Internal policy
An Internal policy is a short set of rules your business creates to handle money, billing, and records. It tells people what is allowed, who approves payments, and what must be documented. It is not law, but it should align with applicable regulations and accounting practices.
A policy states what and why; a procedure explains how to do it step by step. Good policies support internal controls, such as approval limits and segregation of duties, to reduce errors and fraud.
Typical topics an internal policy in accounting and invoicing covers:
- Invoicing steps, timing, and standard payment terms.
- Credit checks, deposits, and when to extend credit.
- Approvals and spending limits for bills, purchases, and reimbursements.
- Expense reimbursement rules and required receipts.
- Vendor and customer onboarding and verification.
- Sales tax handling on invoices and recordkeeping.
- Refunds, credit memos, and write-offs.
- Record retention, data access, and backups.
Simple example
A small studio sets a billing policy: send invoices on delivery, use standard terms, accept card or ACH, and require manager approval for discounts or credits.
Keep policies brief, clear, and easy to find. Train your team and reflect the rules in your software workflows, so compliance happens by default.
Quick tip
Start with one page per policy and link to a checklist or template. Review when your team, tools, or risks change.
