Financial reports and transactions are the process of recording and analysing the flow of money within an organization. It is a vital process that must be performed properly and with integrity to ensure reliable, accurate financial statements and ensure conformance with external requirements. This article will provide general http://www.boardroomplace.org/a-comprehensive-guide-to-the-best-software-solutions-for-financial-transactions-and-reporting/ requirements and best practice to verify transactions, as well as the documentation required to back any financial transaction.
A financial transaction is an adjustment in the total value of assets and liabilities recorded by an institution, or its component elements, as a result of interactions between institutions that are carried out to satisfy commercial reasons. 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 recorded as other changes in the amount of assets account.
Substantiation is a detailed copy of the original source documents or work papers that support a financial transaction. The documents must be clear enough to stand on its own and answer the following questions: who was who, what, when and what the reason. The proof must be linked to the general ledger transaction information.
A strong financial report will show your company’s financial credibility to investors and creditors and build trust. It will also help you remain in compliance with tax laws. Utilizing an online reporting tool such as datapine will reduce manual work and enable you to prepare a a financial statement in no time. This will let you focus on more important tasks like creating a plan of action.