Business Name: WordPress Masters
Tagline: Build right the first time
Effective Date: [DATE]
Prepared By: [REPRESENTATIVE_NAME], [REPRESENTATIVE_TITLE]
The purpose of this SOP is to establish clear, efficient, and scalable financial management processes for WordPress Masters, a WP Experts Marketplace. This document ensures accurate financial tracking, timely invoicing, effective cash flow management, and compliance with tax and reporting requirements.
This SOP applies to all financial operations of WordPress Masters, including invoicing, accounts receivable, expense approvals, monthly close, cash flow monitoring, tax preparation, financial reporting, budget reviews, and vendor payments. It is designed for use by the finance team, operations team, and management.
1.1 Generate Invoices:
- Use [TOOL_NAME] (e.g., QuickBooks, Xero) to create invoices.
- Include detailed descriptions of services provided (e.g., "Custom WordPress Plugin Development – 20 hours @ $75/hour").
- Apply payment terms: Net 15 for individual clients, Net 30 for agencies.
1.2 Send Invoices:
- Email invoices to clients within 24 hours of project completion or milestone delivery.
- Use [EMAIL] for all communications.
1.3 Payment Methods:
- Accept payments via Stripe, PayPal, ACH transfer, or credit card.
- Include payment links in invoices for convenience.
1.4 Late Payment Policy:
- Add a 1.5% late fee per month for invoices unpaid after 30 days.
- Notify clients of late fees in the initial contract.
2.1 Weekly Review:
- Review AR aging report every Monday.
- Identify overdue invoices and prioritize follow-ups.
2.2 Follow-Up Process:
- Day 1 after due date: Send a polite reminder email.
- Day 7 after due date: Call the client and resend the invoice.
- Day 15 after due date: Escalate to the Finance Manager for further action, including potential suspension of services.
2.3 Escalation Path:
- If payment is overdue by 30+ days, involve legal counsel to issue a formal demand letter.
3.1 Submission:
- Team members submit expense requests via [TOOL_NAME] (e.g., Expensify).
- Include receipts and a justification for the expense.
3.2 Approval:
- Operations Manager reviews and approves expenses under $500 within 2 business days.
- Expenses over $500 require CEO approval.
3.3 Reimbursement:
- Approved expenses are reimbursed within 7 business days via ACH transfer.
4.1 Reconcile Accounts:
- Reconcile all bank accounts, credit cards, and payment processors (e.g., Stripe, PayPal) by the 5th business day of the month.
4.2 Review Transactions:
- Categorize all transactions in [TOOL_NAME] (e.g., QuickBooks).
- Flag any discrepancies for review by the Finance Manager.
4.3 Prepare Financial Statements:
- Generate Profit & Loss (P&L), Balance Sheet, and Cash Flow Statement by the 10th business day.
5.1 Weekly Review:
- Finance Manager reviews cash flow every Friday.
- Use a rolling 12-week cash flow forecast template.
5.2 Action Plan for Shortfalls:
- If projected cash balance falls below $10,000, notify the CEO immediately.
- Delay non-essential expenses and prioritize high-value receivables.
6.1 Quarterly Tax Payments:
- Calculate estimated taxes using [TOOL_NAME] (e.g., TaxJar).
- Submit payments to the IRS and [STATE] tax authority by the 15th of the month following each quarter.
6.2 Annual Tax Filing:
- Provide all financial records to the Tax Consultant by February 15th.
- Ensure 1099s are issued to contractors by January 31st.
6.3 Compliance:
- Maintain records of all tax filings for 7 years.
7.1 Monthly Reports:
- Deliver P&L, Balance Sheet, and Cash Flow Statement to the CEO by the 15th of each month.
7.2 Quarterly Reports:
- Include Budget vs. Actual analysis and key financial ratios (e.g., Gross Margin, Net Profit Margin).
7.3 Annual Report:
- Prepare a comprehensive financial summary for the fiscal year by March 31st.
8.1 Monthly Review:
- Compare actual expenses and revenue to the budget by the 10th business day of the month.
- Identify variances exceeding 10% and provide explanations.
8.2 Action Plan:
- Adjust future budgets or reallocate funds as needed.
- Present findings to the CEO during monthly financial review meetings.
9.1 Invoice Submission:
- Vendors submit invoices to [EMAIL].
9.2 Approval:
- Accounts Specialist verifies invoice details and forwards to the Operations Manager for approval.
9.3 Payment Schedule:
- Pay vendors on the 1st and 15th of each month via ACH transfer.
- Retain proof of payment for record-keeping.
This SOP is designed to provide WordPress Masters with a robust financial management framework tailored to the WP Experts Marketplace niche.
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