{"id":5927,"date":"2017-12-26T20:00:53","date_gmt":"2017-12-26T14:30:53","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=5927"},"modified":"2021-04-07T11:24:48","modified_gmt":"2021-04-07T05:54:48","slug":"record-report-r2r","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/record-report-r2r\/","title":{"rendered":"What is Record to Report (R2R) Process?"},"content":{"rendered":"

How familiar are you with Record to Report (R2R))? It’s’ a financing and Accounting<\/a> (F&A) management process that involves collecting\/processing\/delivering information that’s relevant, accurate, and timely. This provides strategic, operational, and financial feedback about how your company is performing. Your company’s stakeholders then read the feedback and get insights about whether the company’s performance is successful or not. It also helps to determine if their particular expectations were met.<\/p>\n

R2R Report Stages                          <\/h2>\n

The R2R cycle’s groundwork is based on the data processing stage. This is where data that’ critical for creating reports is created. If your company’s data enter team enters records correctly and few errors the remainder of the process happens smoothly. However, in the case that doesn’t happen then there’s a lot of time wasted on reworking and manual intervention.<\/p>\n

Throughout the end of the financial period, the company’s finance team and others involved in accounting work receive a deadline. They must complete postings prior to the deadline so the general ledger can be closed and the reconciliation\/validating work can start. The data integrity that flows into the general ledger improves and steps are taken to lower the requirement for manual journal entries.<\/p>\n

The majority of companies try to finish the closing cycle as soon as possible. However, big companies with legacy systems from the purchase of other companies and complicated internal procedures require a lot of time during the closing. This greatly delays the full R2F process. It’s a continuous challenge for several finance teams to complete the closing cycle on time.<\/p>\n

After the cycle is complete the accountants being to reconcile inter-company balances, validate info that will go into financial statements, and perform eliminations. The finance team is aware that the reports it creates must address the needs of internal\/external stakeholders.<\/p>\n

The reconciliation process is very complex when there are multi-national companies with big operations involved. However, companies try to finish the consolidation work in a short timeframe following the general ledger being closed.<\/p>\n

After data is collected\/validated\/processed the analytical process begins. Several reports are prepared that include various statistics and key performance indicators (KPIs). The reports are sent to internal\/external stakeholders<\/strong>[1]<\/strong><\/a><\/sup>. These include operational heads, senior management, industry regulators, and investor. It’s important for these key parties to receive the information.<\/p>\n

Benefits of Efficient R2R Process<\/h2>\n