Financial transactions and reports help companies track the money coming in and out, keep debt at bay, meet tax compliance and more. Financial reporting might not be the most exciting aspect of running a company, but it is important to ensure that everything is correct and current.
A financial transaction is a completed agreement that alters the finances of two people 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. All transactions are documented with support documents.
The process of substantiation is critical for the integrity of an entity’s externally audited financial statements that are consolidated as and the internal management reports. Drexel produces accurate and reliable reports by confirming that transactions are correctly recorded, documented and ratified.
A financial transaction must contain the who, what and when information along with the reasons for it and where. The substantiation procedure ensures that the transaction is in line with federal agency and private sponsor guidelines, as well as the guidelines and procedures of the research accounting services team.
The Kuali Financial System has tools to check the accuracy of a transaction. These tools include the Transaction Detail Report and the Budget Adjustment (BA) report. The BA report shows pending entries in the General Ledger with dollar amounts indicated with D (debits) or C (credits). The Budget Adjustment Report is also an excellent way to spot unusual activities and to reconcile the variances between expenses and revenues which are recorded in your department’s expense accounts and on the Budget Verification Report.
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