What is Quick Turnaround Time (TAT)?
In simple terms, turnaround time is the time between the submissions of task and response to the same. As per the Merriam-Webster dictionary, Quick Turnaround time means, “the action of receiving, processing, and returning something in less than 24 hours for most of the orders.
Popular acronym for Quick Turnaround time is QTAT.
Need for Quick Turnaround Time (QTAT)
Finance and Accounting are two very crucial areas of business. They not only determine the business profitability but also help you to identify the business areas having scope of improvement. Accounting eats up a major chunk of time and money of an enterprise but still does not give results as anticipated. Due to this accounting work began to be out-sourced but still the results continued to be on similar scales.
In modern world, “TIME IS MONEY”. Here there is no scope of sluggish accounting work and things must be done at an ultra-fast speed so as to reap the desired benefits. This works as an icing on the cake in favor of Quick Turnaround Time. Once there is an existence of QTAT in accounting, following benefits can be availed –
- The time-lag between occurrence of business events and the books of accounts reflecting its impact is reduced, thereby giving a Real-Time picture of the books of accounts
- Important financial decisions can be taken after a thorough analysis of the books of accounts
- Books of accounts act as an evidence for the past-transactions already affected
- The risk of incorrect decisions is reduced as the entire situation is given due effect in books of accounts
- Books of accounts can reveal the facts about decision which has the potential to affect the business negatively.
- It gives you a more competitive edge over your counterparts
- It helps to determine optimum inventory level and thereby reduces carrying costs and storage costs
- You can pool resources in a better way increasing efficiency and developing business
- Further QTAT gives you a relaxation for the unexpected emergencies and keeps your data perfectly updated
- Since the accounts are real-time, better knowledge about debtors and creditors scenario can be availed. This shall help in planning the purchase of raw-materials and bargaining the payment terms with customers.
- QTAT enables management to immediately collect funds from debtors and thereby increases the cash-flow
- Better cash-flow also helps business to get loans/advances in easier way at lower rates.
The list continues to grow with every passing day and so we advice you not to miss out the opportunity and contact us today itself for having a duly updated scenario of your accounts. Further we assure a quick turnaround time but we do not compromise on the quality of work.
Feel free to contact us on [email protected] for any query.