SOP template: document the work before automating it
Write the trigger, checks and exceptions first, then decide which steps need a person and which can run by rules.
Renzo Demartini, Chartered Accountant and finance executive · · 3 min read Drafted with AI, reviewed and spot-checked by me.
Exhibit 1Can supplier invoice 7731 go to approval?
Supplier invoice 7731
Sample, excl. GST
Invoice
A$1,800A$1,800
Purchase order
A$1,800A$1,800
Receipt
WaitingMissing
Check the POInvoice against orderA$0 difference
Match the receiptDelivery evidenceReceipt missing
Resolve and approveA person, not the rulePerson decides
Sample: supplier invoice 7731 for A$1,800 arrives.
The invoice and PO 2101 are both A$1,800, so the difference is A$0.
No receipt is on file, so the invoice holds.
Invoice 7731 matches its A$1,800 order but holds until a person attaches the missing receipt.
Illustrative figures, not client data.
In short
Describe the work before choosing an automation tool.
Give every exception an owner and a stop point.
Keep approval separate from preparing a transaction.
An SOP should let someone else complete the work without guessing. The useful detail is often what happens when the normal path fails.
This template covers business administration. For machinery, hazardous work or construction, start with your WHS regulator’s guidance. An office procedure does not establish a safe system of work.
Exhibit 2
Invoice 7731 matches its A$1,800 order yet still holds
Captured
A$1,800
Supplier invoice 7731
Sample figure, excluding GST.
Matches
A$1,800
Purchase order 2101
The same amount as the invoice.
Passes
A$0
Difference between invoice and order
A$1,800 less A$1,800.
Hold
Missing
Receipt: the delivery evidence
No receipt is on file, so the invoice holds.
Illustrative figures, not client data.
Choose the right document
Exhibit 3
A business SOP is not a safe work procedure or a SWMS
Document
Purpose
Starting point
Business SOP
Repeatable administration
This template
Safe work procedure
Task hazards and controls
Your WHS regulator
SWMS
High-risk construction work
Your jurisdiction’s requirements
An editorial grouping of guidance from WorkSafe Queensland, SafeWork NSW and Safe Work Australia. It is not a compliance checklist.
SafeWork NSW requires a SWMS before high-risk construction work starts. Requirements depend on your jurisdiction, and Safe Work Australia directs readers to their local regulator. This is general information; get competent WHS advice for the actual work.
Use the business SOP for office work such as approvals, onboarding and month-end. Use your regulator’s guidance for anything with a physical risk.
Record, link and back up: three habits keep work moving when someone is away
01
Record before redesigning
Record the current steps before redesigning them.
02
Keep the evidence linked
Keep the original invoice, approval and eventual transaction linked.
03
Name a backup
Work stalls when the one person who knows the steps is away.
Copy this table into your procedure document. Complete it with the people doing the work. The National AI Centre’s process-mapping guidance records actions, owners, inputs, outputs and time.
I would start with a process that repeatedly stalls between people. A checklist without evidence leaves the next person guessing.
Sample procedure AP-01, version 1.0. Owner: finance manager; backup: business owner. Amounts exclude GST: A$1,800 less A$1,800 is A$0.
Illustrative figures, not client data.
Exhibit 7
Approving and preparing sit with different people, and payment stays unauthorised
Budget owner approves
Accepts the evidence and the amount
Records the approval
Bookkeeper prepares
Records the bill
Payment stays unauthorised
Bank release is a separate procedure
From sample procedure AP-01.
The trigger is a supplier invoice. The inputs are the invoice, the purchase order and delivery evidence. These are sample figures, excluding GST. The example ends at an approved bill awaiting payment. Bank release belongs to a separate procedure.
Keeping approval apart from preparing the transaction is the control.
Automate reference matching and routing only after agreeing the rules. An unexplained difference stops the process. A person resolves the reason and records the decision. AI could draft an exception note; it should not invent the missing evidence.
More detail
Sources read on 31 October 2026. The last two are UK public-body audit reports, not Australian guidance.
Watch the person who does the work and write down what they actually do.
02Draft with its operator
Write the steps with the person who does the task, so the document matches the work.
03Test normal and failed cases
Have another person follow it without prompting. Record where they hesitate.
04Approve, publish and review
Keep one approved version where the team works, with a review date.
Watch another person follow the procedure without prompting. Record where they hesitate, then revise it. Name the person who owns it and the date it is next reviewed.
Before funding automation, measure handling time, waiting time and corrections separately. Compare expected capacity with software, support and maintenance costs. Hours released are not automatically cash savings. The operating model article shows where AI changes who does what.
Common questions
What should an SOP include?
Include its purpose, scope, owner, inputs and steps. Add checks, exception instructions and version details so someone can judge completion.
How long should an SOP be?
Make it long enough to perform the task safely and consistently. Split separate tasks instead of burying exceptions in a large manual.
Can I write an SOP with AI?
Use AI to organise approved notes into a draft. Have the task owner test every step. Use an approved tool, and keep confidential information out of the prompt.
Chartered Accountant (CA ANZ) and finance executive, based in Canberra. Practical AI and automation for SMEs, and adviser to owners, CEOs and boards on integration and finance.
Work keeps returning to you because the handovers are unclear? I use the Diagnostic to map the problem and set clear priorities.
Renzo Demartini