Financial Transactions and Reporting
Financial transactions and reporting can help businesses track money coming in and out, keep the debt out of sight, meet tax compliance, and much more. Financial reporting is not the most exciting aspect of managing a business, but it’s essential to ensure that everything is current and accurate.
A financial transaction is a completed agreement that alters the finances of two entities or individuals. There are four kinds: payments, sales, and purchases. These kinds of transactions are recorded using either the accrual or cash method of accounting. These transactions should be documented with the help of supporting documentation.
The process of substantiation is essential to ensure the integrity of externally audited financial statements as well as internal management reporting. Drexel produces accurate and reliable reports by confirming that transactions have been properly documented, recorded and ratified.
A financial transaction must contain the who, what and when information along with the reasons for it and where. The substantiation process makes sure that the transaction is in accordance with policies and procedures set forth by the research accounting service team and also is in line with the guidelines of federal agencies as well as private sponsors.
The Kuali Financial System provides tools to confirm the accuracy of a particular transaction. They include the Transaction Detail Report (TDR) and the Budget Adjustment Report (BA). The BA report lists pending transactions with dollar amounts labeled as D (debits), or C (credits) in the General Ledger. The Budget Adjustment Report is also an excellent way to detect unusual activities and to reconcile the variances between expenses and revenues as reported in your department’s expense accounts as well as on the Budget Verification Report.
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