Alyssa Williams is a finance expert and a freelance writer from Los Angeles, California.
One of the hectic processes in business is accounting. A centralized report can highly aid in accounting and act as a core tool for your small/medium scale business to run efficiently. I will help you get a better understanding of a centralized report and how it can improve your business.
What Is a Centralized Report?
A centralized report is a report where you can find all the data regarding a specific section of your business. An excellent example of a centralized report is your credit report. You can find the history of your credit activity from seven to ten years in a credit report.
In the context of the business transaction, a centralized report will be a report that aggregates all your business transactions. The deposits, payments, details of the sender and recipients, date of transaction, etc., are all accessible in one place.
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Different Sections Of a Centralized Report
Managing your financial transactions is a cakewalk once you understand your centralized report better. Let's explore the different sections of a centralized report and the details listed under it.
Example of a Centralized Report
|Date||Payee / Payer||Amount||Bank||Balance||Type||Transaction Number||Remarks|
Name of the payee or payer
Amount debited or credited
Name of the bank
Balance after transaction
Type of transaction
Reference number of transaction
Notes by payee or payer
This section of the report will display the date of the transaction. Usually, you get to see the latest transaction on the top. Most online reports let you pull the transaction details by date on a search bar. Clicking on the tiny icon of a calendar on the search bar will allow you to access the transaction details by specific month and date.
Payee or Payer
The payee or payer section in the report will give the individual's name or the name of an organization that you are sending or receiving the amount.
The amount section will show you the amount of transaction received or paid. The amount displayed could be in different colors. Typically amounts debited are shown in red color. The amount credited in green and other forms of payments could be blue or different colors.
Under this segment, you will see the bank's name from which the amount has been received or paid.
Under balance, you can see the balance amount after each transaction. For example, if the account balance is $100 and you have received a deposit of $50, then you will see a balance of $150. And if the account balance is $100 and you made a payment of $50, you will see a debit of $50, and an account balance would be $100.
You can see the type of transaction under this section. This section will let you know if the transaction was a cash type, check, or online.
Under this title, you will find the transaction number or reference number of a particular fund transfer. You can file discrepancies by referring to transaction numbers while calling a bank's customer care to help them get quick access to the details of a specific transaction.
In the remarks section, you can see the comments made by the individual or organization while making the transaction. Usually, remarks are notes which will indicate the reason for the transaction.
Benefits of a Centralized report
Would you go to five different places or a single place to get your work done? Access to all your business transactions in one place has many benefits. You can save a lot of time, be confident about accurate reporting, improve business analysis, better customer management, cost-effective and operational efficiency.
Time is an essential factor in managing your business effectively. You don't have to go down to your bank to check your business transactions; online access to a centralized report can save a lot of time and labor.
Analyzing your business's expenditure and overall finance is more effortless with a centralized report at your disposal. You can easily find out the areas of unnecessary expenditure and cut down accordingly.
You can work with peace of mind because online central reporting systems accurately track all your business transaction details and categorize the data for your better understanding, as discussed in the previous paragraphs.
An online report can cut down on transportation costs, and you don't have to rely on multiple systems or employees to handle your business transaction records. You will save a significant amount on the budget dedicated to accounting.
With a centralized report, you can redirect the resources dedicated to managing business transactions to core business needs. With online reporting, you can eliminate the manual processing of data, reduce errors and risks of poor decisions.
Understanding and implementing the right tools can significantly improve business operations, a centralized report can come in handy while filing your tax return and other benefits.