FREE Why SOP Is Used? [ Definition, Purpose, Importance, Reasons ]

SOP or standard operating procedures as we may know are a set of rules or instructions employees or members of an organization must follow so as to have a standard and uniform progression of one’s organization. This manual allows for the continuous progression of an organization’s goals. One sample of the standard operating procedure being used for this means is when a security personnel of a company noticed an individual behaving suspiciously. The SOP of the security personnel is to call the attention of the person and to bring him to the security office for questioning.

What Does SOP Mean in Accounting?

SOP in accounting still means standard operating procedures; however, in accounting, the uses of SOP are used as a means to ensure that any and all transactions are processed correctly so as to avoid any discrepancies in the ledger.

What Is the Purpose of a Standard Operating Procedure?

The purpose of having a standard operating procedure would be to ensure that every member of an organization is capable of fulfilling their duties and obligations regardless of the presence of an officer in charge is there or not. Nowadays, standard operating procedures are done as a means of ensuring the continuous production of materials in business, balancing and managing ledgers in accounting, and maintenance and repairs in engineering. In short, a standard operating procedure is beneficial to an organization’s development. For a better understanding, check out our Sample SOP Templates for further reference.

What Is a Standard Operations Procedures Manual?

A standard operations procedure or standard operating procedure manual is a written account of all the organizations, procedures, protocols, and countermeasures to certain possible scenarios that may occur during the continued existence of the organization. Of all the documents here, there are certain formats even for SOP. You can avail our SOP format template for an easier understanding of an SOP.

Why Are Standard Operating Procedures Important?

Standard operating procedures are important due to the simple saying, “It is better to be prepared than to be caught off guard.” When preparing an SOP format, you should know there are two kinds of standard operating procedures. We have the GOOD procedures and the BAD procedure. A GOOD procedure is essential as the name states, a well-made and thought-out operating procedure. As for the BAD procedure, it is a poorly made operating procedure that barely covers any and all possibilities. To avoid making a BAD procedure, just compare your SOP to our free SOP template.

5 Reasons Your Organization Needs Standard Operating Procedures

• Efficiency. The organization will always be able to perform efficiently.
• Continuous productivity. The organization will be able to continue their output of materials or products at a constant rate without any staggering or slowing down.
• Employee qualifications. Employees will become more experienced and will always know what to do when in a certain situation. This would usually mean the employee is more independent when working.
• Less likelihood of a disaster. If employees know what to do in certain situations, disasters are less likely to occur due to every employee’s competence.
• Expresses independence. Employees may even become independent enough to not need a supervisor anymore.

 

Always remember SOP for business can increase efficiency when done right.