Optimise Your R2R Function With These 6 Best Practices
The everchanging landscape of modern marketplaces and legal compliance has led to a massive shift in the way finance teams’ function. With rising expectations from business leaders and clients, it’s vital that finance leaders leverage financial information to drive performance analysis and facilitate informed decision-making.
Record-to-Report, or R2R, is a highly specialised finance function that can have a direct impact on a company’s future growth. The core objective of R2R is to provide strategic, financial and operational feedback on the performance of the business, in addition to producing financial statements compliant with local accounting standards.
In today’s remote-driven workplace, it’s more crucial than ever for businesses to follow best practices when it comes to running and maintaining an efficient R2R function. The key however is to adapt processes to changing market trends and stay one step ahead of the competition.
Here are six record-to-report practices that you should consider following in your organisation:
Invest in Automation: The buzz word when it comes to reliable, efficient, and effective functioning is automation. Automation will enable your business to manage its R2R function with fewer errors, lower costs, and more accuracy.
Standardise and Simplify: Quality surpasses quantity, especially in the case of accounting data. Therefore, ensure that you establish unique and easy-to-identify criteria for different finance processes. Standardisation and documentation are key when it comes to running an efficient R2R function.
End of Month Process Reporting: Don’t leave any room for error at the end of the month. Consolidate software, automate and optimise workflows, enable access to all relevant stakeholders, and monitor KPIs.
Optimise Intercompany Accounting: Businesses with multiple locations and subsidiaries need to make an extra effort to enhance communication between various stakeholders. Standarisation and documentation can further aid and improve communication. Utilise cloud-based data collection and organisation to make the process foolproof. Process automation can also enable fewer errors, faster workflows, and lesser closing times.
Account Reconciliation: Save time and reduce mistakes with an efficient reconciliation process. Remember to use the right processes, implement unique controls, automate relevant processes and implement necessary checks and balances.
Taxation: Ensure that this is done on time and in an efficient manner as it will add credibility to your organisation. Opt for strategic methods of tax planning and stay up-to-date with the latest tax laws and regulations.
Transform your record-to-report with QX
QX offers a wide range of R2R outsourced services for businesses across industries. Our R2R solutions include general ledger accounting, audit support, financial planning & analysis and VAT compliance amongst others. We follow a unique partnership approach which allows us to work closely with the clients to identify their specific organisational needs and deliver highly customised solutions.
Get in touch with us and speak with our experts to know more about our R2R services.
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