Financial Transactions and Reporting
Financial transactions and reporting helps businesses track money coming out and in, control debt, adhere to tax laws, and much more. Financial reporting may not be the most exciting part of running a business but it’s essential to ensure that everything is accurate and current.
A financial transaction is a contract that affects the financial affairs of two people or entities. There are four types of financial transactions: payments, sales, and purchases. These types of financial transactions are recorded using the cash method or accrual accounting. All of these should be accompanied by supporting documents.
The process of substantiation is vital for the integrity of externally audited financial statements as well as internal management reporting. Drexel produces reliable and accurate reports by confirming that transactions have been correctly recorded, documented and ratified.
In addition to the financial amounts involved, financial transactions must be documented with who whom, what, when where and why information. The process of substantiation ensures that the transaction is compatible with policies and procedures established by the research accounting service team, as well as is in line with the guidelines of federal agencies and private sponsors.
The Kuali Financial System provides tools to check the accuracy of the 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 irregular activities and reconcile variations between expenses and revenue as reported in your department’s expense accounts and on the Budget Verification Report.
