This Journal Entry Policy is designed to enhance the accuracy and integrity of financial reporting. With clear standards for preparing, reviewing and authorizing journal entries, this policy ensures compliance with accounting principles and fosters a culture of accountability and transparency. Implementing these guidelines will help mitigate the risks associated with manual entries, ultimately contributing to more reliable financial statements. It is an essential resource for finance professionals seeking to streamline their processes and maintain rigorous documentation practices.

This document contains four samples that illustrate various aspects of journal entry management. Sample 1 outlines the fundamental procedures for initiating and authorizing journal entries, emphasizing the importance of supporting documentation and segregation of duties. Sample 2 delves into the review process for non-routine journal entries, detailing the necessary oversight required to ensure accuracy. Sample 3 highlights the potential errors in manually entered journal entries and the importance of independent reviews for certain transactions. Sample 4 provides an overview of the manual journal entry process, including the roles and responsibilities of preparers and reviewers, ensuring that all entries conform to established financial policies. Together, these samples offer invaluable insights into best practices for effective journal entry management.

Sample procedures include:

• A standard format template should be completed for each journal entry by the preparer.
• Approved journal entries should be recorded on a timely basis.
• Manual journals based on judgment or subjectivity should be reviewed in full by an independent person, irrespective of their financial value.
• Journal entries should conform to GAAP and financial policies.