FINANCIAL POLICY AND PROCEDURE

MANUAL TEMPLATE
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Who s houl d us e t hi s t empl at e?
All small business operators who emplo one or more sta!!"
Why us e a pol i cy and pr ocedur e manual ?
This !inan#ial poli# an$ pro#e$ure manual is !or the small business operator an$ their
emploees"
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 $e#isions
helps &i%e ea#h emploee a #lear un$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$$s to the pro!essionalism o! our business"
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You #an #ustomise these i! ou wish* !or e)ample* b a$$in& or remo%in& topi#s"
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Ot her t i ps
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$ onl5 in the !ooter to remin$ the
rea$er the mi&ht be usin& an out+o!+$ate #op" 8The 4Last printe$5 $ate
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simple senten#es an$ plain En&lish to re$u#e the #han#e an emploee or
mana&er will be #on!use$ about the intent o! our poli# or the wa to #arr out a
pro#e$ure"
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Disclaimer
The information in this publication is for general guidance only. The State of Victoria does not make any
representations or warranties (expressed or implied) as to the accuracy, currency or authenticity of the
information. The State of Victoria, its employees and agents do not accept any liability to any person for
the information or advice given in this document. Authorised by the Victorian Government, 121
Exhibition Street, Melbourne, 3000. Department of State Development, Business and Innovation 2013.
FINANCE POLICY AND PROCEDURE
MANUAL
Table of Contents
Finan#e Authorisation Poli#"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 1
:an( A##ount Poli#""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 2
Pett Cash Poli#""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ;
Use o! :usiness Cre$it Car$ Poli#"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" <
New =upplier Poli#""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" >
Pur#hasin& Poli#""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" -/
=to#( Control Poli#""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" -1
New Customer Poli#""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" -;
Customer Cre$it Limit Poli#"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" /?
Customer Debt Colle#tion Poli#"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" //
Introduction
The Instyle Group Finan#ial Poli# an$ Pro#e$ure Manual pro%i$e 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 Instyle Group will use to a$minister these poli#ies* with the #orre#t pro#e$ure to !ollow"
Instyle Group 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$$ new
pro#e$ures"
An su&&estions* re#ommen$ations or !ee$ba#( on the poli#ies an$ pro#e$ures in this manual are
wel#ome"
These poli#ies an$ pro#e$ures appl to all emploees"
Fi nance Aut hor i sat i on Pol i cy
Policy Number: IG!!
Policy Date: " #uly$ %!&
This policy should be read and carried out by all staff for all authorisations of finance transactions
as noted in the policy. Edit this policy so it suits the needs of your business.
Pur pos e of t he Pol i cy
All !inan#e transa#tions as note$ in this poli# are to be authorise$ b the note$ authorise$ person
prior to the transa#tion bein& un$erta(en"
This poli# is to be rea$ in #on@un#tion with other spe#i!i# !inan#e poli#ies where rele%ant"
Pr ocedur es
Prior to an o! the !ollowin& !inan#e transa#tions bein& un$erta(en* the authorisin& person note$
must authorise the transa#tion"
.here a$$itional poli# is note$* this poli# must also be a$here$ to when un$erta(in& the !inan#e
transa#tion"
Finan#e Transa#tion Authorise$ Person A$$itional Poli#
:an( A##ounts <insert relevant 'ob title here> <insert policy name$ or
number here>
Issuin& Pett Cash <insert relevant 'ob title here> <insert policy name$ or
number here>
:usiness Cre$it Car$ <insert relevant 'ob title here> <insert policy name$ or
number here>
Authorisin& New
Customers
<insert relevant 'ob title here> <insert policy name$ or
number here>
Authorisin& New
=uppliers
<insert relevant 'ob title here> <insert policy name$ or
number here>
Pur#hasin& =to#( <insert relevant 'ob title here> <insert policy name$ or
number here>
Pur#hasin& AssetsA
E,uipment
<insert relevant 'ob title here> <insert policy name$ or
number here>
Debt Colle#tion <insert relevant 'ob title here> <insert policy name$ or
number here>
Pament o! In%oi#es <insert relevant 'ob title here> <insert policy name$ or
number here>
<insert other finance
transactions here>
<insert relevant 'ob title here> <insert policy name$ or
number here>
Bank Account Pol i cy
Policy Number: <insert uni(ue 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.
Pur pos e of t he Pol i cy
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"
Pr ocedur es
)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 sstem 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 pament
metho$* there must be <insert number of persons to authorise payments$ recommended
two> persons authorisin& !or ea#h pament"
The authorise$ persons !or ban( a##ount paments are'
<insert relevant 'ob title here>
<insert relevant 'ob title here>
<insert relevant 'ob title here> etc.
Ea#h pament 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 pament"
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 sstem 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 sstem 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 sstem
.here a pament 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 #arrin& out the !ollowin& $uties in re&ar$s
to pament 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 pament usin& appropriate !orms !rom the ban(B
ensurin& the ban( re#ei%es noti!i#ation o! the stop pament noti#eB
re#ei%in& #on!irmation o! a#tion !rom the ban( o! the stop pamentB an$
ensurin& the $etails o! the stop pament are (ept in the stop pament !ol$er"
Pet t y Cash Pol i cy
Policy Number: <insert uni(ue 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.
Pur pos e of t he Pol i cy
Pett #ash shoul$ be use$ to pa !or small business e)penses up to <insert maximum amount
here$ usually up to -!! > where paments throu&h a##ounts paable or #re$it #ar$ are not
@usti!ie$ or appropriate
Pr ocedur es
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 sstem 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 Busi ness Cr edi t Car d Pol i cy
Policy Number: <insert uni(ue 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.
Pur pos e of t he Pol i cy
This poli# pro%i$es &ui$elines !or the issue an$ use o! business #re$it #ar$s"
Pr ocedur es
An emploee 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 - 0!!
>
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 paments 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 pament 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 emploee o! the business"
New !uppl i er Pol i cy
Policy Number: <insert uni(ue number>
Policy Date: <insert date of policy>
This policy should be read and carried out by all staff who are inoled in supplier selection. Edit
this policy so it suits the needs of your business.
Pur pos e of t he Pol i cy
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"
Pr ocedur es
/hoosing a New 1upplier
A new supplier must pro%i$e our business with <insert the priorities re(uired from your
suppliers$ such as (uality 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
1upplier 1election *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#essar9
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$
1upplier 1election 2eview
Is the supplier pri#in&
#ompetiti%e7 Atta#h list to
this #he#(list
.hat are the pament 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$ustr7
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 re(uired to
assist in the decision of
appointing a new supplier
>
,ppointment of 1upplier
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 sstem 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 sstem an$
in$epen$entl %eri! the ban( a##ount or other pament $etails o! the supplier to ensure paments
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$
1upplier .ayment 3erms
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#
Pament 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$ pament terms b <Insert relevant 'ob title here>
All supplier pament 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 paments are to be re%iewe$ <Insert timing of review here$ recommended at least
once a (uarter> to ensure that pament terms are a$here$ to" For paments 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 pament 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 1uppliers
Pur#hasin& Poli#
=to#( Control Poli#
Pur chasi n" Pol i cy
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.
Pur pos e of t he Pol i cy
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$"
Pr ocedur es
2e(uest 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 sustainabilitB
Falue !or moneB 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#"
<insert relevant 'ob title here> <insert relevant 'ob title here>
E,uipment <insert relevant 'ob title here> <insert relevant 'ob title here>
Assets <insert relevant 'ob title here> <insert relevant 'ob title here>
<insert other types of
purchases 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 paable with
estimate$ pament $ate an$ one to <insert relevant 'ob title here> who will #he#( re#eipt o!
pur#hase a&ainst the pur#hase or$er when re#ei%e$"
4(uipment ,sset .urchases
All e,uipment an$ asset pur#hases must be entere$ in the !inan#ial sstem b <insert relevant
'ob title here> with the !ollowin& $etails in#lu$e$'
Date o! pur#haseB
=upplierB an$
Ma(e* mo$el* warrantA&uarantee in!ormation"
1ervice ,greements
All a&reements !or the pro%ision o! ser%i#es to the business in e)#ess o! <insert amount here >
are to abi$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 paable !or pament o! pur#hase"
,dditional .olicies for .urchasing
Pett Cash Poli#
Use o! :usiness Cre$it Car$ Poli#
=to#( Control Poli#
!t ock Cont r ol Pol i cy
Policy Number: <insert uni(ue 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.
Pur pos e of t he Pol i cy
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 emploees"
Pr ocedur es
.urchase of 1toc+
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$here to the
pur#hasin& poli#"
2eceiving 1toc+
.hen sto#( is re#ei%e$ !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 under5over6supply$ 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$s
7anaging 1toc+
It is <insert relevant 'ob title here$ 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+6up policy>
<insert re(uired policy or procedure on mar+ downs and5or 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$e,uate #ontrols 8phsi#al an$ a$ministrati%e9 in pla#e to minimise
the!t an$Aor waste o! all sto#( items
Or&anise an$ o%ersee phsi#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$s
It is all sales emploees5 responsibilit to'
I$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 re(uired 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 Cust omer Pol i cy
Policy Number: Einsert uni,ue number3
Policy Date: Einsert $ate o! poli#3
This policy should be read and carried out by all staff who are inoled in customer selection. Edit
this policy so it suits the needs of your business.
Pur pos e of t he Pol i cy
All new #ustomers to the business must be re%iewe$ an$ a##epte$ in a##or$an#e with this poli#"
This poli# is to be rea$ to&ether with Customer Cre$it Limits Poli#"
Pr ocedur es
/hoosing a New /ustomer
A new #ustomer must support our business with <insert the priorities re(uired from your
customers$ such as good credit (uality$ 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#essar9
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 2eview
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$e terms o! <Insert
payment terms here e.g. "!
days from invoice > an$ 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
re(uired 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 sstem 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 sstem 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 pament terms must be <Insert relevant payment terms$ remember the shorter
the term the (uic+er you get paid>
.here a #ustomer has re,ueste$ lon&er pament terms than the poli#* this shoul$ be re!erre$ to
an$ authorise$ b <Insert relevant 'ob title here>
All #ustomer paments are to be re%iewe$ <Insert timing of review here$ recommended at least
once a (uarter> to ensure that pament terms are a$here$ to" For paments ma$e outsi$e o! the
a&ree$ terms <Insert relevant 'ob title here> will prepare a report that $etails the reasons wh
pament terms ha%e not been a$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#
Cust omer Cr edi t #i mi t Pol i cy
Policy Number: <insert uni(ue 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.
Pur pos e of t he pol i cy
This poli# is to ma(e sure a #ustomer $oesn5t &et too !ar into $ebt with ou without a pament
plan bein& put into pla#e or wor( stoppe$"
Pr ocedur es
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.>"
2eview 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& paments"
<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$" E)plain that a pament will nee$ 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! paments 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 gie you a ring about your outstanding orders. &nfortunately
we hae noticed that payments for preious sales hae 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 $a o! the phone #all* then &et an e)pe#te$ pament $ate !rom them an$
#on!irm that an outstan$in& or$ers #annot start until the pament 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
pament terms must also be re%iewe$ b <insert relevant 'ob title here>.
.here lar&e or$ers are bein& pla#e$ then the pament terms shoul$ in#lu$e $eposit on or$er
an$Aor pro&ressi%e paments !or ea#h or$er" This must be $is#usse$ an$ a&ree$ with the <insert
'ob title of person responsible for collecting payments from the customer>.
Cust omer Debt Col l ect i on Pol i cy
Policy Number: <insert uni(ue 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 recoery process isit the +usiness ,ictoria -ebt Recoery page.
Pur pos e of t he Pol i cy
This poli# pro%i$es &ui$elines !or the #olle#tion o! late paments !rom #ustomers"
Pr ocedur es
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$ue #ustomer paments
are to be note$ an$ the !ollowin& pro#e$ures un$erta(en until re#o%er o! outstan$in& amounts"
-" 8irst /ontact: On#e the pament is o%er$ue phone or email the #ustomer" Remin$ them that
pament is $ue an$ has not been re#ei%e$" As( them when the will be pain& ou an$ (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 trin& to #onta#t" This o!ten results in a
return response !rom either the person ou were trin& to #onta#t or someone else !rom the
business" Ma(e a note o! all #on%ersation $etails on the o%er$ue #ustomer pament re#or$"
0" 8inal notice: .hen a pament is o%er$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$ue
#ustomer pament re#or$
1" 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 $ate o!
pament" A re#or$ o! this noti#e must be entere$ onto the o%er$ue #ustomer pament re#or$"
2" 8ormal letter of demand: .here pament 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$ue #ustomer pament re#or$"
K" 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 $ebt"
;" 9rite off debt: Customer paments that remain outstan$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>.
This procedural diagram can replace or complement the seen steps outlined aboe if you think a
diagram is easier to use for your staff.