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Increase accuracy and efficiency across your account reconciliation process and produce timely and accurate financial statements. Drive accuracy in the financial close by providing a streamlined method to substantiate your balance sheet.
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Centralize, manage, and automate journal entries.
Create, review, and approve journals, then electronically certify, post them to and store them with all supporting documentation. Automatically create, populate, and post journals to your ERP based on your rules.
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Calculate and identify account balance and activity fluctuations automatically to continuously monitor for risk, ensure the effective and timely execution of critical management review controls, and support agile decision-making.
Simplify, standardize, and automate your financial close in SAP.
Streamline and automate activities in SAP with task scheduling and execution, activity monitoring, and outcome verification.
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Maximize working capital with the only unified platform for collecting cash, providing credit, and understanding cash flow. Transform your accounts receivable processes with intelligent AR automation that delivers value across your business.
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Transform your order-to-cash cycle and speed up your cash application process by instantly matching and accurately applying customer payments to customer invoices in your ERP.
Create and operate risk polices with dynamic insights.
Understand customer data and performance behaviors to minimize the risk of bad debt and the impact of late payments. Monitor changes in real time to identify and analyze customer risk signals.
Release cash from customers and reduce DSO.
Improve the prioritization of customer calls, reduce days sales outstanding, and watch productivity rise with more dynamic, accurate, and smarter collection management processes.
Resolve customer disputes promptly to collect debt.
Accelerate dispute resolution with automated workflows and maintain customer relationships with operational reporting. Unlock full control and visibility of disputes and provide better insight into how they impact KPIs, such as DSO and aged debt provisions.
Maximize your time with data-driven prioritization.
Make the most of your team’s time by automating accounts receivables tasks and using data to drive priority, action, and results. Monitor and analyze user performance, ensuring key actions quickly.
Turn payment data into actionable, real-time intelligence.
Automatically process and analyze critical information such as sales and payment performance data, customer payment trends, and DSO to better manage risk and develop strategies to improve operational performance.
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Centralize, streamline, and automate end-to-end intercompany operations with global billing, payment, and automated reconciliation capabilities that provide speed and accuracy. Ignite staff efficiency and advance your business to more profitable growth.
Automate, optimize, and manage intercompany non-trade transactions.
Ensure consistent regulatory and tax compliance by automating non-trade transactions and invoices while enforcing trading relationships and policies, as well as required taxes and transfer pricing.
Centralize, streamline, and automate intercompany reconciliations and dispute management.
Seamlessly integrate with all intercompany systems and data sources. Automatically identify intercompany exceptions and underlying transactions causing out-of-balances with rules-based solutions to resolve discrepancies quickly.
Streamline and automate intercompany transaction netting and settlement to ensure cash precision.
Enable greater collaboration between Accounting and Treasury with real-time visibility into open transactions. Integrate with treasury systems to facilitate and streamline netting, settlement, and clearing to optimize working capital.
Get set up quickly for a streamlined and automated close.
The path from traditional to modern accounting is different for every organization. BlackLine’s Modern Accounting Playbook delivers a proven-practices approach to help you identify and prioritize your organization’s critical accounting gaps and map out an achievable path to success.
Save time and cost, decrease risk, and elevate the organization.
BlackLine’s foundation for modern accounting creates a streamlined and automated close. We’re dedicated to delivering the most value in the shortest amount of time, equipping you to not only control close chaos, but also foster F&A excellence.
Invest in your future by unifying and automating accounting work.
To sustain timely performance of daily activities, banking and financial services organizations are turning to modern accounting and finance practices. It’s no longer a matter of whether or not to digitally transform. It’s a matter of when and how.
Adapt to changing consumer preferences with agile accounting.
To mitigate financial statement risk and increase operational effectiveness, consumer goods organizations are turning to modern accounting and leading best practices. Simply sticking with ‘the way it’s always been done’ is a thing of the past.
Energize your accounting team by creating capacity with automation.
While you are innovating to produce safe, reliable, and sustainable products and services, our solutions help accounting teams save time, reduce risk, and create capacity to support your organization's strategic objectives.
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Working capital, cash flows, collections opportunities, and other critical metrics depend on timely and accurate processes. Ensure services revenue has been accurately recorded and related payments are reflected properly on the balance sheet.
Unlock capacity and strengthen resilience by automating accounting.
To respond and lead amid supply chain challenges demands on accounting teams in manufacturing companies are higher than ever. Guide your business with agility by standardizing processes, automating routine work, and increasing visibility.
Tie out millions of transactions automatically.
Retailers are recalibrating their strategies and investing in innovative business models to drive transformation quickly, profitably, and at scale. Save time, reduce risk, and create capacity to support your organization's strategic objectives.
Transform the way you work.
You've transformed the way we experience the world. It's time to embrace modern accounting technology to save time, reduce risk, and create capacity to focus your time on what matters most.
BlackLine is part of your SAP financial mission control center. Our solutions complement SAP software as part of an end-to-end offering for Finance & Accounting. BlackLine solutions address the traditional manual processes that are performed by accountants outside the ERP, often in spreadsheets.
Global brands and the fastest growing companies run Oracle and choose BlackLine to accelerate digital transformation. BlackLine delivers comprehensive solutions that unify accounting and finance operations across your Oracle landscape.
Gain global visibility and insight into accounting processes while reducing risk, increasing productivity, and ensuring accuracy. Close the gaps left in critical finance and accounting processes with minimal IT support.
Adapt and innovate with a hyperconnected Accounting function and give everyone the insights and freedom to thrive by connecting your data, processes, and teams with intelligent automation solutions for accounting needs.
ESG is an opportunity for F&A teams to have a direct impact on how their organizations interact with the communities around them and how they deliver value to their stakeholders.
Rising labor costs and shifting expectations are contributing to unprecedented change in the labor market and altering the way companies and their executives think about talent management.
ERP transformations are business transformations. Finance and accounting expertise is not only needed to prevent ERP transformation failures, but F&A leaders are poised to help drive project plans and outcomes.
Finance and IT leaders share a common goal of equipping their organizations with ways to work smarter to enable competitive advantage. This intersection between CFO and CIO priorities is driving more unity in terms of strategy and execution.
F&A teams have embraced their expanding roles, but unprecedented demand for their time coupled with traditional manual processes make it difficult for F&A to execute effectively. Transformation is necessary to address these challenges.
F&A leadership can have a significant impact by creating sustainable, scalable processes that can support the business before, during, and long after the IPO. This company-wide effort crosses multiple functional areas and is reinforced by critical project management and a strong technology infrastructure.
Timely, reliable data is critical for decision-making and reporting throughout the M&A lifecycle. Without accurate information, organizations risk making poor business decisions, paying too much, issuing inaccurate financial statements, and other errors.
The revenue cycle refers to the entirety of a company’s ordering process from the time an order is placed until an invoice is paid and settled. The inability to apply payments on time and accurately can not only lock up cash, but also negatively impact future sales and the overall customer experience.
While the responsibility to maintain compliance stretches across the organization, F&A has a critical role in ensuring compliance with financial rules and regulations. Together with expanding roles, new expectations from stakeholders, and evolving regulatory requirements, these demands can place unsustainable strain on finance and accounting functions.
In good company.
More than 4,000 companies of all sizes, across all industries, trust BlackLine to help them modernize their financial close, accounts receivable, and intercompany accounting processes.
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BlackLine users around the world gain access to a digital hub of insight, information, and engagement that enables the exchange of ideas and leading practices for peak F&A performance.
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BlackLine Services combine leading practices and expert guidance with best-in-class technology to help your F&A organization seamlessly implement sound processes and solutions, identify new opportunities for accounting optimization, and expand into areas you never imagined you would have the time to tackle.
Build a foundation for world-class accounting.
Whether planning your first implementation or expanding your BlackLine platform, leverage expert guidance to help you build and execute your vision, drive unified, automated, and continuous accounting processes, and enable Finance and Accounting to deliver strategic business value.
Accelerate adoption and drive productivity and performance.
One of the critical success drivers for any software technology is effective user training and adoption. Whether you are deploying for the first time or creating a sustainable education program for maximum value creation, explore how you can take the next steps to upskill your users.
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From onboarding to financial operations excellence, our customer success management team helps you unlock measurable value. Through workshops, webinars, digital success options, tips and tricks, and more, you will develop leading-practice processes and strategies to propel your organization forward.
Go beyond with end-to-end transformation.
Powerful technology is only part of the story. Successful transformation requires expert guidance from a trusted partner. Explore offerings that unlock new transformation opportunities and make transformation a reality.
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BlackLine provides global product support across geographies, languages, and time zones, 24 hours a day, 7 days a week, 365 days a year. We are here for you with industry-leading support whenever and wherever you need it.
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BlackLine Magazine provides daily updates on everything from companies that have transformed F&A to new regulations that are coming to disrupt your day, week, and month. Check back often for the latest commentary and guidance.
Brush up on key accounting terms.
Whether you're new to F&A or an experienced professional, sometimes you need a refresher on common finance and accounting terms and their definitions. BlackLine's glossary provides descriptions for industry words and phrases, answers to frequently asked questions, and links to additional resources.
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BlackLine is a high-growth, SaaS business that is transforming and modernizing the way finance and accounting departments operate. Our cloud software automates critical finance and accounting processes. We empower companies of all sizes across all industries to improve the integrity of their financial reporting, achieve efficiencies and enhance real-time visibility into their operations.
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Journal entries are the building blocks of an organization’s accounting system. All systems, whether they are paper-based, completely automated, or a hybrid of the two, are predicated on journal entries.
Journal entries record all transactions for a business. Transactions are broadly defined as any financial activity that impacts the business.
They are not limited to the buying and selling of goods and services, but include any exchange of monetary value, such as interest payments, depreciation, expenses, or payroll.
The data that is contained within a journal entry provides the necessary information to document and later evaluate or analyze transactions. Collectively, journal entries are used to produce summary documents that support analysis and evaluation of the business and its finances.
The accuracy and consistency of journal entries will impact the ability of the accounting team to assign transactions to the appropriate account, and to monitor and make proper assessments of financial activity for the business.
Journal entries are used to prepare budgets and other documents for accounts and departments and for the business overall.
These documents help track financial performance, comply with regulations and tax audits, and detect fraud and waste.
They are audited by government agencies, accountants, other businesses, and investors to evaluate the overall financial health and performance of the business.
Journal entries are typically entered in the general ledger or subsidiary ledgers. They contain important information about individual transactions, including the date, amount, purpose, payee or payor, and the accounts to which the transaction should apply.
The general ledger is the master document which provides a complete record of all the financial activity for the company. Information in the general ledger is used to produce financial statements for the company.
The financial statements are produced at regular intervals, also known as accounting periods.
They are often produced on a monthly basis, but they may be generated at other intervals, such as weekly, quarterly, or annually.
Items in the general ledger may reference an accumulation of entries for a similar purpose or accounts that are grouped together in what is referred to as a subsidiary ledger. A subsidiary ledger groups together accounts with a common purpose to make the general ledger cleaner and easier to manage.
Accounting systems use the double entry system to record journal entries. According to this system, which has been widely used for centuries, every transaction impacts at least two accounts, so a journal entry will always have a debit and a credit in the ledgers where they are recorded. All double entries should balance out. They are based on the equation: Assets = Liability + Equity.
Assets are defined as any resource with monetary value. The company’s assets reflect its overall financial health and profitability. There are many different types of assets, such as short-term assets which can be quickly converted to cash. Long-term or fixed assets, like equipment and buildings, cannot be easily converted to cash.
Liability is something the business owes to an individual, business, or other entity.
Equity refers to the net worth or value of a company. It is expressed in the form of the equation as the difference between a company’s liabilities and its assets.
A journal entry will be listed as a credit if it is recording an amount to be received by the company—simply, money coming in. It is always recorded in the right-hand column of the ledger.
A debit is defined as what is due or owed—money going out. Journal entries that record a debit are always entered in the left-hand column of the ledger.
A T-account is an informal term for a set of financial records that uses double-entry bookkeeping. The term describes the appearance of the bookkeeping entries which resemble a large T. The title of the account appears above the top horizontal line of the T with debits listed on the left and credits listed on the right side of the vertical line of the T.
Journal entries follow a standard format.
A properly formatted journal entry will include the correct date, the general ledger accounts, the amount(s) to be debited, the amount(s) to be credited, a description of the transaction, and a unique reference number, such as a check number.
Some companies may also require additional information such as company code, currency, profit center, or cost center.
Most organizations adhere to the double entry accounting system.
According to this system, every transaction impacts at least two accounts, so a journal entry will always have a debit and a credit in the ledgers where they are recorded.
The totals of the debits and credits for any transaction must always equal each other, so that the journal entry is “in balance.”
To prepare a journal entry, an accountant must determine the correct accounts to enter the debit and credit. In Accounting, the process is complicated due to the various types of accounts where these transactions are recorded. For example, debits can represent the increase of an asset or expense account or a decrease in equity, liability, or revenue.
Credits may represent an increase in an equity, liability, or revenue account, or they may decrease an asset or expense account.
Here are some examples: if a business makes a sale on credit, the transaction would be recorded as a debit in an accounts receivable account and as a credit in the sales account. A debit would increase the accounts receivable account (asset) and a credit would increase the sale account (revenue).
When a business takes out a loan, the transaction will be recorded as a debit to the cash account and a credit in the loans payable account. A debit would increase the cash account (asset) and a credit would increase the loans payable account (liability).
Debits and credits add or subtract from the total for the corresponding account in which they are entered.
For consistency and ease of identification, debits are always entered in the left-hand column, while credits are always entered on the right.
In the double entry system, debits and credits always add up. If one column does not add up to the other, then the ledger is considered unbalanced.
Another way to express this rule is with this equation: assets = liabilities + stockholders or owner's equity.
In this equation, assets are the resources owned by the business. Liabilities are the amounts the business owes. Equity is the amount invested plus net income minus withdrawals. This equation should always be in balance.
Accounts Receivable Journal Entry
Depreciation Journal Entry
Intercompany Journal Entry
Several basic elements make up a journal entry:
The date of the transaction records when it occurred
Account names and numbers indicate where the transaction will be recorded
Amounts reflect what is to be credited and what is to be debited
Entries also have a unique reference number and a brief description
Business transactions are usually recorded in two places. This is known as the double entry bookkeeping system, which is based on the concept that every transaction has an equal and opposite effect in two different places. For example, a purchase increases the company’s assets in terms of the value of the item acquired, but it also creates a debt in terms of the cash that must be paid for the item.
According to the double entry system, debits are recorded in the left-hand column of the ledger, and credits are recorded in the right-hand column.
There are many different types of journal entries. For example, the journal entry for an item that has been sold on credit will record the value of the sale as a debit in the accounts receivable and as a credit in the sales account.
If the item has been sold for cash, the journal entry will appear as a debit in the cash account instead of the accounts receivable account. It will still appear as a credit in the sales account.
In the case of payroll, a journal will record the transaction as a debit in the wage expenses account and as a credit in the cash account.
Journal entries are required for all transactions in the business, so there are a variety of entries that can be made.
Examples of types of journal entries include adjustments to net revenues, recording accrued expenses [such as payroll, inventory, or other supplies], amortization of prepaid expenses, recording depreciation and amortization, and recording a borrowing or repayment on a loan.
When a business purchases supplies for cash, accountants will enter the transaction as a debit in the supplies expense account and as a credit in the cash account.
If an organization purchases inventory on credit, the transaction will be entered as a debit in the inventory account and as a credit in the accounts payable account.
In both examples, the journal entries increase and decrease the corresponding accounts accordingly. Following the double entry system, they always add up.
Consider another unique example. Journal entries may also represent depreciation, which is the loss in value over time of a particular asset, like computer equipment.
Depreciation would be entered as a debit in the depreciation expense ledger and as a credit in the accumulated appreciation account.
There can be more than one kind of journal entry:
Adjusting entries are made at the end of an accounting period to record transactions that were not recognized during the period, such as accrued or deferred expenses, or to correct a mistake from the previous period.
Compound entries reflect a transaction that has more than two lines, like a purchase that involves cash and a loan.
A recurring journal entry is one that repeats in every reporting period for such expenses as monthly rent or depreciation on an asset.
Reversing entries cancel entries from the previous reporting period.
An unbalanced journal entry occurs when the debit and credit do not add up. This will have to be corrected before the financial statements are finalized.
According to the double entry bookkeeping system, every transaction has an equal and opposite effect in at least two different places. According to this logic, every double entry should balance out. This is expressed in the form of the equation: Assets = Liability + Equity.
Making journal entries in the general ledger account can be a time-consuming and labor- intensive process. It involves repetitive, manual work, long processing times, and little visibility.
The typical manual process comprises multiple steps with human intervention at every stage along the way, including manual data capture, manipulation and formatting, reconciliations and allocations, validations, and numerous other confirmation steps.
Spreadsheets, emails, and hard copy files are commonly used tools for most operations.
Making matters more challenging, much of this is done at the end of the monthly accounting cycle, creating a backlog and a time-crunch at period close.
The manual process is also fraught with risk and error. Spreadsheets do not validate important information. The data is only as good as it is entered. Many errors may go unnoticed and uncorrected.
Supporting documentation, which is stored separately and in varying format, such as emails and hard files, may be difficult to find and sort through. Transaction approvals require multiple emails and review.
Typically, accounting teams dive headlong into this process at month's end to reconcile entries and accounts.
All the above is labor intensive and unreliable, and every point in the process is susceptible to error and fraud. The number of journal entries that companies post each quarter range from hundreds for a small business to thousands for larger businesses.
Large companies can have a single entry with more than 20,000 line items. With this magnitude of transactions, the inefficiencies grow exponentially.
A system with weak controls is also susceptible to fraud. The Association of Fraud Examiners found that 27% of fraudsters created fraudulent journal entries.
This solution modernizes the journals experience by providing accuracy and control with improved efficiency at every step of the process.
It replaces specific manual journal tasks with targeted automation.
BlackLine Journal Entry allows accountants to automatically run and extract transactional detail from their source system.
This provides a complete journal entry management system that enables accountants to create, review, and approve journals, then electronically certify and store them with all supporting documentation. Having centralized information allows for easy access and audits.
BlackLine uses intelligent controls, approval routing, and segregation of duties. Journals can be posted to the general or sub-ledger systems with pre-posting validation to catch entry or logic errors, eliminating ledger rejections.
Automation rules allow period-end journal entries to be created and populated based on data and posted automatically, considerably reducing manual period-end work.
By automating journal entries, organizations have cut time and effort around journal entry processing by as much as 90%.
Request a demo with us and see how you can centralize, manage, and automate journal entries with Journal Entry Automation & Management Software.