The record to report process is the end-to-end process for the activities that are carried out in financial accounting from the posting to general ledger accounts to the periodic or annual financial closing.
With the increasing complexity and speed with which companies operate today, the pressure is increasing on the financial departments to increase the pace. Financial forecasts and plans are no longer only queried at fixed times, but are continuously requested by the management - with the aim of making business decisions based on real-time information. In order to ensure this, the information on the financial statements must be updated on a daily basis.
Financial forecasts and plans are no longer only queried at fixed times, but are continuously requested by the management. With the help of continuous accounting, finance departments are able to meet these demands and provide up-to-date information on the financial statements.
The information from bank accounts, general and subledger accounting and other data from ERP systems (Enterprise Resource Planning) are prepared, analyzed and the report is created based on this. These classic record-to-report processes take several days and lead to the fact that when financial transactions are concluded, employees in the finance department have to cope with a high workload at the end of the month, as selective peaks occur. One consequence of this is risky manual processes that also occur in agile and modern business organizations.
By automating financial processes with SAP - for example for account reconciliation, variance analysis and transaction reconciliation - the financial closing is considerably simplified. Instead of a peak at the end of the month, quarter or year, transactions, bookings, account reconciliations, analyzes and controls can be carried out continuously and on the basis of data in real time.
Transactions and accounts can be reconciled immediately and deviations can be recognized in advance of the actual closing and rectified without time pressure. This not only ensures a more efficient distribution of workload in accounting, it also improves quality and transparency and thus minimizes the risks.
CFOs no longer have to wait until the end for important financial forecasts and plans, but make faster and better business decisions based on valid and up-to-date data.