The record cycle is kept from the data processing stage based on the report cycle. This is where most of the data needed to generate the report is generated..
At the end of any financial period, all the people associated with the finance team and any type of accounting work are given a deadline to finish all posting before the time limit so that the usual dates can be closed and reconciliation and verification work Can start. Integrity of data flowing in normal laser has improved, and attempts have been made to reduce the need for manual journal entries. Most companies try to complete the finish cycle as soon as possible. But big companies whose heritage system is more than the
acquisition of other companies, and complex internal processes take a lot of time to finish, later it delays the entire R2R process, and for many finance teams, timely completion cycle Completing is a constant challenge.
After the ending cycle ends, the accountant intercompanies begin to match the balance, expire, and validate information that will eventually go into financial statements. The finance team is well aware of the fact that to prepare the report, the needs of both internal and external stakeholders have to be met. Coordination practice is very complex in the case of multinational organizations with very complex tasks. Generally, however, companies try to complete the integration process within a short time as possible and after completion of the normal laser closure.
Once all the data is collected, validated and assimilated, the analytical process begins. Several types of reports are prepared, which contain many types of data and important performance indicators. Importance of a well-organized record for the report process
Tactical Decision Making:
It is based on these reports that the senior management is planning the strategies of the company. These reports indicate the heads of operation whether their team is fulfilling their goals, and if not, what they need to do. In the group, chief executives decide to use financial assistance to decide which subsidiaries to leave and what assistance to do
Compliance:
After the 2008 recession, the rules of the financial market have become more stricter, companies have to meet many more guidelines. Compliance issues have become a major issue after Enron and Arthur Anderson's scandals. Regulators note that balance sheets and revenue details can be manipulated. In an environment where it is important to meet regulatory requirements, preparing accurate reports becomes very important.
tax planning:
Tax planners in the company have calculated their estimates based on the number of these reports. They have to understand how much tax the company has to pay and what strategy they can use to reduce their tax liability.
It is extremely important for the company to record a steady and efficient
recording process. Customizing the cycle and reducing its length can enable rare financial resources to be employed for mission-critical purposes. The conclusion of the cycle in less days will also help in analysis and decision making. Thus, an efficient record to report the cycle, can reduce the cost of finance and increase the business value in finance