When the Insurance Exchange started preparing for the Model Audit Rule that became effective in January 2010, they knew that they had to incorporate governance standards and elements found in Sarbanes-Oxley (SOX) into internal control practices. They couldn’t continue to work and monitor progress in Microsoft Excel. They required a compliance-friendly process that would give company executives confidence about the quality of internal controls. The Insurance Exchange also needed a system that seamlessly integrated with their ERP system, unlike the multiple platforms for policies and claims that were inherited from acquisitions. And they wanted to increase efficiency by automating as much as possible.
AAA aimed to eliminate financial accounting challenges that are commonplace in most organizations. Their team objective was to rid the department of the use of multiple Microsoft Excel spreadsheets, manual processes, and a variety of independent systems. The ultimate goal was to increase the efficiency of reconciliations, remove delays in posting journal entries to the ERP system, reconcile daily and monthly exceptions, and comply with the Model Audit Rule.
The Insurance Exchange implemented BlackLine Account Reconciliations for balance sheet accounts, and uses Task Management to govern the month-end closing checklist. The auto-certification feature in BlackLine’s Account Reconciliation product helped the Insurance Exchange to achieve an exceptional level of efficiency with intercompany accounts and subledger balances; better than 60% auto-certification. “We used to reconcile manually. Nobody has to review these accounts any longer,” says Jennifer Mash, Business Systems Analyst.