Record to Report also known as R2R is a finance and accounting process of management that involves the processes of collecting, processing and delivering relevant, accurate and timely information used for providing strategic, financial and operational feedback to understand how a business has been performing under the field. Understanding the record to report process can help you assess an organization’s financial performance and gain essential insights into the business to help you make improvements and work on the operations and performance as a whole.
In Record to Report, the record consists of documenting that particular organization’s financial transactions and the report part involves creating financial documents, including balance sheets, profit and loss statements and budget reports. Through the Record to Report system insights can be taken to identify different functions of the organization that are meeting or exceeding expectations and areas that need improvement.
The Report to Record process also involves the processes required for preparing and reporting the organization’s accounts within its general ledger, which is why this process is called “general ledger process” at times. Leaders can use the date from the final stage of the Record and Report process to assess on how the organization is meeting its finances and performance goals and develop strategies as needed and other stakeholders may use it to make better decisions for the company’s success.
The Record to Report process provides companies with a consistent method of gathering, validating and reporting financial data that can help them maintain on how accurate they are in their activities.
Suggested Read: A Guide to Enterprise Resource Planning System
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