Accounting procedure

An accounting procedure is a standardized process that is used to perform a function within the accounting department. Examples of accounting procedures are:

  • Issue billings to customers
  • Pay invoices from suppliers
  • Calculate payroll for employees
  • Calculate depreciation for fixed assets
  • Derecognize fixed assets
  • Conduct a bank reconciliation

An accounting procedure is designed to complete a function efficiently, while incorporating sufficient controls to mitigate the risk of loss. A procedure can also be developed as a training tool for employees, who can peruse the document to gain an understanding of a new job.