Often projects have a lot of files, email and such associated with them, so you need one place to store them all...
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and keep everyone up to date on what's going on. OneNote from Microsoft is a great tool for this. It helps you track projects at a relatively inexpensive price.
We use a OneNote template for all our projects. At the bottom of the template there's a place for files associated with the project. You just drag and drop the file into OneNote, highlight the file and insert a two-column table. The first column is the actual file; the second column is where you put comments about that file.
Now when asked about the status of project X, you have everything in one place and the ability to send files to anyone you need to. No more wasted time looking for that email or Word document that was associated with that project.
Microsoft OneNote finally poised for mainstream