What are Financial & Accounting Policies?
Financial and accounting policies are the procedures and guidelines followed by your company to prepare and report financial statements.
Financial and accounting policies are a set of standards, methods and measurement systems that govern the preparation and reporting of your company’s financial information. These policies area approved by your management team and developed for a long term, reflecting your company’s values and ethics. These are usually included in the notes that accompany your financial statements.
- Revenue Recognition: Process of recognizing your company’s revenue, including advance payments or receipts for products or services that have not been delivered (deferred revenue)
- Doubtful Debts Allowances: Policies used to determine the value of your company’s revenue or loans provided to third parties that are unlikely to be collected
- Fixed Asset Depreciation: Process of calculating the annual depreciation of your company’s fixed assets, including rate of depreciation and expected lifetime of fixed assets
- Employees’ Benefits: Procedure of creating and maintaining a reserve to distribute your employees’ benefits and incentive plans such as leave encashment
- Budgeting: Processes related to finalizing the budget required to meet your company’s monthly, quarterly and annual growth plans
- Investment and Hedging Policies: Process of reviewing and approving investments in or by your company and protecting your interests against market risks such as currency fluctuations