How many journal entries do you complete each month? How much time do you spend on line item adjustments for bank statements? And how much frustration do you experience while hunting through mountains of spreadsheets because of one incorrectly entered number?
For many accounting and finance professionals, manual journal entries are a headache that escalates into migraine territory during the financial close. Too much time is required to create, review, and approve journal entries with loosely governed processes and limited controls that increase the risk of error.
Accountants pride themselves on accuracy. The goal of an accounting department is to provide data and reporting the organization can trust. But a fragmented, manual journal entry process puts accuracy on the backburner and sends accountants into the survival mindset of just getting through the day.
Of course, the baseline work always gets done. But this leaves no time or mental capacity for anything else, including the high value, analytical work that accountants do best. When it becomes clear that the workload itself won’t change, and is in fact, ever growing, it’s time to take a different approach to how you work.
Getting to the Root of It
The typical journal entry process involves manually entering journals into spreadsheets or the general ledger. Account/company code combinations are too easily input incorrectly, and preemptive validation is nearly impossible, leading to journal entries that get posted and rejected multiple times before it’s successfully completed.
The process is made more cumbersome as supporting documents are stored in shared drives and binders, and approvals are usually paper driven.
Automate Those Pain Points Away
Automated journal entries eliminates confusing processes, late nights, margin for error, and so much of the stress by routing all journals through a configurable workflow process. It is designed to automatically validate, certify, and post entries based on your rules, and tie them to the appropriate supporting documentation before they are posted to the general ledger or sub ledger.
BlackLine Journal Entry is part of a unified cloud platform that creates an integrated, end-to-end workflow, allowing you to identify activity that wasn’t captured and booked as a natural part of doing business - such as transaction fees and amortization. This means no more logging in and out of ten different systems, and you save the time you previously spend inwardly (and outwardly!) complaining about that.
There’s A Global Remedy, Too
Acquisitions and global expansion are exciting for any company, but they complicate accounting and finance processes. Intercompany accounting is known as one of the biggest bottlenecks for a fast, accurate, global financial close, and it doesn’t have to be this way.
With Intercompany Hub, journals are automatically created on both sides of an intercompany transaction – automatically incorporating transfer pricing, tax treatments, and foreign exchange rates, and eliminating the risk that one or more entities’ books end up out of balance.
The complete transaction continues through the journal entry approval process, are posted to both GLs simultaneously, and a final journal posting status report confirms that the journal was successfully posted – or not. Best of all, you can see all of the transaction details and report on them directly within the BlackLine’s cloud platform
Keeping Your Teams Healthy
Confidence in the numbers is incredibly freeing, increasing the mental capacity and amount of time that can be dedicated to a high level of strategy and analysis.
Healthy accounting teams function entirely differently than stressed, overworked associates, and produce results at a new level as well.
Watch this on-demand webinar to learn how SiriusXM streamlined and automated their journal entry process with BlackLine.