Financial transactions and reports help businesses keep track of funds coming out and in, manage debt, adhere to tax laws, and much more. Financial reporting might not be the most exciting aspect of running a company but it’s essential to ensure that everything is correct and up-to-date.
A financial transaction is a completed agreement that alters the financial situation of two entities or individuals. There are four types: purchases, sales and payments. These types of financial transactions are recorded either using the cash method or accrual accounting, and are accompanied by supporting documentation.
The process of substantiation is critical to ensure the integrity of an entity’s externally audited financial statements consolidated as in the internal management reports. Drexel produces reliable and accurate reports by confirming that transactions are properly documented, recorded and ratified.
In addition to the monetary amount involved, financial transactions should be documented with who and when, where and why details. The substantiation process ensures that the transaction is in accordance with the rules and regulations laid out by the research accounting service team, as well as adheres to the guidelines of federal agencies as well as private sponsors.
The Kuali Financial System provides tools to confirm the accuracy of a particular transaction. This includes the Transaction Detail Report (TDR) and the Budget Adjustment Report (BA). The BA report displays pending entries with dollar amounts labeled as D (debits) or C (credits) in the General Ledger. 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.