Financial transactions and reporting help companies track the money coming in and out, keep the debt out of sight, meet tax compliance and more. Financial reporting isn’t the most exciting part of managing a business, but it’s essential to ensure that everything is current and accurate.
A financial transaction is a contract that affects the finances of two persons or entities. There are four kinds: purchases, sales and payments. These kinds of financial transactions are recorded either using the website link cash method or accrual accounting. They must be accompanied by documents.
The substantiation process is essential to ensure the accuracy of an organization’s externally audited consolidated financial statements as in its internal management report. The process of confirming that the transaction has been properly documented, recorded and endorsed helps Drexel produce accurate and reliable reports that are free of significant mistakes.
In addition to the money involved, financial transactions must be documented with who, what, when, where and why information. The procedure for substantiation assures that the transaction is compliant with federal agency and private sponsor guidelines and also the policies and procedures of the team that provides research accounting services.
The Kuali Financial System has tools to verify the accuracy of a transaction, including the Transaction Detail Report and the Budget Adjustment (BA) report. The BA report displays pending entries in the General Ledger with dollar amounts marked 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 revenue and expenses as reported in your department’s expense accounts as well as on the Budget Verification Report.
