Version 1.0
Prepared by: @Lorraine Sebata
Approved by: @Name
Reviewed date: 2024-07-24
Next review date: 2025-07-24
This SOP details the step-by-step procedures for the timely, accurate, and transparent reporting of Easyterms Ltd. financial information to its stakeholders.
This SOP applies to all personnel involved in the preparation, review, and submission of financial reports at Easyterms Ltd., including Accountants, the CFO, the CEO, and the Board of Directors.
Financial Reporting Policy (To be assigned)
Accountant: Prepares monthly budget variance analyses.
CFO (Chief Financial Officer): Reviews and approves monthly budget variance analyses, reviews quarterly interim financial reports, and reviews annual consolidated financial statements.
CEO (Chief Executive Officer): Reviews and approves monthly budget variance analyses, and reviews quarterly interim financial reports.
Independent Auditors: Audits quarterly interim financial reports and annual consolidated financial statements.
Board of Directors: Receives and reviews quarterly interim financial reports and annual consolidated financial statements.
5.1.1 The Accountant prepares the Monthly Budget Variance Analysis.
5.1.2 The prepared analysis is reviewed and approved by the CFO and CEO.
5.1.3 The analysis is submitted within one week of the end of each month.
5.2.1 Quarterly Interim Financial Reports are prepared four times per year.
5.2.2 These reports are reviewed by the CFO and CEO.
5.2.3 The reports are audited by independent auditors.
5.2.4 The reports are submitted to the Board of Directors within 45 days of the end of each quarter.
5.3.1 Annual Consolidated Financial Statements are prepared at the end of each fiscal year.
5.3.2 These statements are audited by independent auditors.
5.3.3 The statements are submitted to the Board of Directors within 6 months of the end of the fiscal year.
5.3.4 These statements include:
Statement of Financial Position
Statement of Financial Performance
Cash Flow Statement
Statement of Changes in Net Assets/Equity
Accounting Policies and Notes
Monthly Budget Variance Analysis reports
Quarterly Interim Financial Reports
Annual Consolidated Financial Statements
Independent Auditor's Reports
All relevant employees will receive mandatory training on this SOP and the Financial Reporting Policy upon hiring and annually thereafter, or upon significant revisions.
This SOP will be reviewed annually by the Finance Department to ensure its continued effectiveness, compliance with the Financial Reporting Policy, and alignment with business objectives.