Accounts Payable and Receivable SOP

This detailed SOP provides finance professionals with a comprehensive framework for managing accounts payable and receivable processes.
It includes:
- Step-by-Step Process Flow: Covers essential subprocesses such as Invoice Processing, Payment Reconciliation, and Accounts Receivable Management, with clear actions, decision points, and error-handling procedures to ensure smooth financial transactions.
- Risk Management: Identifies potential risks like invoice errors, payment delays, and non-compliance, with mitigation strategies to maintain process integrity and reduce financial risk.
- Compliance and Regulatory Requirements: Ensures adherence to key regulations, including GDPR and FCA guidelines, safeguarding financial data and maintaining legal compliance across all processes.
- Key Performance Indicators (KPIs) and Controls: Defines metrics such as processing efficiency and discrepancy resolution, with controls like checklists and automated reminders to enhance performance and accuracy.
- RACI Framework: Clarifies roles and responsibilities, ensuring that invoice processors, accounts payable managers, finance officers, and stakeholders are accountable and actively involved at every stage of the process.
- Systems Requirements: Outlines necessary tools such as an Invoice Management System, Reconciliation Tool, and Accounts Receivable Software to streamline operations, improve collaboration, and ensure data security.
- Appendices: Includes practical resources such as checklists, template emails, and case studies to support efficient execution of the processes and provide real-life examples for better understanding.