Financial transactions and reporting can help companies keep track of the money coming into and out, keep debt at bay, ensure tax compliance and more. Financial reporting may not be the most exciting part of running a business but it is essential to ensure that everything is accurate and up-to-date.
A financial transaction is an agreement that affects the finances of two individuals or entities. There are four kinds: payments, purchases, and sales. These types of transactions are recorded using either the cash or accrual method of accounting. They must be documented with supporting documentation.
The substantiation process is essential for the integrity of the financial statements that have been audited by an external auditor and internal management reporting. The process of confirming that the transaction has been properly recorded, documented and approved assists Drexel produce reliable and accurate reports that are free of material misstatement.
A financial transaction must include the who the information, when and what, as well as the why, where, and where. The process of substantiation ensures that the transaction is consistent with policies and procedures that are set by the team of research accounting services and also adheres to the guidelines of federal agencies and private sponsors.
The Kuali Financial System provides tools to confirm the accuracy of a particular transaction. They include the Transaction Detail www.boardroomplace.org/board-management-system-online-solutions-to-choose Report (TDR) and the Budget Adjustment Report (BA). The BA report reveals pending entries with dollar amounts that are marked as D (debits) or C (credits) in the General Ledger. The Budget Adjustment Report is also an excellent way to spot irregular activities and reconcile differences between revenue and expenses that are reported in your department’s expense accounts and on the Budget Verification Report.