The financial report and transaction process gives an accurate picture of the cash balance of a business including its outputs and inflows that are crucial for all businesses. It can help identify potential opportunities, trends and risks that are worth exploiting or reduce. It is also used to comply with various legal and regulatory requirements. For instance electric utilities may need to report their financials to a government agency, or a lender, if they’re a publicly traded company.
Financial reports enable businesses to communicate internally about the current financial situation. They give employees important information that can improve productivity and eliminate mistakes. They also help management make informed choices to meet the financial goals of the organization.
To produce reliable reports, companies must have processes and systems that are in line with internal policies. These systems do not just enhance the quality of reports, but also increase the speed of processing data. This will reduce the time required to process invoices, and also perform other financial reporting tasks, including random analyses or budget balancing.
A good description of each transaction should be provided in every record. This will allow you to identify each transaction. This will help differentiate one particular transaction from the other transactions in the general ledger or Finance Mart reports. The description should be concise and explain the reason an entry was booked including any calculations if applicable. Other details that should be added to every record are a posting date, chartfield and transaction type.