Financial transactions and reports help businesses keep track of money coming out and in, manage debt, comply with tax laws, and much more. Financial reporting might not be the most exciting part of running a business but it is essential to ensure that everything is correct and current.
A go to this site financial transaction is a completed agreement that changes the finances of two people or entities. There are four types: payments, sales, and purchases. These types of financial transactions are recorded using the cash method or accrual accounting. All of these should be accompanied by supporting documentation.
The process of substantiation is critical to ensure the integrity of an entity’s externally audited financial statements consolidated as and its internal management report. The process of confirming that a transaction is properly recorded, documented and approved assists Drexel create accurate and reliable reports, free of any material mistakes.
In addition to the financial amounts involved, a financial transaction must be documented by providing the who and when, where and why details. The substantiation process makes sure that the transaction is in line with policies and procedures laid out by the research accounting service team and follows the guidelines of federal agencies as well as private sponsors.
The Kuali Financial System has tools to confirm the authenticity of a transaction. This includes a Transaction Detail Report and the Budget Adjustment (BA) report. The BA report lists pending transactions with dollar amounts marked as D (debits) or C (credits) in the General Ledger. The Budget Adjustment Report also provides a way to identify unusual activities and reconcile the differences between revenue and expenses that are reported in your department’s expense accounts and the Budget Verification Report.