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Invoice-to-Cash: Navigating the Crossroads of Efficiency and Growth

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In today’s fast-paced business landscape, finance leaders are under increasing pressure to optimize working capital, reduce risk, and streamline operations. The invoice-to-cash (I2C) process, a critical component of financial health, often stands at the intersection of efficiency and strategic growth. A new report, Invoice-to-Cash: Navigating the Crossroads, highlights the evolving challenges and opportunities within this crucial function.

The I2C Bottleneck: A Barrier to Growth

Many organizations still struggle with inefficient, manual, and fragmented I2C processes. These inefficiencies lead to:

  • Delayed Cash Flow: Slow collections impact liquidity and the ability to invest in growth.
  • Higher Costs: Manual processes and high days sales outstanding (DSO) drive up operational costs.
  • Customer Friction: Poorly managed invoicing and collections can strain client relationships.
  • Increased Risk: Disjointed processes elevate the risk of errors, fraud, and compliance issues.

The Shift Towards Automation and Intelligence

The report emphasizes how forward-thinking finance teams are leveraging automation, AI, and analytics to modernize their I2C functions. Key trends include:

  • AI-Powered Predictive Analytics: Machine learning models help forecast customer payment behaviors, reducing late payments and bad debt.
  • Automated Invoice Processing: End-to-end digital invoicing accelerates billing cycles and improves accuracy.
  • Intelligent Collections: Automated workflows ensure proactive follow-ups, optimizing collection efforts while preserving customer relationships.
  • Data-Driven Credit Management: AI-driven credit risk analysis allows for smarter, more agile decision-making.

Strategic I2C: From Cost Center to Value Driver

With the right technology and strategy, I2C can evolve from a cost-heavy back-office function into a competitive advantage. The report outlines best practices for transformation, including:

  • Integrating AI and Automation: Reducing reliance on manual intervention ensures efficiency and scalability.
  • Enhancing Customer Experience: A seamless, digital-first approach to invoicing and payments improves satisfaction and loyalty.
  • Aligning I2C with Business Goals: Shifting I2C from a reactive to a proactive function enhances 

Organizations that embrace intelligent I2C transformation can unlock faster cash conversion cycles, reduce operational burdens, and position themselves for sustained growth. The crossroads is clear—businesses must either modernize or risk being left behind.

Download the full Invoice-to-Cash: Navigating the Crossroads report to explore the latest trends, insights, and strategies for optimizing your I2C processes.

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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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How to Add Fiscal Periods in BlackLine

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BlackLine allows you to add your fiscal period into the system. Here’s a scenario many accounting professionals face every year. As the end of the year approaches, it’s crucial to ensure your financial systems are ready for the upcoming fiscal year. 

Watch this short video to see Adam Riskin, our BlackLine practice leader, demonstrate how to add new fiscal periods in your system.

1. Locate the Period End Date Screen

Begin by navigating to the period end date screen in your system. This is where all your existing fiscal periods are listed. For instance, if the current year ends in December 2024, this screen will display fiscal periods through December 2024.

2. Add a New Fiscal Period

To add a new fiscal period, follow these steps:

  • Click the Add button.
  • Enter the last day of the fiscal period. For example, for January 2025, input January 31, 2025.

3. Set Reconciliation Frequency

Depending on your organization’s requirements, set the reconciliation frequency:

  • If you’re using standard frequencies (e.g., monthly, quarterly), select the appropriate frequency. For January, this would typically be “monthly.”
  • If you’re using custom frequencies, this step may not apply immediately, but it’s good practice to configure the frequency settings accurately.

4. Inactivate Period Tasks

By default, the Inactivate Period for Tasks option is checked. This hides tasks for the new period (e.g., January 2025) until closer to the period’s start. Leave this checked initially, then uncheck it as you approach the end of the prior period (e.g., December 2024) to make tasks visible.

5. Assign Due Dates

Each fiscal period requires due dates for reconciliations:

  • Key Reconciliations: Assign dates for preparation, approval, and review.
  • Non-Key Reconciliations: Assign similar dates based on a slightly extended timeline.

You can either:

  • Manually input due dates, or
  • Use the Set Due Dates feature, which leverages predefined business-day rules for automatic population.

6. Save the Fiscal Period

Once the details are entered, click Save to finalize the new fiscal period.

7. Repeat for Remaining Fiscal Periods

Follow the same process to add all fiscal periods for the new year.

8. Handle Custom Frequencies

If your organization uses custom frequencies, you’ll need to take an additional step:

  • Navigate to the Custom Frequency screen.
  • Locate the appropriate frequency (e.g., monthly, quarterly, yearly).
  • Scroll to the bottom, find the new fiscal period (e.g., January 2025), and click Add to include it in the selected frequency.

Why Custom Frequencies Matter

Failing to add new fiscal periods to custom frequencies can cause tasks and reconciliations to remain hidden, disrupting workflows for your users. This step ensures everything is visible and functional when the new fiscal period begins.

By following these steps, you can ensure a smooth transition into the new fiscal year, keeping your financial processes organized and on track. Whether you’re preparing for 2025 or beyond, this method will save you time and avoid potential disruptions.

Read more about Accounting & Accounts Receivable:

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How to Add and Remove Accounts from Group Reconciliations in BlackLine

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When managing group reconciliations, the ability to add and remove accounts seamlessly is critical for maintaining accuracy and organization. BlackLine makes it easy to manage your group reconciliations.

In our latest video, our BlackLine Practice Leader Adam Riskin, demonstrates step-by-step how to add and remove accounts from group reconciliations. Whether you’re onboarding new accounts or deactivating outdated ones, here’s a detailed guide to streamline your process.

The Account Group Screen

The process begins at the account group screen, which displays a list of all existing group reconciliations. Follow these steps:

  1. 1. Locate the Target Reconciliation:
    • Identify the specific group reconciliation you wish to modify.
    • Click on the relevant reconciliation to access the configuration screen.
  2. 2. Scroll to the Account Section:
    • Navigate to the bottom of the configuration screen to view the list of accounts currently assigned to the group reconciliation.

Adding Accounts to a Group Reconciliation

To include new accounts in your group reconciliation, do the following:

  1. 1. Click the “Add Accounts” Button:
    • A list of available accounts will appear. Select the ones you wish to add by marking the checkboxes.
  2. 2. Set the Add Date:
    • Pay close attention to the Add Date. This date determines the fiscal period when the selected accounts will join the reconciliation.
    • For instance, if you set the Add Date to August 2, 2024, the new accounts will be included in the group reconciliation starting from August 2024. They will not appear in any reconciliations prior to this date.
  3. 3. Finalize the Addition:
    • Once you’ve selected the accounts and set the appropriate Add Date, click the “Add Accounts” button.
    • Verify that the accounts are listed under the group reconciliation with the correct start date.

Removing Accounts from a Group Reconciliation

To remove accounts, follow these steps:

  1. 1. Click the “Remove Accounts” Button:
    • Select the accounts you wish to remove by checking the relevant boxes.
  2. 2. Set the Remove Date:
    • The Remove Date is just as crucial as the Add Date. It determines the fiscal period from which the accounts will no longer be part of the reconciliation.
    • For example, if you set the Remove Date to August 2024, the accounts will remain part of the reconciliation up until July 2024. They will be excluded starting from the August 2024 reconciliation.
  3. 3. Finalize the Removal:
    • After selecting the accounts and setting the appropriate Remove Date, click the “Remove Accounts” button.
    • Ensure the accounts are marked as removed with the specified date reflected.

After making your changes—whether adding or removing accounts—always click the Done button. This step saves your updates and ensures the system reflects the changes accurately.

Best Practices for Managing Group Reconciliations

  1. 1. Double-Check Dates: Always verify the Add and Remove dates to avoid discrepancies in fiscal reporting.
  2. 2. Audit Changes: Regularly review the account list to ensure all modifications align with your reconciliation goals.
  3. 3. Save Your Work: Never forget to click “Done” after making changes to avoid losing progress.

By following these steps and keeping these tips in mind, you’ll ensure that your group reconciliations remain up-to-date and accurate.

Read more about Accounting & Accounts Receivable:

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

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

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In today’s dynamic business environment, effective accounts receivable (AR) management is more than just an operational task. For Chief Financial Officers (CFOs), it’s a strategic pillar that can transform cash flow management, financial stability, and overall business performance. By leveraging modern Invoice-to-Cash (I2C) automation tools, CFOs can unlock substantial financial and operational benefits. Here’s a look at why AR optimization is essential for CFOs today.

1. Enhanced Cash Flow Management

Cash flow is the lifeblood of any business and optimized AR processes ensure that cash is accessible when needed. According to a recent report, a staggering $1.5 trillion is tied up in receivables. By accelerating collections, CFOs can free up significant working capital, improving liquidity and reducing the need for short-term borrowing.

2. Improved Working Capital Organization

Effective AR management contributes to better working capital by ensuring timely cash inflows. This directly impacts the organization’s ability to reinvest in crucial areas like inventory and capital expenditures. With less capital locked up in receivables, companies can lower borrowing costs, bolster their balance sheets and increase investor confidence.

3. Robust Risk Management

Proactive AR management helps mitigate the risks of overdue accounts and potential bad debts. By implementing credit management practices, CFOs can reduce credit risks and create a more secure financial environment. Steps such as assessing customer creditworthiness and setting credit limits minimize the chances of financial strain due to customer defaults.

4. Accurate Financial Planning and Forecasting

For strategic financial planning, accurate AR data is invaluable. CFOs can leverage AR insights to predict cash flow patterns, enabling more precise budgeting and avoiding financial shortfalls. Additionally, understanding revenue trends and customer payment behaviors aids in making informed decisions regarding product development, market positioning and resource allocation.

5. Strengthened Customer Relationships

A well-optimized AR process improves customer satisfaction by reducing errors and providing transparency in billing and payment procedures. Streamlined invoicing and collection methods minimize disputes, fostering a positive relationship with customers and reinforcing trust. This focus on efficiency enhances the customer experience and supports long-term loyalty.

6. Cost Efficiency Through Automation

Automation in AR can reduce the reliance on manual, error-prone processes, cutting down administrative costs and freeing up resources for strategic initiatives. By shortening the cash conversion cycle, companies can reduce the need for external financing and lower operational expenses, ultimately driving higher profitability.

7. Enhanced Regulatory Compliance and Reporting

In today’s regulatory environment, accurate financial reporting and compliance are non-negotiable. Optimized AR processes ensure that records are complete, accurate, and compliant with standards, reducing the risk of penalties or compliance issues. Digital platforms with built-in audit trails enhance traceability and accountability, giving stakeholders confidence in financial transparency.

For CFOs, AR optimization is a strategic tool to enhance cash flow, reduce risk, and improve financial forecasting. Leveraging I2C automation not only drives operational efficiencies but also positions companies for growth and resilience in an increasingly competitive landscape. In short, AR optimization isn’t just beneficial—it’s essential for modern financial leadership.

Discover how AR optimization can revolutionize cash flow, boost efficiency and drive sustainable growth. For a deeper dive into these seven essential strategies, download BlackLine’s eBook: “7 Reasons Why AR is Important to the Office of the CFO.”

Read more about Accounting & Accounts Receivable:

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Importing Multiple Accrual Schedules into a Reconciliation With BlackLine

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Mitigating Financial Risk through Automation

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This is a blog post from our partner BlackLine, sharing nine best practices for streamlining your account reconciliation process.

According to the Federal Reserve’s 2024 Survey of Salient Risks to Financial Stability, financial risks are expected to increase over the next 12 months, largely fueled by elevated asset valuations and a high-interest rate environment. This is not just a US issue; on the other side of the Atlantic, the Bank of England’s July 2024 Financial Stability Report has revealed that parts of the global financial system remain vulnerable to financial stresses, with a challenging risk environment here to stay.

The adjustment to the higher interest rate environment is continuing globally, and important vulnerabilities in market-based finance have yet to be addressed. This means businesses must now crucially consider and evaluate their areas of highest exposure.

Considering these conditions, organizations must be aware of and prioritize the key areas of concern to successfully emerge from the other side.

The Financial Risk of Credit Extension

One of the fundamental business risks, particularly regarding credit management, is non-payments. When a business extends credit to a customer, it typically involves issuing an invoice with payment terms ranging from 30 to 90 days – assuming the customer will settle the invoice within the agreed period.

The issue arises when the payment is delayed or, in the worst-case scenario, not made at all.

Any delayed payments lead businesses to face outstanding debt. Over time, that debt goes old, becomes aged debt, and most likely becomes a provision on the balance sheet, meaning it’s money that your business isn’t recouping.

This will ultimately affect your business’s cash flow. Businesses that don’t see this as a top priority in risk management run the risk of limiting their growth and placing significant strain on their financial obligations.

Managing Risks in Diverse Jurisdictions

Managing financial risk becomes even more complex for multinational businesses due to the varying regulatory environments across different countries.

Millions of payments are made across borders daily, and each jurisdiction has unique invoicing requirements, tax mandates, and compliance standards that businesses must meet to be financially compliant.

Globally, there is no set framework, with each country or region having its own system to comply with tax laws and government standards. For example, some countries have mandatory e-invoicing requirements, whereas others do not.

Latvia, for instance, plans to make e-invoicing mandatory for all business-to-business (B2B) and business-to-government (B2G) transactions by 2025.

This is in stark contrast to Hungary, which does not mandate e-invoicing for B2B and B2G transactions, instead opting for a real-time invoice reporting system for native companies and foreign companies with branch offices within the country.

Additionally, compliance with regulatory requirements such as the US’s Sarbanes-Oxley Act (SOX) is crucial for financial reporting and risk management. However, complying with SOX presents significant financial risk challenges to organizations, primarily due to its stringent requirements for internal controls and financial reporting.

Public companies view SOX compliance as a routine checklist of tasks to be completed. They may skip the part where their business should carefully consider the specific risks that could impact the accuracy and integrity of their financial reporting.

In simpler terms, this means that the organization does not thoroughly analyze potential risks and does not establish control measures to address those risks effectively. Without a risk-based approach to SOX, organizations may find it challenging to identify and monitor emerging risks most effectively, leaving them vulnerable to compliance breaches and financial misstatements.

Strengthening Controls Through Automation

Fortunately, we live in an era where businesses can mitigate risk by leveraging automation to strengthen controls over their financial processes.

Modern technology is playing an increasingly important role in alleviating challenges for F&A and credit management teams, giving them tighter control over a range of activities and simple risk flags like changes to the bank account a payment is made into.   

Adding an automation element to risk management arms businesses with the tools to process data in real-time. Traditional methods, mainly from the invoicing side, rely on periodic data analysis, often leaving businesses to react to overdue payments rather than anticipate them.

Modern, automated systems can flag potential risks as soon as they emerge, allowing businesses to react more efficiently to them.

An example would be if a customer has a County Court Judgement (CCJ) issued against them in the UK or a Civil Judgement in the US. Rather than waiting for them to miss the payment or the invoice due date, automated systems allow businesses to take corrective actions – such as contacting the customer or adjusting credit terms –before any payment issues escalate.

Navigating the role of human error is another aspect to consider when considering risk management strategies. Anytime humans are involved in practices such as data entry or evaluation, simple mistakes can creep in whereby a one becomes a two or a nine becomes a zero and suddenly you run the risk of misrepresenting figures.

Modern automation reduces this risk, eliminating the need for manual spreadsheet entries, enhancing both the accuracy of data and reducing the risk of non-compliance.

The human element is particularly important when considering compliance with regulations such as SOX in the US. These regulations require stringent controls to ensure accurate financial reporting and automated systems help facilitate adherence to these regulations by ensuring consistent and accurate data processing throughout.

Automation streamlines and strengthens the compliance process and provides clear documentation of financial transactions, which is essential for audits and regulatory reviews.

What About AI?

Naturally, Artificial Intelligence (AI) is starting to creep into conversations around financial risk management. BlackLine’s research of over 1,300 global C-Suite and F&A leaders revealed that they see generative AI (78%) and new kinds of AI (76%) as essential for improving business resiliency in the face of future disruption.

Businesses are looking for solutions with embedded AI algorithms to evaluate customers’ payment behavior over time and flag deviations from expected patterns to enhance their proactivity.

By continuously learning from new data, AI systems can refine their predictions and improve risk management strategies, providing businesses with a dynamic tool for navigating financial uncertainties into the future and beyond.

Generative AI also has potential in this area. The beauty of generative AI is that you don’t need to be an expert coder to use it – it gives users the ability to query data in natural language – making it more straightforward and intuitive for F&A teams to find the answers they need at a greater speed.

AI functionality will continue to develop as we move through the remainder of 2024 and beyond, but businesses should also consider the technology’s dual potential. While it can enable more proactive risk mitigation strategies, organizations need to ensure the technology does not create risks of its own.

It must be implemented and used within existing compliance frameworks and have its own set of checks and balances.

Ultimately, robust controls are critical for businesses in the current, complex risk landscape. However, this landscape is also set to evolve rapidly going forward, and controls and compliance must keep pace if businesses are to remain resilient in testing times.

Read more about Accounting & Accounts Receivable:

How Automating Accounting Meets the Growing Demands of Finance

How CFOs Stay Ahead of Rapidly Changing Markets

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