Accounting tasks – such as amortization reconciliations – can be time-consuming with the potential for errors. BlackLine can be a game-changer for accounting.

BlackLine ensures accurate tracking and reporting with an amortization reconciliation template. Whether you’re reconciling prepaid accounts, managing insurance premiums, or automating journal entries, this template is a game-changer. Let’s dive into how it works and why it’s indispensable for finance teams.

What is an Amortization Reconciliation Template?

An amortization reconciliation template is designed to track and report the allocation of costs, such as prepaid expenses, over time. It provides a structured framework for managing various financial items, such as insurance premiums or other amortizable accounts. For instance, you can monitor starting and ending amortization dates, descriptions, original invoice amounts, and the current balances in one consolidated view.

Amortization Reconciliation Templates in BlackLine

In this video, you’ll see Adam Riskin, Revelwood’s Blackline practice leader, demonstrate how to use and customize amortization reconciliation templates to streamline your financial processes.

Key Features of the Template

1. Summary View:
The template offers a snapshot of your amortization items. For example, it displays the starting and ending dates, invoice descriptions, and the remaining balances. This enables quick analysis and ensures financial accuracy.

2. Traditional Waterfall Schedule:
With the click of a button, you can view a detailed waterfall schedule showing balances for each month. This feature helps track progress and facilitates month-by-month accountability.

3. Journal Entry Automation:
By toggling to the net activity view, you can see the monthly journal entries required for your GL system. For example, if you’re in July and the amount to record is $4,000, this can be exported directly to Excel and imported into your ERP system, significantly reducing manual work.

Customization and Flexibility

Adding New Items:
Adding amortizable items like a dental insurance premium is simple. You input the invoice amount, beginning, and ending dates, and the system calculates the amortization schedule based on your preferred method (e.g., straight-line or partial).

Editable Schedules:
Flexibility is a core feature. Schedules can be updated mid-year to reflect changes in amounts or timelines. For example, you can adjust future amounts or even specific line items to ensure the schedule remains accurate.

Advanced Calculation Methods

The template includes various calculation options to cater to different scenarios:

• Straight-Line: Equal allocation over the period.
• Partial Amortization: For partial months, the system prorates the allocation.
• Catch-Up Adjustments: If an invoice arrives late, the system can calculate and apply past-due amortizations to the current period.

These methods ensure accuracy and compliance with financial reporting standards.

Enhanced Efficiency with Automation

One standout feature in BlackLine is the automation capability. The system can automatically certify reconciliations when GL balances match the expected amounts. For instance, if your GL balance for July aligns with the scheduled $27,000, the system marks it complete, saving time and reducing manual oversight.

Document Management

Organizing supporting documents is easy. Attach PDFs or Excel files, such as invoices, directly to your schedules. This feature ensures everything related to the reconciliation is in one place, improving documentation and audit readiness.

Why Use This Template?

• Accuracy: Reduces errors in financial reporting.
• Efficiency: Automates repetitive tasks and journal entries.
• Flexibility: Adapts to changes in financial schedules.
• Compliance: Ensures adherence to accounting standards.

The amortization reconciliation template is a robust tool for accounting professionals. It not only streamlines complex financial processes but also improves accuracy and saves time. By leveraging BlackLine’s automation and customization features, organizations can focus on strategic financial planning instead of getting bogged down by manual tasks.

Read more about Accounting & Accounts Receivable:

BlackLine Makes it Easy to Reassign Reconciliations from One User to Another

How to Add and Remove Accounts from Group Reconciliations in BlackLine

Stay Ahead of Your Reconciliations with BlackLine Email Alerts