The financial transaction and report process provides a clear picture of the cash balance of a business, its inflows and outputs which is essential for businesses of all sizes. It helps identify potential opportunities, trends and risks to capitalize on or reduce. It also helps satisfy various legal and regulatory requirements. For example, a publicly-held firm may need to submit its financials to the Securities and Exchange Commission, while an electricity generating utility could be required to submit its financials to an agency of the government or to a lender.

Financial reports help companies communicate internally about the current financial situation. They provide important information to employees that can boost productivity and protect against mistakes. They also help management make informed decisions to meet the financial goals of their company.

To produce efficient reports, it is essential that the company’s processes and systems are in line with internal policies. These systems do not just enhance the quality of reports, but also boost data processing speed. This can decrease the time required to process invoices, and also perform other financial reporting tasks, such as analytic ad-hoc analysis or budget balancing.

To ensure that each transaction can be easily identified, a clear description should be included in each record. This will help differentiate the particular transaction from other transactions in the general ledger and Finance Mart reports. A description should be concise and clearly explain the reason for booking an entry, including a detailed calculation, if needed. Other information that should be incorporated into every record are the date of posting chartfield, transaction type and date.