Financial transactions and reports help companies keep track of the money coming out and in, manage debt, comply with tax laws and more. Financial reporting may not be the most exciting aspect of running a company but it is essential to ensure that everything is correct and current.
A financial transaction is an agreement that alters the financial situation of two or more individuals. There are four types: purchases, sales and transactions. These financial transactions are recorded either using the cash method or accrual accounting, and are accompanied by supporting documentation.
The process of substantiation is crucial to ensure the accuracy of an organization’s externally audited financial statements consolidated as and the internal management reports. The process of verifying that the transaction is properly documented, recorded and approved assists Drexel produce accurate and reliable reports, free of any material mistakes.
In addition to the financial amounts involved, a financial transaction should be documented with who the, what, when, where and why information. The procedure for substantiation assures that the transaction adheres to federal agency and private sponsor guidelines, and also the policies and procedures of the research accounting services team.
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 shows pending entries in the General Ledger with dollar amounts indicated with go to this site 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 and the Budget Verification Report.
