoc$> an$ <insert relevant ob title here! recommended person responsible for sales> to #o+or$inate sto#( pur#hases* re%iew sto#( per!orman#e* sales per!orman#e an$ <insert any other matters that should be addressed regularly in regards to monitoring stoc$> Ensure that all sta!! are aware o! new pro$u#t* pri#e #han&es an$ pro#e$ures !or a##urate re#or$in& o! all sto#( mo%ements Ensure that there are a$e,uate #ontrols 8ph si#al an$ a$ministrati%e9 in pla#e to minimise the!t an$Aor waste o! all sto#( items Or&anise an$ o%ersee ph si#al sto#( ta(e <insert timing here! recommended twice a year> an$ mat#h re#or$s o! sto#( ta(e to a$ministrati%e an$ !inan#ial re#or$s

It is all sales emplo ees5 responsibilit to'

I$enti! #ore sto#( an$ ensure that appropriate le%els are hel$ at all times Raise pur#hase or$ers !or low le%els o! sto#( A$here to <insert required policies or procedures such as mar$ downs policy! discounting stoc$ policy! visual display policy> Un$erstan$ the importan#e o! &oo$ sto#( #ontrol Ieep up to $ate with sto#( pri#in& an$ new pro$u#ts Ensure that all sto#( re#or$s are (ept a##uratel Ensure that all sto#( is se#urel store$ to minimise the!t an$ wasta&e

Additional Policies for Stock Control Policy

Pur#hasin& Poli# Finan#e Authorisation Poli# New =upplier Poli#

New Customer Policy Policy Number: Einsert uni,ue number3 Policy Date: Einsert $ate o! poli# 3
This policy should be read and carried out by all staff who are in ol ed in customer selection. Edit this policy so it suits the needs of your business.

Purpose of the Policy

All new #ustomers to the business must be re%iewe$ an$ a##epte$ in a##or$an#e with this poli# " This poli# is to be rea$ to&ether with Customer Cre$it Limits Poli# "

Procedures *hoosing a New *ustomer

A new #ustomer must support our business with <insert the priorities required from your customers! such as good credit quality! prompt payers! etc. > For ea#h new #ustomer the !ollowin& in!ormation table must be #omplete$ prior to a&reein& ser%i#es *ustomer #ac$ground Information :usiness Name o! Customer Lo#ation o! Customer

Pro$u#tsA=er%i#es re,uire$ b #ustomer 8 Atta#h a list i! ne#essar 9 Name o! business ownerA sales representati%e 6ow man ears has the #ustomer been tra$in&7

For ea#h new #ustomer bein& #onsi$ere$ the !ollowin& #he#(list must be #omplete$ *ustomer -eview 6a%e tra$e re!eren#es been sour#e$ !or the new #ustomer7 8Atta#h #opies9 6as the #ustomer been in!orme$ o! the tra$e terms o! <Insert payment terms here e.g. 3( days from invoice > an$ a&ree$ to these terms7 6as the new #ustomer #omplete$ a #re$it appli#ation !orm7 8Atta#h #omplete$ !orm9 6as the Personal Propert =e#urities Re&ister 8PP=R9" been re%iewe$ <insert additional information required to assist in the decision of appointing a new customer >

%ppointment of *ustomer
The appointment o! a new #ustomer will be authorise$ b <Insert relevant ob title here> Ea#h new #ustomer will ha%e a #re$it limit set" This #re$it limit will be set in a##or$an#e with the Customer Cre$it Limits poli# All new #ustomers must be &i%en the New Customer Letter whi#h must be si&ne$ an$ returne$ b the #ustomer be!ore an sales are to ta(e pla#e" All rele%ant $etails o! the new #ustomer will be entere$ into the !inan#ial s stem b <Insert relevant ob title here> on#e appro%al is obtaine$ !rom <Insert relevant ob title here> <Insert relevant ob title here> will re%iew in!ormation entere$ into the !inan#ial s stem to ensure all in!ormation is #orre#t" The sales $epartment will be noti!ie$ within <Insert time frame here! recommended one wee$> o! the new #ustomer bein& appro%e$

Customer Credit Terms

All #ustomer pa ment terms must be <Insert relevant payment terms! remember the shorter the term the quic$er you get paid> .here a #ustomer has re,ueste$ lon&er pa ment terms than the poli# * this shoul$ be re!erre$ to an$ authorise$ b <Insert relevant ob title here>

All #ustomer pa ments are to be re%iewe$ <Insert timing of review here! recommended at least once a quarter> to ensure that pa ment terms are a$here$ to" For pa ments ma$e outsi$e o! the a&ree$ terms <Insert relevant ob title here> will prepare a report that $etails the reasons wh pa ment terms ha%e not been a$here$ to" This report will be re%iewe$ an$ authorise$ b <Insert relevant ob title here>

Additional Policies for Customers

Customer Cre$it Limits Poli# Customer Debt Colle#tion Poli# Customer =er%i#e Poli#

Customer Credit #imit Policy Policy Number: <insert unique number> Policy Date: <insert date of policy>
This policy should be read and carried out by all staff if customer credit limits are breached. Edit this policy so it suits the needs of your business.

Purpose of the policy

This poli# is to ma(e sure a #ustomer $oesn5t &et too !ar into $ebt with ou without a pa ment plan bein& put into pla#e or wor( stoppe$"

Procedures
Reports on #ustomer #re$it must be run e%er <insert time here! at least monthly is recommended> .hen a #re$it limit is brea#he$ all rele%ant sta!! will be noti!ie$" This in#lu$es <insert relevant ob titles here e.g. sales! distribution! accounts collection> An #urrent outstan$in& or$ers shoul$ be stoppe$ until the brea#h in the #re$it limit has been re#ti!ie$" All sta!! wor(in& on the or$er or sale <insert other relevant ob titles here e.g. sales! distribution! accounts collection> !or the #ustomer shoul$ not #arr out !urther wor( until authorise$ b <insert relevant ob titles or authorised persons name here e.g. accounts collection! manager etc.>"

-eview outstanding orders and sale history

I! the #ustomer has a lar&e number o! or$ers outstan$in& or has in#rease$ the %olume o! or$ers sin#e the last #re$it re%iew* then a re%iew o! the #re$it limit must be un$erta(en" This is the responsibilit o! <insert relevant ob title here> I! the #re$it limit nee$s to be in#rease$* this must be appro%e$ b <insert relevant ob title here>. On#e this has been appro%e$* all sta!! wor(in& on outstan$in& or$ers must be noti!ie$ to restart the #ustomer5s or$ers"

*redit limit is breached due to outstanding payments

<Insert relevant ob title here> must ma(e a list o! all outstan$in& pa ments" <Insert relevant ob title here> must rin& the #ustomer an$ e)plain that !urther or$ers #annot be pro#esse$ until the a##ount has been pai$" E)plain that a pa ment will nee$ to be ma$e be!ore the ne)t or$er #an be pro#esse$" I! the #ustomer is ha%in& $i!!i#ult * ma(e a s#he$ule o! pa ments to brin& them ba#( in line with their #re$it limit" Jet the si&no!! o! <insert relevant ob title here> be!ore $is#ussin& this option with the #ustomer" Use the !ollowin& s#ript to assist with the #all'
!"i #ohn, how are you$ #ust thought % would gi e you a ring about your outstanding orders. &nfortunately we ha e noticed that payments for pre ious sales ha e fallen behind on your account and these will need to

be paid for before we can process the ne't set of orders. (re you able to fi' this up today so we can continue on your order$)

I! the #annot pa on the $a o! the phone #all* then &et an e)pe#te$ pa ment $ate !rom them an$ #on!irm that an outstan$in& or$ers #annot start until the pa ment is ma$e"

Review payment terms for the customer

I! the #ustomer has in#rease$ the %olume or %alue o! or$ers sin#e the last #re$it re%iew* the pa ment terms must also be re%iewe$ b <insert relevant ob title here>. .here lar&e or$ers are bein& pla#e$ then the pa ment terms shoul$ in#lu$e $eposit on or$er an$Aor pro&ressi%e pa ments !or ea#h or$er" This must be $is#usse$ an$ a&ree$ with the <insert ob title of person responsible for collecting payments from the customer>.

Customer Debt Collection Policy Policy Number: <insert unique number> Policy Date: <insert date of policy>
This policy should be read and carried out by all staff who undertake collection procedures within the business. Edit this policy so it suits the needs of your business. *or phone and email templates to assist you with your debt reco ery process isit the +usiness ,ictoria -ebt Reco ery page.

Purpose of the Policy

This poli# pro%i$es &ui$elines !or the #olle#tion o! late pa ments !rom #ustomers"

Procedures
An a&in& $ebtor report <or insert name of customer outstanding payments report here > is to be run e%er <insert timing here! recommended once a wee$ >. All o%er$ue #ustomer pa ments are to be note$ an$ the !ollowin& pro#e$ures un$erta(en until re#o%er o! outstan$in& amounts" -" 4irst *ontact: On#e the pa ment is o%er$ue phone or email the #ustomer" Remin$ them that pa ment is $ue an$ has not been re#ei%e$" As( them when the will be pa in& ou an$ (eep a re#or$ o! the #on%ersation or email" Remember to be ni#e* the ma ha%e !or&otten or pai$ into the wron& ban( a##ount" "verdue reminder: I! the $o not respon$ to the phone #all or email* tr #onta#tin& someone else in the business" Let them (now who ou are tr in& to #onta#t" This o!ten results in a return response !rom either the person ou were tr in& to #onta#t or someone else !rom the business" Ma(e a note o! all #on%ersation $etails on the o%er$ue #ustomer pa ment re#or$" 4inal notice: .hen a pa ment is o%er$ue !or <insert number of days here > a !inal noti#e is to be sent either b phone or email" A re#or$ o! this noti#e must be entere$ onto the o%er$ue #ustomer pa ment re#or$ Direct contact: .here there has been no response to the !inal noti#e within <insert number of days here > then <insert relevant ob title here> must either %isit the #ustomer or phone where pre%ious #onta#t has been b email" The purpose o! this step is to se#ure a $ate o! pa ment" A re#or$ o! this noti#e must be entere$ onto the o%er$ue #ustomer pa ment re#or$" 4ormal letter of demand: .here pa ment remains outstan$in& <insert number of days here > an$ there has been an unsatis!a#tor response !rom the #ustomer* authorisation !rom <insert relevant ob title here> !or the !ormal letter o! $eman$ to be issue$ must be obtaine$" On#e authorise$ this letter is to be sent %ia re&istere$ mail an$ a re#or$ o! this noti#e must be entere$ onto the o%er$ue #ustomer pa ment re#or$" Debt collection agency: .here the amount outstan$in& is in e)#ess o! <insert amount here >an$ <insert relevant ob title here> has appro%e$* a $ebt #olle#tion a&en# is to be appointe$ to re#o%er the $ebt" 5rite off debt: Customer pa ments that remain outstan$in& !or <insert number of days here > are to be written o!! as ba$ $ebts an$ no !urther sales are to be un$erta(en with that #ustomer without appro%al !rom <insert relevant ob title here>.

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This procedural diagram can replace or complement the se en steps outlined abo e if you think a diagram is easier to use for your staff.