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.