BlackLine Sets New Standard with Addition of Trade Management Capabilities to its Intercompany Financial Management Solutions

Rhea-AI Summary

BlackLine, Inc. (Nasdaq: BL) introduces industry-first trade management capabilities with BlackLine Intercompany, addressing both trade and non-trade transactions, maximizing tax defensibility and increasing regulatory compliance. The company aims to solve complex intercompany accounting challenges for enterprise and midsize customers, with the potential to reduce tax leakage by as much as $500 million and direct taxes by up to 25%. BlackLine Intercompany harmonizes and unifies data across multiple ERPs, reducing tax filing time and effort and overall close cycles, providing a line of sight into all transactions to ensure correct taxes are applied across entities and geographies. The new functionality makes BlackLine Intercompany the first and only solution to handle both trade and non-trade transactions, optimized for multi-ERP environments, enhancing transfer pricing policy adherence and providing greater tax defensibility for multinational organizations.

Positive

• BlackLine introduces industry-first trade management capabilities with BlackLine Intercompany
• The company aims to solve complex intercompany accounting challenges for enterprise and midsize customers
• Potential to reduce tax leakage by as much as $500 million and direct taxes by up to 25%
• Harmonizes and unifies data across multiple ERPs, reducing tax filing time and effort and overall close cycles
• Provides a line of sight into all transactions to ensure correct taxes are applied across entities and geographies
• The new functionality makes BlackLine Intercompany the first and only solution to handle both trade and non-trade transactions, optimized for multi-ERP environments

Negative

• None.

An industry first, BlackLine Intercompany now addresses both trade and non-trade transactions, maximizing tax defensibility and increasing regulatory compliance 

LOS ANGELES, Nov. 29, 2023 /PRNewswire/ -- Digital finance transformation leader BlackLine, Inc. (Nasdaq: BL) continues to solve complex intercompany accounting challenges, delivering new trade management capabilities for enterprise and midsize customers.

Intercompany is one of the most complex areas of finance, with audit and tax advisory firm Grant Thornton estimating intercompany transfers at 30 to 40 percent of the global economy or $40 to $60 trillion annually. For large enterprises, transactions can have a value of up to 10 times a company's reported revenue. Lack of visibility over vital transactional details - such as price, quantity, and legal entity information - results in issues downstream, such as closing delays, tax filing challenges, increased talent turnover, and potential write-offs and restatements.

BlackLine Intercompany solves these problems by harmonizing and unifying data across multiple ERPs, reducing tax filing time and effort and overall close cycles.  As global regulatory issues, such as global minimum taxes and e-invoicing take center stage, BlackLine Intercompany provides a line of sight into all transactions, helping to ensure correct taxes are applied across entities and geographies for both the buyer and seller. To date, BlackLine Intercompany has helped numerous Fortune 100 organizations maximize tax reporting efficiency while enhancing regulatory compliance.

"Case studies show that our customers have reduced tax leakage by as much as $500 million and direct taxes by up to 25%, with some cutting their overall close cycle in half," said Kivanc Pakel, head of intercompany operations at BlackLine.

This new product enhancement makes BlackLine Intercompany the first and only solution to handle both trade (goods sold as part of a company's usual line of business) and non-trade (services such as allocations, chargebacks, BPO and shared services center billing) transactions, optimized for multi-ERP environments. The new functionality provides multinational organizations with greater tax defensibility and improved transfer pricing policy adherence. 

"BlackLine's first-of-its-kind functionality tackles the costly challenges associated with processing intercompany transactions in larger organizations, which can represent tens of millions of monthly transactions," said Robert Kugel, executive director at ISG-Ventana Research. "BlackLine is once again bringing industry-first technology and expertise to complex intercompany operations to enable companies to manage this complex business process proactively and effectively."

Customers  benefit from a range of new functionality, including:

• Increased interdepartmental collaboration via centralized data and workflow
• Increased transfer pricing visibility through billing route configurations
• Enhanced tax defensibility via validation of sales orders and invoices
• Informed, proactive decision-making through exception reporting

"As one of the top causes of financial restatements, addressing and minimizing intercompany transaction errors is critical for organizations to ensure a sound control environment," added Pakel. "The benefits for businesses are clear – less time reconciling which enables a faster close; fewer write-offs for increased profitability; less talent turnover; and improved transfer pricing policy adherence and tax defensibility for regulatory compliance."

The new trade management capabilities are included in BlackLine's Intercompany Create solution, part of its portfolio of Intercompany Financial Management offerings. Go here to learn more about how BlackLine can help solve your intercompany issues.

About BlackLine
Companies come to BlackLine (Nasdaq: BL) because their traditional manual accounting and finance processes are not sustainable. BlackLine's market-leading cloud platform and customer service help companies move to modern accounting by unifying their data and processes, automating repetitive work, and driving accountability through visibility. BlackLine provides solutions to manage and automate financial close and consolidation, accounts receivable, and intercompany accounting processes – inspiring, powering, and guiding large enterprises and midsize businesses on their digital finance transformation journeys.

More than 4,300 customers trust BlackLine to help them close faster with complete and accurate results. The company is the pioneer of the cloud financial close market and is recognized as the leader by customers at leading end-user review sites including G2 and TrustRadius. BlackLine is a global company with operations in major business centers including Los Angeles, New York, the San Francisco Bay area, London, Paris, Frankfurt, Tokyo, Singapore, and Sydney. For more information, visit blackline.com.

BlackLine Forward-looking Statements
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expect," "plan," anticipate," "believe," "estimate," "predict," "intend," "potential," "would," "continue," "ongoing" or the negative of these terms or other comparable terminology. Forward-looking statements in this release include statements regarding our growth plans and opportunities.

Any forward-looking statements contained in this press release are based upon BlackLine's current plans, estimates and expectations, and are not a representation that such plans, estimates, or expectations will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith beliefs and assumptions as of that time with respect to future events and are subject to risks and uncertainties. If any of these risks or uncertainties materialize or if any assumptions prove incorrect, actual performance or results may differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the Company's ability to execute on its strategies, attract new customers, enter new geographies and develop, release and sell new features and solutions; and other risks and uncertainties described in the other filings we make with the Securities and Exchange Commission from time to time, including the risks described under the heading "Risk Factors" in our Annual Report on Form 10-K.  Additional information will also be set forth in our Quarterly Reports on Form 10-Q.

Forward-looking statements should not be read as a guarantee of future performance or results, and you should not place undue reliance on such statements. Except as required by law, we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

 

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SOURCE BlackLine

FAQ

What is the ticker symbol for BlackLine, Inc.?

The ticker symbol for BlackLine, Inc. is BL.

What are the benefits of BlackLine Intercompany?

BlackLine Intercompany aims to reduce tax leakage, harmonize data across ERPs, and provide a line of sight into all transactions for correct taxes application.

What is the new functionality introduced by BlackLine Intercompany?

BlackLine Intercompany is the first and only solution to handle both trade and non-trade transactions, optimized for multi-ERP environments, providing greater tax defensibility for multinational organizations.

How does BlackLine Intercompany help organizations?

BlackLine Intercompany helps organizations by reducing tax leakage, harmonizing and unifying data across multiple ERPs, reducing tax filing time and effort, and ensuring correct taxes are applied across entities and geographies.

Who is the head of intercompany operations at BlackLine?

Kivanc Pakel is the head of intercompany operations at BlackLine.