Bank reconciliations are a major part of almost every company’s accounting repertoire. But evaluating bank transactions can be a challenge because they are voluminous and quickly become complex, especially for growing businesses. Numerous bank accounts, varieties of formats, and different currencies can trigger slowdowns in reconciliations and undermine period closing routines.
BlackLine’s response to these challenges is Bank Reconciliations with matching, the first in a family of targeted services. Intended for customers who are already using Bank Reconciliations but are new to Matching, this new service adds best practices for bank reconciliation and support for major bank file layouts.
BlackLine implementation experts will help customers configure BlackLine’s automated matching engine and pre-set matching rules to work with BlackLine’s Bank Reconciliations solution.
BlackLine compares transactions from core banking and treasury management systems with an automated general ledger feed. Any transactions that can’t be automatically matched are set aside for analysis by accounting staff.
“Automated matching saves a tremendous amount of time for accounting staffs,” says Director of Strategic Accounting for BlackLine Michael Shultz. “With manual accounting, the staff has to retrieve bank statements, tick and tie transactions in spreadsheets, locate and retain supporting documentation, and try to build audit trails.
“Plus, there’s a significant chance for errors and inaccuracies. These can work their way into financial statements and management reports and ultimately undermine confidence in the company.”
Extending Matching Benefits
BlackLine’s matching engine is a powerful and flexible solution, in use by companies for wide varieties of applications. It employs sophisticated, user-defined reason codes, permits customized data views, and can match millions of transactions per minute.
For these reasons, Shultz says the Bank Reconciliation service can be a jumping-off point for companies to employ matching in areas well beyond bank reconciliations.
“There are near limitless ways Matching can help companies in all industries,” he says. “An airline uses it to track wheelchair usage at airports. A transportation company uses it to track fuel purchases for its auto fleet.
“What we’re seeing is that once companies get their feet wet with the matching application, they then apply matching to other aspects of Accounting and Finance. From there, the sky’s the limit.”
Read our latest issue of BlackLine Quarterly for more stories like this that can help your F&A organization move out of the disruption caused by the pandemic and into the light of a more normal—and fruitful—future.