Financial transactions and reporting can help companies keep track of the money coming out and in, control debt, adhere to tax laws and more. Financial reporting is not the most exciting aspect of running a business, but it is crucial to ensure that everything is current and accurate.
A financial transaction is a completed agreement that changes the finances of two entities or individuals. There are four types: payments, purchases, and sales. These types of transactions are recorded using either the cash or accrual method of accounting and are documented with support documentation.
The process of substantiation is crucial to ensure the accuracy of an organization’s externally audited financial statements that are consolidated as in its internal management reporting. Drexel produces reliable and accurate reports by confirming that transactions have been properly documented, recorded, and approved.
A financial transaction must contain the who the information, when and what along with the reason, where and where. The process of substantiation ensures that the transaction is in accordance with the guidelines and policies that are set by the research accounting services team and also follows http://www.boardroomplace.org/a-comprehensive-guide-to-the-best-software-solutions-for-financial-transactions-and-reporting/ the guidelines of federal agencies and private sponsors.
The Kuali Financial System provides tools to check the accuracy of the particular transaction. This includes the Transaction Detail Report (TDR) and the Budget Adjustment Report (BA). The BA report shows pending entries in the General Ledger with dollar amounts that are marked with either D (debits) or C (credits). The Budget Adjustment Report is also an excellent way to detect unusual transactions and reconcile any variances between expenses and revenues reported in your department expense accounts and on the Budget Verification Report.