R2R (Record to Report) Interview
Questions and Answers
Compiled on: June 11, 2025
1. Can you explain what is RTR?
RTR (Record to Report) is the finance and accounting process that involves collecting,
processing, and delivering relevant, timely, and accurate information to stakeholders. It
includes the closing of books, reporting financial results, and ensuring compliance.
2. What are the Main Steps in the R2R Process?
1. Data Collection
2. Journal Entry Posting
3. Ledger Management
4. Reconciliation
5. Trial Balance Preparation
6. Financial Statement Preparation
7. Reporting and Analysis
3. Importance of Reconciliation in RTR
Reconciliation ensures accuracy in financial data by matching transactions across systems.
It helps detect errors, prevent fraud, and maintain compliance.
4. What are Month-End Close Activities?
Activities include posting journal entries, reconciling accounts, verifying ledgers, accruals,
preparing trial balance, and generating financial reports.
5. What is Accrual? (With Example)
Accrual is the recognition of income or expenses when they occur, not when cash is
exchanged. For example, salaries payable at month-end but paid next month are accrued
expenses.
6. What is Prepayment?
Prepayment is an expense paid in advance. Example: Rent paid in January for the next 6
months is a prepayment asset.
7. What is the difference between P&L and Balance Sheet?
P&L shows income and expenses over a period, reflecting profitability. Balance Sheet shows
financial position at a specific point, listing assets, liabilities, and equity.
8. What are Fixed Assets? How are they recorded?
Fixed assets are long-term tangible assets like machinery or buildings. They are recorded at
purchase cost and depreciated over time.
9. What is Depreciation? Why is it important?
Depreciation is the reduction in value of a fixed asset over time. It is important for allocating
asset cost over its useful life and for tax purposes.
10. What is Inter-company Reconciliation?
It involves matching transactions between group entities to eliminate inter-company
balances before consolidated reporting.
11. Month-end Close Challenges?
Challenges include tight deadlines, data inconsistency, system issues, missing entries, and
coordination across departments.
12. ERP System?
ERP (Enterprise Resource Planning) systems like SAP, Oracle, etc., integrate all financial and
operational processes in one platform for accuracy and control.
13. Can you explain the concept of Chart of Accounts?
It’s a structured list of all accounts used by an organization to record financial transactions.
It categorizes income, expenses, assets, liabilities, and equity.
14. What are common financial reports?
Common reports include Balance Sheet, Profit & Loss Statement, Cash Flow Statement, Trial
Balance, and Budget vs Actual Report.
15. How to handle discrepancies due to reconciliation?
Investigate root causes, correct errors, communicate with teams, document actions taken,
and review controls to prevent recurrence.
16. How do you ensure accuracy in financial accounting?
Through periodic reconciliations, double-checking entries, using automation, maintaining
documentation, and regular training.
17. What is Variance Analysis?
It’s the comparison of actual vs budgeted figures to understand deviations and their causes.
18. How do you prioritize tasks during month-end close?
By preparing a close calendar, identifying critical tasks, using checklists, and delegating
effectively.
19. What is the role of technology?
Technology automates tasks, increases accuracy, ensures compliance, improves reporting
speed, and supports decision-making.
20. Importance of compliance in financial reporting?
Compliance ensures adherence to accounting standards and regulations, builds stakeholder
trust, and prevents legal issues.
21. Strategies to improve the R2R process?
Standardizing processes, using automation, training staff, regular audits, and continuous
process reviews.
22. How do you manage tight deadlines?
Through planning, prioritizing high-impact tasks, reducing manual work with automation,
and team collaboration.
23. Key qualities of a successful R2R professional?
Attention to detail, analytical thinking, time management, understanding of accounting
standards, and communication skills.
24. How do you stay updated with changes in accounting standards?
By attending training, reading publications, following regulatory websites, and participating
in forums or webinars.
25. Advice to someone preparing for an R2R interview?
Understand the end-to-end R2R process, review accounting fundamentals, practice
explaining real-life scenarios, and be confident.
