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accounting transformation

Modernizing Financial Close: Automation, Accuracy, and Agility

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The financial close process is a mission-critical function for finance and accounting teams. Yet, for many organizations, it remains a bottleneck filled with manual tasks, reconciliation errors and time-consuming workflows. To stay competitive in today’s fast-paced business environment, finance leaders must embrace automation, connected thinking, and strategic transformation in their record-to-report (R2R) processes.

The Power of Accuracy in Financial Close

Financial data accuracy is the foundation of confident decision-making. Without it, businesses risk making strategic errors based on flawed insights. Two key areas that finance teams must address to enhance accuracy include:

  1. 1. Journal Entry Management
    • Errors in journal entries are a leading cause of inaccuracies in financial reporting.
    • Manual processes create bottlenecks, making audits more challenging.
    • Solution: Centralizing and automating journal entry creation, validation, and posting ensures compliance and efficiency.
  2. 2. Automated Reconciliations
    • According to PwC, 30% of accounting teams’ time is spent on manual reconciliations.
    • Traditional reconciliation methods—spreadsheet-heavy and labor-intensive—are prone to errors.
    • Solution: Automating reconciliation workflows helps unify data, match transactions, and flag exceptions in real time, significantly reducing errors and improving efficiency.

Beyond Quick Wins: Long-Term Transformation

While automation offers immediate benefits, organizations must think beyond short-term improvements. A successful finance transformation requires:

  • A holistic approach to financial processes: Instead of treating journal entries and reconciliations as isolated tasks, organizations should integrate them within an end-to-end accounting framework.
  • Incremental improvements to upstream data quality: Poor data entering the system creates problems down the line. Cleaning data at the source prevents recurring issues.

Scaling Financial Close Success Across the Enterprise

Many organizations begin their finance transformation journey with the financial close process. However, the most forward-thinking finance leaders recognize the need to extend automation and efficiency to other areas, including:

  • Invoice-to-Cash: Streamlining billing and collections to accelerate cash flow.
  • Intercompany Transactions: Reducing complexity in global financial operations.
  • Monthly Accruals: Connecting journal entries, reconciliations, variance analysis, and controls certification.

By expanding automation across these areas, organizations can create a finance function that is more agile, accurate, and strategically aligned with business goals.

Avoiding Common Pitfalls in Finance Automation

When selecting a financial close solution, organizations must avoid these common mistakes:

  1. 1. Moving inefficient processes to the cloud without rethinking workflows. Simply transferring spreadsheets into a cloud-based system doesn’t solve inefficiencies—it just shifts them.
  2. 2. Thinking too small. Choosing a solution based on short-term needs rather than long-term goals leads to fragmented processes.
  3. 3. Underestimating integration needs. A financial close solution must integrate seamlessly with an organization’s ERP and data sources to deliver full value.
  4. 4. Relying on partners who overpromise. Finance teams should work with solution providers that offer true automation and scalability.

The Future of Financial Close: A Unified Approach

The financial close process is evolving, and organizations that adopt a connected, automated and strategic approach will gain a competitive edge. By leveraging intelligent solutions that integrate seamlessly into broader financial operations, finance leaders can drive efficiency, reduce risk and transform the role of finance from a back-office function to a strategic powerhouse.

Learn more about unifying your financial close. Download the eBook Five Steps to Building a Growth-Ready Financial Data Foundation.

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The Role of Record to Report in CFO Strategy

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CFOs are under increasing pressure to enhance efficiency, accuracy and compliance in financial reporting. One critical area of focus is the Record to Report (R2R) process, a fundamental aspect of financial management that ensures the integrity of financial statements.

The IDC MarketScape: Worldwide Office of the CFO Record to Report 2024 Vendor Assessment (issued December 2024) highlights the importance of R2R and evaluates key vendors offering solutions to streamline financial operations. IDC names BlackLine a leader, based on offering innovative, cloud-based automation solutions designed to optimize the financial close process.

Why Record to Report Matters

The R2R process encompasses multiple financial activities, from data collection and reconciliation to final reporting and compliance. It is critical for:

  • Ensuring financial accuracy and reducing reporting errors
  • Improving compliance with global regulations, such as Sarbanes-Oxley (SOX) and Anti-Money Laundering (AML) laws
  • Enhancing decision-making with real-time financial insights
  • Reducing cycle time in financial close, allowing for faster and more efficient reporting

According to IDC’s 2023 Office of the CFO Survey, CFOs have identified revenue recognition, transfer pricing, and financial reporting analytics as top areas for improvement in the R2R cycle. This underscores the need for technology-driven solutions that automate and optimize financial processes.

BlackLine: A Leader in R2R Solutions

IDC has positioned BlackLine in the “Leaders” category of its 2024 MarketScape, recognizing the company for its strong capabilities in financial close automation. Key strengths include:

  • Comprehensive Intercompany Capabilities – BlackLine provides robust tools to manage the full lifecycle of intercompany transactions, a critical need for multinational corporations.
  • Advanced AI-Powered Financial Insights – The platform leverages AI-driven tools such as the Journal Risk Analyzer, which detects anomalies in journal entries across multiple ERP systems. BlackLine is also testing generative AI for variance analysis, helping accountants streamline explanations for financial discrepancies.
  • Customizable Dashboards & Analytics – BlackLine’s real-time financial reporting and analytics allow finance teams to drill down into transactions, add notes, and gain deeper insights into financial performance.

The Future of R2R: Automation & Compliance at the Core

As organizations continue to digitally transform financial operations, automation and compliance will be key drivers in the R2R process. CFOs are seeking solutions that:
✔ Reduce manual effort and accelerate financial close
✔ Provide real-time financial insights for strategic decision-making
✔ Ensure compliance with evolving global regulations (ESG, AML, tax compliance)

BlackLine’s cloud-based automation software offers a powerful option for businesses looking to enhance accuracy, efficiency and compliance in financial reporting.

Want to learn more? Read the full IDC MarketScape 2024 Report today.

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How Accounts Receivable Automation Accelerates the Close

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The financial close process is a critical function for accounting and finance teams, yet many organizations struggle to complete it efficiently. According to Ventana Research (now ISG Research), only 50% of organizations can close their books within six business days each quarter. The delays often stem from manual accounts receivable (A/R) processes, which introduce errors, bottlenecks, and inefficiencies.

A/R automation offers a powerful solution to this challenge. By leveraging technology to streamline invoice-to-cash processes, organizations can accelerate the close, improve productivity, and enhance financial control.

The Power of A/R Automation

Traditional A/R management often relies on manual data entry, spreadsheets, and fragmented workflows, leading to errors, inefficiencies, and unnecessary delays. A/R automation, however, transforms this process by:

  • Eliminating Manual Tasks – Automating data capture, invoice generation, and payment reconciliation reduces human intervention and the risk of errors.
  • Enhancing Productivity – Automation allows finance teams to focus on strategic initiatives rather than administrative work.
  • Improving Financial Resilience – Streamlining cash flow management ensures businesses can better handle economic fluctuations.
  • Reducing Friction in Invoice-to-Cash Cycles – Faster payment processing improves customer relationships and reduces outstanding receivables.

By implementing A/R automation, finance teams can shift from merely tracking transactions to actively managing cash flow and liquidity with greater precision.

Accelerating the Close with Continuous Accounting

A key concept driving automation adoption is continuous accounting, which focuses on:

  1. 1. End-to-End Process Automation – Automating financial workflows to minimize delays and ensure accurate data processing.
  2. 2. Workload Distribution – Spreading accounting tasks throughout the period to prevent bottlenecks at month-end.
  3. 3. Continuous Improvement – Using data insights to refine processes and eliminate inefficiencies over time.

Organizations that embrace continuous accounting through A/R automation not only close their books faster but also gain deeper insights into their financial position.

Ventana Research found that 88% of companies that have automated most of their close processes can complete them within six business days. In contrast, only 40% of companies with minimal automation achieve the same speed. Key benefits of A/R automation include:

  • Streamlined Approvals and Workflows – Automation reduces approval delays and prevents last-minute bottlenecks.
  • Enhanced Data Accuracy – Eliminating manual errors reduces the need for reconciliation, allowing for a smoother close.
  • Improved Visibility – Finance teams can track real-time A/R status, enabling proactive decision-making.

The Strategic Value of A/R Automation

Beyond speeding up the close, A/R automation enhances overall business performance. Organizations gain:

  • Stronger Customer Relationships – Proactive engagement and frictionless payment experiences improve customer satisfaction.
  • Better Cash Flow Management – Faster collections and reduced days sales outstanding (DSO) free up working capital.
  • Talent Retention – Automating tedious tasks allows finance professionals to focus on high-value work, improving job satisfaction.

Moving Forward

For finance leaders seeking to enhance productivity, reduce risk, and accelerate the close, A/R automation should be a top priority. By adopting the right technology, organizations can optimize cash flow, improve operational efficiency, and create a more agile finance function.

Download the full Ventana Research report here to explore key findings and expert recommendations.

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

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Managing reconciliations in an organization can be challenging, especially when staff changes occur. Whether someone has left the company or is taking an extended leave, BlackLine provides efficient methods to reassign reconciliations from one user to another.

Watch our BlackLine Practice Lead, Adam Riskin, demonstrate how easy it is to reassign reconciliations in BlackLine.

Method 1: Using the Bulk Assignment Account Screen

The Bulk Assignment Account screen is perfect for reassigning a large number of reconciliations efficiently. In our example, Kim Wilson is leaving the company, and her reconciliations need to be reassigned to Pat Black. Here’s how to do it:

  1. 1. Set the Role:
    • Ensure the role is set correctly for the reassignment. For instance, if Kim was a preparer, keep the role set to “Preparer.” If Kim was an approver or reviewer, adjust the role accordingly.
  2. 2. Select Users:
    • In the “From” field, select Kim Wilson (the current user).
    • In the “To” field, select Pat Black (the new user).
  3. 3. Adjust the Groups Field:
    • Set the “Groups” field to “GL and Grouped Accounts.” This ensures that both individually reconciled and grouped reconciliations are reassigned.
  4. 4. View and Select Reconciliations:
    • Click “Refresh” to display all reconciliations assigned to Kim. Ensure you adjust the results per page to display all items (e.g., 500 items per page) so nothing is missed.
  5. 5. Select and Assign:
    • Use the “Select All” option to mark all reconciliations for reassignment.
    • Click “Assign Accounts” to finalize the reassignment.

That’s it! All reconciliations previously assigned to Kim Wilson as a preparer are now reassigned to Pat Black.

Method 2: Managing Assignments via the Account Screen

For smaller-scale changes or more control over selected reconciliations, the Account screen is an excellent alternative.

  1. 1. Filter Accounts:
    • Use the filter options to ensure that both “GL” and “Grouped Accounts” are selected, showing all applicable reconciliations.
  2. 2. Select Reconciliations:
    • Manually checkmark the reconciliations you wish to update. For example, select a specific set of eight reconciliations to reassign.
  3. 3. Use the Actions Menu:
    • Click the “Actions” button and select “Manage Assignments.”
    • Choose the new preparer, approver, or reviewer from the dropdown menu (e.g., Pat Black).
  4. 4. Save Changes:
    • After selecting the new user, click “Save.” The system will update the selected reconciliations with the new assignments.

Key Considerations

  • Role-Specific Adjustments: Always ensure that roles (Preparer, Approver, Reviewer) are set correctly when reassigning reconciliations.
  • Groups Field: By default, this field may be set to “GL Accounts Only,” which limits changes to individually reconciled accounts. Adjusting it to “GL and Grouped Accounts” ensures comprehensive reassignment.
  • Page View: Expand the results per page to ensure you can review and select all reconciliations at once.

By following these methods, BlackLine makes it easy to manage and reassign reconciliations efficiently, ensuring smooth transitions during staffing changes. Whether handling a bulk reassignment or a smaller, targeted update, these steps help maintain the accuracy and integrity of your financial processes.

Read more about Accounting & Accounts Receivable:

7 Reasons Why Accounts Receivable (AR) Optimization is Crucial for CFOs

Top BlackLine Videos of 2024

Importing Multiple Accrual Schedules into a Reconciliation With BlackLine

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Importing Multiple Accrual Schedules into a Reconciliation With BlackLine

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We recently launched a new video series on different ways to import reconciliation supporting items with BlackLine. In today’s video, our BlackLine Practice Leader, Adam Riskin, demonstrates how to import multiple accrual schedules into a reconciliation.

Step 1. Importing Multiple Amortization Schedules from an Excel File

  • In this demonstration, the Excel file contains two prepaid items: health insurance premium and dental insurance premium, set to amortize over 12 months.
  • Columns C and D represent the start and end dates of the amortization, while columns E and F hold the invoice amounts and open dates.
  • Make sure that the field names in the Excel file match exactly with those in the BlackLine.

Step 2. Ensuring Field Name Consistency

  • BlackLine automatically maps Excel fields to its own fields if the names are consistent.
  • This step simplifies the import process by ensuring the system recognizes the starting amortization date and invoice amounts correctly.
  • The process becomes easier and more efficient with consistent field naming conventions.

Step 3. Importing the Amortization Schedules

  • Click on the “Multiple” hyperlink to import the two schedules.
  • You need to set up the calculation method, typically straight line, before importing the file.
  • Browse and select the Excel file containing the scheduled items.
  • Select all records in the Excel file for import and click Import to add the schedules to the reconciliation.

Step 4. Viewing Imported Schedules

  • The imported schedules appear in the amortizable Schedule section of the reconciliation.
  • You’ll see the amortization amount for each month.
  • The “Roll Forward” button provides a traditional view of the amortizable balance at the end of each fiscal period.

Step 5. Handling Non-Standard Schedules

  • BlackLine can calculate standard schedules automatically, but non-standard schedules may require manual input.
  • Non-standard schedules, such as those with varying amounts each month, may not use auto calculation methods like catch-up.
  • The system administrator can use a specific technique to import these non-standard schedules using the Import v7 Data Import tab.

In our next video, Adam will demonstrate how a system administrator can import non-standard schedules.Have you missed some videos in this series? You can find them all on our YouTube channel.

Read more about Accounting & Accounts Receivable:

Importing a Single Accrual Schedule into a Reconciliation With BlackLine

How a System Administrator can Import Multiple Amortization Schedules in BlackLine

Import Multiple Amortization Schedules into a Reconciliation with BlackLine

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Importing a Single Amortization Schedule into a Reconciliation With BlackLine

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We recently launched a new video series on different ways to import reconciliation supporting items with BlackLine.

When working with long-term loans, maintaining an accurate and up-to-date amortization schedule is crucial. This process becomes even more streamlined when using BlackLine, which allows users to import amortization schedules directly from Excel files.

Our BlackLine Practice Leader, Adam Riskin, recently demonstrated how to do this. Watch our video to see Adam walk through the steps to import a single amortization schedule for a five-year loan, ensuring accuracy, efficiency, and smooth data mapping from start to finish.

Step 1. Preparing the Excel File for Import

Before importing your amortization schedule into BlackLine, you need to make sure that your Excel file is well-prepared. Proper preparation not only prevents errors but also speeds up the import process.

  • Include all necessary fields: Your Excel file should display a comprehensive debt schedule. This includes key columns like the month-end date, description, monthly payment, interest, principal, and ending balance. The schedule should capture each month’s data throughout the five-year loan period.
  • Adjust field names: The column headers in your Excel file need to match the corresponding fields in BlackLine. This step is vital – BlackLine automatically maps fields based on these headers. For instance, if the system expects a field named “Fiscal Period” but your file uses “Month-End Date,” you will run into mapping issues.
  • Enhance descriptions: You can simplify field organization by concatenating the month names with a descriptor. For example, a “description” field might contain values such as “January Amortization” or “February Amortization.” This not only makes the file easier to read but also improves its compatibility with BlackLine.

Once your file is set up with proper headers and descriptions, you’re ready to move to the next step.

Step 2. Importing the Excel File into BlackLine

After your file is prepared, importing it into Black Line is straightforward. Here’s how to do it:

  • Browse for the file: Start by navigating to the import section within BlackLine and selecting your Excel file. Ensure you are working with the correct worksheet, as some Excel files may contain multiple tabs. Choose the tab that contains the debt schedule you want to import.
  • Automatic field mapping: If you’ve followed the earlier step of aligning your Excel file’s headers with Black Line’s field names, the system will automatically map fields like the month-end date to the fiscal period. This saves time and reduces the potential for errors.

However, if some fields don’t match exactly, you can manually map them in BlackLine. Simply use the drop-down menus provided by the system to connect the fields in your Excel file to the corresponding BlackLine fields.

Step 3. Mapping Excel Fields to BlackLine

Accurate mapping is critical for a successful import. If all your field headers match BlackLine’s expected inputs, the system will automatically map them for you. However, when discrepancies arise, such as using different terminology in your Excel file, you will need to do some manual mapping.

  • Manual mapping process: Use BlackLine’s user-friendly interface to select the appropriate field for each unmatched Excel column. This ensures that the correct data flows into the system. For example, if the “Month-End Date” column wasn’t automatically mapped, you would manually assign it to the “Fiscal Period” field in BlackLine.
  • Selecting all records: After mapping, make sure you are importing the entire schedule by selecting all records. BlackLine provides a “Select All” button, which makes it easy to include the full amortization schedule in the import process.

Step 4. Finalizing the Import Process

The final step in the import process is straightforward: simply click the “Import” button. BlackLine will then bring the entire amortization schedule into your reconciliation. Afterward, you can review the summary view of the reconciliation for the selected period.

From this summary, users can drill down into the full amortization schedule by clicking the schedule icon. This provides a detailed view of the monthly payments, interest, principal, and ending balances for each month, right up until the end of the loan.

One of the major advantages of using BlackLine is that after this initial import, the system automatically rolls the schedule forward each month. This eliminates the need for repeated manual updates, streamlining the reconciliation process for the entire loan term.

Importing a single amortization schedule into BlackLine is a simple but powerful process that can significantly improve your workflow. By preparing your Excel file properly, using BlackLine’s automatic field mapping, and finalizing the import with ease, you can maintain an accurate and hassle-free loan reconciliation process. As a result, future months will require minimal effort as the system automatically manages the schedule on your behalf.

Make sure your Excel files are always aligned with Black Line’s field headers, and you’ll enjoy a smooth, efficient reconciliation process every time.

Read more about Accounting & Accounts Receivable:

Best Practices for Account Reconciliations

Mitigating Financial Risk through Automation

How Automating Accounting Meets the Growing Demands of Finance

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