Managing Journals with BlackLine
Key Takeaways
⇨ As the number and complexity of transactions escalate throughout a given quarter, manual processes struggle to keep pace.
⇨ Organizations should seek out journal solutions that automate key processes and centralize data to provide real-time data.
⇨ Companies should also ensure they are reducing any risk and potential for an audit.
Finance teams are tasked with a number of important duties when executing the financial close. One of the most challenging is journal entry management. Creating, supporting, and certifying journal entries is necessary, yet takes up a significant amount of time.
Recent SAPinsider research found that as the number and complexity of transactions escalate throughout a given quarter, manual processes struggle to keep pace. This can cause the process to stagnate and become inefficient, as well as introducing a higher risk of errors. Many Finance and Accounting teams at SAP organizations still use spreadsheets and emails to manage these tasks, which can heighten the risk of errors and omissions.
These issues with journal entries are only growing. SAPinsider research discovered that 28% of SAP organizations listed journal entry management as a challenge within their financial close and record-to-report processes in 2022. By 2023, that figure increased to 36% and shows no sign of decreasing in 2024.
Improving the Journal Entry Process
To combat many of the struggles they face, companies should review options like the BlackLine Journal Entry solution. The offering features several advantages over outdated and manual processes:
- Automation – BlackLine’s solution can automate 97% of all journal entries, saving valuable time and reducing the chance of errors introduced by manual work.
- Centralization – The solution allows users to manage journal entries in one centralized hub. Centralization allows users to see information throughout their SAP landscape in real-time. Users can configure their own rules to optimize workflows, allowing finance and accounting teams to work more efficiently.
- Audit Defense – The BlackLine Journal Entry solution features several audit defense and readiness tools. These include segregation of duties, an electronic audit trail, and role-based read-only access for auditors to find the documents they need.
For those looking to learn more, BlackLine is hosting its Global Journals Webinar on Thursday, April 25. Attendees can gain more crucial insights into their own journal entry process, learn more about the benefits of automation, and connect with other finance and accounting professionals.
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