modern accounting for manufacturing - blacklinecan automate key account reconciliations without...

Trust is in the Balance™

MODERN ACCOUNTING FOR MANUFACTURINGGlobal manufacturing is complex. Companies slow to modernize are at a disadvantage.


New tools, from robotics to nanotechnology, are changing how manufacturers produce goods. Yet while the

manufacturing process has entered the 21st century, accounting and finance teams are still doing things the old-

fashioned way—with spreadsheets. While the production business is focused on improving speed and innovation,

teams are left to struggle with time-consuming, manual accounting processes.

A 24/7 industry with constantly changing customer demand means manufacturers today must have real-

time financial information. Yet for organizations still relying on spreadsheet-driven accounting, access to this

information is too little and too late. Hubbell Incorporated provides an example of how growth and a manual

reconciliation process can create challenges around accounting visibility, accuracy, and efficiency.

Manufacturers rely on the latest technology for production. So why are accounting and finance still using last century’s tools?


With manufacturing facilities, joint ventures, and sales offices spanning across 14 countries, real-time access to all

metrics, including reconciliation completion status and quality ratings, was critical for Hubbell’s accounting and finance

staff. However, the lack of standardization in the company’s month-end close process and day-to-day balance sheet

reconciliations, across its business units, was making real-time visibility and tracking nearly impossible. Additionally,

due to the lack of visibility into real-time information, the compilation of data was difficult and threatened Hubbell’s

compliance with corporate policies and procedures.

“We didn’t have full visibility of the timely completion of account reconciliations

and month-end tasks. If corporate finance wanted to see a reconciliation or

the composition of an account balance, they would have to reach out to a local

finance group. It was made even more difficult by the time differences associated

with being a global finance organization.”

—MARK KOOLIS, POWER SEGMENT ASSISTANT CONTROLLER, HUBBELL INCORPORATED


More than ever, manufacturers need access to real-time and accurate financial information. Stricter regulations

and fluctuating economies demand agility and an even faster response to market demands. Yet manual and tedious

accounting processes not only take too long to complete; they also can’t deliver information in time to help inform those

decisions so key to managing resources and staying competitive. Spreadsheet-driven accounting also leaves little time

for the kind of in-depth analysis critical to addressing risk and ensuring compliance.

Once relegated to the background of the manufacturing enterprise, accounting and finance teams now offer tremendous

value to the front of the organization. By providing fast, accurate financial data, teams can help create an organization

that is quick to respond to customer demands and the competition, from home or abroad. Automating rote, manual

tasks and freeing teams for value-added work like analysis can put manufacturers in the enviable position of first to

innovate, first to market, and first to identify and act on new growth opportunities.

Benefits of Financial Close & Accounting Automation Software

AutomationLower risk and human error by reducing the use of manual, spreadsheet-driven processes. Automate account reconciliations, journal entries, transaction matching, task management, and variance analysis.

VisibilityGain clear visibility into business data across multiple currencies. Access key financial information where and when it is needed – in real time.

EfficiencySpend less time on transactional tasks. Use that time instead to deliver value-added services. Stop manually tallying figures and automate transactions to drive access to better financial data in less time.

TrustDetect and correct errors to ensure financial statement accuracy. Reduce the risk of accounting irregularities. Gain real-time insight into the numbers that affect planning and strategy: production, materials, inventories, and more.

ReportingValidate all reporting from any ERP systems (e.g., SAP, NetSuite, Intacct, Oracle), and enhance Finance’s strategic contribution with accurate data and analysis and less effort.

Free staff from the assembly line approach to accounting


“With BlackLine, we knew that we weren’t simply buying a product to

help our business with account reconciliations. We were partnering with a

company that was invested in improving our overall financial close process

from beginning to end.”



Operational Benefits of BlackLine

BlackLine’s unified cloud platform empowers accounting and finance teams to automate and streamline period-end

activities to drive Continuous Accounting processes across the entire organization. Finally, technology is available that

enables real-time reporting and analysis, as well as an efficient and accurate close.

Practice Continuous Accounting to improve accuracy and reduce last-minute chaos - Instead of completing

period-end accounting activities in a few hurried days, perform work in smaller batches over time to prevent

employee burnout. What’s more, with a more balanced workload, teams can focus on reviewing and validating

information to provide accurate and timely financial data necessary for reporting.

Increase the quality—and quantity—of analysis - With more accurate information available, manufacturers can

trust in, and leverage, their financial data to make critical decisions – earlier in the business cycle. And with more

time to allocate towards analysis, accounting and finance teams are better equipped to position the organization

to mitigate risk, while driving continued innovation and growth.

Embed operational efficiency across all processes - By automating and standardizing transaction matching and

other time-consuming, manual tasks, manufacturers ensure continuous, easily scalable operations, even during

high-growth periods. BlackLine also reduces workflow bottlenecks by automating approvals, so accountants no

longer have to track down information via email and phone calls, or wait for paperwork to be delivered.

Provide global, controlled, continuous access for employees and auditors, anywhere, anytime - BlackLine offers

the power and connectivity of cloud technology, so dispersed teams can access the same information and use the

same processes to ensure transparency and consistency – across the globe and even as the business evolves.

BlackLine provides software that manages and automates complex, manual, and repetitive accounting processes,

moving high-growth and established organizations well beyond outdated accounting practices. BlackLine enables

Continuous Accounting by embedding automation, control, and period-end tasks within day-to-day activities. This

adjusts the historically rigid accounting calendar to better mirror the broader business. Accounting and finance teams

optimize business processes and costs with the BlackLine platform. It allows professionals to capture, confirm, and

provide the timely financial data necessary for reporting, all while improving efficiency.

BlackLine offers a modern approach for manufacturing

Auto-certified more than

60% of accounts to save

time & reduce human error

Improved transparency

worldwide by creating a

central location for data

Enhanced financial

controls by standardizing

processes across all

business units

Freed staff to focus on

value-added activities,

such as analysis


Before BlackLine, employees at The Dow Chemical Company were

responsible for 250,000 account reconciliations every quarter. While

Dow had strict deadlines in place, the highly manual and paper-heavy

process, combined with the lack of a central database, made it difficult

to meet close dates. Additionally, because each team had created their

own unique process there was little to no standardization, putting the

company at greater risk for financial errors.

With BlackLine, reviewers all over the globe can now track, manage, and

report on reconciliations. The increased visibility has improved Dow’s

financial controls by giving internal auditors clear traceability, as well

as instant access to documentation. By taking advantage of BlackLine’s

auto-certification capability, Dow has reduced the need for manual data

entry, thus freeing staff to focus on value-added activities.

LEADING MANUFACTURERS TRUST BLACKLINE

Implemented stronger

controls and process

standardization across

40+ business units

Achieved real-time

visibility into the

close process

Enhanced the quality

of reconciliations and

supporting documentation

Strengthened the internal

control environment


Hubbell’s decision to partner with BlackLine was driven, in large

part, by BlackLine’s commitment to customer service and continuous

innovation. Through this partnership, Hubbell has standardized and

simplified their financial close process and strengthened their internal

control environment. They can now instantly see where they are in

the close without waiting hours for a report from a business unit in a

different time zone or country.

READ MORE CUSTOMER SUCCESS STORIES @ BLACKLINE.COM/CUSTOMERS

LEADING MANUFACTURERS TRUST BLACKLINE


Automatically Match All Types of Transactions

Complex intercompany relationships, multiple divisions, inventory, and global

supply chains make matching large volumes of data a difficult, time-consuming,

and error-prone process. With BlackLine’s Transaction Matching product,

manufacturers can stop “ticking and tying” thousands of transactions manually.

Instead, BlackLine matches any and all transaction types—millions per minute—

while making unmatched transactions available to create reconciling items,

exception cases, and correcting journal entries. As a result, manufacturers save

hundreds of hours on bank reconciliations, credit card matching, intercompany

transactions, and invoice-to-PO matching.

Confirm Key Account Balances Every Day

Verify balances across different production facilities, business units, and currencies.

BlackLine Daily Reconciliations enables continual validation of account balances

and transactional details. Companies can ensure accuracy of critical accounts

throughout an accounting period. Standardize routine processes with automation.

Embed control and auditability. Refocus accountants on exception handling and

discrepancy investigation, instead of tedious—and error-prone—data entry.

Modern automation technology is changing the nature of manufacturing. Now it’s time for manufacturing accounting

and finance teams to experience the same benefits of that technology. BlackLine cloud software automates

manual accounting operations, including transaction matching, journal entries, and daily and period-end account

reconciliations. By reducing—and even eliminating—manual data entry during the close, manufacturers can reduce

the close by days, freeing accounting teams to focus on more strategic work, like modeling, planning, and analysis.

5 benefits of manufacturing accounting close & automation software


Centralize & Automate End-to-End Journals Management

Manually processing journal entries can take hundreds of hours every month, as

spreadsheets are passed around for approval and review before eventual posting.

BlackLine Journal Entry streamlines journal entry management. Manufacturing

companies can automate the creation, approval, and review of journals using

dynamic data. This can be done with data from many sources, including bank feeds

and credit card statements. Additionally, BlackLine’s Journal Master functionality

can track and manage recurring entries, providing even greater levels of visibility

and control.

Standardize & Streamline Inventory Reconciliations

Legacy account reconciliation processes are time-consuming and prone to errors.

BlackLine Account Reconciliations simplifies and standardizes the end-to-end

reconciliation process to ensure the accuracy, timeliness, and quality of your high-

volume reconciliations while strengthening your internal control environment.

And by leveraging BlackLine’s configurable auto-certification rules, manufacturers

can automate key account reconciliations without having to implement additional

process changes.

Connect & Integrate with Existing Systems

Save IT resources from the difficult, time-consuming process of performing costly,

custom integrations and running ad hoc reports. Built for connectivity, the BlackLine

platform integrates with SAP, NetSuite, Oracle, and more than 40 other ERPs.

Ensure data integrity without risk of conversion and entry errors and enable data

imports from bank files, POS applications, and other systems.


Account Reconciliations

Automate and standardize the entire reconciliation process. Drive accuracy in the financial close with embedded controls.

Provide accountants with a streamlined method to verify the correctness and appropriateness of balance sheets.

Journal Entry

Centralize journal entry management and enable the creation, review, and approval of journals. Electronically certify

and store them with all supporting documentation. Post journals to any general or subledger system with pre-posting

validation eliminating rejections.

Transaction Matching

Reconcile millions of transactions in minutes. Match any type of data from many data sources and identify matched

and unmatched transactions rapidly. Quickly and easily create reconciling items from unmatched transactions as part

of a reconciliation.

Task Management

Centrally manage accounting tasks, including unified integration with journals and reconciliations. Automatically certify

tasks in a hierarchy when child tasks are complete. Control and track a variety of task types, including close checklists,

PBC lists, tax filings, and more.

BlackLine builds solutions that help manufacturing organizations reduce human error, increase efficiency, and create

transparency across all production facilities and business units. By minimizing spreadsheet-driven reconciliation

processes, manufacturers can close in less time and with more confidence. As a result, accounting and finance staff

can focus on the work that really matters: driving strategy creation and improving analysis to inform better business

decisions—and a better bottom line. It’s no wonder that more than 147,000 accounting and finance users trust BlackLine to

accurately, securely, and efficiently execute critical accounting and finance tasks.

Solutions designed to modernize accounting & finance for the manufacturing industry


Daily Reconciliations

Continually monitor and ensure accuracy throughout an accounting period and automate labor-intensive reconciliations.

Ensure the validity of the balances of bank and other key accounts. Embed controls and remove risk from manual,

spreadsheet-based processes.

Variance Analysis

Automate the monitoring and analysis of account balance fluctuations using rules that are easily customizable. Identify

account balances that fall outside of configurable thresholds. Manage risks by quickly uncovering discrepancies and

flagging them for further investigation.

Consolidation Integrity Manager

Automate the tedious system-to-system reconciliation process. Bring data from multiple systems, across multiple

facilities and business units, into a centralized location. Create automated workflows to investigate discrepancies.

Stop manually comparing multiple ledgers to a consolidation system.

Intercompany Hub

Centralize the entire intercompany process. Manage and control all of the global complexity inherent to intercompany

accounting, including reconciliations, currency values, transaction amounts, tax implications, journal creation, and

approval workflows.

BlackLine Insights

Optimize processes and increase efficiency by measuring accounting operations and productivity. Get real-time

intelligence, benchmarking, and analysis of accounting activities. Continuously improve accounting processes.


As organizations in a rapidly changing, highly regulated industry, manufacturers must be able to deliver accurate,

compliant, and real-time analysis of their financial performance at all times. Yet many manufacturers, while relying

on modern technology for production, still wrestle with outdated systems and processes that don’t meet the

needs of today’s business. At BlackLine, we help manufacturing companies transform their accounting and finance

operations to increase visibility, gain efficiencies, and improve accuracy.

Modernizing the way manufacturing accounting & finance work


Continuous

Accounting for

Manufacturing

BlackLine’s vision is to modernize the finance and accounting function to enable greater

operational effectiveness and agility. In doing so, accounting teams can detect and

address errors before they become problematic and play a more strategic role within

their organization. As the leader in Enhanced Finance Controls and Automation (EFCA)

software, BlackLine delivers a unified cloud platform that is uniquely capable of enabling

Continuous Accounting. This modern approach embeds automation, control, and tasks

typically not performed until the period-end directly within day-to-day activities,

allowing the rigid accounting calendar to more closely mirror the dynamic nature of

actual business cycles. For manufacturing companies, this means greater visibility into

the status of any reconciliation – at any point in time around the globe – and more

centralization and standardization across the close to gain a clear picture into the

organization’s financial health.

The BlackLine

Vision

At BlackLine, we are working closely with our customers to automate and optimize a

wide range of core accounting and financial processes to achieve “Modern Finance.”

Modern Finance is a journey yielding continuous improvement in the quality, accuracy,

and efficiency of accounting operations. By embedding process standardization, technical

automation, and constant analysis, Modern Finance transforms the way accounting and

finance work.

The Modern

Finance

Advantage

The Modern Finance movement is quickly becoming a competitive differentiator by

liberating accountants from the rote and repetitive labors inherent in their work. It also

enables CFOs to execute the enterprise performance agenda with unprecedented visibility,

control, and efficiency. The time has arrived to jumpstart the power of advanced cloud,

automated analytics, risk mitigation, and deep reporting technologies.


“BlackLine has strengthened our internal control environment. When we’re

talking account reconciliations, the bread and butter of our balance sheet, it’s

really about standardization and simplification. With BlackLine, we can do it

the same way everywhere across the globe.”


“With the old system, if our company controller called at the end of the day

asking about a balance sheet change on a European account, we would have

had to call people in Europe and wake them up, assuming we could find their

phone number. Now, we can take one look and tell the controller precisely

what is happening with that account. Efficiencies like that are hard to put into

numbers, but they let you see the gains that we’ve made.”

— PAT WITHROW, ACCOUNTING DIRECTOR, THE DOW CHEMICAL COMPANY


The modern finance platform for manufacturers

Designed entirely in the cloud from the ground up, BlackLine is the only unified technology solution built specifically for

accounting and finance. Those embarking on the Modern Finance journey embed process optimization and technical

automation to facilitate unprecedented accuracy and visibility, while unleashing accountants to add more value to the

broader business.


Modernizing the way finance and accounting work improves the efficiency, accuracy, and strategic impact of finance

to better serve the broader organization. Beyond providing numbers, BlackLine automates processes, streamlines

redundant tasks, and most importantly, delivers trust in accounting operations.

The future of accounting and finance


BlackLine is the creator and premier provider of Enhanced

Finance Controls and Automation (EFCA) software to

streamline financial close operations. BlackLine’s unified

cloud platform and broad range of solutions put it in a

class by itself—a company recognized by Gartner as a

Leader in providing both EFCA and Financial Corporate

Performance Management (FCPM) software solutions.

BlackLine is designed to automate and control financial

close processes for midsize and large organizations, and

complement ERPs and other financial systems. The SaaS

solution increases operational efficiency, real-time visibility,

control, and compliance to ensure end-to-end financial close

management, fueling confidence throughout the entire

accounting cycle. BlackLine’s mission is to continuously

improve the quality, accuracy, and efficiency of Accounting

& Finance by centralizing key accounting functions within a

single, unified cloud platform. BlackLine enables customers

to move beyond outdated processes and point solutions to

a Continuous Accounting model, which embeds real-time

automation, controls, and period-end tasks within day-to-day

accounting activities. As a result, BlackLine helps companies

achieve Modern Finance and ensure an efficient and more

accurate financial close. More than 1,500 companies around

the world trust BlackLine to ensure balance sheet integrity

and confidence in their financial statements.

modern accounting for manufacturing - blacklinecan automate key account reconciliations without...

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