Financial Transactions and Reporting

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Financial transactions and reporting help businesses keep track of money coming in and out, help keep debt at bay, meet tax compliance, and much more. Financial reporting isn’t the most exciting aspect of managing a business, however, it is crucial to ensure everything is accurate and up-to-date.

A financial transaction is an agreement that affects the financial affairs of two persons or entities. There are four kinds: payments, purchases, and sales. These kinds of financial transactions are recorded using the cash method or accrual accounting, and must be accompanied by documentation.

The process of substantiation is critical for the accuracy of an organization’s externally audited financial statements that are consolidated as well as the internal management reports. Drexel produces accurate and reliable reports by confirming that transactions have been properly documented, recorded and ratified.

A financial transaction must include the who information, the what and when and the where, why and where. The substantiation process makes sure that the transaction is consistent with the guidelines and policies established by the research accounting services team and conforms to the guidelines of federal agencies and private sponsors.

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 with dollar amounts labeled as D (debits), or C (credits) in the General Ledger. The Budget Adjustment Report also provides a way to identify irregular activity and reconcile variances between revenue and expenses from your department’s expense accounts and the Budget Verification Report.