Financial transactions and reporting help businesses keep track of money coming in and out, manage debt, comply with tax laws and more. Financial reporting may not be the most exciting part of running a company however it is vital to ensure that everything is accurate and up-to-date.
A financial transaction is an agreement that alters the financial situation of two or more individuals. There are four kinds: purchases, sales and payments. These kinds of transactions are recorded using either the cash or accrual method of accounting. All transactions must be documented using supporting documentation.
The process of substantiation is vital to ensure the integrity of an entity’s externally audited financial statements consolidated as well as its internal management report. The process of confirming an event is properly documented, recorded and endorsed assists Drexel create reliable and accurate reports that are free of material mistakes.
A financial transaction must contain the who details, what and when in addition to the reasons for it and where. The process of substantiation assures that the transaction is consistent with policies and procedures set forth by the research accounting services team, as well as follows the guidelines of federal agencies and private sponsors.
The Kuali Financial System has tools to confirm the authenticity of a transaction. This includes the Transaction Detail Report and the Budget Adjustment (BA) report. The BA report displays pending entries with dollar amounts that are marked as D (debits) or C (credits) in the General Ledger. The Budget Adjustment Report also provides the possibility of identifying unusual activities and reconcile the differences between expenses and revenue that are reported in your department’s expense accounts and the Budget Verification Report.
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