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A financial transaction is a type of event that involves at minimum two parties and has a direct impact on their financial situation. It causes at least one party to alter the amount of money in its accounts (assets and liabilities). The timing of a financial transaction may differ based on whether the entity is using accrual or cash accounting guidelines. The use of these techniques affects tax the reporting process and taxability.

Stakeholders rely on financial statements for assessing the health of a business and their investments, which include shares and loans. Accurate and transparent financial transactions and reporting is an absolute requirement for all companies.

The purpose of any financial statement is to provide information that will help stakeholders comprehend the current state of affairs and future goals of the company. Financial statements comprise a cash flow, income and balance sheet. The three are static representations of the company’s financials and the final one is forecasting future performance dependent on the current trends and plans.

It is challenging to provide accurate and transparent financial reporting and transactions. Accounting journals are the most basic way to record the financial transactions. Each entry is manually recorded by accountants. This can be tedious and susceptible to errors.

A unified financial statement, also known by the name consolidated financial statement is a different option. This report shows the combined results of every financial transaction at each university institution. By substantiating every transaction at the time of entry and examining all material transactions on a quarterly basis, the university can create consolidated financial statements that are free from material misstatements.