The back office.
WHY IT MATTERS
These processes are frequently held by one person and they are where money moves.
WHAT TO DOCUMENT
How invoices are raised and sent How payments are received and recorded How suppliers are paid and approved How payroll is run How statutory filings are made Month-end and year-end procedures Bank reconciliation
WHY FILINGS AND YEAR-END SPECIFICALLY
They are annual, and nobody remembers how.
WHAT TO RECORD FOR EACH
The steps The deadlines Who authorises what What the system references are Who to contact externally
WHY AUTHORISATION LIMITS
They are the control, and they must survive the person who knows them.
WHAT TO DOCUMENT ABOUT THE ACCOUNTING SYSTEM
How it is accessed How transactions are coded What reports are produced and for whom Who has what rights
WHY CODING SPECIFICALLY
Inconsistent coding makes reports meaningless.
WHAT TO RECORD ABOUT EXTERNAL PARTIES
Accountant, auditor, tax adviser, bank contacts and their details.
WHAT TO ESTABLISH
That someone other than the person performing them understands these processes.
WHY
It is both a continuity requirement and a control.
WHAT TO AVOID
One person controlling the entire financial process undocumented.
WHY
It is the classic condition for both disruption and fraud.
WHAT TO REVIEW
Whether another person could actually run them from the documentation.
HOW TO TEST
Have them do it, once.
