The financial management and especially the accounting system have to be supported by accurate and complete files and records. The administration of a support institution needs to ensure compliance with the regulatory framework (e.g., all accounting receipts have to be stored for 7 years) and delivery and storage of important information.
Back-ups or copies of the main records and official documents should be kept at an alternative secure locations in a different building from the administration office in case of fire or some other disaster. There are many accounting software applications that cover all of the below requirements. If these are used nightly back-ups should be made to removable data storage
media. This media should then be removed and stored off-site at a secure location. Keep two-night back-ups and rotate them so that there is always the previous night's back-up available in case you discover the current back-up is unusable or fails when you overwrite it.
Keep in mind that files and records should be as complete and “self-explanatory” as possible. Especially newly set-up and smaller organisations depend on a few key persons, the administrative staff included.
a) Accounting and financial records
All receipts (expense receipts and invoices, sales invoices, staff working hours, inventory, etc.) are registered in the respective books. Store all receipts in chronological order in files and keep them for at least 5 – 7 years, depending on the legal requirements. Keep also additional notes and explanations for more complex business cases. Remember that your auditor will need to understand all information and entries in your accounting system!
For a detailed list of accounting records see Accounting & Reporting
Budgets and financial analysis are carried out periodically. At the end of the financial year the income statement, balance sheet and cash flow statement are elaborated. All statements and financial analysis should be stored to be used as reference for later periods.
b) Bank records
Keep files for your bank statements, deposit slips, withdrawal receipts, credit card statements, cheque records, correspondence with your bank, credit, loan or mortgage documents, foreign currency accounts, etc.
c) Contracts
Keep file for all important purchase, sales or lease contracts and agreements.
These can be: equipment, service contracts, rent, car lease, etc. The purchase and lease contracts will also contain important guarantee and service terms. For sensitive equipment, like computers, the guarantee periods need to be monitored closely and any repair or service should be asked before expiration.
Source: Click501 Corporation
Insurance Policy Tracking Template
d) Institution records
These include your institution’s registration, bylaws or statutes, co-operation or partnership agreements, agenda and minutes of annual member meetings, agenda and minutes of board and supervisory board meetings, documents from local or national authorities incl. tax exemption, employer registration etc.
e) Post / mail
You should keep a mail/fax/email registration book and file. All received and sent mail, fax and important email are to be kept as originals and registered in the entry book. Add a project or programme reference to each dispatch and receipt. This allows you to track the history of your correspondence. Furthermore, the reference number will help you allocate post and communication expenses to the different programmes or to general communication expenses.
f) Staff records
File all documents and data related to full time and part time staff, consultants or independent contractors and volunteer contracts with the original signatures.
Furthermore keep record of all staff related information (applications, CVs, references, performance appraisals, client feed-back, attendance or work hour sheets, salary and contributions, travel and expense claims). You should also use nondisclosure and confidentiality agreements for your employees.
g) Forms and standard agreements
Keep a file with all standard forms that are used in your institution, e.g., standard sales conditions and terms, standard job descriptions, financial analysis templates, standard purchasing order, memorandum of understanding, sales agreements, etc.
h) License, patents and permits
Keep a file with all licenses, patents and permits you hold or are allowed to use to operate your institution and to do your business.
i) PR and advertising records
This file will contain all brochures, advertisements, press and media releases, newsletters etc. used to promote your institution.
j) Library and inventory records
In case your institution has a library, all publication entries should be registered and given a systematic number. At the end of the year, you will need to check if all publications are still in your library and book-out any old or lost publications.
If you maintain an inventory (learning materials, brochures, etc.) you will have to record all entries to and outflows from the inventory. At year end you will control the content of the inventory and if necessary deduct any losses.