Definition
Record to report (R2R) is an account and finance process that is used by businesses to gather, process, and present accurate financial data. This process gives strategic, financial, and operational insight into the business performance that further helps management and stakeholders take informed decisions.
Example
Some of the top R2R automation software are:1. Redwood Finance Automation (Recommended)2. Newgen3. Conduent4. Armanino5. Highradius6. Genpact7. BlackLine8. Prophix9. Vena10. OneStream
Why it matters
Record to report is crucial for any company as it allows the business to follow an accurate and efficient financial reporting method. Some of the benefits of R2R are:a. Improved decision-making: Since the last phase of any R2R process is to create financial statements, both internal and external stakeholders can take crucial business decisions by looking at the company's financial performance. b. Compliance: Companies have to follow various regulations in account and financial reporting. With the R2R process, companies can follow a consistent method for the collection, validation, and reporting of financial data. This allows compliance as well as the accuracy of data.c. Tax reporting: Financial reports are often used for tax calculations. Since the R2R process helps in accurate financial information, tax assessment becomes easier. Appropriate tax strategies can be put in place for maximum benefits.