Big Data Staging Academy
Tagline: Turn raw data into reliable pipelines
Effective Date: [DATE]
This SOP establishes a structured and efficient financial management process for Big Data Staging Academy ([COMPANY_NAME]) to ensure accurate invoicing, timely payments, effective cash flow monitoring, and compliance with tax and reporting requirements. The procedures outlined are tailored to the operational realities of a data staging academy, where revenue is primarily derived from course fees, consulting services, and subscription-based learning tools.
This SOP applies to all financial management activities, including invoicing, accounts receivable, expense approvals, monthly close, cash flow monitoring, tax preparation, financial reporting, budget reviews, and vendor payments. It is designed for internal use by the finance team, department heads, and authorized personnel.
Purpose: Ensure timely and accurate invoicing for services and courses.
Steps:
1. Generate invoices within 2 business days of course enrollment or service delivery using [ERP_SYSTEM].
2. Include the following details on each invoice:
- Invoice number
- Client name and address
- Description of services (e.g., "Data Pipeline Course Enrollment")
- Payment terms (e.g., Net 15, Net 30)
- Payment methods (e.g., ACH, credit card, PayPal)
- Late payment penalties (e.g., 1.5% monthly interest after 30 days).
3. Send invoices via email to [CLIENT_EMAIL] with a copy to [EMAIL].
4. Record invoices in the AR ledger and flag due dates for follow-up.
Metrics:
- Invoice accuracy rate: >98%.
- Average days to invoice: ≤2 business days.
Purpose: Minimize overdue payments and maintain healthy cash flow.
Steps:
1. Review AR aging report weekly in [ERP_SYSTEM].
2. Send payment reminders:
- 5 days before due date.
- On the due date.
- 7 days past due (include late fee notice).
3. Escalate overdue accounts >30 days to the Finance Manager for direct outreach.
4. For accounts >60 days overdue, issue a formal demand letter and consider engaging a collections agency.
Metrics:
- AR >30 days: ≤10% of total AR.
- Collection success rate: ≥95% within 60 days.
Purpose: Ensure all expenses align with budget and business priorities.
Steps:
1. Submit expense requests via [EXPENSE_TOOL] (e.g., Expensify) with supporting documentation.
2. Department Heads review and approve expenses ≤$1,000 within 2 business days.
3. Finance Manager reviews and approves expenses >$1,000 within 3 business days.
4. Record approved expenses in the AP ledger.
Metrics:
- Approval turnaround time: ≤3 business days.
- Expense variance from budget: ≤5%.
Purpose: Ensure accurate financial records and reporting.
Steps:
1. Reconcile all bank accounts and credit cards by the 5th business day of the month.
2. Verify AR and AP balances against the general ledger.
3. Record depreciation and amortization for software tools (e.g., Tableau, Snowflake).
4. Prepare a preliminary income statement and balance sheet by the 10th business day.
5. Review and finalize financial statements with the Finance Manager by the 15th business day.
Metrics:
- Close completion time: ≤15 business days.
- Reconciliation discrepancies: ≤1%.
Purpose: Maintain liquidity to meet operational needs.
Steps:
1. Update the cash flow forecast weekly in [CASH_FLOW_TOOL] (e.g., Float, Fathom).
2. Monitor key cash flow metrics:
- Operating cash flow.
- Days cash on hand (target: ≥60 days).
3. Flag potential shortfalls to the Finance Manager immediately.
Metrics:
- Days cash on hand: ≥60 days.
- Forecast accuracy: ≥95%.
Purpose: Ensure compliance with federal, state, and local tax regulations.
Steps:
1. Collect all 1099s, W-2s, and vendor tax forms by January 15.
2. Reconcile income and expenses for the fiscal year by January 31.
3. Provide all financial records to the CPA by February 15.
4. Review and file federal and state tax returns by March 15 (or request an extension).
Metrics:
- Filing accuracy: 100%.
- Filing deadlines met: 100%.
Purpose: Provide stakeholders with timely and actionable financial insights.
Steps:
1. Prepare the following reports monthly:
- Income Statement.
- Balance Sheet.
- Cash Flow Statement.
2. Distribute reports to department heads and stakeholders by the 20th business day.
3. Conduct a financial review meeting with department heads by the 25th business day.
Metrics:
- Report distribution timeliness: 100%.
- Stakeholder satisfaction score: ≥90%.
Purpose: Identify and address variances between planned and actual financial performance.
Steps:
1. Compare monthly actuals against the approved budget in [BUDGET_TOOL] (e.g., Adaptive Insights).
2. Investigate variances >10% and document findings.
3. Present findings and corrective actions during the monthly financial review meeting.
Metrics:
- Variance resolution time: ≤10 business days.
- Variance >10% occurrences: ≤2 per quarter.
Purpose: Ensure timely and accurate payments to vendors.
Steps:
1. Verify vendor invoices against purchase orders and contracts.
2. Schedule payments based on agreed terms (e.g., Net 30).
3. Process payments via ACH or check through [ERP_SYSTEM].
4. Retain payment records for 7 years for audit purposes.
Metrics:
- On-time payment rate: ≥98%.
- Payment discrepancies: ≤1%.
By adhering to this SOP, [COMPANY_NAME] will maintain financial health, ensure compliance, and support sustainable growth in the data staging education niche.
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