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Making Work Meaningful for Finance & Accounting

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This is a guest post from Christine Peart, CFO of Fluence Technologies, a partner of Revelwood, defining a future-ready finance workforce.

A few months ago, an article in the Wall Street Journal documented a troubling trend for finance; accountants are beating a path to the exit with more than 300,000 U.S. accountants and auditors leaving their roles from 2020-2022.

After almost a year of hearing about “quiet quitting,” accountants seem to be just . . . outright quitting.

That would be bad enough in itself, but the article suggested retention was only one part of the challenge finance departments are facing:

“The huge gap between companies that need accountants and trained professionals has led to salary bumps and more temporary workers joining the sector. Still, neither development will fix the fundamental talent pipeline problem: Many college students don’t want to work in accounting. Even those who majored in it.”

The WSJ interviewed one college student who bemoaned the idea of being “bogged down in the repetitive tasks of accounting, such as balancing cash sheets.” Instead, he found greater fulfillment in his data analytics class.

If this sounds familiar or reminds you of a similar refrain within your accounting and finance team, you might want to consider what will most deeply engage the talent you employ today, and what they’ll need to continue thriving tomorrow. I’m calling this a future-ready finance workforce, and if it’s not already, it should be at the top of every CFO’s agenda.

The search for meaning in finance and accounting

The evidence that working conditions within finance and accounting departments need to change isn’t limited to a few interviews and anecdotes. Last year consulting firm Deloitte conducted a survey in which careers.

You probably already guessed the number one answer, which was compensation. Number two, however, was “meaningful work” at 28% of those surveyed. This was far more important than other factors you might have expected to rank high, such as recognition (cited by only 6%) or even upward mobility, which came in at less than ten percent.

If those in accounting and finance find work meaningful, in other words, they may not be looking for their next big promotion. They might just be looking to build upon their skills and deliver greater value for the organization.

“People are most often engaged and productive when they do activities that energize them and leverage their skills. When organizations connect people to work that uses their skills, the result is likely to be high engagement and productivity,” the Deloitte report’s authors wrote. “Transitioning from a role-based to a skill-based finance organization can empower the workforce to own their development and establish a culture of internal mobility.”

Your future-ready finance workforce to-do list

It might seem difficult to develop finance and accounting roles in such a way that they compete in terms of prestige or glamor. And yet being able to make sense of financial information and guide corporate strategy can transform the ability of an organization to grow and succeed. It can help leaders in every other department outside finance be in a better position to achieve their goals. It’s hard. And it matters.

With that in mind, the call to action for finance leaders couldn’t be clearer:

1. Listen and act upon employee experience indicators

A future-ready finance workforce is one in which leaders have taken the time to develop a culture among their team where this value is clearly understood and to clearly reinforce it based on the employee experience they deliver.

By “employee experience,” I don’t simply mean what happens when an employee is welcomed on their first day, or the exit interview that’s conducted as a sort of post-mortem once they’ve tendered their resignation. The employee experience spans the entire journey someone takes with your organization, including what they see, think and feel on a day-to-day basis.

Whether through a formal survey or just seeking feedback through team meetings and one-on-one check-ins, ask your team about where they’re spending their time. Not to suggest they’re spending in the wrong areas necessarily, but whether it’s making the best use of their skills. Explore where they feel they could be making a greater contribution. Think about what kind of tools can best support them.

2. Conduct a skills audit to inform career development and hiring strategies

For some organizations, turnover in finance and accounting may be the one place where they’re not trying to trim back personnel. Challenging economic headwinds are forcing leaders in every industry to consider the people and skills they have in place, and whether it’s sufficient to meet business needs.

As a recent article in Fortune pointed out, the mass layoffs we’re reading about in the news could be the beginning of a transformation in who gets hired in accounting and finance roles.

“While most finance organizations were built with folks that have backgrounds similar to mine—accounting, risk, controls—what CFOs are now looking for are people with a much greater degree of tech fluency, data analytics skills,” said one of the CFOs interviewed for the piece, which predicted a rise in the use of cloud computing, artificial intelligence and more automation in general.

While you’re keeping an eye out for those future stars, begin building up those you already employ. That may require looking at automation too, so you can free them up from the manual and error-prone tasks that may make it impossible for them to reskill and upskill as they should.

3. Align your workforce around functional and organizational goals

Regardless of industry or size of company, finance leaders are pretty consistent in where they want to modernize operations: the close.

Just look at the results of a 2022 CFO survey from market research firm Gartner, which showed the most common goals included a faster, real-time close (86%), a cheaper close (68%), and an error-free close (64%). The future, in this case, isn’t very far away: these were all goals finance leaders expected to reach by 2025.

Even Gartner admitted that a fully autonomous close is unlikely to happen anytime soon. However, the purpose-built, finance-owned solution finance and accounting teams need to achieve those other targets is here today. The challenge with technology, though, is that most organizations are still leveraging legacy solutions or worse yet, still relying on Excel. These outdated tools tend to perpetuate the need for repetitive, mundane tasks and inhibit their ability to do ‘meaningful work’. Arming your workforce with modern tools that are easy to use and maintain is the first step in preparing them for what’s ahead and enabling your team to do ‘meaningful work’.

Conclusion: The value of working definitions

What is a future-ready finance workforce? A team whose leaders make the work feel meaningful. A group where everyone is motivated to continually develop their skills in response to business changes. A department equipped with the modern tools to tackle the biggest organizational ambitions.

That’s how I’d define it today. If we’ve learned anything over the past few years, though, it’s that the future evolves in highly unexpected ways. And it’s going to be critical for CFOs to modernize their office of finance with a future-ready workforce to be prepared for whatever comes next.

This blog post was originally published on the Fluence Technologies blog.

Read more about Financial Close and Consolidation:

Challenges Facing Finance Leaders in the Mid-Market

Ventana: Continuous Accounting Helps Companies Close Faster

Modernizing Financial Close and Consolidation with Best-of-Breed Corporate Performance Management Solutions

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Continuous Accounting vs The Risk of Doing Nothing

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This is a guest post from our partner BlackLine, explaining the value of Continuous Accounting.

Change is uncomfortable. We all tend to resist change when we see it coming—and even more when we don’t.  Many go to great lengths to avoid what is different, especially at work.

We have our routines down pat, we can practically perform accounting processes in our sleep (and often do, especially during the close), and we like that familiarity.

But what if making a carefully calculated pivot to the right technology could actually be safer?

The reality is that although change is uncomfortable, it can be more dangerous to live with outdated manual processes and the inherent risks of human behavior.

The Risk of Doing Nothing

New possibilities to create competitive advantage present themselves all the time. This may seem overwhelming, but technology can lead to opportunities for accountants to evolve and add an even higher level of value to their organization.

Automation streamlines the most routine, manual work, and opens the door to Continuous Accounting:  an approach that ultimately results in better-utilized resources.

Continuous Accounting transforms the way accounting and finance teams work by embedding automation, control, and period-end tasks within daily activities. It frees up accountants to partner with the broader business, helping to drive more informed decisions for the organization.

Process automation provides one of the greatest opportunities for competitive advantage and waiting to adopt the right technology heightens the risk of being left behind—in your industry and in your profession.

If you decide to do nothing “for now,” but your competitors and peers choose to innovate, adopting automation and a Continuous Accounting model, they will quickly set themselves apart, becoming more efficient and controlled.

They will have access to the financial information needed to inform better decision-making and gain insight into bottlenecks.

Reducing the Resistance with Continuous Accounting

When you are performing most of your month-end close processes during a defined close window, it’s difficult to provide any meaningful financial data until after “pencils are down” – which is typically several days into the new month when the data is no longer relevant.

If you continue accounting the way it’s always been done, you’ll stay trapped in the never-ending cycle of feeling behind, always reporting on last month while the business has moved on to the next.

Leveraging technology allows accounting organizations to perform certain activities more real-time, increasing visibility to prevent surprises. By analyzing smaller subsets of data on a regular basis, you can identify irregularities in a timely manner, allowing the business to react appropriately and forecasts to be updated when needed.

“A big win with Continuous Accounting is automating certain areas. This means that rather than spending valuable time in the weeds of transactional data, you’re analyzing and reviewing exceptions,” says Molly Boyle, Director of Solutions Marketing at BlackLine.

Accounting in real-time isn’t possible without the technology that can drive automation and visibility. When the manual processes are automated, your accounting team is freed to focus their time on reporting and analyzing data to identify trends or adjustments.

When you begin providing meaningful data to decision-makers, and when you can do so in a timely fashion, your value to the organization increases substantially.

The End-Goal of Continuous Accounting

The goal of Continuous Accounting is to create a more synergistic organization where accounting and finance have a seat at the table. The most effective decisions are made when different departments make them together, with the real-time reporting data that tells the full story.

But a series of steps are required to take you from doing nothing to a fully Continuous Accounting approach. And it’s essential to start by defining the end state so you know exactly what you want to work toward. You can then work backwards to break down and delegate the steps that will get you there.

These five steps provide a framework to get you started:

  • Evaluate your existing processes first, to avoid automating bad processes.
  • Thoroughly research the best finance automation solution to ensure that you implement the right technology.
  • Focus on the benefits – instead of your fear of change.
  • Start small with a stepwise approach that will prove the risk mitigating benefits of Continuous Accounting
  • Begin to view industry advancements as improvements, so you can recognize the most beneficial opportunities.

Continuing to repeat these steps will shift your mindset and create a ripple effect in your organization. You’ll begin to see a reduction of risk, more timely data for business decisions, and a better utilized, more engaged accounting team.

And eventually, you will realize that the uncertainty and discomfort of change have become worth it – if not a little more manageable.

Driving Your Organization to the Next Level

It may seem like less effort to stay where you are. But waiting to implement a Continuous Accounting approach could come at a much greater cost, putting you at a disadvantage that may ultimately leave you reeling.

Change is inevitable for any company striving to create competitive advantage and staying stagnant is far riskier than implementing new technology to improve old processes. For this reason, getting comfortable with being uncomfortable can drive your organization to the next level.

This blog post was originally published on the BlackLine blog.

Read more Financial Close & Consolidation

BlackLine Demo: Balance Sheet Reconciliation Modules

BlackLine Demo: Bank Reconciliations

BlackLine Demo: Loading Subledger Data into a Reconciliation

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Revenue Cycle Management

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This is a guest post from our partner BlackLine, explaining how revenue cycle management helps businesses be more responsive to changing market conditions.

Today’s business environment is more dynamic than ever. Business leaders are focused on strategic initiatives to position their companies for long-term growth, to gain competitive advantage, and to drive shareholder value.

Top of mind for many business leaders are topics like recruiting and retaining top talent, remote work enablement, mergers and acquisitions (M&A), and digital transformation, to name a few.

As business leaders focus on making strategic decisions around these areas, accounting teams are being increasingly relied upon to provide data and insights and to serve as strategic advisors to the business.

This post is part of a series that discusses areas of focus that require active accounting input, why it matters to accounting leaders, and the risk of doing nothing.

Cash is King

The revenue cycle, or order to cash cycle, refers to the entirety of a company’s ordering system and can involve many departments — from sales and accounting to inventory and logistics. It starts the moment a customer places an order and continues through when an invoice is settled, and all activity in between is recorded and reconciled.

All eyes are on the revenue cycle. Not just because it’s an essential function in finance and usually carries the most risk, but because it is a critical part of how an organization functions. The efficiency and effectiveness of the revenue cycle has an impact beyond sales and finance, including customer experience and retention, investor decision-making, and future organizational strategy.

From an investor, net income, and EBITDA perspective, the most important part of the revenue cycle is not what is invoiced, shipped, or billed, but rather what is collected. According to a PwC report, improved working capital management could unlock $1.4 trillion globally, increasing the return on invested capital by 8.8%. Maximizing profit is the end goal, and therefore limiting write downs, closing the gap between gross and net revenue and limiting the reasons companies fail to collect are of paramount importance. Further, cash flow fuels critical business strategies from maintaining customer service to investing in new areas, and so as they say: cash is king.

The Bottom Line

There are several reasons why a company fails to collect on what they invoice, but manual processes are the biggest driver. Within the revenue cycle, Finance and Accounting is dealing with a tremendous volume of individual transactions. When there is not an automated process for handling that data at scale, the result is preventable, but unavoidable, write-offs.

MGI Research estimates that 42% of companies experience some form of revenue leakage and according to a study published by EY, on average companies can expect 1-5% of realized EBITA to leakage, causing a direct hit to the bottom line. As such, this is not just a reconciliation problem—or even just an accounting and finance problem—it’s a bottom-line issue that company leaders and investors will notice.

Given the attention on cash in the current market conditions, it is of utmost importance to take action over areas that we can control and, in doing so, position our organizations and our companies for success.

This blog post was originally published on the BlackLine blog.

Read more about Financial Close and Consolidation:

Financial Close & Consolidation: The Vital Need for Automating Accounting

Modern Accounting: Adjusting Journal Entries

Modern Accounting: Highlights from Beyond the Black 2022

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BlackLine Demo: Balance Sheet Reconciliation Modules

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Did you know BlackLine’s modern accounting software has many time-saving features in its balance sheet reconciliation module?  

In this video, Adam Riskin, financial close and consolidation practice leader at Revelwood, shows you how to save time on balance sheet reconciliations when using BlackLine. These features include:

  • Auto certification rules
  • Populating GL balances
  • Reporting

Watch this video to learn how to use BlackLine for balance sheet reconciliations.

Revelwood is a BlackLine Gold Solution Provider with a team of former accountants and financial systems professionals. We help companies streamline, automate and modernize time-consuming accounting tasks for transformative changes in accounting processes.

Watch more BlackLine demos and videos:

Loading Subledger Data Directly Into a Reconciliation with BlackLine

Month-End Close Checklist with BlackLine

Matching Records from Multiple Files with BlackLine

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BlackLine Demo: Bank Reconciliations

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Did you know BlackLine’s modern accounting software can help you automate and streamline bank reconciliations? 

In this video, Adam Riskin, financial close and consolidation practice leader at Revelwood, shows you how fast and easy it is to perform bank reconciliations in BlackLine. 

Today most companies use Excel to do bank reconciliations. They import the bank statement data into Excel. They also import the General Ledger journal entries into Excel. Then they do a side-by-side comparison. This is tedious and can be error-prone. 

Watch this video to learn how BlackLine uses matching logic on bank reconciliations.  

Revelwood is a BlackLine Gold Solution Provider with a team of former accountants and financial systems professionals. We help companies streamline, automate and modernize time-consuming accounting tasks for transformative changes in accounting processes.

Watch more BlackLine demos and videos:

Loading Subledger Data Directly Into a Reconciliation with BlackLine

Month-End Close Checklist with BlackLine

Matching Records from Multiple Files with BlackLine

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Financial Close & Consolidation: The Vital Need for Automating Accounting

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This is a guest post from our partner BlackLine, detailing a recent PwC report that highlights the need to automate accounts receivable. 

Are corporations that need to protect working capital prepared for the coming financial headwinds?

In today’s world of accounting management, uncertainty and market volatility have become the norm. Ongoing financial and political upheavals have led CFOs and accounting teams, seeking to protect net working capital (NWC), to make decisions in a crisis-to-crisis fashion.

Corporations should therefore pay close attention to the most recent PwC report. “Working Capital Study 22/23” provides an all-too-real overview of how corporations are trying to navigate market uncertainties and why they should consider making adjustments to their financial strategies.

At the outset, the report highlights a few positive NWC ratio indicators. Since 2020, there has been a 2.5% fall in annual NWC day (a five-year low), a €0.8 trillion increase in working capital, and continued recovery from the heightened levels of the pandemic.

But the report also warns about “trouble brewing under the surface.” It speaks to impending financial “headwinds” that include rising inflation, supply chain disruptions, and the war in Ukraine and characterizes companies around the world as being unprepared for what’s to come: 

PWC writes, “So is this the cue for high fives all round and a sigh of relief for having weathered the storm? Unfortunately, the short answer is no. The working capital ratios set out in the last annual financial statements show some signs of recovery. But, when we dig into the details, there are still some worrying trends and untapped opportunities to boost capital efficiency.”

To properly and sustainably protect NWC and manage accounting processes, it’s critical that companies ask some key questions:

  • How are we currently reacting to post-pandemic market curveballs?
  • How do these behaviors fit into our long-term business strategies?
  • Could these reactions be negatively impacting NWC?
  • Do we have untapped resources that could help develop more sustainable strategies to combat unpredictable market volatility?

Let’s take a look at what corporations are currently doing to try to guard against economic “turbulence” and how they can develop better long-term financial strategies to combat today’s market uncertainties.

“Just-in-Case” Approaches

The overall picture of cash position as laid out in the PwC report—declining by 10% in 2021 from 70 to 63 days—is encouraging and indicates that companies are operating with a “cash buffer to withstand uncertainties.”

Yet the report raises the concern that there is a “lag” that may lead to “a false sense of security.” Furthermore, as corporations try to stay ahead of unrelenting supply chain disruption, they adopt “just-in-case” approaches, such as:

  • Over-ordering, which can lead to inventory levels that fail to match market demand
  • High stock write-offs
  • Increased allocation planning driven by shortfalls and constrained capacity

Reactionary approaches might provide some salve, but they also exponentially increase “the risks of future obsolescence by extending the response time to dips in demand, as well as increased capital consumption from running at higher safety stock levels.”

The report states that corporations seem to be missing the fact that inventory performance has remained largely static. “Improvements in the working capital ratio have stalled,” the report notes. “And while it is still better than before the pandemic, we’re starting to see more signs of supply chain disruption filtering through to working capital performance.”

These issues are exacerbated by rising inflation (which the report predicts will continue for the next two years) and less access to borrowing due to rising interest rates. With central banks increasing interest rates to combat inflation around the world, corporate cash flows are coming under intense pressure.  The result of this “lending squeeze” will mean that both funding and working capital will become more costly.

Driving Efficiency & Financial Resilience

With predictions of slow and weak growth, stubborn inflationary pressure, and high financing costs, the report encourages corporations wanting to protect working capital, steer through economic turbulence, and boost growth to ask themselves some key strategic questions. For example: 

  • What is the optimal level of working capital for their businesses?
  • What adverse economic developments could jeopardize their working capital position?
  • How can they uncover and release cash that’s tied up?
  • Are operational processes ready to react to future disruption and proactively protect cash flow?

It’s worth zeroing in on that last question about readiness. It underscores the need for companies to adopt automated AR processes to free up working capital not available to treasury and lines of credit. This allows customers to keep spending and minimizes risk, bad debt, and revenue being backed out of the business.

By expanding team capacity and improving decision intelligence, organizations will be able to optimize working capital, brace for ongoing market shifts and volatility, and strengthen sustainable planning and growth efforts.

Improve Resiliency by Optimizing Working Capital

With “wider economic and liquidity headwinds looming” and debt funding becoming more expensive, the PwC report indicates that companies should “rethink” the way they approach working capital and stock reduction write-downs.

“The pressure on liquidity is steadily increasing,” states the report. “This makes it more important than ever to sharpen your focus on cash flow management and drive working capital optimization.”

But just how to get there? Is there a way for companies to achieve accounts receivable excellence in order to mitigate the evolving pressures on working capital?

BlackLine answers that question with a resounding yes. We’re accustomed to working with organizations needing to protect working capital so they can optimize AR business performance and soften the impact of inflation pressures, interest rate hikes, and supply chain bottlenecks.

We do this through the adoption of next-generation, intelligent AR automation, an approach that gains efficiencies across processes, departments, and global entities, saving many hours of staff time and, even more importantly, strengthening organizations’ ability to navigate unpredictable, volatile market changes.

By replacing inefficient, manual AR processes, companies can increase working capital. They are also better able to manage behavioral changes of customers facing cash crises, work through supply chain disruptions, and quickly prioritize payment processes, effectively reducing days sales outstanding (DSO) lag time.

Accounts receivable optimization helps to offset the problems created by operating in “just-in-case” mode and address issues in holistic, sustainable ways, such as:

  • Optimizing business performance. Increases working capital and availability of cash that are critical to a company’s success; collects more cash and significantly reduces DSO by increasing overall productivity and prioritizing the actions that have the highest impact.
  • Maximizing AR team capacity and efficiency. Improves productivity and morale while reducing costs by eliminating manual and error-prone processes; elevates control, gains visibility, and measures all parts of the process while achieving global standardization.
  • Elevating AR intelligence and data-driven decisions. Improves clarity and real-time decision intelligence by providing the most accurate, up-to-date data that’s critical for sales, operations, and treasury departments.
  • Improving customer and business relationships. Better communication and operational efficiency allow companies to become more reliable, trusted business partners, which could not be more important in challenging times.

According to the report, companies trying to protect working capital are sitting on unused resources. In fact, PwC estimates that companies have on their balance sheets €1.49 trillion in excess working capital, “money that could be put to much more productive uses.” One effective use of this surplus would be to automate AR systems. 

This blog post was originally published on the BlackLine blog.

Read more about Modern Accounting:

Modern Accounting: Adjusting Journal Entries

Modern Accounting: Highlights from Beyond the Black 2022

Modern Accounting: Does Your Accounting Team Have SMART Goals?

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Modern Accounting: Adjusting Journal Entries

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This is a guest post from David Brightman at our partner BlackLine, explaining why it’s necessary to adjust journal entries. 

What Are Adjusting Journal Entries?

Adjusting journal entries are used to adjust a company’s financial statements and bring them into compliance with relevant accounting standards, such as generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS). The activity of adjusting journal entries is routinely performed by accountants to allocate income and expenses to the actual period in which the income or expense occurred or earned—a feature of accrual accounting.

Five Common Types of Adjusting Journal Entries

There are many different types of adjusting journal entries, but the five most common types are:

1)    Accrued revenue is revenue that has been recognized by the business, but the customer has not yet been billed. This type of revenue is common in service-related businesses, as services can be performed several months before a customer is invoiced. Revenue must be accrued, otherwise revenue totals would be understated, especially compared to expenses for the period. 

2)    Accrued expenses are those that have been incurred before they have been paid. For example, a company purchases supplies from a vendor but has not yet received an invoice for the purchase. Other examples of accrued expenses include interest payments on loans, warranties on products or services, and taxes.

3)    Deferred revenues indicate when a company receives payment in advance of work that has not yet been completed. This is common for professional firms that work on a retainer—such as a law or CPA firm. A client may pay in advance for work that is to be done over a period of time. When the revenue is later earned, the journal entry is reversed.

4)    Prepaid expenses need to be recorded as an adjusting entry. Many companies prepay rent for an entire year. The company will record the expense each month for the next 12 months to account for the rental payment properly. Without this, financial statements will reflect an unusually high rental expense in one month, followed by no rental expenses at all for the following months.

5)    Depreciation expenses, including depreciation expense and accumulated depreciation, need to be posted to properly expense the useful life of a fixed asset. Depreciation is a fixed cost and does not negatively affect cash flow, but the balance sheet would show accumulated depreciation as a contra account under fixed assets.

Given the nature of adjusting entries, they often impact both the balance sheet and the income statement. Adjusting entries are also used to correct financial errors and must be completed before a company’s financial statements can be issued. For example, something is capitalized and booked to a Fixed Asset account that, under company policy, should be booked to an expense account like Supplies Expense, or vice versa.

Where Do Adjusting Journal Entries Fit into the Financial Close Process?

At the end of each financial period, accountants go through all the prepaid and accrued expenses as well as unearned and accrued revenue and identify necessary adjusting entries.

This is often a time-consuming process that involves spreadsheets to track expenses and payments made against those expenses as well as revenue earned and payments received against that revenue.

These adjustments are often a result of the account reconciliation process during the financial close. They may also be detected by doing variance analysis of account balances to detect any unusual balance fluctuations.

How to Record Adjusting Journal Entries

When the need for an adjusting journal entry is identified, accountants prepare the journal entry to credit and debit appropriate accounts. In theory, the process for recording an adjusting journal entry can be broken into 3 steps:

1)    Determine the current account balance

2)    Determine what the current balance should be

3)    Record an adjusting entry

This is likely oversimplifying, since companies may have hundreds or thousands of adjusting journal entries to make each period, but it gives an overview of the process needed for each entry. In addition, adjusting journal entries should include supporting documentation, links to applicable policies and procedures, and be properly reviewed and approved before being posted.

Examples of Adjusting Journal Entries

One example is to accrue for unpaid wages at month-end. A potentially more intricate example may be rebate accruals. Rebates are payments made back to you from a supplier (or from you to a customer) retrospectively, reducing the overall cost of a product or service.

In this case, you may have an arrangement with a supplier to earn a quarterly rebate based on your overall spend with that supplier. Imagine the supplier’s policy is to pay the rebate at the end of the year. Then, from an accounting perspective, this may need to be accrued for when the rebate is earned, not when it is received.

When preparing the entry, it’s helpful to reference your company’s policy and procedure to ensure compliance, and it is best practice to attach supporting documents to the journal entry, like the contract and terms. This will help speed up the approval process, as well as any audit work later.

This blog post was originally published on the BlackLine blog.

Read more about Modern Accounting:

Modern Accounting: Highlights from Beyond the Black 2022

Modern Accounting: Does Your Accounting Team Have SMART Goals?

Modern Accounting: The Impact of Investing in Accounts Receivable

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Modern Accounting: Highlights from Beyond the Black 2022

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Beyond the Black 2022, the premier event for Finance and Accounting leaders and innovators, took place last week in Las Vegas. The conference featured many sessions on hot topics for Finance and Accounting. These included Winning the War for Talent, 2023 Predictions for Finance and Accounting and Why AR Management Needs to be at the Top of Finance’s Agenda and ESG.

Several Revelwood team members attended the event. We met many people from the BlackLine team in person, learned about new features that have recently become available and gained an understanding of BlackLine’s vision for the future. BlackLine’s long-term goal is to be a single platform where all accounting tasks can be completed. They continue to execute on that goal by releasing new products like the cash application & accounts receivable module and intercompany transactions module.

Here are some highlights of the conference, courtesy of BlackLine’s blog:

How Aetna is Driving Continuous Innovation with Its Center of Excellence Model

To best serve the business, Aetna’s accounting and finance team established a Center of Excellence focused on transforming processes and reducing manual work. Since 2018, the Aetna COE has brought standardization, efficiency and leading practices to the organization. Attendees heard how Aetna is delivering measurable results, freeing up resources and improving controls with BlackLine and its COE model.

How a REIT Uses BlackLine Task Management to Close (While Having a Little Fun, Too)

LXP Industrial Trust understands that innovation and technology are essential to growth and continued success. The session provided insights into how LXP utilized BlackLine Task Management to help transform and modernize its journey to modern accounting. LXP talked about how they created the BlackLine Intergalactic Highway for a fun way to encourage staff interaction and facilitate an accounting transformation from the traditional way of working to optimize its accounting processes, thereby creating capacity for Accounting to focus on what matters most.

How Dun & Bradstreet Uses BlackLine in a Shared Service Environment

The Dun & Bradstreet (D&B) controller organization unleashed the power of transformation internally by enabling their global teams to share a common platform to improve transparency, standardization and automation. D&B shared their accounting journey and the strategies deployed to transition from life before BlackLine to their current best-in-class center of excellence.

There are many, many stories about how BlackLine helps companies to transform and modernize their accounting practices. We look forward to sharing more success stories.

Learn more about Modern Accounting with BlackLine

Modern Accounting: Does Your Accounting Team Have SMART Goals?

Modern Accounting: Streamlining the Month-End Close

Modern Accounting: The Impact of Investing in Accounts Receivable

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Modern Accounting: Does Your Accounting Team Have SMART Goals?

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This is a guest post from our partner BlackLine, explaining SMART goals and how they can help accounting managers.

One of the most widely used—and effective—approaches to goal setting is called SMART, which stands for Specific, Measurable, Attainable, Relevant, and Time-Bound. This helps you and your teams create clear goals with defined and attainable objectives.

Many accounting managers struggle with the annual goal-setting process. It can be hard to quantify the work of the folks who do the counting—which is ironic, but quite common outside of sales teams. Accountant routines can vary significantly and tend to be driven by outside factors.

But setting smart goals for accountants is a critical part of ensuring a successful year. They help you and your teams be intentional about what you want to focus on and accomplish and create alignment across the entire F&A organization.

How to Write SMART Goals for Accountants

Make Your Goals Specific

The more specific a goal is, the more attainable it will seem, and the more likely you’ll achieve it because you’ll know exactly what you need to accomplish in this area.

It’s okay to start with a larger goal, but then break it down into smaller goals that are more specific. Determine why this goal is important—for the individual, the team, and the broader F&A organization—and then talk about the short and long-term impact of achieving it.

To get even more specific, determine the exact outcome you want.

Make Your Goals Measurable & Attainable

Next, quantify your goals so you’ll know how to measure process and when they’ve been accomplished. This is often the most difficult part of setting SMART goals for accountants, and if a goal doesn’t seem quantifiable, try rephrasing it so it’s possible to measure.

It’s equally important to ensure the goal is attainable. Stretch goals are great, but impossible goals will only lead to overwhelm and frustration. Make sure the time frame is reasonable and identify anything that could get in the way of achieving the goal.

Removing those barriers should be the first step.

Make Your Goals Relevant & Time-Bound

Every goal must have importance to the broader organization as well as the individual. Uncover the why here, so the reason this is a priority is clear. This can also increase the individual or team’s motivation to achieve this goal.

Creating a reasonable deadline for each goal is also critical, along with regular check-ins to ensure you’re on track. It’s okay to have some flexibility in adjusting this deadline as needed, especially if things come up and get in the way.

This is, however, why it’s so important to identify and remove those barriers as the first steps toward the goal.

Strategies for Effective Goal Setting

Here are three strategies to incorporate into your goal-setting process that will make your accounting and finance teams far more effective in the future.

Take a Project-Based Approach

Most of us have down time here and there that we could utilize to work on a project. Talk to each of your team members about coming up with a project that contributes to their own development, helps them connect with others, and causes them to look at their job in a new way.

For example, a Senior Staff Accountant could conduct a skills training to help accountants keep up with changes in the industry. Or, maybe you believe your AR team could be more efficient but you’re not sure. Why not give them a goal to identify areas they can improve? You may be surprised at how many great ideas surface that could save the team some time.

Create Opportunities to Strategically Develop New Skills

With the rise of new tech like robotic process automation, artificial intelligence, and blockchain, strategically developing skills to prepare for the future of finance is more essential than ever.

The exceptional accountant of tomorrow needs to begin cultivating effective communication abilities, data analysis, business acumen, and creativity — today. These capabilities will equip teams to deliver predictive insights for leadership, drive data-based decisions, and provide expert counsel.

Developing opportunities for accounting and finance professionals to problem-solve more creatively, learn new technology, and build relationships with other departments can make a massive difference on an individual and team level.

Carefully Craft Your Culture

A carefully crafted culture creates competitive advantage. It improves quality of work, boosts productivity, engagement, and retention, and reduces stress and healthcare costs.

But if this isn’t a current focus at your company, where do you even start?

A team brainstorming session can be an excellent first step. Involving your people in culture discussions can make them feel invested and as important as they really are. They’re also the ones who will be able to quickly identify what needs to change, along with the most effective approaches.

Give your leaders the responsibility of planning regular team-building events. This can be anything from fun, off-site events to a team appreciation lunch at the office. The goal should always be to bring the team closer and help them maintain better relationships, generating understanding and a deeper respect for each other.

Put Your People First

Done right, setting smart goals for your accountants can create a shared vision that makes your teams feel inspired and connected. And when the strategies within that vision meaningfully contribute to the entire organization, you can count on a higher level of buy-in.

It all comes down to putting your people first and setting them up for success. If you continually look to the future of finance and equip your teams for the new digital landscape, your F&A organization will thrive.

Creating smart goals and creating a great culture can help F&A teams retain top talent, which is a challenge in today’s business environment.

This blog post was originally published on the BlackLine blog.

Read more about Modern Accounting:

Modern Accounting: Streamlining the Month-End Close

Modern Accounting: The Impact of Investing in Accounts Receivable

Modern Accounting: Driving Sustainability

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