Record to Report (R2R)
The process of collecting, processing, and presenting financial data to provide internal and external stakeholders with accurate financial statements and reports.
Process Stages
Transaction Recording & Data Capture
R2R_S01Capturing all financial transactions (e.g., sales, purchases, journal entries) accurately and completely in the general ledger and sub-ledgers.
Period-End Close & Consolidation
R2R_S02Performing month-end, quarter-end, and year-end closing procedures, including accruals, reconciliations, and intercompany eliminations. Consolidating financial data from various entities.
Financial Reporting & Analysis
R2R_S03Preparing financial statements (Balance Sheet, Income Statement, Cash Flow Statement), management reports, variance analysis, and regulatory filings.
Budgeting & Forecasting
R2R_S04Developing financial budgets, forecasts, and scenarios based on historical data and business plans.
Audit & Compliance
R2R_S05Supporting internal and external audits, ensuring compliance with accounting standards (e.g., IFRS, GAAP) and regulatory requirements.
Measuring this lifecycle
Required across stages
Critical for quality