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Importing a Single Accrual Schedule into a Reconciliation With BlackLine

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A preparer can easily import a single accrual schedule from an Excel file into BlackLine for an accrued bonus reconciliation. Watch this video to see Adam Riskin, our BlackLine Practice Leader demonstrate how to do this.

Step 1. Setting Up the Excel File for Import

  • The Excel file including columns for fiscal month, description, and the accrued amount.
  • The fields in the Excel file do not need to be in a specific order, but it is best practice to align them with the BlackLine field headers.
  • The Excel file should have fields that match the date, description, and transactional amount fields in the reconciliation system.
  • It is important to name the field headers consistently in the Excel file for accurate import.

Step 2. Starting the Import Process

  • Click the link to start the import process.
  • You’ll see the description field in the import form is filled out as “2024 bonus accrual” and click Browse and select the Excel file.
  • The import form allows users to see the records from the Excel file, including fiscal month, description, and dollar amount.
  • It is important to select the correct tab in the Excel file that contains the uploading data.

Step 3. Mapping Excel Fields to Reconciliation Fields

  • Mapping ensures that the Date field in the Excel file will populate the Date field in the BlackLine supporting item schedule.
  • BlackLine needs to know which Excel records to import.
  • The final step is to click the Import button to upload the schedule into the system.

Step 4. Viewing the Imported Schedule

  • The imported schedule is visible by clicking on the scheduled icon in the system.
  • This feature allows users to see the accrual schedule in detail, ensuring accuracy and transparency.
  • The process concludes with a successful import and detailed viewing of the accrual schedule.

BlackLine makes it easy for a preparer to import a single accrual schedule. This video is one in a series on different ways to import reconciliation supporting items with BlackLine.

Read more about Accounting & Accounts Receivable:

How a System Administrator can Import Multiple Amortization Schedules in BlackLine

Import Multiple Amortization Schedules into a Reconciliation with BlackLine

Importing a Single Amortization Schedule into a Reconciliation With BlackLine

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2024 Financial Close Buyers Guide Names & Recognizes BlackLine for its Total Cost of Ownership and Return on Investment

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Ventana Research, now ISG Software Research, recently released its 2024 Financial Close Buyers Guide, which ranked BlackLine an Exemplary Vendor and Overall Leader. The report highlighted the total cost of ownership (TCO) and return on investment (ROI) that BlackLine delivers to its customers. 

“As the financial landscape continues to evolve, the need for the Office of the CFO to drive business forward has never been more critical,” said Robert Kugel, executive director and head of business research, ISG Software Research. “Blackline’s proven, collaborative and achievable approach to digital transformation has positioned the company as a trusted partner for organizations worldwide.” 

The guide evaluated 12 vendors in the financial close software market. They are: BlackLine, Board International, FloQast, Fluence, NetSuite, Oracle, Prophix, SAP, Trintech Adra, Trintech Cadency, Vena Solutions and Wolters Kluwer.

Close-up of a financial close chart Description automatically generated

The report uses the Ventana Value Index methodology, which is based on extensive market and product research and is structured to replicate an RFI process by incorporating criteria to select technology. The research evaluates technology providers on products that address critical elements of enterprise software across ten product and customer experience categories. 

Ventana ranked BlackLine as a leader in seven out of the ten categories, including Capability, Usability, TCO/ROI and Validation. The company received an overall grade of A-, and was recognized for:

  • Product Experience for its manageability, administration, privacy and security.
  • Customer experience for its total cost of ownership (TCO) and return on investment (ROI), due to effective systems and processes for managing and escalating breaches. 

Vendors in the Exemplary category represent those that performed the best in meeting the overall product and customer experience requirements. 

Read the full 2024 Financial Close Management Buyers Guide. 

ISG Software Research provides authoritative market research and coverage of the business and IT software industry.

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Is the Accounting Cycle a Trade-off Between a Fast Close and Accuracy?

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This guest blog post from our partner, BlackLine, discusses why a quick financial close is not always better.

With the quickening pace of the modern finance and accounting (F&A) landscape, the mandate often seems to be “faster, faster, faster.” One area where this feeling is prominent is in the accounting cycle’s financial close. F&A teams often feel intense pressure to complete the close and create financial statements quickly, sometimes at the expense of accuracy.

Focusing on this need for speed—but with the critical requirement for accuracy—business leaders are increasingly choosing automation tools as the best way to achieve both.

However, in the rush to streamline processes and boost productivity, a crucial aspect often gets overlooked: the importance of a thoughtful, strategic approach to automation.

It’s Not All About Speed—At Least Not at First

While the allure of automating tasks and integrating the latest technology into F&A workflows is undeniable, simply layering automation onto a broken process can be disastrous for any transformation initiative.

When a company invests in automation tools to expedite its financial close process and financial report creation, the expectation is that it will lead to less manual work, reduced errors, and improved overall efficiency. What often goes unrecognized is that automation is not a magic wand for all operational woes. Without addressing underlying process issues or developing a comprehensive plan for using the new tool and resulting staff capacity, the outcome may not match the company’s goals for transformation.

The truth is that successful change requires more than just technological upgrades. It demands a holistic approach that encompasses process optimization, cultural alignment, and strategic planning. It’s important to put in the time upfront to ensure long-term success in finance automation and transformation journeys.

How You Change Is as Important as What You Change

Automating finance processes without first understanding the intricacies of each step and considering the broader implications can lead to chaos.

The way a company integrates changes into existing workflows and then automates them can make or break their effectiveness.

For example, automating journal entries without addressing underlying issues such as inconsistent data entry or unclear approval hierarchies may result in inaccurate financial records and manual rework—the very things you were likely trying to eliminate in the first place!

A strategic approach that prioritizes process optimization, stakeholder engagement, and change management before automation is essential to ensure that efforts yield meaningful improvements while mitigating risks and enhancing compliance.

Accurate Accounting Data Is Critical

Business leaders are looking to predictive analytics and intelligent forecasting for various reasons, including better decision-making, risk management, enhanced planning and budgeting, and improved competitive advantage.

However, advanced analytics and forecasting depend on the completeness and accuracy of your foundational accounting data. Actuals serve as the starting point for all subsequent financial operations activities, acting as the basis and input for critical decision-making processes. Downstream financial activities such as budgeting, forecasting, and strategic planning rely heavily on the accuracy and integrity of actual financial data.

Back to a concept we discussed earlier: if you’ve simply automated incomplete or disparate processes, you’re not working from reliable actuals and other foundational financial data. Without the solid groundwork of accurate actuals, even the most sophisticated forecasting models or predictive analytics will produce flawed outputs, leading to misguided decisions and missed opportunities.

Organizations must prioritize the establishment of robust processes and controls to ensure the integrity of their actuals, recognizing them as the cornerstones of sound financial management. Only then can teams and leaders realize the full benefits of advanced tools and technologies to drive meaningful insights and sustainable growth.

Ready to Build a Growth-Ready Data Foundation?

Here are 5 practical steps to get started:

1) Set your digital finance transformation goals.

The best place to start is mapping out all upstream and downstream activities in your financial close operations and understanding how they contribute to your business’s overall strategy. It may seem arduous, but it’s vital groundwork that ensures your technology solutions are aligned with your immediate and long-term goals.

2) Focus on mission-critical accuracy.

Be very strategic about the moves you’re making to maximize impact and minimize disruption. A good place to start? Journal entries and reconciliations.

3) Entrench a data quality culture within your team.

Get your staff on board with how and why technology is aligned with bigger strategic goals. The goal is not simply to automate a single reconciliation or journal entry workflow.

4) Reallocate time to strategic initiatives.

Review your overall strategic goals and identify the best ways to reallocate your team’s time so everyone is aligned with your organization’s key objectives.

5) Rinse and repeat.

Get some wins under your belt and then replicate them! It’s all about a series of controlled, strategic moves towards your overall organizational goals.

A Quick Financial Close Is Not Always Better

If you’re sacrificing accuracy and reliable actuals for speed, then it’s true—a quick close is not always better. However, forward-looking companies will put in the work upfront to create plans to achieve goals, map out and fix broken processes, strategically automate critical practices, and reallocate time.

A quick and accurate financial close provides opportunities for leaders to analyze the financials sooner, free up more time for F&A teams to address other organizational goals, save time and money, and improve compliance, among many other benefits.

This blog post was originally published on the BlackLine blog.

Read more about Accounting & Accounts Receivable:

Financial Close and Consolidation Solutions Report

Driving Effective Change Management in Digital Finance Transformation

2024 Predictions for Finance & Accounting

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Trends in Financial Management for Midsize Organizations

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This guest post from our partner, BlackLine, was written by IDC. It outlines challenges facing finance and accounting in midsize organizations.

Midsize organizations have several challenges that make financial operations management particularly difficult. Many such organizations operate in a very lean manner and yet are still focused on growth.  While the complexity of financial management applies equally to midsize organizations, they do not enjoy the resource availability of their larger counterparts. Thus, midsize organizations must address challenges associated with rapid growth and regulatory compliance with their limited resources.  

In this blog post, we aim to discern the evolving landscape of midsize companies by analyzing significant trends, their related challenges, and opportunities for these organizations to succeed in an ever-evolving landscape.

The following are key trends affecting finance and accounting teams at midsize organizations:

  • Talent management is becoming a financial priority. Over the past 12 months, core finance and accounting teams (accounts payable, accounts receivable, budgeting planning, auditing etc.) have quit at an alarming rate. In a recent survey conducted by IDC, staffing and labor shortages preventing effective use of technology were among the top 3 greatest concerns for midsize businesses. (Source: Future Enterprise Resiliency & Spending Survey – Wave 6, IDC, July 2023). This attrition is largely due to the combination of high pressure, heavy time commitment and legacy tools – all of which plague midsize businesses. Financial operations teams are built upon core accounting staff as a foundation; high turnover in this area can impact productivity and even the company’s bottom line.
  • Greater emphasis on dissemination of business-critical information. The rapid pace of growth within midsize businesses puts a spotlight on the communication of business information. Smaller businesses are often hampered by their inability to quickly gather business-critical information and disseminate it to their necessary stakeholders. In a recent IDC survey, communicating business and financial metrics to stakeholders effectively was cited as among the top 3 pain points by CFOs. (Source: C-Suite Survey, IDC, August 2022). As rapidly growing businesses rocket toward financial exit strategies, the ability to share real-time information with banks, investors, key suppliers is an essential element of success.
  • Demand for a more strategic/analytical skill set for finance teams. According to IDC research, 44% of CFOs said they envision more involvement with IT decisions involving finance, ERP, analytics, and so forth. (Source: CIO Advisory Board: Exploring the CIO-CFO Relationship, August 2023). The necessary skill set among financial team members will evolve to include more strategy/analytical skills. The ability to look at financial data and see the opportunities and strategic insights within the data will become an essential part of the job. Going forward, IDC believes smaller business will lead the way and combine positions like CFO and the CIO to support the business in the emerging digital first economy. 

Many of the opportunities for midmarket businesses to modernize financial operations relate to the need for speed and agility. The top reasons driving digital transformation initiatives include the following needs:

  • Improvements in productivity and process automation to decrease cost per transaction. For midsize businesses, 26% listed working late to catch up on accounting processes as their top frustration with their current system. (SaaSPath Survey 2023, IDC, March 2023).
  • Faster finance and performance insights to manage uncertainty and guide risk appetite
  • Managing the evolving regulatory compliance landscape with the lens of integrated risk and finance. More than 28% of midsize businesses spend their time on regulatory compliance working manually or in spreadsheets. (SaaSPath Survey 2023, IDC, March 2023).
  • Faster financial close period to reduce time spent on analyzing the past and instead focus on future value-added strategies. For midsize businesses financial close was one of their top 3 most manual processes (SaaSPath Survey 2023, IDC, March 2023).

Midsize businesses are very focused on technology that allows them to do more with less. Lean finance and accounting teams must be flexible and nimble. Team members have to wear multiple hats to conduct their core responsibilities. When considering change, midsize organizations must move quickly; they have neither the time nor the resources for longer optimization projects.

Driving Toward Agility & Scale in the Office of the CFO

The role of finance and accounting has evolved beyond simply monitoring debits and credits. This trend is happening the fastest in those midsize businesses where there are fewer managerial layers. These businesses tend to have greater overlap in roles and duties (e.g., the CFO also serves as the head of compliance and operations). Today’s midsize finance office and the people who manage it are being asked to do more than ever before:

  • F&A is evolving into an operational data hub. In addition to added strategic duties, F&A is becoming the key hub for many aspects of business data beyond financial including operational data, IT system data, supply chain data, ESG data, and so forth.
  • F&A is evolving into an insights hub. F&A is expected to leverage the financial systems and the latest technology to identify risks and challenges and use this information to create accurate forecasts. In addition, F&A teams are now under even greater pressure to create more detailed forecasts much more frequently.
  • F&A as an engine for growth. Today’s F&A team is expected to uncover strategies to drive revenue growth through efficient planning, accurate forecasting, and tight collaboration with other management staff.

Persistent Pain Points for the Midsize CFO

There are several places where midsize businesses still struggle today.

Lost time on mundane tasks. In the March 2023 IDC SaasPath Survey, midsize respondents (companies with between 500-1000 employees) listed “too much of the time spent on accounting duties is low-value, data-entry heavy” as their top frustration with their current accounting system. For midsize businesses, the biggest time sinks (i.e., areas where they spent the most time) were reporting/analytics, accounts receivable and the financial close according to the most recent SaaSPath Survey 2023 (IDC, March 2023). A reliance on spreadsheets figured prominently for these tasks. In addition, resource misappropriation is common due to the relative lack of resources.

Lack of accurate information. Midsize companies listed their second highest frustration with their current accounting system as “the financial reporting has a high error rate.”  Finance leaders at these companies need timely and accurate information to optimize decision making. Less than accurate data results in rework (additional validation and substantiation) that ultimately slows down the financial close process and erodes the confidence in the final output. With many midsize organizations unable to substantiate the full balance sheet, high priority accounts may require triage leading to late or inaccurate financials, or both.

Benefits of Financial Modernization

The expected benefits of financial modernization include the following:

  • The ability to harness the latest technology to scale up data management capabilities. Businesses will be able to agnostically integrate their core systems, optimize accounting processes with automation technology, and capture market expansion opportunities with budgeting and planning technology.
  • The ability to leverage the latest technology to provide flexibility, minimize costs and ensure strategic insight into an organization’s business
  • The delivery and maintenance of systems related to finance, performance, risk and compliance capabilities/functions in a cost-effective manner
  • Flexibility to meet business needs and support evolving business and regulatory requirements
  • Data at multiple levels of detail from source systems transactions to posting GL balances and financial consolidation results
  • Progressive future state transformation, leveraging existing components to co-exist in the current environment

Considerations for Midsize F&A Leaders When Evaluating Financial Technology

Think holistically. Over the past 2-3 years, IDC has seen a growing trend among financial software vendors to bring more holistic applications to the market. Recent M&A activity reflects this trend as well.

Put end users at the center. Financial applications are evolving rapidly as vendors invest research and development dollars into bolstering, augmenting, and in some cases, redesigning their applications. The applications must align with the new digital enterprise and how finance and accounting professionals adopt technology.

Look for SaaS applications that are built and maintained with trust. It is vital for enterprise application vendors to build trust in the SaaS economy including being more transparent, delivering on commitments, engaging end users, supporting customer success throughout the relationship, and helping customers achieve their business outcomes.

Advanced Technologies in Finance & Accounting

As finance and accounting departments move into the digital-first economy with a focus on agility and scalability initiatives, the finance function itself is turning to advanced technologies to enable its evolution. Fueled by inefficiency within the finance workstreams, the CFO requires more advanced and innovative technology.

Given that financial management for midsize organizations is an exercise in data management, many businesses are looking to advanced technology to cope with the data burden at scale and at speed. The technologies include:

  • Integration. Developers and managers require integrations to quickly add/modify data that flows into and out of software applications. This enables midsize businesses to quickly move data between systems and be more flexible as business needs change over time.
  • Cloud-native architecture. This architecture provides organizations with the necessary flexibility/agility to meet the demands of a highly dynamic market landscape. According to IDC, 80.7% of finance leaders reported they would be willing to pay more for cloud-native architecture featuring microservices and containers.
  • Automated workflows. Financial software vendors are embedding intelligence within the “record-to-report” (R2R) workflows to unleash the full power of automation.
  • Artificial intelligence (AI). AI is finding a foothold in nearly all aspects of financial operations from the record to report process to procure to pay and beyond. AI offers midsize organizations the ability to compensate for a lack of resources through the use of virtual assistants and intelligent automation.
  • Advanced analytics. Many organizations are flooded with business data from a variety of sources and a variety of data types. As a result, midmarket companies are turning to advanced analytics to glean insights from their data.

This blog post was originally published on the BlackLine blog.

Read more about Accounting & Accounts Receivable:

Fixing Intercompany

How Artificial Intelligence Can Reduce Transaction Failure Rates in Intercompany

Building a Successful Finance Transformation Team: Key Stakeholders and Change Champions

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Unplugging with Confidence: How Accountants Can Enjoy Vacations Stress-Free

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This guest post from our partner BlackLine will help you understand how automating your financial close, implementing accounts receivable automation, and structuring and automating intercompany transactions can reduce stress and allow you to fully relax on your summer holiday.

Believe it or not, there are just a few more weeks to get in your summer vacation.

You’ve been needing a vacation, and perhaps you’ve found the perfect destination for you and your family. Whether you’re going away for a few nights or spending a few weeks, some time off is just what you deserve after a busy Q1 and Q2 this year.

Here at BlackLine, we know the pace of work in the financial sector can be all-consuming, especially for you, an accountant. We also know that PTO is essential to avoid burnout.

So while you’re excited for your holiday, there may be a nagging thought in the back of your mind … “I’m too busy to go on vacation” or “I can’t miss the month-end.” Sound familiar? We thought so.

Accountants, like professionals in many other fields, often face challenges in maintaining a work-life balance due to the nature of their work and the demands placed upon them. Here are some common challenges that accountants may encounter:

  • Long working hours: Accountants often work long hours, especially during peak periods such as month-end close or the end of the financial year. These extended hours can make it difficult to allocate time for personal activities and maintain a healthy work-life balance.
  • Deadlines and time pressure: Accountants typically work with strict deadlines which can create significant time pressure. Meeting these deadlines often requires additional hours of work, resulting in reduced personal time and increased stress.
  • Seasonal workload fluctuations: Accountants may experience significant fluctuations in workload throughout the year. During busy periods, they may be required to work more intensively, leading to the long working hours mentioned above.
  • Expectations and responsiveness: Accountants need to maintain strong relationships with their stakeholders and business leaders. This often involves being readily available and responsive to inquiries and requests, which can encroach upon personal time and limit work-life balance.
  • Technological demands: The accounting profession has become increasingly reliant on technology. While technology has streamlined many processes, it has also increased the pace of work and the expectation of immediate responses. Accountants may feel pressured to be constantly connected, which can blur the boundaries between work and personal life.
  • Continuous learning and professional development: Accountants must stay up to date with the latest developments in accounting regulations, tax laws, and industry trends. Pursuing ongoing professional development while juggling work commitments can be time-consuming and challenging to balance with personal life responsibilities.
  • Work-related stress: The accounting profession can be inherently stressful due to the complexity and high stakes involved in financial reporting, audits, and tax compliance. Managing work-related stress and its impact on personal life is essential for maintaining a healthy work-life balance.

Thankfully, you can manage and mitigate the struggles mentioned above and unplug on vacation without feeling guilty.

Set clear boundaries: Clearly communicate your vacation dates to colleagues and stakeholders and establish limits on work-related communications during your time off.

Plan for deadlines: Prioritize and complete critical tasks before your vacation to minimize the last-minute rush and avoid the need for extra work during your time off.

Coordinate workload and coverage: Collaborate with your team to ensure that the workload is appropriately distributed and that someone is available to handle urgent matters in your absence.

Disconnect from technology: Take a break from work-related technology and avoid checking emails or work messages while on vacation. Enjoy your time off without feeling pressured to stay constantly connected.

Delegate responsibilities: Delegate non-urgent tasks or responsibilities to trusted colleagues to ensure smooth workflow and prevent a backlog of work upon your return.

Make self-care a priority: Use your vacation as an opportunity to recharge and focus on personal well-being. Engage in activities that help you relax and rejuvenate, such as spending time with family and friends, pursuing hobbies, or engaging in physical exercise.

Set realistic expectations: Be realistic about what you can accomplish before and after your vacation, and communicate any potential delays or limitations to stakeholders, including clients and colleagues.

Practice stress management techniques: Use your vacation as a chance to unwind and reduce work-related stress. Engage in activities that promote relaxation and well-being, such as meditation, mindfulness, or engaging in hobbies you enjoy.

Reflect on work-life balance: Take this time away from work to reflect on your work-life balance and identify any adjustments or improvements you can make upon your return to maintain a healthier equilibrium.

Remember, time off is essential for your well-being, and by effectively managing your workload and communicating your availability, you can enjoy a well-deserved break while maintaining a healthier work-life balance.

This blog post was originally published on the BlackLine blog.

Read more about Accounting & Accounts Receivable:

The Power of AR Automation in Transforming Finance Operations

Maximizing Cash Flow: How Technology Optimizes Accounts Receivable Operations

Building Financial Resilience with AR Intelligence: Embracing the Power of Automation and Data

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The Power of AR Automation in Transforming Finance Operations

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In today’s fast-paced and competitive business landscape, finance leaders are constantly seeking ways to optimize their operations and drive growth. One of the most transformative tools available to them is AR (Accounts Receivable) automation. This cutting-edge technology streamlines manual processes, enhances customer experiences, and unlocks working capital, making it a no-brainer decision for forward-thinking organizations. 

The Quest for Agility and Digital Transformation

Recent years have been defined by constant change and technological advancement. Agility and digital transformation have become vital for organizational survival. The finance department, once seen as a back-office function, is now at the forefront of driving strategic decision-making. AR automation plays a crucial role in this transformation, enabling finance professionals to shift their focus from laborious manual tasks to high-value analysis and customer relationship management. By leveraging machine learning and AI-driven technologies, AR automation provides the data-driven insights needed to make informed decisions that fuel growth.

The Impact on Cash Flow and Working Capital

Cash flow is the lifeblood of any organization, and AR automation offers a surefire way to optimize it. By accelerating cash application, businesses can reduce Days Sales Outstanding (DSO), improve working capital management, and strengthen financial health. With faster access to critical data, finance leaders can confidently manage risks and capitalize on growth opportunities. This not only enhances financial stability but also positions the organization to navigate market fluctuations and disruptions effectively.

Enhancing Customer Experience and Loyalty

In today’s customer-centric world, providing a seamless and efficient payment experience is paramount. AR automation simplifies the payment process, enables quicker invoicing, and offers easier payment methods, leading to improved customer satisfaction and loyalty. By freeing up time and resources, finance teams can focus on building stronger relationships with customers, offering personalized solutions, and addressing their needs promptly.

A Successful AR Automation Journey

Transitioning from manual to automated processes requires a collaborative effort and a commitment to change. Successful AR automation projects involve engaging finance leaders, AR specialists, IT teams, and other key stakeholders. By gaining their buy-in and addressing their concerns, organizations can ensure a smooth implementation and adoption of the technology. Moreover, with a solution like BlackLine’s AR Automation platform, which offers quick implementation, pre-built rules, and industry-leading match rates, businesses can experience immediate benefits and drive results faster.

Numerous organizations worldwide have already reaped the rewards of AR automation. For instance, global companies have seen match rates rise from less than 38% to over 80% and as high as 92% in some places after implementing BlackLine’s AR Automation solution. These success stories highlight how embracing this no-brainer technology can revolutionize finance operations, improve efficiency, and drive business growth.

In conclusion, AR automation is a transformative tool that empowers finance leaders to create cohesion, unlock working capital, and optimize operations. Embracing this no-brainer technology is an opportunity to increase productivity, enhance customer experiences, and achieve business goals. The time to act is now, and by doing so, organizations position themselves for success in an increasingly dynamic marketplace.

Learn more about AR automation. Download BlackLine’s eBook, It’s a No-Brainer: Why AR Automation is the Go-To Tool for Organizations

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Maximizing Cash Flow: How Technology Optimizes Accounts Receivable Operations

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Effective management of accounts receivable (AR) is critical for the financial health of any organization. Timely collection of outstanding payments can improve cash flow, reduce the risk of bad debts, and enhance overall financial stability. However, manual AR processes can be time-consuming, prone to errors, and lack actionable insights. 

Automating Cash Application

Cash application is a fundamental part of the AR process, where incoming payments are matched with outstanding invoices. Traditionally, this has been a tedious and error-prone task. With AR technology, cash application becomes automated and efficient. The system should intelligently match payments with invoices, reduce manual efforts and ensure accuracy. This automation can save valuable time for finance teams, allowing them to focus on higher-value tasks.

Enhancing Payment Matching

One of the common challenges in AR management is dealing with diverse payment sources and remittance formats. AR automation technology addresses this issue by seamlessly scraping payment information from various sources, such as bank statements and remittance invoices. The technology should match this data with relevant invoices, streamlining the reconciliation process. As a result, organizations achieve better visibility into their cash flow and minimize the risk of unidentified or misapplied payments.

Customer Risk Assessment

Understanding the creditworthiness and payment behavior of customers is vital for managing risk in AR operations. Technology such as BlackLine’s solution’s customer attractiveness scoring system helps organizations identify customers with varying levels of risk. By analyzing factors such as payment history, outstanding debts, and payment trends, the system assigns grades to customers, enabling finance teams to prioritize collections efforts and manage credit exposure more effectively.

Cash Flow Forecasting

Cash flow forecasting is an essential practice for any organization to plan and manage financial resources efficiently. An AR Intelligence solution should empower finance professionals with data-driven insights to make informed cash flow predictions. By analyzing historical payment patterns, invoice due dates, and customer payment behaviors, the system provides accurate forecasts, helping organizations anticipate cash inflows and outflows with greater precision.

In today’s fast-paced business landscape, optimizing financial operations is essential for sustainable growth and success. AR solutions offer comprehensive and intelligent approaches to streamline accounts receivable processes. By automating cash application, enhancing payment matching, and providing valuable insights through analytics, organizations can reduce manual efforts, mitigate risk, and achieve better financial outcomes.

Learn more about optimizing AR – watch our on-demand webinar, BlackLine in Action: Optimizing Your Accounts Receivable Process. 

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Building Financial Resilience with AR Intelligence: Embracing the Power of Automation and Data

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In today’s fast-paced and unpredictable economic landscape, businesses must be equipped to weather financial storms and emerge stronger. One critical aspect of financial resilience is effective management of accounts receivable (AR) and credit risk. Traditional approaches to AR reporting often lack real-time insights, leading to inaccurate cash forecasting, extended payment terms, and delayed collections. However, by embracing AR intelligence through automation and data analytics, businesses can optimize cash flow, make informed credit decisions, and enhance collections strategies. 

The Power of AR Intelligence

AR intelligence is revolutionizing the way businesses manage their financial operations. By integrating automation and artificial intelligence, AR intelligence platforms streamline data collection, analysis, and reporting processes. These platforms provide real-time payment data, customer payment behavior insights, and debtor performance information, enabling financial decision-makers to access critical information at their fingertips. With automation handling time-consuming manual tasks, finance teams can focus on strategic decision-making and respond swiftly to market changes.

Optimizing Cash Flow with Payment Forecasting

Cash flow is the lifeblood of any business, and accurate payment forecasting is crucial to ensure its smooth operation. AR intelligence utilizes historical payment data to predict future payment patterns and identify potential cash shortfalls. Armed with reliable forecasts, businesses can make better-informed decisions on spending, investments, and overall financial planning. This level of insight empowers treasurers and credit collections teams to allocate resources efficiently, analyze the effectiveness of collection strategies, and improve cash flow.

Efficient Collections Strategies through Data Analysis

Collections teams face the challenge of managing the entire customer portfolio with limited resources. AR intelligence resolves this issue by providing in-depth data analysis of customer payment behavior and outstanding debts. Collections efforts can be targeted based on high-value accounts or invoices with a higher likelihood of success. This targeted approach improves debt recovery, optimizes resource allocation, and enhances cash flow.

Mitigating Credit Risk with Real-Time Assessment

Understanding customer payment behavior is essential in managing credit risk effectively. AR intelligence leverages real-time payment data and advanced analytics to assess customer creditworthiness accurately. Businesses can make informed credit decisions, monitor customer credit risk in real-time, and adjust credit policies to align with their risk tolerance and objectives. This proactive approach mitigates the risk of bad debt and strengthens customer relationships.

Proactive Dispute Resolution

Customer disputes can hinder cash flow and damage relationships. AR intelligence offers comprehensive insights into customer behavior and historical interactions, enabling businesses to identify dispute trends and expedite resolution processes. By addressing underlying problems proactively, businesses can prevent future disputes and maintain positive customer relationships.

Building financial resilience is imperative for businesses to thrive amidst economic uncertainties. AR intelligence, fueled by automation and data analytics, empowers organizations to optimize cash flow, manage credit risk, and enhance collections strategies. By harnessing the power of real-time insights, finance leaders, credit teams, and collections teams can make informed decisions and steer their businesses through challenges while seizing growth opportunities.

Embracing AR intelligence is not just a trend; it is a strategic move to stay ahead in a dynamic market. As the economic landscape continues to evolve, businesses that embrace AR intelligence will be better equipped to navigate change, build financial resilience, and position themselves for long-term success. With the right tools and mindset, the journey towards financial resilience is within reach for every business.

Learn more about AR intelligence. Download BlackLine’s whitepaper, How to Build Financial Resilience Through AR Intelligence.

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The Role of CFOs in Building Financial Resilience

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In today’s dynamic and unpredictable business landscape, financial resilience has become a top priority for organizations. Among the key drivers behind this resilience are CFOs, who play a critical role in navigating uncertainties, forecasting cash positions, and ensuring long-term stability. This blog post explores the significance of CFOs in building financial resilience and highlights their strategic role in adapting to changing market conditions.

Understanding the Importance of Financial Resilience

Financial resilience refers to an organization’s ability to withstand and recover from financial disruptions, economic downturns, or unexpected events. It encompasses the capacity to adapt, respond, and thrive in the face of uncertainty. CFOs, as key members of the executive team, are responsible for forecasting cash positions, managing working capital, and ensuring the financial health of the company. They act as strategic partners to the CEO and board, translating financial data into actionable insights to support decision-making.

Proactive Cash Flow Management

One of the primary responsibilities of CFOs is to monitor and manage cash flow effectively. By implementing robust cash flow forecasting models, CFOs can identify potential risks, plan for contingencies, and allocate resources optimally. They work closely with other departments to align financial goals with operational strategies, ensuring a disciplined approach to working capital management. CFOs leverage financial data, market trends, and scenario planning to make informed decisions and adapt the organization’s cash blueprint to changing circumstances.

Embracing Technology and Automation

Digital transformation has revolutionized the finance function, offering CFOs unprecedented opportunities to enhance financial resilience. By leveraging advanced technologies, such as artificial intelligence and automation, CFOs can streamline financial processes, improve efficiency, and reduce manual errors. Automated systems provide real-time visibility into cash flows, accounts receivable, and financial performance, enabling CFOs to make data-driven decisions and take proactive measures to mitigate risks. Embracing technology not only optimizes financial operations but also frees up valuable resources, allowing finance teams to focus on strategic initiatives that drive long-term growth.

Strategic Partnerships and Stakeholder Communication

CFOs serve as a bridge between the finance function and other key stakeholders, including shareholders, investors, and the board of directors. Effective communication and collaboration with these stakeholders are essential for building financial resilience. CFOs provide transparent and timely financial reporting, highlighting the organization’s financial position, risks, and mitigation strategies. They play a pivotal role in developing and executing strategies that align financial objectives with broader business goals. By forging strong relationships with stakeholders, CFOs build trust, instill confidence, and secure support for initiatives aimed at strengthening financial resilience.

In an era of unprecedented disruptions and economic volatility, CFOs play a crucial role in building financial resilience. By proactively managing cash flow, leveraging technology and automation, and fostering strategic partnerships, CFOs can navigate uncertainties, adapt to changing market conditions, and position their organizations for long-term success. Their strategic agility and financial acumen are indispensable in driving financial resilience and ensuring sustainable growth.

Learn more about building financial resilience. Download the white paper, Financial Resilience 101: How CFOs are Shifting to a New Cash Blueprint.

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