Financial transactions and reporting can help businesses keep track of money coming in and out, manage debt, adhere to tax laws, and much more. Financial reporting isn’t the most exciting part of running a business, but it’s important to make sure that everything is up-to-date and accurate.
A financial transaction is a contract that affects the financial affairs of two persons or entities. There are four kinds: purchases, sales and payments. These kinds of transactions are recorded using either the accrual or cash method of accounting and must be documented using supporting documents.
The process of substantiation is vital to ensure the integrity of externally audited financial statements and internal management reporting. Drexel produces accurate and reliable reports by confirming that transactions are properly documented, recorded, and ratified.
A financial transaction must include the who, what and when information, as well as the where, why and where. The procedure for substantiation assures that the transaction adheres to federal agency and private sponsor guidelines, as well as the guidelines and procedures of the team of 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 lists pending transactions in the General Ledger with dollar amounts that are marked with either D (debits) or C (credits). The Budget Adjustment Report also provides a way to identify unusual activities and reconcile the differences between expenses and revenue which are reported in your department’s expenses accounts as well as the Budget Verification Report.