Financial transactions and reporting can help businesses keep track of money coming in and out, manage debt, adhere to tax laws and more. Financial reporting is not the most exciting part of running a business, but it’s crucial to ensure all information is current and accurate.
A financial transaction is a contract that affects the financial affairs of two persons or entities. There are four types of financial transactions: sales, purchases and receipts, as well as payments. These kinds of financial transactions are recorded either using the cash method or accrual accounting. They must be accompanied by documents.
The substantiation procedure is crucial for the integrity of externally audited financial statements and internal management reporting. Drexel produces reliable and accurate reports by confirming that transactions are properly documented, recorded, and ratified.
In addition to the money involved, a financial transaction should be documented with who, what, when, where and why details. The process of substantiation assures that the transaction is compatible with the guidelines and policies that are set by the research accounting services team, as well as follows the guidelines of federal agencies and private sponsors.
The Kuali Financial System has tools to confirm the authenticity of a transaction. This includes a Transaction Detail Report and the Budget Adjustment (BA) report. The BA report shows the pending entries in the General Ledger with dollar amounts that are marked with either D (debits) or C (credits). The Budget Adjustment Report also provides the possibility of identifying irregular activity and reconcile variations between revenue and expenses https://boardroomplace.org that are reported in your department’s expense accounts and the Budget Verification Report.