CHAPTER 7: ACCOUNTING, RECORDS, AND ASSOCIATED REGULATIONS
Time and materials contractor reimbursement Bank deposit slips Credit card charge slips Listing or accounts written off Credit memos Chargeback memos Customer collection correspondence Billing reports by customer/product/division
Expired customer contracts or leases
Records to maintain for two years include: Correspondence
STORING PAPER DOCUMENTS Most companies, especially in Europe, are still storing paper documents as the “original” document, especially where the invoice is a legal document, although businesses can decide where and how they want to store them, including electronically. Each country varies in its regulations. It is a best practice to store documents electronically. Based on the volume of documents that need to be stored and retrieved when required—which could be in seven years—it is very costly to store paper. There is also a high risk in meeting these regulations—misfiling happens regularly, not to mention risk of damage due to water, fire, and the aging of paper and ink. ELECTRONIC DOCUMENT STORAGE If storing electronic images rather than paper documents, there are requirements that must be met, which vary by country. In the U.S., IRS Revenue Procedure 97-22 provides guidance on maintaining records by using electronic storage systems that either scan to image hardcopy books and records, or transfer computerized books and records to an electronic storage medium. The European Document Retention Guide is a good source for understanding European records management. It even provides easy-to-use charts by country, and the length of time for which documents need to be stored. Governments are very concerned about the integrity of electronic storage systems and put the onus squarely on companies to prove that their systems are accurate, reliable, and have not been tampered with. Companies can be required to prove that their electronic system supports the company’s books and records, including indexing and retrieval systems, and provides an audit trail between the general ledger and the source documents. Companies must provide not only the data but also the ability to locate, retrieve, read, protect, and reproduce any electronically stored books and records. Companies that change their computer storage system must consider how they will provide the governments with access to the data in their legacy systems.
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THE ACCOUNTS RECEIVABLE SPECIALIST CERTIFICATION PROGRAM E-TEXTBOOK
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