The Record To Report Cycle. What Is It?

Posted by Rely Services on December 1st, 2022

The Record to Report Cycle (R2R) or R2R meaning, is a Finance and Accounting (F&A) management process which involves collecting, processing, and delivering relevant, timely, and accurate information used for providing strategic, financial, and operational feedback, which aids in understanding if a business is performing like a well-oiled machine or a staggering, creaking relic taking its last breath.

The R2R Process also covers the steps involved in preparing and reporting the overall accounts, which are typically stored in a general or nominal ledger and managed by a Comptroller. The Record to Report Process Cycle involves:

• Data Extraction
• Data Collection
• Data Validation
• Data Transformation (generation of voucher)
• Voucher Posting (to the general ledger)
• Storing Vouchers in De-Normalized and Compressed Format
• Generating Analysis Account Trial Balance
• Generating Financial And Management Reports

Record to Report is not used for processing transactions, but rather the aggregation of existing computer systems collection to display performance reports prepared for management. But the R2R function may be a part of a broader accounting department.

In accounting terms, an IT platform (or ERM system) presents the data management needed with a keystroke, but various factors such as legacy systems, complexity, and changing information needs. Usually means a team is required year-round to make sure the correctly formatted reports are delivered.

Five Key Steps In The Record To Report Cycle.

As noted above, the Record to Report process can be complicated and time-consuming. In the 21stCentury, businesses rely on automated systems that make the whole chain more efficient and increase accuracy. Imagine doing the entire process with pencil and paper!

But even in prehistoric times, the necessary steps have remained the same.

• Record the Transactions - Basic stuff, but there are some strict guidelines to ensure that each transaction is recorded in the same format.
• Process the Transactions - Once recorded, the transactions need to be compiled and indexed, so totals will be accurate and complete.
• Closing Cycle - Using generally accepted accounting principles, the general ledger is locked, and the books are closed on this period of time.
• Consolidation - All of the recorded transactions are combined in the appropriate category – apples to apples – ensuring their validity.
• Reporting - The final report, the sum of the process. With this report, management can make changes to current operational procedures and chart future moves.

Record To Report Cycle. Make It Painless.

If all of this sounds incredibly complicated and somewhat mysterious, you're not alone. And since total accuracy is the goal - there's nothing to be gained by making plans with inaccurate information - it stands to reason that using an experienced, well-trained team is the safest way to go.

But even if you need that staff to be on the job all year long, there's a better, more economical way to generate these Record to Report summaries. And that way is Outsourcing.

If you could snap your fingers like they do in the movies, and have a fully trained, experienced staff, up to date on the latest rules and regulations, using the newest software, running on secure servers and networks, and best of all, costing you about 40% of what hiring an in-house staff would, wouldn't you?

These are precisely what Business Process Outsourcing (BPO) firms offer their clients day after day, year after year, worldwide. And indeed, at the front of the pack is Rely Services.

The Record To Report Cycle. Lean On Rely Services!

It takes a team of qualified, skilled, and experienced professionals to work on a successful Record to Report project. This is precisely what Rely Services can offer you. And at a fee that will significantly lower your overhead and allow your key players to concentrate on making money.

Using Rely Services as your Record to Report cycle partner will save you more than time and money. They are continually refining their business methods, and an endless pursuit of perfection will benefit your operational practices. Contact Rely Services today for a detailed evaluation of the many ways they can make you more successful.

• Highly Trained Accounting Experts
  When you partner with Rely Services, you're collaborating with a highly trained team of professionals with proven industry experience and a shelf full of industry awards. Their teams can save you capital, so you can invest it in expanding your enterprise.
• Secured Services
  Rely Services has never lost any data to power, system, server, or network failure. They've never had a random or targeted data breach. All data has multiple redundancies, so even catastrophic events will not result in a loss
• Accurate Service
  They have stringent quality control and even a dedicated team of inspectors that make sure the work for you is accurate and complete. Third-party examiners have measured an error rate at less than 0.01%
• Constant Support
  Call, Text, or Email. They're ready. A global reach can result in head-snapping speed for your project: input, compilation, storage, and retrieval.
• Accurate Service Providers
  Rely Services uses only the latest, cutting-edge software, hardware, and security protocols. Their team's certifications are always up to date, and we pride ourselves on innovation and adaptability for our clients.