Quick Turnaround Time (TAT)

What is quick turnaround time?

In simple terms, turnaround time is the time between the submission of a task and the response to it. Quick turnaround time generally refers to receiving, processing and returning most work within 24 hours.

The popular acronym for quick turnaround time is QTAT.

Why quick turnaround time matters

Finance and accounting are two crucial areas of a business. They not only determine profitability but also help you identify the areas with scope for improvement. Accounting takes up a significant share of an organisation’s time and money, and if the output arrives late it does not support the decisions it was meant to inform.

Where quick turnaround time is in place, the following benefits follow:

• The lag between a business event occurring and the books reflecting it is reduced, giving a close to real-time picture of the accounts
• Important financial decisions can be taken after a thorough analysis of up-to-date books
• The books act as evidence for past transactions already effected
• The risk of incorrect decisions is reduced, as the full situation is reflected in the accounts
• The books can reveal facts about a decision that has the potential to affect the business negatively
• It helps determine optimum inventory levels, and thereby reduces carrying and storage costs
• You can pool resources better, increasing efficiency
• It leaves room for unexpected emergencies and keeps your data up to date
• Because the accounts are close to real time, you have better visibility of the debtor and creditor position, which helps in planning raw material purchases and negotiating payment terms
• It enables management to collect funds from debtors sooner, improving cash flow
• Better cash flow can also make it easier to obtain loans and advances on more favourable terms

We work to a quick turnaround time without compromising on the quality of the work. Feel free to contact us at cs@bkcprohub.com for any query.