Financial Transactions and Reporting

Financial transactions and reports can help businesses keep track of money coming in and going out, keep debt at bay, meet tax compliance and more. Financial reporting might not be the most exciting part of running a company, but it is important to ensure that everything is accurate and current.

A financial transaction is an agreement that alters the finances of two entities or individuals. There are four kinds of financial transactions: purchases, sales, payments and receipts. These financial transactions are recorded either using the cash method or accrual accounting, and must be supported with supporting documentation.

The substantiation procedure is crucial for the integrity of financial statements that are audited externally and internal management reports. The process of confirming that the transaction is properly recorded, documented and endorsed assists Drexel produce reliable and accurate reports, free of any material mistakes.

A financial transaction must include the who information, the what and when and the where, why and where. The procedure for substantiation assures that the transaction conforms to federal agency and private sponsor guidelines as well as the rules and procedures of the team that provides research accounting services.

The Kuali Financial System provides tools to check the accuracy of any particular transaction. This includes the Transaction Detail Report (TDR) and the Budget Adjustment Report (BA). The BA report reveals pending entries with dollar amounts labeled as D (debits), or C (credits) in http://www.boardroomplace.org/hybrid-board-of-directors-and-remote-management/ the General Ledger. The Budget Adjustment Report also provides the possibility of identifying unusual activity and reconciling differences between expenses and revenue that are reported in your department’s expense accounts as well as the Budget Verification Report.