Client Overview
A multinational logistics enterprise with operations spanning six countries was grappling with a disjointed Record-to-Report (R2R) process. Each regional finance team followed its own workflows, tools, and timelines resulting in inconsistent reporting formats, delayed month-end closures, and frequent reconciliation errors. This lack of standardization not only created inefficiencies but also hindered the CFO’s ability to obtain a unified financial snapshot across geographies. As the organization expanded, the pressure mounted to deliver faster, more accurate reporting that met both internal expectations and external compliance requirements. However, without a centralized strategy or visibility into real-time financial data, leadership found it increasingly difficult to make timely, data-driven decisions.
Challenges
- Delayed Month-End Closure : Each regional entity followed its own financial practices, causing significant delays in consolidating books and completing month-end closures. This fragmented approach led to missed deadlines and pressure on internal teams
- High Reconciliation Errors : Data inconsistencies between ledgers and intercompany transactions led to frequent reconciliation mismatches, triggering audit concerns and requiring last-minute manual adjustments.
- Poor Reporting Insight : The leadership team lacked timely and accurate visibility into the company’s overall financial health. This slowed down strategic decision-making and created uncertainty during performance reviews and board reporting.
Solutions
- Centralized R2R Operations Hub : Set up a dedicated offshore shared services center to manage journal entries, general ledger reconciliations, intercompany accounting, and month-end activities ensuring consistency and scalability across all countries.
- Standardized Templates & SOPs : Introduced unified reporting templates, policies, and SOPs across all finance entities. This alignment enabled faster onboarding of new staff, easier audits, and streamlined intercompany coordination.
- Automated Reconciliation and Validation Tools : Deployed automated tools to validate ledger balances, flag anomalies, and minimize manual effort. These tools enhanced accuracy while allowing finance teams to focus on strategic analysis instead of troubleshooting numbers.
Results & Business Impact
The transformation delivered substantial, measurable outcomes within just a few months:
- Month-end close shortened by 4 days, enabling quicker reporting and agility in decision-making.
- 98.5% reconciliation accuracy improved audit scores and financial reliability.
- Cross-country R2R was unified, supporting global compliance efforts.
- Finance teams shifted from firefighting to forecasting, enabling strategic planning.
Conclusion
The transformation of the Record-to-Report (R2R) process created a foundation for financial accuracy and strategic agility. With a centralized offshore team managing reconciliations, journal entries, and reporting, the client gained visibility and control across six different geographies. Month-end closures became more predictable, while compliance efforts were unified across borders reducing the risk of audit surprises and data inconsistencies. Finance leadership gained faster, clearer insights, enabling quicker pivots in a dynamic global market. Ultimately, this optimization supported the company’s global expansion by ensuring financial transparency, data integrity, and a governance structure ready for scale.
