Monitoring all the money flowing into and out of your company is vital for several reasons. It helps you spot patterns and help you control cash flow more effectively and plan for future growth. It’s also important to keep an eye on your expenses to keep within your budget.
There are a variety of ways to track your company’s transactions, ranging from accounting software and automated systems to Excel spreadsheets and manual tracking methods. Each method has pros and cons, but will allow you to stay organized and have a clear picture of your company’s financials.
For example, if you’re using an online platform for trading shares and stocks using your demat account. A number will be assigned and subsequently passed through the transaction process when each automated step takes place. This number is an ID for the transaction that will be recorded in the various systems that make up the transaction. This allows the information to be traced back to its original source, even in the event that the data was processed by multiple systems owned by different companies.
This process of tracing transactions would make the process messy and time-consuming as it would require manually matching invoices with transactions or credit card statements. It could take a long time to complete each step especially if the customers don’t include their invoice numbers when making payments. Controlling tracking is crucial because it allows for top-tier visibility by combining data from various mainframes and databases, servers apps, and other.
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