Between purchase orders, vouchers, invoices, receipts, expense reports, and other documents, accounts payable departments are responsible for keeping track of a great deal of records. In AP, as in all business functions, maintaining records is essential because it helps you know exactly how much money you have and where it’s going.

A recent article published in The San Angelo Standard-Times in Texas lists several key components of a successful records management program. For example, the author recommends that small businesses have a system for identifying different types of invoices, such as those for cash transactions, sales, purchases, and returns.

Record management – whether automated or manual – should also include a way to quickly identify invoices as paid and unpaid. In addition, organizations should have a consistent system for recording entries into the account system. The author recommends doing so daily, but adds that weekly or monthly may be better suited for a smaller business’s transaction volume.

For more, including how often you should reconcile the petty cash account, see the full article.