Financial Transactions and Reporting

Financial reporting and transactions is the process of recording and analyzing http://www.boardroomplace.org/a-comprehensive-guide-to-the-best-software-solutions-for-financial-transactions-and-reporting/ the flow of money within an organization. It is a vital process that must be conducted accurately and with integrity to ensure reliable, accurate financial reports and ensure compliance with external requirements. This article will address general requirements and best practice for transaction substantiation and the documentation required to back all financial transactions.

A financial transaction is an adjustment in the total value of assets and liabilities recorded by an institution, or its component parts, as a result of interactions between institutional units that are carried out in the interest of commercial gain. It does not include the writing off or writing-down of bad debts by creditors or the unilateral cancellation of a debt by a debtor. These are included in the other changes in the volume of assets account.

Substantiation refers to the exact original source documents or work papers that support a financial transaction. The documentation should be clear enough to answer questions such as who whom, what, when and why. The substantiation must also be connected to the general ledger transactions details.

A strong financial report will demonstrate the integrity of your business’ finances and help build confidence with creditors and investors. This will also keep you fully in compliance with tax laws. Using an online reporting tool such as datapine will reduce the need for manual work and enable you to prepare a financial statements in no time. This will let you concentrate on more important things, such as building an effective plan.