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Record to Report or R2Ris a Finance and Accounting (F&A) management process which involvescollecting, processing and delivering relevant, timely and accurate informationused for providing strategic, financial and operational feedback to understandhow a business is performing. It also covers the steps involved in preparingand reporting the overall accounts which are typically stored in a general ornominal ledger and managed by a Comptroller. The detailed steps involved are:

 

data extraction

data collection

data validation

data transformation(generation of voucher)

voucher posting (togeneral ledger)

storing vouchers inde-normalized and compressed format

generating analysisaccount trial balance or consolidated analysis account trial balance

generating user-definedfinancial and management reports

In general the Record toReport function is not engaged in processing transactions, but rather theaggregation of existing data in computer systems to enable meaningfulperformance reporting to be prepared for management. However, the R2R functionmay be a part of a broader accounting department.

 

In accounting terms anideal IT platform (or ERM system) would be one which presents the datamanagement need at the press of a button, however, various factors such aslegacy systems, complexity, changing information needs and so on usually mean ateam is needed on an ongoing basis to ensure the correct format reports areprepared.

 

What to expect in such areport:

 

financial performance andposition

key performanceindicators/metrics

business commentary onthe performance

reconciliation of actualresults to budget, forecast and prior year result