Financial transactions and reporting helps businesses track money coming out and in, manage debt, adhere to tax laws, and much more. Financial reporting might not be the most exciting part of running a business however it is vital to ensure that everything is correct and current.
A financial transaction is an agreement that alters the financial situation of two entities or individuals. There are four types of financial transactions: payments, purchases, and sales. These kinds of transactions are recorded using either the cash or accrual method of accounting and must be documented using supporting documents.
The process of substantiation is critical to ensure the integrity of an entity’s externally audited financial statements that are consolidated as along with the internal management reports. Drexel produces accurate and reliable reports by confirming that transactions have been properly documented, recorded, and ratified.
In addition to the financial amounts involved, financial transactions must be documented with the who and when, where and why details. The substantiation procedure ensures that the transaction is in line with federal agency and private sponsor guidelines, as well as the rules and procedures of the team of research accounting services.
The Kuali Financial System has tools to check the accuracy of a transaction, such as the Transaction Detail Report and the Budget Adjustment (BA) report. The BA report shows pending entries in the General Ledger with dollar amounts that are marked with either D (debits) or C (credits). The Budget Adjustment Report also provides the possibility of identifying unusual activity and to reconcile the differences between expenses and revenue from your department’s expense accounts as well as the Budget Verification Report.