Ref.

No: ESCL-SOP-007

EGBA SPLIT-CLAMPS LIMITED

Accounts Procedure

Rev. No: 00
Issue Date:12th Nov, 2012
Page 1 of 5

ACCOUNTS PROCEDURE

APPROVAL AND REVISION STATUS

Rev. No.

Issue Date

Revision

00

12/11/2012

Identification
First Issue

Prepared by

Reviewed

Approved by

Admin
Manager

by
Commercial
Manager

Managing
Director

EGBA SPLIT-CLAMPS LIMITED

Ref. No: ESCL-SOP-007

Accounts Procedure

Rev. No: 00
Issue Date:12th Nov, 2012
Page 2 of 5

CHANGE (S)/AMENDMENT (S)

The change(s)/amendment(s) noted below have been made and approved by the
Managing Director for issue.

Change/Amendment No.

Date

Page

Description of Change/Amendment

EGBA SPLIT-CLAMPS LIMITED

Ref. No: ESCL-SOP-007

Accounts Procedure
1.0

Rev. No: 00
Issue Date:12th Nov, 2012
Page 3 of 5

PURPOSE
This procedure provides methods and responsibilities for finance and accounting
processes within ESCL in order to ensure systematic and efficient service delivery.

2.0

SCOPE
This procedure is applicable to all accounting and financial transactions in ESCL.

3.0

REFERENCES
NIS ISO 9001: 2008, Quality Management Systems-Requirements.
NIS ISO 9000: 2005, Quality Management Systems- Fundamentals and Vocabulary in
ESCL Quality Manual (ESCL-QM-001)
Form 111, Cash Request

4.0

TERMS AND DEFINITIONS

The following terms and definitions and the ones given in ESCL Quality Manual and NIS
ISO 9000: 2005 apply:

4.1

ESCL: Egba Split-Clamps Limited.

4.2

ISO: International Organization for Standardization.

4.3

NIS: Nigeria Industrial Standard.

5.0

RESPONSIBILITIES AND AUTHORITY

5.1

Managing Director, Admin Manager: Authorization of payment requisition (I.O.U,

Statement of Expenses).

5.2

Admin Manager, Accounts Officer: Invoicing, recording and reporting of accounting

transactions and bank reconciliations.

5.3

Accounts Officer: Receipt and disbursement of cash and other payments.

6.0

PROCEDURE

6.1

Accounting System

6.1.1 The accounting system in the company is built around specific books of accounts
maintained for accounting purposes.
6.1.2 These include:
a)

Journal: For recording all cash and cheque activities on a daily basis.

b)

Vouchers: The vouchers maintained include cash and cheque deposit and
receipt.

d)

General Ledger: The General Ledger includes bank expense ledger for all
cheques that are issued and cash expense ledger for cash expenses.

EGBA SPLIT-CLAMPS LIMITED

Accounts Procedure
6.2

Ref. No: ESCL-SOP-007

Rev. No: 00
Issue Date:12th Nov, 2012
Page 4 of 5

Invoicing and Follow-up

6.2.1 Invoice to clients for completed jobs (sales) or milestone thereof is carried out in

accordance with the contract requirements.

6.2.2 Invoices are processed as soon as the job (order) is completed in accordance with the
terms of the contract.
6.2.3 All necessary information (e.g. customer Job Order) are attached and dispatched to
customer promptly to ensure the due date is taken advantage.
6.2.4 Follow up is carried out to ensure that invoices are processed, all necessary enquiries
from customers are delivered and that payment is made promptly.
6.2.5 Regular update of records as to statement of accounts with each client company is
maintained(age analysis).
6.3

Cash Payment

6.3.1 Expenses request (IOU, Statement of Expenses) is completed by the staff that needs
the money for his/her operations.
6.3.2 Such request is appropriately approved for payment purposes.
6.3.3 Approved request is presented to the Accounts Officer who is responsible for cash
payments.
6.3.4 Cash payment voucher is raised and maintained for each payment.
6.3.5 Monies requested and paid through IOU are seen as advance payment that need to be
retired with minimum of delay with supporting documents/receipts and return of any
surplus, if any.
6.4

Cheque Payment

6.4.1 The Managing Director or Admin Manager determines payment to be made by cheque
6.4.2 Cheque is prepared, stamped and approved as appropriate. Where appropriate,
confirmation letters are made to the bank.
6.4.3 Cheque payment voucher is prepared and maintained for each cheque payment. The
voucher is signed by the recipient as evidence of receipt. In addition, an
acknowledgment is made in the photocopy of the cheque by the recipient.
6.4.4 The Managing Director and Admin Manager and Accounts Officer ensures that cheque
books, cheque vouchers and cheque stubs are safeguarded against loss.
6.5

Bank Transactions

6.5.1 All cheque and cash received are lodged into the company bank. The records of such
lodgments are maintained.

EGBA SPLIT-CLAMPS LIMITED

Accounts Procedure

Ref. No: ESCL-SOP-007

Rev. No: 00
Issue Date:12th Nov, 2012
Page 5 of 5

6.5.2 Cheques are raised for withdrawal of cash when needed by the company either for imprest
or execution of job. Records of all funds received through banks and other sources are
maintained.
6.6

Bank Reconciliation

6.6.1 Bank statements are collected at the end of every month and at any other time when the
need arises.
6.6.2 Bank reconciliation statement is prepared each month considering the effect of bank
cheques (uncredited and unpresented cheques), bank charges, and any other transactions
as to confirm the balance between the accounts records and that of the bank as at the close
of business on the last day of each month.
6.7

Payment of Creditors
Upon necessary authorization, the creditors are paid through cheque or cash.

6.8

Salary Payment
Records of staff salary payment are maintained as appropriate.

6.9

Fixed Asset Register

Record of company fixed assets is maintained and updated as appropriate. It contains the
following as appropriate:
Description of asset;
Location;
Depreciation:
Depreciation value;
Date of acquisition;
Cost of acquisition.

6.10

Statutory Returns
Statutory returns such as PAYE, Company Income Tax and other Federal and State levies
are compiled and remited accordingly.

7.0

RECORDS

7.1

Cash Requisition

7.2

Creditors and Debtors Analysis Records

7.3

Project Profitability Analysis

7.4

Bank reconciliation record

7.5

Fixed Asset Register

7.6

Statutory Returns

7.7

Salary records

7.8

Payment Voucher