99% of Stakeholders Surveyed by BlackLine Report Challenges with Intercompany Accounting Processes

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[{"type":"text","content":"New research reveals growing challenges are impacting business outcomes, talent retention and more\nLOS ANGELES, June 6, 2023 /PRNewswire/ -- A global survey commissioned by accounting automation software leader BlackLine, Inc. (Nasdaq: BL) revealed suboptimal intercompany accounting processes are creating wide-ranging issues for businesses globally.\n\n \n \n \n \n \n \n\n \nIn the survey of over 260 intercompany stakeholders working at large multinational companies, 99% said they face specific challenges with intercompany financial processes. Results show that the size and scale of intercompany transactions, coupled with outdated processes, is putting significant and unsustainable pressure on people and resources.\nNegative impact on business outcomesAll respondents said intercompany challenges have a direct negative impact on business outcomes. The most frequently reported challenge (49%) is an increase in statutory and tax audits and their associated fees. \nIn a recent Ventana Research whitepaper, analyst Robert Kugel explained: \"Fragmented and inconsistent data makes it difficult to quickly and accurately connect the strands of intercompany transactions to address multiple requirements.\" Mr. Kugel warned that these challenges are likely to grow in complexity, adding that: \"Additional factors complicating accounting and tax requirements are likely to emerge in coming years because of increasingly complex trading, regulatory and tax environments.\"\nThe report's findings show business leadership may not realize the scale of the problem. Nearly all respondents (89%) characterized their C-suite leadership and corporate boards as lacking a solid understanding of intercompany details and associated business impacts.\nUnsustainable pressure on talentNinety-two percent of respondents said intercompany challenges are impacting the hiring and retention of top talent. The survey suggests stakeholders are dealing with an unsustainable level of pressure. One in three reported their teams experienced physical or mental health issues due to the stress of intercompany, and 96% stated that employees regularly lose full nights of sleep.\nThe volume and value of intercompany transactions may be part of the problem. Over three quarters reported that the value of intercompany transactions was more than five times their annual revenue and ov...

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