May 03, 2022
This monthly BlackLine update is published to keep you informed of customer success stories, upcoming events, helpful resources, best practices, and thought leadership from the leading cloud financial close solution.
With rapid change becoming the new normal in today’s volatile economic landscape, finance leaders are placing business agility and resiliency at the top of their list of priorities. Finance and accounting, once viewed as back-office functions, are now tasked with providing consultancy, analysis, planning, and due diligence to ensure sound business decision-making.
Two areas of F&A that are seeing an increased focus by CFOs are accounts receivables, which frees up critical cash on the balance sheet, and intercompany transactions, which are often a bottleneck for global organizations navigating increasingly complex regulations. Many companies have found that automation is a critical piece to streamlining these once overlooked processes.
“Although accounts receivable and intercompany activities are usually segregated in most organizations, the outcomes of these processes are symbiotic—unleashing balance sheet, net income, and cash potential,” says BlackLine CEO Marc Huffman.
Transactional industries know—ticking-and-tying can often be the most time-consuming component of the month-end. With logic-based rules, BlackLine’s transaction matching engine can accelerate your bank, credit card, Point of Sale, and many other high-volume reconciliations.
After identifying the data sets they need to match, companies can define match and pass rules and ultimately match millions of transactions in just minutes. This allows F&A teams to dedicate more time to strategic and complete reconciliations more accurately in less time.
Amid the Great Resignation, business leaders are looking for ways to increase productivity, while decreasing burnout on their teams. Michael Polaha, senior vice president of finance solutions and technology at BlackLine, says automation is key.
“It goes into the principle of simplifying and eliminating [parts of] the work, as some of these activities are not really necessary for the business, [and automating those that can be] is the best formula [in helping to reduce burnout],” he says.
Finance and accounting are a naturally high-stress area of the business, especially in a post-COVID world. Employees reach burnout after enduring periods of prolonged tension. Automating repetitive and manual processes allows F&A to spend more time interpreting the data, enabling them to play a more strategic and valuable role within the company
Did you know over 80% of all global transactions are intercompany? Whether you’re looking to simplify processes, be more tax-efficient, or make cash flow more predictable, understanding what these intercompany transactions entail and how they impact financial statements is the key to unlocking hidden value.
Here are five tips to make intercompany easier:
Identify the Type of Transaction and Set up a Standard Process to Record Them Properly
Create an Agreement, Enforce the Agreement
Drive More Collaboration Across the Enterprise
Push for a Unified Intercompany Technology Environment
Add Automation to Minimize Transactional Accounting