Finance & Accounts Outsourcing helps a business in streamlining various processes. Among all, Record to Report (R2R) is a very crucial process since it is associated with the reporting and analysis part.
What is Record to Report Process?
Record to Report (R2R) is a finance and accounting process of collecting the information, recording the financial data, analysing it in light of various financial and statutory laws and reporting it according to the stakeholders' requirements.
Record to Report process provides vital inputs and insights to the owners or decision makers of the business to know whether the business is making profits or losses.
What are the primary R2R services being offered?
An outsourced accounting firm offers Record to Report process in various domains:
- General Accounting
- Fixed Assets Accounting
- Inter-Company Accounting
- Bank and General Ledger Reconciliations
- Cash and Treasury Management
- Financial Reporting
- Management Reporting
- Inventory Management and Accounting
- Revenue Accounting
- Closing Accounting
- Financial Statement Preparation
How does outsourcing ease R2R process?
Outsourcing the accounting and finance operations can ease the Record to Report process through providing the benefits which are not available with in-house accounting.
Summarising the data into quick, readable reports
In the businesses, information is recorded across various systems in multiple formats. Due to this, it may be unorganised for doing the analysis. In the absence of inter-connecting links, studying the reports extracted from two or more systems becomes a challenge. The vague data can spoil the decision maker's ability to make productive decisions. The outsourced accounting firm overcomes this inherent limitation of accounting systems by providing informative and quickly readable reports due to which analysis and decision making become quick and accurate.
Automating the reconciliation of data
Reconciliation plays a vital role in ensuring the accuracy of data and decrease in errors. Reconciling the data of various reports against each other also helps in setting the linkages correctly.
Outsourcing accounting firm automates the entire reconciliation process at each stage so that issues can be addressed proactively.
Better expertise and skill of handling the R2R process
R2R process possesses some tedious tasks which require a blend of knowledge and experience which might not be available in the in-house accounting team.
Since there are domains like inter-company transactions that affect various other areas like taxation and legal services etc. it is indispensable to opt for the services of outsourced accounting firm which can offer more expertise and apply industry-leading practices.
Harmonization of closing calendars
A company may operate at high scale due to which it may have processes, departments and branches scattered across the different locations. It becomes difficult for the in-house accounting team to ensure that the accounts are closed at the same time across all the systems.
Outsourcing accounting firm eliminates this delay by harmonising the closing across all the systems and creating standardised, globally compliant processes. At Especia Associates LLP, we ensure to add value to all the existing processes by offering innovative, streamlined and global leading practices so that the accounting doesn't remain just a back office task - instead it becomes a key input for all significant decisions.