You Need An SOP For Your SOPs
I had been told that the training procedure with cats was difficult.
It's not. Mine had me trained in two days. — Bill Dana
::Together With Financial Cents::
Billing and Proposals is live in both the US and Canada now. Imagine the freedom of integrating this directly into your workflow!
Documented standard Operating Procedures (SOPs) and workflows are key to running an efficient and consistent firm. They also create freedom for owners through delegation and are critical for contingency planning. But many folks are building them in the wild with no framework for why they exist and how they need to be structured. The line between SOP and workflow is hard to distinguish - what information goes into which format is often challenging to decide.
Why you need SOPs and workflows
Compliance & risk management
Meet industry regulations and avoid compliance issues
Consistency & accuracy
Ensures every team member follows the same process, reducing errors and discrepancies
Contingency planning
Allows transfer of knowledge in the case of emergencies
Efficiency & productivity
Streamlines tasks and eliminates redundancies, resulting in time and frustration savings
Freedom from doing the work
Proper documentation allows for delegation
Improved client experience
Delivered high-quality service with predictable and reliable processes
Information distribution
Everything is accessible and searchable
Scalability
Well-documented processes make it easier to onboard new clients and employees
SOPs vs workflows
One way to keep yourself on track with what an SOP is and what is a workflow is to consider “clutterfests”. At what point does information overload occur in a SOP or workflow, creating confusion and overwhelm for the user?
Examples of workflows
Milestones of work
Tasks that need to be done
Subtasks for the tasks
Basic descriptions for tasks and subtasks
Automation
Dependancies
Links to SOPs, videos and internal resources
Examples of standard operating processes
Chart of Accounts numbering and naming systems
Gas/fuel, automobile/vehicle, tip/gratuity…
Details of tasks and transactions that are not often performed
Uncleared payments and paychques - this may go in some client-specific workflows, but likely not all
Bad debt - this may go in a quarter or year-end workflow, but not usually a weekly or monthly one
Links to SOPs, videos and external resources
Reporting naming conventions and standard ones to produce, along with how they are filed and sent to clients (although this may vary by client)
Technology best practices, how tos and support links
Eight-Step guide to creating SOPs and workflows
One: Identify key processes and segment them
Start by listing all major processes in your firm.
Admin:
Client onboarding
Employee onboarding
Client work:
Bookkeeping and reconciliation
Tax preparation and filing
Payroll processing
Monthly and year-end closing procedures
Marketing:
Social media
Website
Blogs and email campaigns
Of course, there are more segments. Consider who does the work, when it needs to be done, and whether it is internal or client-facing.
Two: Define the desired outcomes for each segment, SOP item and associated workflow
Three: Document each process clearly
For each process, break it down into a defined structure.
Process name
Objective
Roles & responsibilities
Tools & software
Four: Choose the right format and technology
You could keep it simple by using Docs, Spreadsheets, Slides and such
Set up a Table of Contents and Indexes for easy searchability
There is a ton of technology to create SOPs like Notion, Trainual and even hidden website pages
Use accounting and practice management tools like Financial Cents to streamline your processes and workflows, add resources and keep your clients and team on track.
We have an “ SOP client” in Financial Cents that has our most-used SOPs as notes (like COA naming/numbering) and direct links to our robust SOP pages, videos and outside resources
Five: Test and optimize your SOPs
Once created, test your SOPs with your team. Look for gaps, inefficiencies, or unclear instructions. Get feedback and refine the document.
Optimize before automating (although workflows would be where automation would usually live)
An automation built on lousy systems accelerates lousy outcomes
Six: Tie each section of your SOPs to the related workflows
We do this in the Financial Cents resources section of our workflows
Seven: Train your team & enforce adoption
A documented process is only useful if your team follows it.
Conduct training sessions
Create accountability measures
Ensure everyone understands the importance of SOPs
I can not overstate reinforcing the benefits to your team of why and how you do the things you do
Eight: Review & update regularly
SOPs should be living, breathing documents. Set a schedule to review them quarterly or during periods of change to ensure they stay relevant with industry changes and firm growth.
Always be iterating!
Well-defined SOPS and workflow systems are critical for accounting firms, enhancing consistency, compliance, and efficiency, leading to happier clients and a calmer, more productive team.
A quick thought on not letting starting be the thing that stops you: you don’t have to do it all at once. Pick off the most important ones, document as you go, video yourself and transcribe processes to get moving on documenting SOPs and workflows in your firm.
🎯 If you are stuck, may I humbly suggest you start with my Standard Operating Process Template.
And don’t forget, Financial Cents has a template library created by accounting professionals!
Kellie :-}
