Financial transactions and reports help businesses track money coming out and in, control debt, comply with tax laws and more. Financial reporting is not the most exciting part of managing a business, but it’s important to make sure everything is accurate and up-to-date.
A financial transaction is an agreement that changes the finances of two people or entities. There are four types: payments, purchases, and sales. These types of transactions are recorded using either the accrual or cash method of accounting and should be documented with the help of supporting documents.
The process of substantiation is vital to ensure the integrity of the financial statements that have been audited by an external auditor and internal management reporting. Drexel produces reliable and accurate reports by confirming that transactions have been properly documented, recorded and ratified.
In addition to the financial amounts involved, a financial transaction must be documented with who the, what, when, where and why details. The process of substantiation ensures that the transaction is in line with federal agency and private sponsor guidelines, as well as the rules and procedures of the team responsible for research accounting.
The go to this site Kuali Financial System has tools to verify the legitimacy of a transaction. These tools include a Transaction Detail Report and the Budget Adjustment (BA) report. The BA report displays pending entries in the General Ledger with dollar amounts identified with D (debits) or C (credits). The Budget Adjustment Report is also a great way to identify unusual activities and to reconcile the differences between the amount of revenue and expenses reported in your department expense accounts as well as on the Budget Verification Report.
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