CALCULATION PROCESSES
Amplify analysis when you automate calculations.
Optimize capacity, control, and value by automating your calculation processes.
Ultimately, BlackLine is doing all the calculation for us—systematically, driven by rules—and the manual process is now removed. We have a scalable function that is not only automated, but it has controls and it is efficient.
The Importance of Calculation Processes
While many accounting activities are black and white, certain processes require accountants to exercise judgment. They offer an opportunity to provide substantial value beyond numerical outputs—critically assessing the underlying models, scrutinizing the assumptions that drive them, comparing the results to historical data, and identifying trends within the dataset.
Common calculations performed by F&A teams include:
Allowance for bad debt
Payroll accruals
Revenue Allocations
Expense allocations
Inventory obsolescence
Rebate receivable/payable
challenges
Why Manual Calculations Are Unsustainable
The biggest downfall of manual calculation processes is the substantial time and resources required to reach the final calculation and the opportunity cost associated with this investment of time.
Manual Processes
Are you performing the following calculation activities manually?
Aggregating data from multiple sources into Excel
Formatting and updating spreadsheet formulas
Performing complex calculations full of vlookups, concatenations, and exception-based outliers
Risks & Challenges
Manual calculation processes have downstream effects that carry risk and pose additional challenges:
Incomplete data or data entry mistakes
Formula errors and other spreadsheet risk including review oversight
Misstated financial information
WHY BLACKLINE
What BlackLine Brings to Processes with Calculations
BlackLine’s unified financial close platform reduces risk and enhances the accuracy of calculated data by automating manual tasks and significantly reducing the time spent on calculations. BlackLine empowers F&A teams to deliver value through insightful analysis with the additional capacity gained when you automate the following activities within your calculation processes:
Import transaction data from your GL and other data sources into BlackLine
Apply consistency in calculations using predefined, flexible rules
Perform required sub-calculations, such as percentage application, required in the overall calculations process
Compare multiple data sets for purposes like recording the net change
Automate adjustments or standard journal entries within the process
Link adjustments to the face of the related account reconciliation
Want to see step-by-step calculation process examples from your peers?
Optimize More Processes
Calculation processes are part of the BlackLine Nine. With our framework, you can apply proven strategies to optimize key processes.
Accruals
Supercharge your accrual processes by leveraging end-to-end process automation.
Amortization
Save time and increase accuracy by automating and optimizing your amortization processes.
Rollforwards
Save time, reduce errors, and enhance reporting quality by streamlining and optimizing your end-to-end rollforward process.
Subledgers
Harness the power of your subledger data without having to load it yourself.
Suspense & Clearing
Your suspense and clearing accounts may net to zero, but how much time is your team spending to get there and are you confident in the process?
