Financial transactions and reporting helps businesses track money coming in and out, manage debt, comply with tax laws and more. Financial reporting might not be the most exciting aspect of running a company but it’s essential to ensure that everything is www.boardroomplace.org/benefits-of-succession-planning correct and current.

A financial transaction is an agreement that affects the finances of two persons or entities. There are four kinds: 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 substantiation procedure is crucial for the accuracy of financial statements that are audited externally and internal management reporting. Drexel produces reliable and accurate reports by confirming that transactions are properly documented, recorded, and ratified.

In addition to the financial amounts involved, a financial transaction must be documented with the who, what, when, where and why details. The process of substantiation assures that the transaction is in accordance with the policies and procedures set forth by the research accounting services team and conforms to the guidelines of federal agencies as well as private sponsors.

The Kuali Financial System provides tools to verify accuracy of a particular transaction. This includes the Transaction Detail Report (TDR) and the Budget Adjustment Report (BA). 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 the ability to detect unusual activity and reconciling differences between expenses and revenue from your department’s expense accounts and the Budget Verification Report.

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