{"id":302182,"date":"2026-03-17T11:30:08","date_gmt":"2026-03-16T23:30:08","guid":{"rendered":"https:\/\/www.reckon.com\/au\/?p=302182"},"modified":"2026-03-13T10:24:09","modified_gmt":"2026-03-12T22:24:09","slug":"standard-operating-procedure-small-business","status":"publish","type":"post","link":"https:\/\/www.reckon.com\/au\/blog\/standard-operating-procedure-small-business\/","title":{"rendered":"Defining workflows: creating procedures that work for your small business"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; da_disable_devices=&#8221;off|off|off&#8221; global_colors_info=&#8221;{}&#8221; da_is_popup=&#8221;off&#8221; da_exit_intent=&#8221;off&#8221; da_has_close=&#8221;on&#8221; da_alt_close=&#8221;off&#8221; da_dark_close=&#8221;off&#8221; da_not_modal=&#8221;on&#8221; da_is_singular=&#8221;off&#8221; da_with_loader=&#8221;off&#8221; da_has_shadow=&#8221;on&#8221;][et_pb_row column_structure=&#8221;1_3,2_3&#8243; _builder_version=&#8221;4.23&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; width=&#8221;100%&#8221; custom_padding=&#8221;||0px||false|false&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;1_3&#8243; module_class=&#8221;table-contents&#8221; _builder_version=&#8221;4.23&#8243; background_color=&#8221;#f3f2f6&#8243; custom_padding=&#8221;25px||25px||true|false&#8221; sticky_position=&#8221;top&#8221; sticky_limit_bottom=&#8221;section&#8221; sticky_position_tablet=&#8221;top&#8221; sticky_position_phone=&#8221;none&#8221; sticky_position_last_edited=&#8221;on|desktop&#8221; border_radii=&#8221;on|24px|24px|24px|24px&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.23&#8243; text_font=&#8221;||||||||&#8221; global_colors_info=&#8221;{}&#8221; background__hover_enabled=&#8221;on|desktop&#8221;][\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;2_3&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Intro&#8221; _builder_version=&#8221;4.27.6&#8243; header_2_font_size=&#8221;32px&#8221; custom_margin=&#8221;||0px|||&#8221; header_2_font_size_tablet=&#8221;30px&#8221; header_2_font_size_phone=&#8221;26px&#8221; header_2_font_size_last_edited=&#8221;on|tablet&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p>A problem many small business owners face is that they are the business. Nothing gets done without them, and the hours spent each week grow longer and longer. This leaves staff waiting on you, which then slows down your <a href=\"https:\/\/www.reckon.com\/au\/blog\/operations-management-guide\/\">operations<\/a>. You simply don\u2019t have time to do it all.<\/p>\n<p>This is where standard operating procedures (SOPs) help make your business independent of you. By having SOPs, your staff and operations run more reliably and with structure.<\/p>\n<h2>What are standard operating procedures?<\/h2>\n<p>SOPs are the how-tos. They help bring people up to speed when performing tasks, whatever they may be. SOPs are used widely because they break down processes into step-by-step instructional guides.<\/p>\n<p>SOPs come in different shapes and sizes depending on the task, but usually can be found in these formats:<\/p>\n<ul>\n<li><strong>Step-by-step:<\/strong> Simple procedures. You start here, then move on to the next step once the first is completed.<\/li>\n<li><strong>Hierarchical:<\/strong> Complex tasks. This involves multiple moving parts in a process that goes from high to low priority, with subsections to add context.<\/li>\n<li><strong>Flowchart:<\/strong> An adaptable SOP that can be simple or complex. A sequence or more that requires decision-making.<\/li>\n<\/ul>\n<h2>Why small businesses should use Standard Operating Procedures<\/h2>\n<p>SOPs aren\u2019t just beneficial for big companies with hundreds of employees; small businesses can use them too to improve their own operations \u2014 and should. The immediate benefits that SOPs provide to small business owners:<\/p>\n<ul>\n<li><strong>Independent decision-making:<\/strong> Staff make the decisions to complete tasks. This gives owners time back immediately<\/li>\n<li><strong>Consistent work quality:<\/strong> creating repeatable actions and tasks gives a professional standard, reducing errors and the chance of rework.<\/li>\n<li><strong>Faster, easier training and onboarding:<\/strong> instructions are available to quickly train staff and speed up <a href=\"https:\/\/www.reckon.com\/au\/blog\/employee-onboarding-guide\/\">onboarding<\/a>.<\/li>\n<\/ul>\n<p>These benefits lead to a more independent business that is built on structure. If business owners can delegate day-to-day operations, they have time to pursue more opportunities or, even more importantly, take time off.<\/p>\n<p>There are also indirect benefits to what SOPs can help small businesses:<\/p>\n<ul>\n<li><strong>Consistent customer experience:<\/strong> Customers receive a consistent experience that can improve over time through SOP refinement.<\/li>\n<li><strong>Business growth and value increase:<\/strong> More free time means that owners can focus on growing their business.<\/li>\n<li><strong>Business resilience:<\/strong> Standardising your work means fewer errors and less compliance risk. It can also soften the impact of staff turnover, since you\u2019ll have an easy manual to train new hires.<\/li>\n<\/ul>\n<p>When time is crucial and resources are limited, SOPs give small businesses breathing space and more opportunities to grow.<\/p>\n<h2>How to create SOPs<\/h2>\n<p>The principles of every good SOP are:<\/p>\n<ul>\n<li><strong>Defined goals:<\/strong> What is this going to achieve? What does this bring to the business?<\/li>\n<li><strong>Clear and simple instructions:<\/strong> How to achieve the goal. Efficient and easy to understand.<\/li>\n<li><strong>Identifiable processes and gaps:<\/strong> Why is it important to do it this way? Creates context. These are important<\/li>\n<li><strong>Refinement:<\/strong> Improve over time with experience.<\/li>\n<\/ul>\n<p>Even a basic checklist can be considered a SOP, but it\u2019s the thought behind a SOP that makes it effective.<\/p>\n<h3>Example of a standard operating procedure:<\/h3>\n<p>A brick-and-mortar retail business, every so often, needs to process refunds. To minimise the number of people involved <strong>(what)<\/strong>, the business owner created an SOP to shorten the time it takes to process refunds <strong>(how)<\/strong> and simplify the process, so refunds don\u2019t interrupt ongoing service <strong>(why)<\/strong>.<\/p>\n<p>[\/et_pb_text][et_pb_text disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;Scenario&#8221; _builder_version=&#8221;4.27.6&#8243; _module_preset=&#8221;default&#8221; text_text_color=&#8221;#0a004a&#8221; background_color=&#8221;#eeecff&#8221; custom_margin=&#8221;30px||||false|false&#8221; custom_padding=&#8221;20px|30px|30px|30px|false|false&#8221; border_radii=&#8221;on|20px|20px|20px|20px&#8221; box_shadow_style=&#8221;preset2&#8243; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h4><span style=\"text-decoration: underline;\"> Processing a customer refund<\/span><\/h4>\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\n<tbody>\n<tr>\n<th style=\"width: 92.9447%;\"><span style=\"text-decoration: underline;\">Eligibility check<\/span><\/th>\n<th style=\"width: 3.50411%; text-align: center;\">Y<\/th>\n<th style=\"width: 3.55123%; text-align: center;\">N<\/th>\n<\/tr>\n<tr>\n<td style=\"width: 92.9447%;\">Does the customer have proof of purchase?<\/td>\n<td style=\"width: 3.50411%;\">\u00a0<\/td>\n<td style=\"width: 3.55123%;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 92.9447%;\">Is the item within 30 days of purchase?<\/td>\n<td style=\"width: 3.50411%;\">\u00a0<\/td>\n<td style=\"width: 3.55123%;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 92.9447%;\">Is the item unused and in original condition (or faulty)?<\/td>\n<td style=\"width: 3.50411%;\">\u00a0<\/td>\n<td style=\"width: 3.55123%;\">\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>No answer is a refusal to refund and requires supervisor input.<\/strong><\/p>\n<p>Refund Steps <strong>(eligibility confirmed)<\/strong><\/p>\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\n<tbody>\n<tr>\n<th style=\"width: 3.92828%; text-align: center;\">1<\/th>\n<td style=\"width: 96.0717%;\">Find the original transaction on the POS: Transactions &gt; Find Sale. Search by receipt number or the last 4 digits of the card.<\/td>\n<\/tr>\n<tr>\n<th style=\"width: 3.92828%; text-align: center;\">2<\/th>\n<td style=\"width: 96.0717%;\">Press Refund. Select only the item(s) being returned. Confirm the amount with the customer before proceeding.<\/td>\n<\/tr>\n<tr>\n<th style=\"width: 3.92828%; text-align: center;\">3<\/th>\n<td style=\"width: 96.0717%;\">Refunds over $100: call your supervisor for their PIN before continuing.<\/td>\n<\/tr>\n<tr>\n<th style=\"width: 3.92828%; text-align: center;\">4<\/th>\n<td style=\"width: 96.0717%;\">Process the refund to the original payment method. Never give cash for a card purchase.<\/td>\n<\/tr>\n<tr>\n<th style=\"width: 3.92828%; text-align: center;\">5<\/th>\n<td style=\"width: 96.0717%;\">Hand the customer their receipt. Advise card refunds take 3\u20135 business days. Place the item in the returns basket.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.27.6&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<p>With a clear and concise refund checklist, the owner halves the time it takes to process them, cutting back their involvement and the time a register and staff member are unavailable.<\/p>\n<p>Over time, as the business evolves, the owner can review the checklist. In this case, say if there is an increase in prices. Instead of a supervisor getting involved when the refund is $100 or more, the threshold is raised to $200 <strong>(refine)<\/strong> to reflect changes in the business.<\/p>\n<h2>Tips on creating a SOPs for your business<\/h2>\n<p>When drafting a SOP, focus on making it readable and understandable. Not every staff member is at the same level, and, of course, not everyone has the knowledge base that owners have for completing a task. This is about transferring your knowledge onto paper and making it universal.<\/p>\n<ul>\n<li>Write for the reader and keep it simple.<\/li>\n<li>One action per step, and avoid combining multiple actions.<\/li>\n<li>Active voice: \u2018Complete this\u2019, not \u2018should be completed\u2019.<\/li>\n<li>Test it on someone unfamiliar with the process.<\/li>\n<li>Review when necessary. Staff can help signal that a SOP is outdated.<\/li>\n<\/ul>\n<h2>Improving your processes and procedures<\/h2>\n<p>As an owner, you want to make sure the job is done correctly and that you aren\u2019t always needed to do it. By using standard operating procedures, you get time back to improve and grow your business, and eventually, if it\u2019s the goal, hand it over when retirement comes along. It also makes your business stronger by building repeatable processes that are resilient to changes. When SOPs are used effectively, running a business becomes easier.<\/p>\n<p>[\/et_pb_text][ba_social_share icon_bg=&#8221;#03002e&#8221; icon_padding=&#8221;10px|12px|10px|12px|true|true&#8221; layout=&#8221;classic&#8221; show_text=&#8221;off&#8221; btn_padding=&#8221;0px|0px|0px|0px|false|false&#8221; btn_bg_color=&#8221;RGBA(255,255,255,0)&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;50px||||false|false&#8221; custom_padding=&#8221;25px||||false|false&#8221; custom_css_before=&#8221; content: %22SHARE THIS%22;|| font-size: 16px;|| font-weight: 700;|| line-height: 22px;|| letter-spacing: 0em;|| text-align: center;|| color: #ff5447;|| margin-bottom: 10px;|| display: inline-flex;|| position: absolute;|| margin-top: 10px;&#8221; border_width_top_main=&#8221;1px&#8221; border_color_top_main=&#8221;#e4e4e4&#8243; border_radii_icon=&#8221;on|5px|5px|5px|5px&#8221; global_colors_info=&#8221;{}&#8221; custom_css_before_last_edited=&#8221;off|desktop&#8221;][ba_social_share_child _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][ba_social_share_child network_type=&#8221;facebook&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][ba_social_share_child network_type=&#8221;linkedin&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][ba_social_share_child network_type=&#8221;email&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][\/ba_social_share][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Find out why strong standard operating procedures help small businesses streamline tasks, train staff faster, and build reliable, repeatable processes.<\/p>\n","protected":false},"author":36,"featured_media":302184,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<p>Changes to how casual employees can transition to permanent employment are coming this year. The new process adds an employee-driven element, where, depending on certain circumstances, a casual employee can notify their employer of their intention to move from casual to permanent employment.<\/p><p>This is a marked departure from the previous rules, which were entirely up to the employers. So, what does this new process look like, and what does it mean for small businesses?<\/p><p>Let\u2019s go through it.<\/p><h2>Key changes to casual employment rights<\/h2><p>The \u201cClosing Loopholes\u201d amendment has directly changed how casual employees remain casual or transition to permanent employment.<\/p><p>Under the old rules in the National Employment Standard, a casual employee\u2019s employment status was entirely employer-driven. This meant that any conversation or initiation of a casual employee was through the employer's agreement or arrangement.<\/p><p>Now, employees can let their employer know their desire to change their working status, called the employee choice pathway.<\/p><p>Under the employee choice pathway, casual employees can pursue permanent employment by notifying their employers of their intent to change from casual to permanent. The following criteria have to be met before notice can be given:<\/p><ul><li>The employee has been employed for 6 months or more (or for small business, 12 months or more)<\/li><li>The employee believes that they no longer meet the requirements of a casual employee defined under the Fairwork Act 2009<\/li><\/ul><h2>Who is affected by the employee choice pathway?<\/h2><p>The changes have been in effect for medium-large businesses since 26 February 2025. Under the legislation, businesses with 15 or more employees must follow the employee choice pathway procedure.<\/p><p>The changes will come into effect on 26 August 2025 for small businesses (15 employees or fewer). Under the rules of casual employment, an employee may only notify their intent for permanent employment if they have been employed for more than 12 months.<\/p><h2>The process involved<\/h2><p>The employee choice pathway is twofold: a notice of intent to transition from casual to permanent, and the response to that notice. While this may seem simple, a number of factors determine the outcome. First, before a notice can be made to move from casual to permanent, we must look at what defines casual employment status.<\/p><h3>Defining casual employment<\/h3><p>The legal definition of what constitutes casual employment can be found in the Fairwork Act 2009 (15A). This is a rather large document, so for all intents and purposes, casual employment can be simply defined like this:<\/p><ul><li>The employment relationship is not a firm commitment to further ongoing work.<\/li><li>The employee is entitled to casual loading under the rate determined under their agreement, rate, or contract.<\/li><\/ul><p>If you are unsure about the definition of <a href=\"https:\/\/www.fairwork.gov.au\/starting-employment\/types-of-employees\/casual-employees\" target=\"_blank\" rel=\"noopener\">casual employment<\/a>, the Fairwork Ombudsman has materials and resources.<\/p><h3>Giving notice of employment change<\/h3><p>The notice a casual employee gives to their employer about moving to permanent employment requires two factors to be satisfied:<\/p><ol><li>The employee must have been employed for 6 months or more (12 months or more for small businesses), and;<\/li><li>The employee believes that they no longer meet the requirements of casual employment.<\/li><\/ol><p>Here is an example of a notice to demonstrate what this would look like in the workplace.<\/p><blockquote><p><em>Imagine a bartender working casually for over 10 months at a large pub with more than 15 workers. This casual employee has been given more responsibilities in the last few months, including rostering other casuals. The employee has also noticed they work fixed, regular, rostered shifts. With this information and a desire for more security in their employment, they approach their employer with notice to transition from casual to permanent employment.<\/em><\/p><\/blockquote><p>In this example, the employee meets the requirements to give notice and pursue the casual choice pathway. After notice occurs, the employer is required to respond. Let\u2019s take a look.<\/p><h3>Responding to a notice<\/h3><p>Once an employer receives a notice from their employee, they have 21 days to respond. Before a response is made, the employer should consult with the employee about what changes the transition would make to their employment. This discussion should include:<\/p><ul><li>Whether the employee would move to full-time or part-time permanent employment.<\/li><li>The change of hours the employee will work.<\/li><li>When the change of employment will take effect.<\/li><\/ul><p>After a consultation, the employer can accept or reject the notice of employment change.<\/p><h3>Accepting or rejecting an employment change notice from an employee<\/h3><p>When accepting a change, the employer needs to include what has been consulted previously and provide a new written employment agreement with their employee. The changes must immediately be implemented after the acceptance of employment status unless the employer and employee have agreed on a different commencement date.<\/p><p>When it comes to rejecting a notice, employers need a good reason. An employer can justify a rejection of the notice when either of the following circumstances apply:<\/p><ul><li>The employee still meets the requirements of casual employment.<\/li><li>Causes significant changes to the business organisational structure.<\/li><li>It will have a considerable impact on day-to-day business operations.<\/li><li>The change will break existing rules in an award or enterprise agreement.<\/li><li>The change violates recruitment or selection procedures that are protected by law.<\/li><\/ul><p>Accepting or rejecting an employee's notice must be thoughtfully considered, whatever the circumstances, and communication should be clear and concise. If there is a disagreement, it may come down to both sides not effectively communicating. However, dispute resolution procedures are in place if the relationship is beyond solving in the workplace. It also should be noted that <a href=\"https:\/\/www.fairwork.gov.au\/starting-employment\/types-of-employees\/casual-employees\/becoming-a-permanent-employee#protections\" target=\"_blank\" rel=\"noopener\">protections are in place<\/a> against any adverse actions taken in reaction to an employee submitting a notice.<\/p><h2>What happens if there is an employment dispute?<\/h2><p>Any dispute must be resolved first in the workplace. However, if a dispute occurs due to a disagreement about an employee\u2019s employment status, there are a number of avenues that can be explored:<\/p><ul><li>Consultation with the Fairwork Ombudsman<\/li><li><a href=\"https:\/\/www.fwc.gov.au\/issues-we-help\/casual-permanent-status\" target=\"_blank\" rel=\"noopener\">Resolution mediated<\/a> by the Fairwork Commission<\/li><\/ul><p>Unfortunately, if either of these doesn\u2019t remedy the situation, the matter may have to be resolved in court, arbitrated by the Federal Circuit Court.<\/p><h2>The bottom line<\/h2><p>As the changes on the pathway from casual to permanent employment are new, there will be a degree of awkwardness in implementation. What is essential is good communication and honesty when discussing an employee's future in your business. As the date for small businesses to follow the new rules is set for 26 August 2025, there is plenty of time to review your procedures for <a href=\"https:\/\/www.reckon.com\/au\/small-business-resources\/payroll-guide\/workforce-management\/\" rel=\"\">managing your staff<\/a>.<\/p><p>You may find that the new process has new opportunities for <a href=\"https:\/\/www.reckon.com\/au\/small-business-resources\/hiring-staff-process\/traits-good-team-member\/\" rel=\"\">dedicated employees<\/a> to commit fully to your business. Whatever the employee choice pathway brings, ensure you are prepared with proper <a href=\"https:\/\/www.reckon.com\/au\/accounting-software\/payroll\/\">payroll systems<\/a> to navigate the changing landscape.<\/p>","_et_gb_content_width":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[343],"tags":[],"class_list":["post-302182","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why standard operating procedures are important for SMEs | Reckon Blog<\/title>\n<meta name=\"description\" content=\"Find out why strong standard operating procedures help small businesses streamline tasks, train staff faster, and build reliable, repeatable processes.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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