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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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Are You 7 Metrics Away from Future-Ready Financial Operations?

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Finance leaders know that a stable, scalable and efficient financial close process is critical to long-term success. Yet, many organizations continue to struggle with slow, manual workflows that delay financial reporting, create unnecessary risk, and hinder strategic decision-making.

But what if you could measure and benchmark your financial operations to assess your “future-readiness?”

The latest industry benchmark guide from BlackLine explores seven key metrics that define a modern, resilient financial close process. Here are the critical areas that could be standing in the way of your finance transformation.

1. Hours Spent Cleaning and Downloading Data

Industry Benchmark: 2-8 Hours Setup

Data preparation is often one of the biggest hidden inefficiencies in financial operations. Manually downloading, importing and structuring data for reconciliation and reporting eats up valuable time and introduces unnecessary risk.

Future-Ready Solution: Organizations leveraging automation solutions can integrate data directly, reducing setup time to as little as two hours. This ensures real-time visibility and reduces the burden on accounting teams.

2. Percentage of Transactions Automatically Reconciled

Industry Benchmark: 99% Auto-Reconciled

Manually matching transactions is not just time-consuming—it’s also a morale killer for finance teams. A low percentage of automation in reconciliation means that skilled professionals are stuck on repetitive tasks instead of focusing on exceptions and anomalies.

Future-Ready Solution: With automated transaction matching, companies can achieve reconciliation accuracy rates of 99%, freeing up teams to focus on strategic financial analysis.

3. Percentage of Manual Journal Entries Per Month

Industry Benchmark: 10% or Fewer

Scalability will be a challenge if your organization is still processing a high volume of manual journal entries. Manual processing increases errors, compliance risks, and inefficiencies.

Future-Ready Solution: Automating journal entry creation and validation allows leading organizations to reduce manual journal entries to 10% or less. 

4. Percentage of Low-Value Journal Entries

Industry Benchmark: Less than 5%

Low-value journal entries (such as transactions below a certain threshold) can consume significant resources without providing much benefit. Understanding their impact allows organizations to optimize processing efforts.

Future-Ready Solution: Using AI-powered analysis, finance leaders can set materiality thresholds and identify unnecessary journal entries, allowing teams to focus on higher-value activities.

5. Percentage of Automated Recurring Journal Entries

Industry Benchmark: 35% Automation

Recurring journal entries—such as accruals and amortization—are predictable and should not require extensive manual intervention. Yet, many organizations still rely on outdated processes that require accountants to manually re-enter the same data every month.

Future-Ready Solution: Automating recurring journal entries eliminates redundant work and increases accuracy, leading to greater efficiency in month-end close.

6. Hours Spent Responding to Audit Requests

Industry Benchmark: Less than 2 Hours

Audit season shouldn’t bring financial close operations to a halt. But for many teams, responding to audit requests is an inefficient, time-consuming process that involves tracking down documents across multiple systems.

Future-Ready Solution: Centralizing audit documentation in an automated financial operations platform allows for self-service auditing, cutting response times to under two hours.

7. Number of Solutions Needed to Execute Financial Close

The more fragmented your financial close process, the harder it is to maintain consistency and accuracy. Relying on multiple disconnected tools increases operational risk and reduces efficiency.

Industry benchmark: Leading organizations aim for a unified financial close platform rather than relying on multiple disconnected systems.

Future-Ready Solution: A unified platform consolidates financial close processes, reducing complexity and improving transparency.

Is Your Finance Team Future-Ready?

By benchmarking your financial operations against these seven key metrics, you can identify opportunities for improvement and take steps toward a more agile and resilient finance function.

Want to see how your organization stacks up? Download the full eBook to learn how BlackLine customers have achieved best-in-class financial close automation and efficiency.

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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:

How to Add and Remove Accounts from Group Reconciliations in BlackLine

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Streamlining Financial Accuracy with Accrual Reconciliation Templates in BlackLine

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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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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

Top BlackLine Videos of 2024

Importing Multiple Accrual Schedules into a Reconciliation With BlackLine

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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:

Top BlackLine Videos of 2024

Importing Multiple Accrual Schedules into a Reconciliation With BlackLine

Importing a Single Accrual Schedule into a Reconciliation With BlackLine

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