Financial Transactions and Reporting

Financial transactions and reporting involve monitoring and analyzing the flow of money through your company. This can include internal transactions, like payroll and expense reports, as well as external transactions like rentals or sales of assets, and credit-related transactions. It is important to analyze financial transactions in order to ensure that your accounting records are accurate and reliable. This requires clear definitions and processes as well as a consistent regularly updated.

Internal transactions are those that occur within a firm for example, such as the purchase, sale and leasing of office space. These transactions are also known as non-cash, since they don’t involve the exchange of products or services for cash. They could also include social responsibility and donations spending, as well as other expenses, such as travel and PCard fees.

Cash and non-cash transactions are recorded in the financial system of record, which may range from a simple accounting software package to a more sophisticated Enterprise Resource Planning (ERP) system. A solid financial statement is based on procedures and policies that ensure that only transactions that can be verified objectively are recorded in the system. These include source documentation like sales orders receipts for purchase invoices, purchase invoices bank statements, cancelled checks as well as appraisal and promissory note reports.

To confirm the validity of the transaction, you need to first identify the accounts involved and identify the account from which it will be debited and credit. Suppose, for example, that your company earned the sum of $5,000 as a result of consulting services. To record the sale, you must identify the income account as well as the receivables accounts, confirm that both are increasing and follow the rules for crediting and debiting. You must add the transaction into your journal entry to complete the process.

how to run financial deals efficiently and securely