SOP Implementation

SOP Implementation to improve internal controls

What are Standard Operating Procedures (SOPs) ?

The challenges that an organization faces after its establishment can be crucial to its growth. The major challenges relate to:

  • Multi-location presence
  • Distinctive organizational structure
  • Lack of authority matrix
  • Siloed accounting & other systems

These challenges result in disparate processes at different locations. To avoid such a scenario, the requirement for an efficient SOP comes into place. SOPs provide a sequential order to an organizational process, and keep them documented in an easily accessible and comprehensible manner. This plays a pivotal role in maintaining internal efficiency by directing the workforce, enhancing work consistency, and improving internal communication.

We at MBG Corporate Services help organizations develop SOPs that improve the process and internal control efficiency. We have laid down step-by-step instructions that are divided into various phases.

Phase 1: SOP Development – Process Documentation & Optimization:

To help businesses function seamlessly, it is vital to have a well-developed SOP in place. SOP development can be a strenuous process. Depending upon the type of business & its complexities, our experts delve deep to get to know your business well and perform SOP development.

Key Processes under Review:

  • Revenue Cycle
  • Procurement Function
  • Hire to Retire
  • Finance & Accounts

Rationalized Scope of Work:

  • Establish a sequential work-flow of key activities for the key processes under review, with synergies between key stakeholders
  • Identification of risk and controls for the key processes under review
  • Regular and recurring monitoring of controls for the key processes, to ensure timely detection and plugging of identified gaps, in a timely and cost-effective manner
  • Recommend procedures enabling automation opportunities for the key processes under review
  • Defining various exceptions related to the key processes and documenting the schedule of authority for each exception
  • Structure process narratives for the key processes  along with flowcharts and brief activity descriptions

Phase II – SOP Implementation:

Effective SOP implementation is important for a business. Failing to do this can lead to catastrophic results for a business such as: compliance errors, operational difficulties, poor organizational structure, insufficient training of employees, among other such factors. Our approach towards building a great framework for the SOP implementation is thoroughly planned and analyzed.

Key Processes under Review:

  • Revenue Cycle
  • Procurement Function
  • Hire to Retire
  • Finance & Accounts

Rationalized Scope of Work:

  • Driving the requisite correction and recommendations with the process owners
  • Follow up for action points on the due date, as agreed with the process owners, at the time of finalization of the standard operating procedures (SOPs)
  • Provide a fortnightly update to management, on the implementation of the standard operating procedure (SOPs), with root cause analysis for deviations (if any)
  • Reporting on issues (if any) faced during the implementation phase
  • Ensuring the system design implemented by Company is in line with the agreed design of SOP
  • Review the MIS Reports flowing from the system, to the extent possible, as agreed while developing the standard operating procedure

Phase III – SOP Compliance Testing / Audit review of Standard Operating Procedures (SOPs):

SOP Compliance testing or audit review of SOP is required to standardize the process that evaluates quality standards and identify potential vulnerabilities to control gaps in the existing processes. Our experts recommend changes and review based on industry norms & standards to meet corporate objectives.

Key Processes under SOP Compliance Testing and Audit review of SOPs

  • Revenue Cycle
  • Procurement Function
  • Hire to Retire
  • Finance & Accounts

Rationalized Scope of Work:

  • Review the existing controls in the key processes under review
  • Assess the design level effectiveness of the existing controls
  • Identify the transactions for the key processes to be tested and the related controls supporting each transaction
  • Perform transactional testing procedures on a sample basis by mapping the  risks and assess the control effectiveness
  • Prepare a fact and finding report
  • Discuss control gap assessment findings with stakeholders/process owners
  • Submit recommendations on mitigating risks duly ensuring compliance with the documented and implemented standard operating procedures (SOPs)

Our Service Deck:SOP Development, SOP Implementation and SOP Compliance

To know more about  SOP Implementation, SOP Development Watch this video

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