Blackline Reconciliation: What It Is and How it Works

Complexity is up. Transaction volume is higher than ever. And demands on decreasing time to closer are only getting louder. Enter softwares like BlackLine Reconciliation - tools designed to transform the reconciliation process from a mundane, error-prone task into a streamlined, automated process. 

But is this the right solution for your team’s accounting needs?

As one component of the BlackLine Finance Controls and Automation Platform; it enhances financial integrity and accountability through more efficient reconciliation. Whether you're a large corporation juggling myriad accounts or a current BlackLine customer exploring the reconciliation product for the first time, this article will introduce you to the capabilities of BlackLine Reconciliation.  We’ll highlight its main features, how it works, its pros and cons, and how it compares to alternative solutions.

While evaluating options for better reconciliation, consider Numeric Account Reconciliation. With reconciliation capabilities that enable you to drill down to transaction level changes, alerts when accounts that have been reconciled have been modified, and an intuitive design that makes it easy to get started and easier to modify as your team grows, Numeric is a top choice for leading accounting teams driving efficiency in reconciliations.  

Schedule a personalized demo to learn how Numeric can fit your team’s needs.

What BlackLine Reconciliation Is

BlackLine Reconciliation is a part of the BlackLine Finance Controls and Automation Platform. It's designed to streamline and automate the reconciliation process to ensure accuracy and compliance across an organization's finances. Here’s a high-level overview of how BlackLine Reconciliation works and its features:

• Automated Reconciliation: BlackLine Reconciliation automates the reconciliation process by matching transactions between the general ledger and subledgers. This reduces manual errors and saves time.
• Real-Time Monitoring: The platform provides real-time monitoring of reconciliations, allowing for timely reviews and approvals.
• Compliance and Controls: With built-in controls, BlackLine helps ensure that reconciliations are compliant with internal and external policies and regulations.
• Configurable Workflows: It allows for configurable workflows to meet the specific needs of an organization.
• Integration with Other Systems: BlackLine Reconciliation can integrate with a variety of ERPs to provide a seamless reconciliation process.
• Reporting and Analysis: It offers robust reporting and analysis tools to provide insights into the reconciliation process, helping identify areas for improvement.

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Altogether, the software is built to provide a more efficient, accurate, and compliant reconciliation process.

BlackLine vs Excel: Why Teams Upgrade

Most accounting teams begin their journey towards automation with a simple question: How do we move beyond Excel?

While Excel spreadsheets are familiar and flexible, they come with serious limitations in terms of scale, complexity, and compliance - all of which are crucial for reconciliation.

Manual Excel-based reconciliations tend to result in:

• Version control issues that impede collaboration
• High error rates due to manual copy-pasting
• Lack of visibility into status, approvals, and tasks
• Inconsistent format and processes across teams or entities

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These challenges make it difficult to ensure accuracy, meet deadlines, and maintain internal controls during financial close.

That’s where BlackLine Reconciliation or other account reconciliation tools enters the picture to provide a structured, automated alternative to reconciliation in Excel.

The main reason why teams upgrade from Excel to BlackLine is to benefit from:

• Risk Reduction: Automated reconciliation eliminates human error and offers a more consistent, audit-ready process.
• Efficiency Gains: Teams cut days off the reconciliation process with customizable templates, approval workflows, and centralized dashboards.
• Visibility and Control Boost: Controllers can track processes, identify bottlenecks, and guarantee compliance more easily than with Excel spreadsheets.

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For accountants and controllers, switching to a tool like BlackLine is the first natural step in their automation journey - once the limitations of Excel become too many or too risky to ignore.

Who Needs BlackLine Reconciliation

BlackLine Reconciliation is geared towards accounting teams that need to streamline and automate their reconciliation processes to ensure accuracy and compliance with financial standards. 

The following entities may need BlackLine Reconciliation:

• Large Corporations (Fortune 2000): They often have complex financial systems with many accounts, tied to potentially separate entities, that require reconciliations. BlackLine can help automate and streamline this process.
• Accounting Firms: Firms that provide accounting services can utilize BlackLine to provide more efficient reconciliation services to their clients.
• Government Entities: Government departments with financial oversight can use BlackLine to ensure public funds are accurately accounted for and reported.
• Non-Profit Organizations: They can utilize BlackLine to ensure that funds are being managed and reported accurately, which is crucial for maintaining trust with donors and regulatory bodies.
• Any Organization with Complex Financial Transactions: Any organization that has complex financial transactions and numerous accounts can benefit from using BlackLine or a similar software to simplify and automate the reconciliation process, ensuring financial accuracy and compliance.

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Generally speaking, BlackLine Reconciliation could be the right choice for large-scale enterprises and organizations with convoluted financial processes that have a dedicated admin to efficiently manage and maintain the platform. Meanwhile, smaller businesses find BlackLine rather overpowering due to the demanding implementation, setup, and usage. They are not able to take advantage of all available features while their teams struggle to get a hold of the accounting automation software.

How BlackLine Reconciliation Works

BlackLine Reconciliation is a part of the BlackLine Finance Controls and Automation Platform, which is designed to automate, centralize, and streamline financial close operations and other key finance and accounting processes. 

Here's a simplified outline of how BlackLine Reconciliation works as a well-known account reconciliation software:

• Data Importation: BlackLine imports financial data from various sources, including ERP systems and other financial tools.
• Automated Reconciliation: The platform automatically matches transactions across different systems or accounts, reducing manual errors and saving time.
• Exception Handling: In case of discrepancies or unmatched transactions, the system flags these exceptions for manual review.
• Workflow Management: BlackLine allows for the configuration of workflows to manage the reconciliation process from start to finish, including reviews and approvals.
• Real-Time Monitoring and Alerts: The platform provides real-time monitoring and alerts to notify responsible parties of required actions, status updates, or exceptions.
• Compliance and Controls: With built-in controls and a complete audit trail, BlackLine helps ensure that reconciliations are compliant with internal and external policies and regulations.
• Reporting and Analysis: BlackLine offers reporting and analysis tools to provide insights into the reconciliation process, helping identify potential areas for improvement.
• Review and Approval: Reconciliations are reviewed and approved within the system, ensuring a structured and documented process.
• Integration: BlackLine Reconciliation can integrate with other financial systems to provide a seamless reconciliation process.

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Through automation and streamlined workflows, BlackLine Reconciliation helps to accelerate the financial close process, increase accuracy, and improve compliance.

BlackLine Reconciliation Features

BlackLine Reconciliation offers a suite of features aimed at automating, streamlining, and ensuring the accuracy and compliance of the reconciliation process within an organization. 

Here are the core features of BlackLine Reconciliation:

• Automated Reconciliation: Automates the matching and reconciliation of transactions across different accounts or systems, reducing the risk of manual errors.
• Exception Management: Flags discrepancies or unmatched transactions for manual review, helping quickly identify and resolve issues.
• Workflow Automation: Provides configurable workflows to manage the reconciliation process from initiation to review and approval, ensuring a structured and documented process.
• Real-Time Monitoring and Alerts: Offers real-time monitoring of reconciliations with automated alerts and notifications for required actions, status updates, or approvals.
• Compliance and Controls: Comes with built-in controls and a complete audit trail to ensure compliance with internal and external policies and regulations.
• Integration Capabilities: Integrates with various financial systems and ERP platforms for a seamless reconciliation process.
• Role-Based Access Controls: Ensures that only authorized individuals can access, modify, or approve reconciliations, enhancing security and compliance.
• Template-Driven Setup: Allows for the creation of customized reconciliation templates to standardize the reconciliation process across the organization.
• Audit Trails: Keeps a detailed record of all actions taken within the system, providing transparency and accountability.
• Support and Training: Provides support and training resources to ensure users can effectively utilize the platform.
• Cloud-Based Platform: Allows for anytime-anywhere access, while ensuring data security and compliance.

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These features aim to provide a more efficient, accurate, and compliant reconciliation process, which is crucial for maintaining the financial integrity and operational efficiency of a business entity.

BlackLine Reconciliation Costs

The costs associated with BlackLine Reconciliation can vary based on a number of factors including the size of the organization, the volume of transactions to be reconciled, and the specific needs of the organization.

Following are the main components that make up the BlackLine pricing structure:

• Subscription Fees: BlackLine operates on a subscription-based pricing model with fees charged monthly or annually.
• User Licenses: The cost depends on the number of user licenses needed, with more licenses resulting in higher costs.
• Implementation Costs: There are initial implementation costs involved in setting up BlackLine Reconciliation, including integration with existing systems.
• Customization: Any customization or additional features needed beyond the standard offering incur additional costs.
• Integration: Integrating BlackLine with other accounting tools affects the overall cost.
• Data Migration: There are costs associated with migrating data from existing systems to BlackLine.
• Training and Support: Costs may also be incurred for training and support services to ensure users can effectively utilize the platform. Customers usually need to receive initial training and regular updates afterwards.

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For exact pricing, you need to contact BlackLine directly to receive a quote based on your organization's specific needs and circumstances. When determining the right software fit for their team, most managers research and gather pricing details for several softwares to make an informed decision of which is the best for their unique requirements.

Compared to other options in the market, like Numeric, BlackLine tends to be more expensive due to the implementation cost involved.

BlackLine Reconciliation Terms and Contract

The terms and contracts for BlackLine Reconciliation services will be detailed in the agreement between the client and BlackLine. It's important to carefully review any contract and understand the terms before proceeding. 

Here are some common elements included in the terms and contract for BlackLine Reconciliation services:

• Service Scope: Detailed description of the services to be provided, including any additional services or customizations.
• Pricing and Payment Terms: Costs associated with the service, payment schedules, and any other financial terms.
• User Licenses: Terms regarding user licenses, including the number of licenses provided, usage rights, and any restrictions.
• Data Ownership and Privacy: Provisions regarding the ownership, handling, and protection of data.
• Service Level Agreements (SLAs): Performance expectations, including availability, response times, and support services.
• Term and Termination: Duration of the contract and terms regarding renewal, termination, and any associated fees.
• Confidentiality and Security: Measures to ensure confidentiality and security of the client's information.
• Compliance and Regulatory Adherence: Compliance with applicable laws and regulations.
• Training and Support: Provisions for training and ongoing support, including any associated costs.
• Dispute Resolution: Procedures for addressing any disputes or issues that may arise during the term of the contract.
• Liability and Indemnification: Terms regarding liability, warranties, and indemnification.
• Integration and Customization: Terms regarding the integration with other systems and any customization of the platform.

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It's advisable to consult with legal counsel to fully understand the implications of the contract terms. Additionally, contacting BlackLine directly or working with a sales representative can provide a clear understanding of the contractual terms and conditions specific to BlackLine Reconciliation services.

BlackLine Reconciliation Customer Service

Customer service is an essential aspect of any software solution as it ensures that users have the necessary support to effectively utilize the platform. For BlackLine Reconciliation, the customer service includes a range of services to assist clients in different ways:

• Technical Support: Technical support teams to assist with any technical issues, troubleshoot problems, and ensure the software is operating correctly.
• Training and Education: Training programs, webinars, and educational resources to help users understand how to use BlackLine Reconciliation effectively.
• Online Resources: Access to online resources such as guides, tutorials, FAQs, and community forums to provide self-service support.
• Account Management: Dedicated account managers to provide personalized support, understand client needs, and ensure satisfaction.
• Help Desk: A help desk or support center for logging issues, tracking progress, and communicating with the support team.
• Feedback Channels: Channels for providing feedback on the software and services, which can be used to improve the product.
• Regular Updates and Communication: Regular updates on new features, best practices, and other important information to ensure clients are fully informed.
• Customization and Consulting Services: Services to customize the platform to meet the specific needs of the client, and consulting services to optimize the usage of BlackLine Reconciliation.

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The exact offerings and quality of customer service can vary depending on the subscription plan, the tier, and the contract that your team selects. It might be beneficial to contact BlackLine directly or check BlackLine reviews by customers to get a better understanding of the available customer service.

BlackLine Reconciliation Customer Reviews

The customer reviews for BlackLine Reconciliation highlight the following points:

• Automation: Positive remarks are frequently made about automation features that help in reducing manual errors and saving time.
• Implementation: Compared to other tools in the space, some customers mention that BlackLine’s implementation can be more involved and requires more configuration upfront from team members familiar with the software.
• Support and Training: Customers often mention that training resources online and on-going webinars are helpful 
• Integration Capabilities: Customers often appreciate the ability to integrate BlackLine Reconciliation with other financial systems.
• Cost: Reviews on cost are mixed, with some finding it reasonable while others mention that the cost can be prohibitive to smaller organizations. 
• Compliance and Controls: The built-in controls for compliance with financial regulations are seen as a strong point.
• Reporting and Analysis Tools: Users find the reporting and analysis tools useful for gaining insights and aiding in decision-making.

Pros and Cons of BlackLine Reconciliation

Pros of BlackLine Reconciliation:

• Automation: BlackLine Reconciliation automates many aspects of the reconciliation process, which can save time and reduce manual errors.
• Compliance and Controls: Built-in controls help in adhering to financial regulations, which is crucial for maintaining compliance.
• Integration Capabilities: The ability to integrate with other financial systems can streamline the reconciliation process further.
• Real-Time Monitoring: Real-time monitoring and alerts help keep the relevant teams informed and can expedite the approval process.
• Reporting and Analysis Tools: Tools for reporting and analysis can provide valuable insights, aiding in decision-making and continuous improvement.
• Support and Training: The availability of training and support resources ensures users can effectively utilize the platform.

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Cons of BlackLine Reconciliation:

• Cost: The cost of BlackLine Reconciliation may be a concern for some organizations, especially smaller ones.
• Implementation Challenges: Implementation and on-going customization of BlackLine can be involved for some organizations, especially if there's a need for customization or integration with other systems.
• Learning Curve: For those unfamiliar with reconciliation software or other BlackLine systems, there can be a learning curve to get started.
• Customization Limitations: There might be limitations in terms of customization for reporting or search, which could be a concern for organizations with very specific needs.

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In sum, BlackLine Reconciliation can potentially offer a robust solution for automating and streamlining the reconciliation process, but it has its drawbacks that organizations need to consider when making a decision.

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How to Get Started with BlackLine Reconciliation

Starting with BlackLine Reconciliation requires a structured approach to ensure a successful implementation and adoption within your organization. Here's an outline to get started:

• Research and Contact BlackLine: Understand the features and benefits of BlackLine Reconciliation by researching online or contacting BlackLine directly for information.
• Request a Demo: Request a demo of BlackLine's platform and other financial close software to understand its capabilities and how it can be used to automate and streamline your financial processes.
• Obtain Pricing and Terms: Get detailed pricing information and understand the terms of service to ensure it fits within your budget and operational requirements.
• Engage Stakeholders: Engage key stakeholders within your organization to ensure buy-in and to gather input on specific requirements. Compare BlackLine and other options for reconciliation, reading reviews and speaking directly with customers. 
• Select a Plan: Choose the appropriate BlackLine Reconciliation plan that meets your organization’s needs.
• Implementation: Work with BlackLine or a certified implementation partner to set up the platform, including integration with existing systems.
• Data Migration: Migrate necessary data to BlackLine Reconciliation under the guidance of BlackLine support or an implementation partner.
• Training: Enroll in training offered by BlackLine to ensure your team is well-equipped to use the platform effectively.
• Configuration and Customization: Configure the platform to meet your specific reconciliation process requirements, and customize it if necessary.
• Testing: Conduct thorough testing to ensure the platform is working as expected before going live.
• Go Live: Once satisfied with the setup and testing, go live and start using BlackLine Reconciliation for your reconciliation processes.
• Ongoing Support and Evaluation: Leverage BlackLine’s customer support for any issues and continuously evaluate the platform’s effectiveness in meeting your reconciliation needs.

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This structured approach will help in ensuring a smooth transition to using BlackLine Reconciliation and maximizing the benefits it can provide to your organization.

BlackLine Reconciliation Alternatives

If the list of features provided by BlackLine Reconciliation and the platform’s pros and cons make it look like this is not the right choice for your team, there is nothing to worry about. There are multiple alternatives to BlackLine Reconciliation in the market, each with its own set of tools, benefits, and costs.

Here are the top three BlackLine competitors that are frequently selected by companies with different needs and requirements:

• Numeric: Numeric is a modern reconciliation and close management platform designed specifically for high-performing teams on NetSuite. Unlike BlackLine, which is complex and heavy to implement, Numeric offers a streamlined, user-friendly experience with powerful automation features, such as dynamic checklists, deep ERP integrations, and AI-powered flux analysis. It’s ideal for mid- to large-sized companies that want robust controls without unnecessary complications. With built-in audit trails, real-time collaboration, and clear focus on speed and usability, Numeric delivers enterprise-grade capabilities in a much more affordable package. This makes it a smart choice for finance teams looking for scalability and agility.
• FloQast: FloQast is a reconciliation automation and close management software built for teams that still rely heavily on Excel but want better coordination and visibility. The platform integrates directly with spreadsheets, Microsoft Teams, and other tools to offer checklist tracking, workflow assignments, and file version control. Unlike Numeric and BlackLine, FloQast lacks full automation but is still a good option for mid-sized businesses and organizations transitioning from manual to semi-automated processes without getting rid of spreadsheets.
• Adra by Trintech: Adra, a part of Trintech, offers a modular approach to financial close and reconciliation, allowing teams to adopt tools for balance sheet reconciliation, transaction matching, and task management, as needed. Compared to BlackLine, Adra by Trintech is simpler and more cost-effective, making it suitable for growing businesses that want to automate gradually. However, this comes with limited automation capabilities.

The table below offers a side-by-side comparison of the main features of BlackLine and its alternatives:

While BlackLine could be a powerful option for large enterprises, alternatives like FloQast and Adra by Trintech offer different levels of functionality based on team size and needs.

However, for finance teams looking to simplify and accelerate their acceleration process - without adding unnecessary layers of complexity and enterprise overhead - Numeric stands out. It delivers automation, control, and visibility via a clean, intuitive platform built for modern accounting teams that value speed, accuracy, ease of use, and scalability.

Bottom Line on BlackLine Reconciliation

BlackLine Reconciliation is a robust solution designed to automate and streamline the reconciliation process that can integrate with existing financial systems. It serves as a valuable tool in particular for larger organizations looking to improve accuracy, save time, and ensure compliance in their reconciliation processes. 

When evaluating options for reconciliation, consider Numeric Account Reconciliation. Built to scale as teams grow and with speed and ease of use front and center, Numeric offers affordable access to real-time reconciliation, lightspeed close, and AI-supported flux analysis. Schedule a personalized demo to learn more.

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FAQs

How Does BlackLine Automate Account Reconciliations?

BlackLine automates account reconciliations by automatically pulling data from the ERP, applying standardized templates, and using rule-based logic to match transactions and flag exceptions. In addition, the platform supports automated workflows for approvals, certifications, and exception management.

What Types of Reconciliations Can BlackLine Handle?

BlackLine can handle a wide range of reconciliations, including balance sheet account reconciliations, bank account reconciliations, intercompany reconciliations, and high-volume transaction matching. It can support both simple and complex reconciliations across multiple legal entities and currencies.

Is BlackLine Suitable for Small or Mid-Sized Companies?

BlackLine is generally designed for larger enterprises with complex reconciliation and month-end close needs, typically in the Fortune 2000. While some mid-sized companies benefit from the available automation and controls, smaller teams find it more complicated and more costly than they need. For other finance teams, alternatives like Numeric prove to be a better fit.

How Long Does It Take to Implement BlackLine?

The BlackLine implementation takes about 4.5 months, on average. The necessary time varies depending on the complexity of accounting processes, ERP integration needs, and number of users.

What Are the Key Differences Between BlackLine and Excel-Based Reconciliation?

The key differences between BlackLine and Excel-based reconciliation lie in the level of automation, control, and visibility. BlackLine replaces manual tasks with automated data imports, matching, and workflows. Meanwhile, reconciling in Excel requires time-consuming manual updates that are prone to error. Another key difference between the two software platforms is the presence of standardized processes, built-in audit trails, and real-time dashboards in BlackLine.

What Are Some Alternatives to BlackLine for Reconciliation Automation?

Some popular alternatives to BlackLine for reconciliation automation include Numeric, FloQast, and Adra by Trintech. FloQast integrates with Excel and is generally preferred by mid-sized companies on Dynamics or Microsoft Great Plains. Arda by Trintech is a modular financial close solution. Numeric, on the other hand, stands out as a solution that offers deep automation combined with an intuitive, user-centric interface and approach built primarily for teams on NetSuite.