Some accounting standards permits the choices of methods for maintaining accounting records such as inventory recording process, one company can follow FIFO, LIFO, and Average cost method. Property, plant and equipment recording process, company can calculate depreciation from inception of usage or full depreciation on first year and not calculating depreciation of last year. There are also several method of depreciation such as straight line method, reducing balance method, double declining method etc. Accounting standards also permits the choices of methods for presenting investment such as fair value and initial cost method depending on the nature of investment. In the same way some standards permits the choices of methods but entity need to follow specific method for continuity and compliance purpose. Companies of the groups should follow one specific methods for the maintaining similarity in group accounts. If a company of the groups follow different methods without any specific reason then give different results which create problem for analyzing performance. An accounting manual give the specific guideline to follow accounting method which should be followed by the individual company for time period and by the group as whole for continuity and similarity purposes. Sometime changes of method is required for specific or compliance reason and those changing process and coordination process also guided by accounting manual.
An accounting manual also gives the time frame regarding time of recording a transaction such as a transaction may be recorded when receiving informal information or supporting documents or after authorization transaction procedure.
An accounting manual also provides guideline of maintaining and keeping supporting documents such as which documents and authorization process is required as supporting documents corresponding to a transaction. This manual also guides approval and authorization process and personnel depending on the amount and nature of transaction.
Accounting manual provides guideline for resolving unusual transactions which arises time to time and also provide guideline regarding communication pattern with external consultant.
Accounting Manual also provide guideline and timeframe of statutory reporting for maintaining compliances of regulatory body and groups such as different regulatory bodies require different pattern accounting report for an individual companies and group as whole such as quarterly unaudited report, half yearly report , statutory audit report, FDI return, quarterly return etc. , those compliance report has specific deadline. An accounting manual helps accounting staff for following those deadline and criteria of compliances.