Implementing BlackLine invoice-to-cash solution for revolutionary change

The accounts receivable (AR) process is one of the cornerstones of financial stability and growth for businesses. A recent BlackLine survey highlighted the ever-evolving role of AR in 2024, with a significant 75% of professionals acknowledging its increased strategic importance. This shift reflects a broader trend toward recognizing the value of efficient financial operations in driving company success. Despite this, many companies continue to grapple with antiquated systems and processes and insufficient technological resources.

The integration of BlackLine’s digital invoice-to-cash solution into AR processes marks a significant shift toward operational efficiency. AR automation minimizes manual errors and accelerates the payment cycle, enhancing a company's liquidity. In addition, the incorporation of advanced analytics empowers businesses with strategic insights, enabling proactive decision making. This digital evolution of AR processes is not just about keeping pace with technological advancements; it's about transforming financial operations to be more resilient, adaptable and aligned with the dynamic nature of the global market.

Embarking on a BlackLine AR automation journey requires a clear roadmap. Three principles stand out for ensuring a smooth and successful change.

1. No detail is too small

AR automation starts with a thorough examination of the existing workflow, where every detail is crucial. An invoice-to-cash report from BlackLine and SSON Research & Analytics reveals that 27% of organizations use a spreadsheet-based system to track collections, 20% don’t have a formal process for managing collections and rely on ad hoc methods, and 3% simply outsource their collections management to a third-party company.

With this significant variance in the way collections are managed across different organizations, having a clear understanding of your current processes is important. Analyze the flow of data, the current reporting processes and the tools being utilized. Review the layers of your organization’s daily operations to uncover the core elements: data, team dynamics, allocated resources and the overall structural framework.

This involves understanding the fundamental aspects of your data sources, the specifics of your reports and the overall scope of your operations. It isn’t just about identifying pain points; it’s about discovering opportunities for innovation, enhanced efficiency, and future streamlined process flows. It’s a journey to not only understand your process but to master and continuously improve it.

2. Strategize to optimize

Creating a robust strategy and target operating model is essential for AR automation implementation. Strategic alignment is paramount; refining the business strategy to not only align with the overarching corporate goals but also to empower employees is crucial for fostering an environment of growth and innovation.

Key considerations for a targeted operating model include:

• A flexible organizational structure that supports a seamless transition, underpinned by policies, controls and compliance mechanisms that strike a balance between cost, risk and quality of output
  • Outsourced resources like RSM’s finance as a service can be leveraged to support this organizational structure
• Processes created with clarity in ownership and accountability, ensuring an efficient workflow
• Data management with meticulous attention to tracking and analysis
• Technology which not only automates routine tasks but also offers comprehensive visibility through dashboards and seamless integration with existing enterprise resource planning and customer relationship management systems
• Performance management, coupled with the development of key performance indicators, should be in harmony with strategic goals, providing tangible metrics to gauge progress and performance

3. Embrace AR automation

For many organizations, revolutionizing AR processes will involve an overhaul of the current system. The BlackLine and SSON Research & Analytics report found that only 13% of companies believe that they have achieved high levels of automation and 50% of companies don’t have a structured process for collections at all. Embracing change can be a daunting task, but with the right approach, it becomes a journey of growth and opportunity.

Here are some tactical steps to help embrace change:

• Involve resources early: Including those who will use the system daily in the implementation process helps them feel heard, addresses any concerns that may arise, and promotes open communication and understanding across the team.

• Lead with the benefits of the BlackLine invoice-to-cash solution: This approach provides visibility into the reasons behind the change.

  • Processes are standardized, transparent, automated and scalable, freeing up resources to focus on value-adding activities and significantly reducing the risk of human error.
  • It increases visibility and provides access to accurate data in real time, improving forecasting and projections.
  • It enhances the customer experience by allowing more customized collection processes. Automation ensures no customers are missed and communications can be sent via their preferred method at their preferred time.

• Engage a certified implementation advisor: Choose an advisor who understands not only the BlackLine invoice-to-cash solution but also the overall end-to-end AR process.

The takeaway

For many organizations, AR automation is a critical next step for finance optimization. BlackLine’s invoice-to-cash solution allows for a modernized, streamlined approach, improving visibility and accuracy, and greatly reduces potential for error and overall workload. Implementing this solution prepares your organization for further growth and success moving forward.

To learn more about BlackLine and take steps toward improved processes, contact our BlackLine team. RSM is a certified BlackLine invoice-to-cash implementation advisor and was awarded Invoice-to-cash Partner of the Year in 2022 and 2023 and Partner of the Year in the Mid-Market for four consecutive years from 2020 to 2023. Our dedicated professionals are happy to connect and discuss how BlackLine’s invoice-to-cash solution can benefit your organization.