Financial Transactions and Reporting

Financial transactions and reporting help businesses track money coming in and out, manage debt, adhere to tax laws and more. Financial reporting may not be the most exciting aspect of running a business but it’s essential to ensure that everything is correct and up-to-date.

A financial transaction is a completed agreement that alters the what makes a good board of directors financial situation of two people or entities. There are four kinds of financial transactions: purchases, sales and receipts. These kinds of financial transactions are recorded using the cash method or accrual accounting. All of these should be accompanied by supporting documents.

The substantiation procedure is crucial to ensure the integrity of externally audited financial statements and internal management reporting. The process of confirming a transaction is properly recorded, documented and endorsed assists Drexel create accurate and reliable reports, free from material errors.

A financial transaction should include the who, what and when information and the why, where, 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 determine the accuracy of the particular transaction. They include the Transaction Detail Report (TDR) and the Budget Adjustment Report (BA). The BA report shows pending entries with dollar amounts that are marked as D (debits) or C (credits) in the General Ledger. The Budget Adjustment Report is also an excellent way to spot unusual activities and reconcile variances between expenses and revenues reported in your department expense accounts as well as on the Budget Verification Report.