At the peak of the hierarchy of internal controls sits policies. Policies are written by the highest echelon of management for a company, its Board of Directors or Trustees. The upper tier and mid level management of a business develop procedures to carry out the policies of the company.
Policies and Procedures Manual
The policies and procedures manual is considered the law book for operations in a company. It sets the culture for work, identifies the best practices to use in meeting the ultimate goal of any small business, make a profit, deliver a great product/service, and provide security to staff.
The Internal Revenue Service authorizes two different methods to deduct expenses for vehicle operations. The most commonly used method in small business is the mileage reimbursement method explained in Lesson 61. The second method is the actual cost of vehicle operations which is explained and illustrated here.