Tips to Building Effective Accounting Workflows and SOPs

In finance and accounting, small process gaps create large downstream problems. Missed approvals, inconsistent treatments, and undocumented steps rarely fail all at once. They fail little by little, then compound. 

Accounting workflows and standard operating procedures (SOPs) exist to prevent this from happening.

Workflows define how work moves from one task to the next, while SOPs explain how each task must be done. Together, they guide finance and accounting professionals through completing their work with utmost accuracy. 

As one of the directors of D&V Philippines’ global operations, I've seen firsthand how some of our new clients struggled due to a lack of structure and clear accounting processes. These situations create an opportunity for our team to review their workflows and standardize processes through clear SOP documentation. 

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Why unstructured accounting processes fail 

Through the years, we’ve onboarded new clients without clear accounting processes. Often, these are the same clients who struggle the most with completing their accounting tasks on time and maintaining accurate records. Because their processes are unstructured, they frequently encounter bottlenecks in their daily operations, such as: 

1. Inconsistent processes

When accounting processes are not standardized, the way transactions are handled can differ from one person to another.

For instance, one accountant might record or categorize an entry differently than another. It can also show in how deadlines and timelines are handled. Instead of following a set schedule, they often shift based on individual habits. 

Over time, these inconsistencies make financial reports harder to compare from month to month or across departments. Management may also start to question the reliability of the numbers, which can slow decision-making and reduce confidence in the team’s work. 

2. Poor documentation practice

When teams rely on informal knowledge instead of written procedures, important details can get lost. Instructions, approvals, and steps are often shared verbally or remembered individually, rather than recorded clearly. 

When someone leaves the team, goes on leave, or when work is outsourced, it becomes difficult to train replacements. New team members may also struggle to complete tasks correctly because they have no reliable reference or step-by-step guide to follow. As a result, it increases the chance of mistakes and slows down daily operations.

3. Lack of internal control

In some teams, approval workflows are missing or unclear, and it may not be obvious who is responsible for each task. When responsibilities aren’t clearly defined, multiple people may assume someone else is handling a step, or the same person may end up preparing, reviewing, and posting the same transaction.

This lack of checks and balances increases the risk of errors going unnoticed. It also creates problems during audits, as auditors may identify control weaknesses and flag the process, leading to additional work to correct issues and improve compliance.

When I see these issues in practice, it becomes clear why unstructured accounting processes hold teams back. Without standardization, proper documentation, and clear controls, work becomes inefficient. These gaps affect not just a client’s daily operations but also their decision-making process and their ability to scale the team efficiently. 

I’ve learned that addressing these weaknesses early and establishing clear workflows and SOPs is the only way to restore consistency, reduce risk, and build a finance function that can deliver reliable results every time. 

In the next section, let’s discuss further why you must treat accounting workflows and SOPs as non-negotiables. 

Why effective accounting workflows and SOPs matter

Effective accounting workflows and SOPs create stability in a finance team. They clearly show how work moves and how each task should be done, no matter who is performing it. 

Standardized procedures ensure that accountants and bookkeepers follow the same steps every time. This reduces variation and prevents critical tasks from being missed. Quality becomes repeatable rather than dependent on individual memory or experience.  

SOPs also serve as dependable reference documents. When a primary process owner is unavailable, work continues without disruption. Teams maintain continuity because the process is documented and accessible. 

From an operational perspective, workflows and SOPs support accountability. Roles are clearly defined. Review points are visible. Approval paths are established. This clarity strengthens internal control and supports compliance with regulatory and audit requirements. 

But how do you prepare SOPs, exactly? The guide below shows how our team at D&V Philippines normally do so. 

A step-by-step guide to preparing SOPs

Strong SOPs follow a clear and deliberate structure, with each step designed to make the process easier to understand and follow. 

1. Define the purpose and scope

Begin with a clear statement explaining why the SOP exists and which activities it covers. Through this, you can set its context relevance to other users. 

At this part, make sure to define boundaries. Identify what the SOP includes and what it excludes to prevent misinterpretation, especially when multiple processes intersect. 

To give you some idea, a typical SOP contains the following information: 

• Purpose 

• Scope 

• Table of Contents 

• Accounts access to various websites needed 

• Definition of terms glossary (to help users define and standardized the terms used in the SOP) 

• Roles and responsibilities 

• Step-by-step process 

• Source references 

2. Identify and clarify key terms

Accounting processes often involve technical terms, acronyms, and system-specific language. Creating a glossary within the SOP helps align understanding across the team. 

Definitions should remain simple and consistent. Alignment with organizational standards and accounting policies is also essential, particularly in regulated environments. 

3. Outline roles and responsibilities

Every accounting process involves several stakeholders. See to it that you list each role involved and define responsibilities clearly. 

Clear responsibility assignment prevents overlap and closes gaps. Decision making authority should also be documented to avoid delays and confusion during execution. 

4. Document the step-by-step process

Break the process into logical, sequential steps. Each step should start with an action and describe a clear outcome so that anyone following the process knows exactly what to do and what result to achieve. 

You must also identify inputs, outputs, and required tools where applicable. Through this, you can provide users with full execution context. 

If you’re dealing with complex processes, it would be great to add visual aid. Doing so will help users understand handoffs, approvals, and dependencies more quickly than text alone. 

5. Review and validate

Subject matter experts and senior reviewers should validate the SOP. After all, accuracy, completeness, and regulatory alignment require careful review.

Feedback at this stage strengthens the document and reduces rework after rollout.

6. Version control and approval

Formal version control protects document integrity. Authorized approval confirms readiness for use and establishes accountability for the content.  

Make sure to assign version numbers and effective dates to every SOP. 

7. Communicate and train

Publishing the SOP is only one step. Its most important function comes when your teammates understand how to apply it in their actual workflows. 

To guarantee full understanding, briefing sessions or targeted training must be conducted. Be open to answering questions raised during training as they often highlight areas that need refinement. 

8. Schedule regular reviews

Accounting processes change over time. System updates, regulatory shifts, and business growth all affect workflows. 

To keep SOPs current, it’s essential to identify a defined review cycle. Annual reviews work for stable processes, while higher risk areas may require more frequent updates. 

When I guide my teams through SOP preparation, I always emphasize that a clear structure and the step-by-step details are only part of the equation. The real value comes when the SOP is understandable, actionable, and consistently applied.

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Tips for Building Effective Accounting SOPs 

In my experience, effective SOPs share several common indicators. 

I can tell an SOP works when users can follow it without asking for repeated clarification, the steps reflect actual practice, controls align with the level of risk, and review dates are kept up to date. Without these indicators, it means an SOP needs more refinement. 

Whenever a team member asks me how to make their accounting SOPs more effective, I share with them these three tips:

1. Keep content clear and concise

Clarity improves adoption. Each sentence should guide action and remove uncertainty. Avoid unnecessary detail that complicates execution and focus only on what users need to do and when they need to do it. 

2. Use clear formatting and visual support

Formatting influences usability. Headings, bullet points, and tables help users scan content quickly. Adding screenshots can also be helpful, especially for workflows involving the use of software. Meanwhile, using flowcharts and diagrams can clarify handoffs and approval points, which is necessary in reducing possibilities of misinterpretation. 

3. Store SOPs in an accessible shared location

Accessibility matters. SOPs should be stored in a shared location where authorized users can easily access the most current version. 

Access controls should still apply. Only users who require access should have it to protect sensitive information and document integrity. 

Aligning workflows with SOPs 

SOPs work best when they reflect actual workflows. Documentation should mirror how work truly flows. 

Workflow mapping often reveals redundancies, delays, or unclear approvals. Addressing these issues before documentation improves efficiency and adoption. 

Automation initiatives also benefit from this alignment. Clear workflows and SOPs support smoother system configuration and change management. 

The role of leadership in SOP adoption 

Leadership directly affects how SOPs are adopted. That's why when I reference SOPs in discussions with team members, I make sure to actively reinforce their use so the entire team would also follow the same standard. 

If I, or other leaders, ignore documented processes, it signals that shortcuts are acceptable, and SOPs gradually lose their relevance. I make it a point to model consistent use and encourage our team to see SOPs as practical tools that guide their work. 

Building a culture of process discipline

I see process discipline as a way to support accounting professionals. Clear workflows and SOPs reduce time spent clarifying expectations, allowing accountants to focus on analysis and judgment. 

Culture develops through repetition and reinforcement, and SOPs provide the structure that makes this possible. Well-prepared documentation protects quality, strengthens control, and enables sustainable growth. It shows respect for both the work and the people performing it, while building trust in the numbers and stability across the organization. 

D&V Philippines’ accountants are well versed in preparing SOPs and can assist organizations that want to strengthen existing workflows and improve overall accounting performance. If you want to know more about what we do, let’s schedule a call or download our whitepaper, Finding the Right Talents: D&V Philippines’ Solutions for Modern Accounting Firms.

Marie Prinzel Garcia is a CPA and a Director of Global Operations at D&V Philippines. Connect with her on LinkedIn. 

- Written in collaboration of Mary Milorrie Campos, a senior content and creative specialist at D&V Philippines.