Financial Transactions and Reporting

Financial transactions and reporting help companies track the money coming in and out, manage debt in check, satisfy tax compliance and more. Financial reporting might not be the most exciting aspect of running a company but it is essential to ensure that everything is correct and current.

A financial transaction is an agreement that affects the financial affairs of two entities or individuals. There are four kinds of financial transactions: sales, purchases and receipts. Payments are http://www.boardroomplace.org/hybrid-board-of-directors-and-remote-management/ also accepted. These types of transactions are recorded using either the accrual or cash method of accounting. They are documented with support documentation.

The substantiation process is essential to ensure the integrity of the financial statements that have been audited by an external auditor and internal management reports. Drexel produces reliable and accurate reports by confirming that transactions are correctly recorded, documented and approved.

In addition to the money involved, financial transactions should be documented with who and when, where and why details. The substantiation process makes sure that the transaction is in accordance with the guidelines and policies established by the research accounting services team and also conforms to the guidelines of federal agencies as well as private sponsors.

The Kuali Financial System provides tools to verify accuracy of any particular transaction. This includes the Transaction Detail Report (TDR) and the Budget Adjustment Report (BA). The BA report lists pending transactions 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 spot unusual activities and to reconcile the variations between expenses and revenue which are recorded in your department’s expense accounts as well as on the Budget Verification Report.

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