Financial transactions and reporting can help businesses track money coming out and in, manage debt, comply with tax laws and more. Financial reporting might not be the most exciting aspect of running a business but it is essential to ensure that everything is accurate and current.
A financial transaction is a completed agreement that alters the financial situation of two individuals or entities. There are four kinds of financial transactions: purchases, sales and receipts, as well as payments. These types of financial transactions are recorded either using the cash method or accrual accounting, and are accompanied by supporting documentation.
The process of substantiation is vital for the integrity of an entity’s externally audited financial statements consolidated as along with its internal management report. Drexel produces reliable and accurate reports by confirming that transactions are properly recorded, documented, and approved.
A financial transaction must include the who details, what and when in addition to the why, where, and where. The substantiation process ensures that the transaction is in accordance with policies and procedures laid out by the research accounting services team and also follows the guidelines of federal agencies and private sponsors.
The Kuali Financial System provides tools to confirm the accuracy of an individual transaction. They include the Transaction Detail Report (TDR) and the Budget Adjustment Report (BA). The BA report lists pending transactions in the General Ledger with dollar amounts marked with D (debits) or C (credits). The Budget Adjustment Report is also an excellent way to spot unusual activities and reconcile differences between revenue and expenses reported in your department expense accounts as well as on the Budget Verification Report.
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