Financial Transactions and Reporting

Financial transactions and reporting help companies keep track of the money coming into and going out, keep debt at bay, ensure tax compliance and more. Financial reporting is not the most exciting aspect of running a business, but it’s important to make sure that everything is current and accurate.

A financial transaction is an agreement that affects the financial affairs of two persons or entities. There are four types of financial transactions: purchases, sales and transactions. These types of transactions are recorded using either the cash or accrual method of accounting. All transactions are documented with support documentation.

The process of substantiation is essential for the accuracy of the financial statements that have been audited by an external auditor and internal management reporting. The process of confirming that a transaction is properly documented, recorded and approved assists Drexel create reliable and accurate reports, free of any material misstatement.

A financial transaction must include the who, what and when information, as well as the where, why and where. The substantiation process makes sure that the transaction is consistent with the guidelines and policies laid out by the team of research accounting services and follows the guidelines of federal agencies and www.boardroomplace.org/benefits-of-succession-planning private sponsors.

The Kuali Financial System has tools to confirm the authenticity of a transaction, such as a Transaction Detail Report and the Budget Adjustment (BA) report. The BA report displays pending entries in the General Ledger with dollar amounts indicated with D (debits) or C (credits). The Budget Adjustment Report also provides a way to identify unusual activity and reconciling variances between revenue and expenses from your department’s expense accounts as well as the Budget Verification Report.