Record to report / R2R – General Accounting – Trial Balance

We read about the criticality of a trial balance, how it forms the basis of all financial analysis.

Currently, even in our accounting section, we are talking about the basics of a trial balance.

The next steps in this sub-process are to keep a track of the manual adjustments done and obtain approvals for passing the entries in the books in the next period. Normally since the financial statements have to be drawn from this adjusted trial balance, the approval of the authorities from the CFO group will already be there. Your exercise will delve to collecting and storing evidences for these approvals.

There may be instances where the accounting / finance group may want some entries to be passed. They would have accounted for some of these in the results reported by them. A good example could be provisions for bad debts, or some credit sale executed on the last day of the relevant period, but not entered in the system. There could be numerous instances for this.

Accruals are an interesting portion of this as well. Ah.. that is the next sub-process we will cover in our next post.

So, you see General Accounting as a BPO process is nothing but structuring of routinized high volume processes and then handing them over to a back office for execution.

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